DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Jun. 30, 2019 | Aug. 14, 2019 | |
DOCUMENT AND ENTITY INFORMATION [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity Registrant Name | Cleartronic, Inc. | |
Entity Central Index Key | 0001362516 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 210,382,723 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | FL | |
Entity File Number | 000-55329 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash | $ 30,440 | $ 413 |
Accounts receivable, net | 162,671 | 109,660 |
Inventory | 4,684 | 13,790 |
Prepaid expenses and other current assets | 688 | 688 |
Assets from discontinued operations | 3,335 | 285 |
Total current assets | 201,818 | 124,836 |
Other assets: | ||
Other assets | 18,656 | 8,656 |
ReadyOp software platform (net of amortization) | 27,177 | 76,074 |
ReadyOp customer list (net of amortization) | 8,046 | |
Total other assets | 45,833 | 92,776 |
Total assets | 247,651 | 217,612 |
Current liabilities: | ||
Accounts payable | 513,198 | 502,178 |
Accrued expenses | 136,763 | 169,673 |
Deferred revenue, current portion | 489,323 | 354,362 |
Notes payable stockholders | 83,302 | 147,589 |
Customer deposits | 26,756 | 12,756 |
Liabilities from discontinued operations, current portion | 147,791 | 106,806 |
Total current liabilities | 1,397,133 | 1,293,364 |
Long Term Liabilities | ||
Deferred revenue, net of current portion | 117,579 | 112,333 |
Liabilities from discontinued operations, net of current portion | 13,172 | |
Total long term liabilities | 130,751 | 112,333 |
Total liabilities | 1,527,884 | 1,405,697 |
Commitments and Contingencies (See Note 7) | ||
Stockholders' deficit: | ||
Common stock - $.00001 par value; 5,000,000,000 shares authorized, 210,382,723 and 203,899,190 shares issued and outstanding, respectively | 2,104 | 2,039 |
Additional paid-in capital | 15,041,538 | 14,854,301 |
Accumulated Deficit | (16,323,962) | (16,044,512) |
Total stockholders' deficit | (1,280,233) | (1,188,085) |
Total liabilities and stockholders' deficit | 247,651 | 217,612 |
Series A Preferred Stock [Member] | ||
Stockholders' deficit: | ||
Preferred stock | 5 | 5 |
Series B Preferred Stock [Member] | ||
Stockholders' deficit: | ||
Preferred stock | ||
Series C Preferred Stock [Member] | ||
Stockholders' deficit: | ||
Preferred stock | 45 | 45 |
Series D Preferred Stock [Member] | ||
Stockholders' deficit: | ||
Preferred stock | 7 | 7 |
Series E Preferred Stock [Member] | ||
Stockholders' deficit: | ||
Preferred stock | $ 30 | $ 30 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Sep. 30, 2018 |
Common Stock, par value per share | $ 0.00001 | $ 0.00001 |
Common Stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common Stock, shares issued | 210,382,723 | 203,899,190 |
Common Stock, shares outstanding | 210,382,723 | 203,899,190 |
Series A Preferred Stock [Member] | ||
Preferred Stock, par value per share | $ 0.00001 | $ 0.00001 |
Preferred Stock, shares authorized | 1,250,000 | 1,250,000 |
Preferred Stock, shares issued | 512,996 | 512,996 |
Preferred Stock, shares outstanding | 512,996 | 512,996 |
Series B Preferred Stock [Member] | ||
Preferred Stock, par value per share | $ 0.00001 | $ 0.00001 |
Preferred Stock, shares authorized | 10 | 10 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Series C Preferred Stock [Member] | ||
Preferred Stock, par value per share | $ 0.00001 | $ 0.00001 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 4,433,375 | 4,433,375 |
Preferred Stock, shares outstanding | 4,433,375 | 4,433,375 |
Series D Preferred Stock [Member] | ||
Preferred Stock, par value per share | $ 0.00001 | $ 0.00001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 670,904 | 670,904 |
Preferred Stock, shares outstanding | 670,904 | 670,904 |
Series E Preferred Stock [Member] | ||
Preferred Stock, par value per share | $ 0.00001 | $ 0.00001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 3,000,000 | 3,000,000 |
Preferred Stock, shares outstanding | 3,000,000 | 3,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 365,296 | $ 192,131 | $ 835,631 | $ 561,404 |
Cost of Revenue | 81,435 | 35,749 | 178,541 | 88,456 |
Gross Profit | 283,861 | 156,382 | 657,090 | 472,948 |
Operating Expenses: | ||||
Selling expenses | 155,077 | 107,255 | 410,315 | 278,241 |
Administrative expenses | 99,939 | 78,358 | 275,828 | 267,555 |
Amortization | 16,299 | 28,380 | 56,943 | 85,140 |
Research and development | 44,248 | 49,417 | 157,789 | 171,992 |
Total Operating Expenses | 315,563 | 263,410 | 900,875 | 802,928 |
Other Income (Expense) | (1,799) | (3,243) | (11,913) | 2,014 |
Loss from continuing operations before income taxes | (33,501) | (110,271) | (255,698) | (327,966) |
Income taxes from continuing operations | ||||
Loss from continuing operations | (33,501) | (110,271) | (255,698) | (327,966) |
Discontinued operations | ||||
Income (loss) from discontinued operations | 14,337 | (3,476) | (23,752) | (12,374) |
Income taxes from discontinued operations | ||||
Income (loss) from discontinued operations | 14,337 | (3,476) | (23,752) | (12,374) |
Net loss | (19,164) | (113,747) | (279,450) | (340,340) |
Preferred stock dividends Series A Preferred | (10,231) | (10,857) | (30,694) | (33,517) |
Net loss attributable to common stockholders | $ (29,395) | $ (124,604) | $ (310,144) | $ (373,857) |
Net loss per share - basic and diluted | ||||
Loss from Continuing Operations | $ 0 | $ 0 | $ 0 | $ 0 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net loss per common share - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average of number of shares outstanding basic and diluted | 207,647,935 | 203,899,190 | 206,414,819 | 203,899,190 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net Loss | $ (279,450) | $ (340,340) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Amortization of ReadyOp software platform | 48,897 | 48,897 |
Amortization of ReadyOp customer list | 8,046 | 36,243 |
Provision for bad debt | 22,000 | 8,000 |
(Increase) decrease in assets: | ||
Accounts receivable | (75,011) | (65,103) |
Inventory | 9,106 | 20,417 |
Prepaid expenses and other current assets | (10,000) | 4,135 |
Assets from discontinued operations | (3,051) | 11,907 |
Increase (decrease) in liabilities: | ||
Accounts payable | (15,927) | 8,843 |
Accrued expenses | (3,403) | 99,428 |
Deferred revenue | 140,207 | 124,754 |
Customer deposit | 14,000 | (10,000) |
Liabilities from discontinued operations | 64,260 | 88,527 |
Net Cash (Used in) Provided by Operating Activities | (80,326) | 35,708 |
Cash Flows From Investing Activities | ||
Issuance of note receivable - discontinued operations | (25,000) | (50,000) |
Repayment of note receivable - discontinued operations | 25,000 | |
Net Cash Used in Investing Activities | (50,000) | |
Cash Flows From Financing Activities | ||
Proceeds from issuance of installment loan-discontinued operations | 43,810 | |
Repayment of installment loan - discontinued operations | (26,966) | |
Proceeds from notes payable stockholders | 713 | 30,000 |
Repayment of notes payable stockholders | (15,782) | |
Proceeds from issuance of Common Stock | 100,000 | |
Dividends paid | (7,204) | |
Net Cash Provided by Financing Activities | 110,353 | 14,218 |
Net Increase (Decrease) In Cash | 30,027 | (74) |
Cash at beginning of period | 413 | 7,560 |
Cash at end of period | 30,440 | 7,486 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 4,771 | 1,338 |
Cash paid for taxes | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Common stock issued for conversion of note payable, accrued interest and accrued dividends - related parties | $ 94,506 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (Unaudited) - USD ($) | Preferred Stock [Member]Series A Preferred Stock [Member] | Preferred Stock [Member]Series B Preferred Stock [Member] | Preferred Stock [Member]Series C Preferred Stock [Member] | Preferred Stock [Member]Series D Preferred Stock [Member] | Preferred Stock [Member]Series E Preferred Stock [Member] | Common Stock [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | Total |
Balance at Mar. 31, 2017 | $ 6 | $ 26 | $ 7 | $ 30 | $ 2,039 | $ 14,854,319 | $ (15,511,703) | $ (655,276) | |
Balance, shares at Mar. 31, 2017 | 566,496 | 1 | 2,563,375 | 670,904 | 3,000,000 | 203,899,190 | |||
Series A Convertible Preferred shares exchanged for Series C Convertible Preferred shares | $ (1) | $ 11 | (10) | ||||||
Series A Convertible Preferred shares exchanged for Series C Convertible Preferred shares, shares | (53,500) | 1,070,000 | |||||||
Net loss | (340,340) | (340,340) | |||||||
Balance at Jun. 30, 2018 | $ 5 | $ 37 | $ 7 | $ 30 | $ 2,039 | 14,854,309 | (15,852,043) | (995,616) | |
Balance, shares at Jun. 30, 2018 | 512,996 | 1 | 3,633,375 | 670,904 | 3,000,000 | 203,899,190 | |||
Balance at Mar. 31, 2018 | $ 6 | $ 26 | $ 7 | $ 30 | $ 2,039 | 14,854,319 | (15,738,296) | (881,869) | |
Balance, shares at Mar. 31, 2018 | 566,496 | 1 | 2,563,375 | 670,904 | 3,000,000 | 203,899,190 | |||
Series A Convertible Preferred shares exchanged for Series C Convertible Preferred shares | $ (1) | $ 11 | (10) | ||||||
Series A Convertible Preferred shares exchanged for Series C Convertible Preferred shares, shares | (53,500) | 1,070,000 | |||||||
Net loss | (113,747) | (113,747) | |||||||
Balance at Jun. 30, 2018 | $ 5 | $ 37 | $ 7 | $ 30 | $ 2,039 | 14,854,309 | (15,852,043) | (995,616) | |
Balance, shares at Jun. 30, 2018 | 512,996 | 1 | 3,633,375 | 670,904 | 3,000,000 | 203,899,190 | |||
Balance at Sep. 30, 2018 | $ 5 | $ 45 | $ 7 | $ 30 | $ 2,039 | 14,854,301 | (16,044,512) | (1,188,085) | |
Balance, shares at Sep. 30, 2018 | 512,996 | 4,433,375 | 670,904 | 3,000,000 | 203,899,190 | ||||
Common Stock issued for cash | $ 33 | 99,967 | 100,000 | ||||||
Common Stock issued for cash, shares | 3,333,334 | ||||||||
Common stock issued for conversion of note payable, accrued interest and dividend - related parties | $ 32 | 94,474 | 94,506 | ||||||
Common stock issued for conversion of note payable, accrued interest and dividend - related parties, shares | 3,150,199 | ||||||||
Dividends paid | (7,204) | (7,204) | |||||||
Net loss | (279,450) | (279,450) | |||||||
Balance at Jun. 30, 2019 | $ 5 | $ 45 | $ 7 | $ 30 | $ 2,104 | 15,041,538 | (16,323,962) | (1,280,233) | |
Balance, shares at Jun. 30, 2019 | 512,996 | 4,433,375 | 670,904 | 3,000,000 | 210,382,723 | ||||
Balance at Mar. 31, 2019 | $ 5 | $ 45 | $ 7 | $ 30 | $ 2,072 | 14,954,268 | (16,304,798) | (1,348,371) | |
Balance, shares at Mar. 31, 2019 | 512,996 | 4,433,375 | 670,904 | 3,000,000 | 207,232,524 | ||||
Common stock issued for conversion of note payable, accrued interest and dividend - related parties | $ 32 | 94,474 | 94,506 | ||||||
Common stock issued for conversion of note payable, accrued interest and dividend - related parties, shares | 3,150,199 | ||||||||
Dividends paid | (7,204) | (7,204) | |||||||
Net loss | (19,164) | (19,164) | |||||||
Balance at Jun. 30, 2019 | $ 5 | $ 45 | $ 7 | $ 30 | $ 2,104 | $ 15,041,538 | $ (16,323,962) | $ (1,280,233) | |
Balance, shares at Jun. 30, 2019 | 512,996 | 4,433,375 | 670,904 | 3,000,000 | 210,382,723 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 - ORGANIZATION Cleartronic, Inc. (the Company) was incorporated in the state of Florida on November 15, 1999. The Companys subsidiaries are VoiceInterop (VoiceInterop) and ReadyOp Communications, Inc. (ReadyOp) In September 2014, the Company formed ReadyOp Communications, Inc. (a Florida corporation), as a wholly owned subsidiary to facilitate the marketing of ReadyOp software. The Companys only operating subsidiary is ReadyOp Communications, Inc. In November 2016, the Company cancelled its Licensing Agreement with Collabria LLC of Tampa, Florida (Collabria) and acquired all of the intellectual property related to Collabrias command and control software, trade-named ReadyOp. In addition the Company acquired Collabrias client list. In exchange for these assets the Company issued Collabria 3,000,000 restricted shares of the Companys Series E Convertible Preferred stock. The Company assumed none of Collabrias liabilities. In March 2018, the Company approved the spin-off VoiceInterop into a separate company under a Form S-1 registration to be filed with the United States Securities and Exchange Commission. On May 13, 2019, VoiceInterop filed an S-1 registration with the United States Securities and Exchange Commission. All VoiceInterop transactions of been recorded as discontinued operations. (See Note 8) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The accompanying unaudited interim consolidated financial statements contain the consolidated accounts of Cleartronic, Inc. and its subsidiaries, ReadyOp Communications, Inc. and VoiceInterop, Inc. All material intercompany transactions and balances have been eliminated. All VoiceInterop transactions have been recorded as discontinued operations. (See Note 8) BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q of Regulation S-K. They may not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended September 30, 2018 included in the Companys Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. The unaudited interim consolidated financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal and recurring adjustments have been made. Operating results for the nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019. USE OF ESTIMATES In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and operations for the reporting period. Although these estimates are based on managements knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant estimates include the assumptions used in valuation of deferred tax assets, estimated useful life of intangible assets, valuation of inventory and allowance for doubtful accounts. CASH AND CASH EQUIVALENTS For financial statement purposes, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company did not own any cash equivalents at June 30, 2019 and September 30, 2018. ACCOUNTS RECEIVABLE The Company provides an allowance for uncollectible accounts based upon a periodic review and analysis of outstanding accounts receivable balances. Uncollectible receivables are charged to the allowance when deemed uncollectible. Recoveries of accounts previously written off are used to credit the allowance account in the periods in which the recoveries are made. The Company provided $38,000 and $16,000 allowances for doubtful accounts as of June 30, 2019 and September 30, 2018, respectively. ASSET ACQUISITION In November 2016, the Company acquired the ReadyOp software platform and the Collabria customer base from Collabria LLC. In exchange for these assets the Company issued 3,000,000 shares of restricted Series E Convertible Preferred stock valued at $292,240. This valuation was based on internal calculations and validated by a third party valuation expert. The ReadyOp software platform was valued at $195,600 to be amortized over three years, amortization expense recognized for the three month periods ended June 30, 2019 and 2018 was $16,299 and $16,297, respectively. The amortization expense for the nine month periods ended June 30, 2019 and 2018 was $48,897 and $48,897, respectively. The Collabria customer base was valued at $96,640 to be amortized over two years, amortization expense recognized for the three month periods ended June 30, 2019 and 2018 was $0 and $12,083, respectively. The amortization expense for the nine month periods ended June 30, 2019 and 2018 was $8,046 and $36,243, respectively. CONCENTRATION OF CREDIT RISK The Company currently maintains cash balances at one FDIC-insured banking institution. Deposits held in noninterest-bearing transaction accounts are insured up to a maximum of $250,000 at all FDIC-insured institutions. RESEARCH AND DEVELOPMENT COSTS The Company expenses research and development costs as incurred. For the nine months ended June 30, 2019 and 2018, the Company had $157,789 and $171,992, respectively, in research and development costs from continuing operations. For the three months ended June 30, 2019 and 2018, the Company had $44,248, and $49,417, respectively, in research and development costs from continuing operations. REVENUE RECOGNITION AND DEFERRED REVENUES In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in Accounting Standards Codification 605, "Revenue Recognition." This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date of the new revenue standard by one year, and allowed entities the option to early adopt the new revenue standard as of the original effective date. There have been multiple standards updates amending this guidance or providing corrections or improvements on issues in the guidance. The requirements for these standards relating to Topic 606 are effective for interim and annual periods beginning after December 15, 2017. This standard permitted adoption using one of two transition methods, either the retrospective or modified retrospective transition method. The Company adopted these standards at the beginning of fiscal year 2019 using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of these standards did not have a material impact on the Company's condensed consolidated statements of operations during the nine months ended June 30, 2019. The Company revenue recognition policy follows guidance from Accounting Standards Codification (ASC) 606, Revenue from contract with customers. Revenue is recognized when the Company transferred promised goods and services to the customer and in the amount that reflect the consideration to which the company expected to be entitled in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount: i. Identification of Contact with a customer; ii. Identify the performance obligation of the contract iii. Determine transaction price; iv.Allocation of the transaction price to the performance obligations; and v. Recognition of revenue when (or as) the Company satisfies each performance obligation. The Company generates revenue primarily through the sale of integrated hardware and software licenses. The portion of the contract that is associated with ongoing hosting and related customer service is amortized monthly over the license period. The Company incurs certain incremental contract costs (referred to as deferred subscriber acquisition costs, net) including selling expenses (primarily commissions) related to acquiring customers. Deferred subscriber acquisition costs, net are included in prepaid and expenses and other current assets on the condensed consolidated balance sheet. Commissions paid in connection with acquiring new customers are determined based on the value of the contractual fees. Deferred subscriber acquisition costs will be amortized over the license period. In transactions in which hardware is sold to the customer, the Company recognizes revenue over the related software license period as the hardware cannot be used without a license and has no other alternative use. The Company allocates the transaction price to each performance obligation based on a relative standalone selling price. Revenue associated with the sale and installation of system licenses is recognized once installation is complete. Customer billings for services not yet rendered are deferred and recognized as revenue as services are provided. These fees are recorded as current deferred revenue on the condensed consolidated balance sheet as the Company expects to satisfy any remaining performance obligations as well as recognize the related revenue within the next twelve months. Accordingly, the Company has applied the practical expedient regarding deferred revenue to exclude the value of remaining performance obligations if (i) the contract has an original expected term of one year or less or (ii) the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed. The adoption of this standard did not have a material impact on the Company's condensed consolidated statements of operations during the nine months ended June 30, 2019. EARNINGS PER SHARE Basic income (loss) per common share is calculated using the weighted average number of shares outstanding during the periods reported. Diluted earnings per share include the weighted average effect of all dilutive securities outstanding during the periods presented. Diluted per share loss is the same as basic per share loss when there is a loss from continuing operations. Accordingly, for purposes of dilutive earnings per share, the Company excluded the effect of warrants and options. As of June 30, 2019 and 2018, we had no options and warrants outstanding. As of June 30, 2019 and 2018, we had 4,433,375 and 3,633,375 shares of Series C Convertible Preferred stock outstanding, respectively, which are convertible into 22,166,875 and 18,166,875 shares of common stock, respectively. As of June 30, 2019 and 2018, we had 670,904 shares of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock. As of June 30, 2019, we had 3,000,000 shares of Series E Convertible Preferred stock outstanding which are convertible into 300,000,000 shares of common stock. As of June 30, 2018, we had 3,000,000 Series E Convertible Preferred stock outstanding which were subject to a two-year waiting period before conversion. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company adopted ASC topic 820, Fair Value Measurements and Disclosures (ASC 820), formerly SFAS No. 157 Fair Value Measurements, effective January 1, 2009. ASC 820 defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There was no impact relating to the adoption of ASC 820 to the Companys consolidated financial statements. ASC 820 also describes three levels of inputs that may be used to measure fair value: § Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. § Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. § Level 3: Inputs that are generally observable. These inputs may be used with internally developed methodologies that result in managements best estimate of fair value. Financial instruments consist principally of cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and deferred revenue. The carrying amounts of such financial instruments in the accompanying condensed consolidated balance sheet approximate their fair values due to their relatively short-term nature. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities. The carrying amounts approximate fair value. It is managements opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments. INVENTORY EQUITY INSTRUMENTS ISSUED TO PARTIES OTHER THAN EMPLOYEES FOR ACQUIRING GOODS OR SERVICES The Company accounts for stock-based instruments issued for services in accordance with ASC 718 Compensation Stock Compensation. ASC 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued. The value of the portion of a stock award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. ADVERTISING COSTS Advertising costs are expensed as incurred. The Company had advertising costs of $1,797 and $883 during the three months ended June 30, 2019 and 2018, respectively, and $5,591 and $4,827 during the nine months ended June 30, 2019 and 2018, respectively. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in Accounting Standards Codification 605, "Revenue Recognition." This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date of the new revenue standard by one year, and allowed entities the option to early adopt the new revenue standard as of the original effective date. There have been multiple standards updates amending this guidance or providing corrections or improvements on issues in the guidance. The requirements for these standards relating to Topic 606 are effective for interim and annual periods beginning after December 15, 2017. This standard permitted adoption using one of two transition methods, either the retrospective or modified retrospective transition method. The Company adopted these standards at the beginning of fiscal year 2019 using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Compensation Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Jun. 30, 2019 | |
GOING CONCERN [Abstract] | |
GOING CONCERN | NOTE 3 - GOING CONCERN The Company's condensed consolidated financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company believes the acquisition of the ReadyOp software platform was a prudent purchase by the Company. Additional revenue has been generated for the Company and management believes revenue will continue to increase each quarter. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management is currently seeking funding from significant shareholders and outside funding sources sufficient to meet its minimal operating expenses. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its capital funding plans. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 4 - NOTES PAYABLE Notes payable to Stockholders As of June 30, 2019 and September 30, 2018, the Company had unsecured notes payable to stockholders totaling $83,302 and $147,589, respectively. These notes range in interest from 8% to 15% which are payable quarterly. Three notes with principal balances totaling $65,000 matured on June 30, 2019, and are currenlty in default. The remaining note matures on December 31, 2019. On June 18, 2019, the note holders converted $65,000 of notes payable, $22,302 of accrued interest and $7,204 of accrued dividends into 3,150,199 shares of common stock at a conversion price of $0.03 per share (See Note 5 and 6). In October 2017 and February 2018, the Company repaid the principal amount of a note payable totaling $15,782 to a shareholder. In October 2017, the Company issued two promissory notes to a shareholder and director in the amount of $15,000 each. The notes bear 8% interest and mature on June 30, 2019. Interest expense on the notes payable to stockholders was $3,990 and $3,243 for the three months ended June 30, 2019 and 2018, respectively, and $11,155 and $10,081 for the nine months ended June 30, 2019 and 2018, respectively. Installment Loan Payable On December 14, 2018, VoiceInterop entered into a Business Loan Agreement with WebBank whereby VoiceInterop borrowed $59,751, of this amount $15,491 was recorded as debt issuance cost. The agreement calls for 308 installments of $194 paid over 432 days. The debt issuance cost is amortized over the life of the loan. As of June 30, 2019, the loan balance is $24,092, net of debt issuance cost of $8,499. The amount is included in liabilities from discontinued operations (see Note 8). |
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
EQUITY TRANSACTIONS | NOTE 5 - EQUITY TRANSACTIONS Common stock issued for cash In December 2018, the Company sold 3,333,334 shares of common stock to unrelated parties for $100,000 in cash. Common stock issued for notes payable On June 18, 2019, the note holders converted $65,000 of notes payable, $22,302 of accrued interest and $7,204 of accrued dividends into 3,150,199 shares of common stock (See Note 4). Preferred Stock Dividends As of June 30, 2019 and September 30, 2018, the cumulative arrearage of undeclared dividends for Series A Preferred stock totaled $112,173 and $88,683, respectively. As discussed above, on June 18, 2019, the shareholder converted $7,204 of accrued dividends into shares of common stock (See Note 4 and 6). Preferred stock issued for acquisition of assets In November, 2016, the Board of Directors approved the Asset Purchase Agreement between the Company and Collabria LLC (Collabria). Under the terms of the Agreement, the Company acquired all of the intellectual property of Collabria, including its ReadyOp command, control and communication platform trade named ReadyOp (the ReadyOp Platform). In addition, the Company acquired Collabrias customer base (Collabria Client List). The Company assumed no liabilities of Collabria under this Agreement. The terms of the Agreement called for the Company to issue 3,000,000 (Three million) shares of restricted Series E Convertible Preferred stock to Collabria with a fair value of $292,240. As of March 1, 2019, each one (1) share of Series E Preferred shall be convertible into one hundred (100) shares of fully paid and non-assessable Common Stock at the sole option of the holder of Series E Preferred. Subscription Agreements between VoiceInterop, Inc., our wholly-owned subsidiary and private investors During the year ended September 30, 2018, Voiceinterop committed to sell 600,000 shares of its common stock to private investors for $68,000. The shares issuance is contingent upon a spin-off of the Company from Cleartronic, Inc. into a separate company. As of June 30, 2019, $68,000 is recorded as due to unrelated parties as the spin-off has not been completed and the shares have not been issued. This amount is included in liabilities from discontinued operations (See Note 8). Declaration of Stock Dividend On April 23, 2018, the board of Directors declared a stock dividend for certain shareholders of the Company. That each common shareholder would receive .075 shares of VoiceInterop common stock for each one (1) share of Cleartronic stock held by the shareholder, and that each shareholder of Series C and D Preferred stock shall receive .375 shares of VoiceInterop common stock for each one (1) share of Series C or Series D Preferred stock held by the shareholder. The record date of the dividend distribution shall be defined as the first business day following an effective statement from the United States Securities and Exchange Commission (SEC) regarding a pending S-1 filing. On May 13, 2019 Voiceinterop filed an S-1 registration statement with the SEC. As of the date of this report, the S-1 registration statement has not yet been approved by the SEC. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6 - RELATED PARTY TRANSACTIONS The Company leases its office space from another entity that is also a stockholder. Rent expense paid to the related party was $11,947 and $11,652 for the three months ended June 30, 2019 and 2018, respectively. Rent expense paid to the related party was $35,643 and $34,657 for the nine months ended June 30, 2019 and 2018, respectively. In October 2017 and February 2018, the Company repaid the principal amount of a note payable totaling $15,782 to a shareholder. In October 2017, the Company issued two promissory notes to a shareholder and director in the amounts of $15,000 each. The notes bear interest at 8% per annum and mature June 30, 2019. On June 18, 2019, the note holders converted $65,000 of notes payable, $22,302 of accrued interest and $7,204 of accrued dividends into 3,150,199 shares of common stock (See Note 4 and 5). On December 17, 2018, VoiceInterop entered into an unsecured promissory note with a shareholder which bears interest at 35% and matures on February 10, 2019. On February 14, 2019 the Company granted a 30 day extension to the shareholder. On March 6, 2019, a shareholder repaid the full principal amount of $25,000 along with $1,770 in accrued interest of a promissory note held by the Company. The interest income is included in income from discontinued operations (See Note 8). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7 - COMMITMENTS AND CONTINGENCIES Obligation Under Operating Lease The Company leases approximately 1,700 square feet for its principal offices in Boca Raton, Florida at a monthly rental of approximately $3,500, which expired in November 2018. VoiceInterop executed a new 3-year lease with its current landlord on December 1, 2018 for the same office space. The lease provided one month free as a concession. The monthly rent is $3,630 and provides for annual increases of base rent of 4% until the expiration date. The lease expires on November 30, 2021. Rent expense incurred during the nine months ended June 30, 2019 and 2018 was $35,643 and $52,331, respectively. Rent expense incurred during the three months ended June 30, 2019 and 2018 was $11,947 and $17,345, respectively. VoiceInterop subleases part of its office space to two entities for approximately $1, 150 per month. Sublease rental income received during the three and nine months ended June 30, 2019 was $2,870 and $8,616, respectively. Revenue and Accounts Receivable Concentration No customer accounted for more than 10% of the Companys revenue for the nine months ended June 30, 2019. One customer accounted for 11% of the Companys revenue for the nine months ended June 30, 2018. As of June 30, 2019, three customers accounted for approximately 51% of the Companys total outstanding accounts receivable. As of September 30, 2018, two customers accounted for 24% of the Companys total outstanding accounts receivable. Major Supplier and Sole Manufacturing Source During 2014, the Company developed a proprietary interoperable communications solution. The Company relies on no major supplier for its products and services. The Company has contracted with a single local manufacturing facility to provide completed circuit boards used in the assembly of its IP gateway devices. Interruption to the manufacturing source presents additional risk to the Company. The Company believes that other commercial facilities exist at competitive rates to match the resources and capabilities of its existing manufacturing source. Employment Agreements In December 2016, the Board of Directors accepted the resignation of Larry M. Reid as Chief Executive Officer of the corporation and appointed Mr. Reid as Chief Financial Officer. The Board also appointed Michael M. Moore as Chief Executive Officer. Under the terms of an employment agreement effective on November 28, 2016, Mr. Moore as CEO receives an annual salary of $200,000. The term of agreement is for a one-year period beginning on the effective date and shall automatically renew and continue in effect for additional one-year periods. Under the terms of an employment agreement effective on March 13, 2015, Mr. Reid as CFO receives an annual salary of $96,000. The term of agreement is for a one-year period beginning on the effective date and shall automatically renew and continue in effect for additional one-year periods. Exclusive Licensing Agreement On May 5, 2017, the Company entered into an Exclusive Licensing Agreement with Sublicensing Terms (the Agreement) with the University of Southern Florida Research Foundation, Inc. (USFRF) relating to an exclusive license of certain patent rights in connection with one of USFRFs U.S. Patent Applications. Both parties recognize that the research and development work provided by the Company was sufficient for USFRF to enter into the Agreement with the Company. The Agreement is effective April 25, 2017 and continues until the later of the date that no Licensed Patent remains a pending application or an enforceable patent or the date on which the Licensees obligation to pay royalties expires. The Company paid USFRF a License Issue Fee of $3,000 and $7,253 as reimbursement of expenses associated with the filing of the Licensed Patent. The Company agreed to complete the first commercial sale of products to the retail customer on or before January 31, 2019 or USFRF has the right to terminate the agreement. In addition, the Company agreed that it will have made and tested a prototype by August 31, 2018 or USFRF has the right to terminate the agreement. The company agreed to pay USFRF a royalty of 3% for sales of all Licensed Products and Licensed Processes and agreed to pay USFRF minimum royalty payments as follows: Payment Year $1,000 2019 $4,000 2020 $8,000 2021 -and every year thereafter on the same date, for the life of the agreement. In the event the Company proposes to sell any Equity Securities, then USFRF will have the right to purchase 5% of the securities issued in such offering on the same terms and conditions are offered to other purchasers in such financing. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 8 DISCONTINUED OPERATIONS In March 2018, the Company approved the spin-off Voiceinterop into a separate company under a Form S-1 registration to be filed with the United States Securities and Exchange Commission. On April 23, 2018, the board of Directors declared a stock dividend for certain shareholders of the Company. The Company will distribute to its shareholders owning Common Stock and Series C and D Preferred stock an aggregate of 17,697,448 shares of shares of Common Stock of Voiceinterop. That each common shareholder would receive .075 shares of Voiceinterop common stock for each one (1) share of Cleartronic stock held by the shareholder, and that each shareholder of Series C and D Preferred stock shall receive .375 shares of Voiceinterop common stock for each one (1) share of Series C or Series D Preferred stock held by the shareholder. The record date of the dividend distribution shall be defined as the first business day following an effective statement from the United States Securities and Exchange Commission (SEC) regarding a pending S-1 filing. On May 13, 2019 Voiceinterop filed an S-1 registration statement with the SEC. As of the date of this report, the S-1 registration statement has not yet been approved by the SEC. Because of this pending registration, all VoiceInterop transactions have been recorded as discontinued operations. As of June 30, 2019 and September 30, 2018, assets and liabilities from discontinued operations are listed below: June 30, September 30, 2019 2018 (unaudited) Current assets: Cash $ 1,735 $ 285 Accounts receivable, net 1,600 - Assets from discontinued operations $ 3,335 $ 285 Current liabilities: Accounts payable and accrued expenses $ 38,885 $ 10,086 Deferred revenue, current portion 16,413 28,720 Deferred rent, current portion 401 - Installment loan, net, current portion 24,092 - Due to unrelated parties 68,000 68,000 Current liabilities from discontinued operations 147,791 106,806 Long Term Liabilities Deferred revenue, net of current 11,282 - Deferred rent, long term portion 1,890 - Long term liabilities from discontinued operations 13,172 - Liabilities from discontinued operations $ 160,963 $ 106,806 The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the three month periods ended June 30, 2019 and 2018: For the three For the three months ended months ended June 30, 2019 June 30, 2018 Revenue $ 18,661 $ 32,899 Cost of Revenue 2,294 823 Gross Profit 16,367 32,076 Operating Expenses: Selling expenses 3,130 3,845 Administrative expenses and professional fees (5,002) 31,107 Total Operating Expenses ( 1,872) 35,552 Income (Loss) from operations 18,239 (3,476) Other Income (Expense) Other Income 4,851 - Interest and other expense (8,753) - Total Other (Expense) (3,902) - Income (Loss) Before Income Taxes 14,337 (3,476) Provision for Income Taxes - - Income (Loss) from discontinued operations $ 14,337 $ (3,476) The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the nine month periods ended June 30, 2019 and 2018. For the nine For the nine months ended months ended June 30, 2019 June 30, 2018 Revenue $ 75,721 $ 167,661 Cost of Revenue 25,395 88,556 Gross Profit 50,326 79,105 Operating Expenses: Selling expenses 10,200 20,140 Administrative expenses and professional fees 66,645 71,339 Total Operating Expenses 76,845 91,479 Loss from operations (26,519) (12,374) Other Income (Expense) Other Income 19,947 - Interest and other (expense) (17,180) - Total Other Income 2,767 - Loss Before Income Taxes (23,752) (12,374) Provision for Income Taxes - - Loss from discontinued operations $ (23,752) $ (12,374) |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The accompanying unaudited interim consolidated financial statements contain the consolidated accounts of Cleartronic, Inc. and its subsidiaries, ReadyOp Communications, Inc. and VoiceInterop, Inc. All material intercompany transactions and balances have been eliminated. All VoiceInterop transactions have been recorded as discontinued operations. (See Note 8) |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q of Regulation S-K. They may not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended September 30, 2018 included in the Companys Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. The unaudited interim consolidated financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal and recurring adjustments have been made. Operating results for the nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019. |
USE OF ESTIMATES | USE OF ESTIMATES In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and operations for the reporting period. Although these estimates are based on managements knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant estimates include the assumptions used in valuation of deferred tax assets, estimated useful life of intangible assets, valuation of inventory and allowance for doubtful accounts. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS For financial statement purposes, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company did not own any cash equivalents at June 30, 2019 and September 30, 2018. |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE The Company provides an allowance for uncollectible accounts based upon a periodic review and analysis of outstanding accounts receivable balances. Uncollectible receivables are charged to the allowance when deemed uncollectible. Recoveries of accounts previously written off are used to credit the allowance account in the periods in which the recoveries are made. The Company provided $38,000 and $16,000 allowances for doubtful accounts as of June 30, 2019 and September 30, 2018, respectively. |
ASSET ACQUISITION | ASSET ACQUISITION In November 2016, the Company acquired the ReadyOp software platform and the Collabria customer base from Collabria LLC. In exchange for these assets the Company issued 3,000,000 shares of restricted Series E Convertible Preferred stock valued at $292,240. This valuation was based on internal calculations and validated by a third party valuation expert. The ReadyOp software platform was valued at $195,600 to be amortized over three years, amortization expense recognized for the three month periods ended June 30, 2019 and 2018 was $16,299 and $16,297, respectively. The amortization expense for the nine month periods ended June 30, 2019 and 2018 was $48,897 and $48,897, respectively. The Collabria customer base was valued at $96,640 to be amortized over two years, amortization expense recognized for the three month periods ended June 30, 2019 and 2018 was $0 and $12,083, respectively. The amortization expense for the nine month periods ended June 30, 2019 and 2018 was $8,046 and $36,243, respectively. |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK The Company currently maintains cash balances at one FDIC-insured banking institution. Deposits held in noninterest-bearing transaction accounts are insured up to a maximum of $250,000 at all FDIC-insured institutions. |
RESEARCH AND DEVELOPMENT COSTS | RESEARCH AND DEVELOPMENT COSTS The Company expenses research and development costs as incurred. For the nine months ended June 30, 2019 and 2018, the Company had $157,789 and $171,992, respectively, in research and development costs from continuing operations. For the three months ended June 30, 2019 and 2018, the Company had $44,248, and $49,417, respectively, in research and development costs from continuing operations. |
REVENUE RECOGNITION AND DEFERRED REVENUES | REVENUE RECOGNITION AND DEFERRED REVENUES In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in Accounting Standards Codification 605, "Revenue Recognition." This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date of the new revenue standard by one year, and allowed entities the option to early adopt the new revenue standard as of the original effective date. There have been multiple standards updates amending this guidance or providing corrections or improvements on issues in the guidance. The requirements for these standards relating to Topic 606 are effective for interim and annual periods beginning after December 15, 2017. This standard permitted adoption using one of two transition methods, either the retrospective or modified retrospective transition method. The Company adopted these standards at the beginning of fiscal year 2019 using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of these standards did not have a material impact on the Company's condensed consolidated statements of operations during the nine months ended June 30, 2019. The Company revenue recognition policy follows guidance from Accounting Standards Codification (ASC) 606, Revenue from contract with customers. Revenue is recognized when the Company transferred promised goods and services to the customer and in the amount that reflect the consideration to which the company expected to be entitled in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount: i. Identification of Contact with a customer; ii. Identify the performance obligation of the contract iii. Determine transaction price; iv.Allocation of the transaction price to the performance obligations; and v. Recognition of revenue when (or as) the Company satisfies each performance obligation. The Company generates revenue primarily through the sale of integrated hardware and software licenses. The portion of the contract that is associated with ongoing hosting and related customer service is amortized monthly over the license period. The Company incurs certain incremental contract costs (referred to as deferred subscriber acquisition costs, net) including selling expenses (primarily commissions) related to acquiring customers. Deferred subscriber acquisition costs, net are included in prepaid and expenses and other current assets on the condensed consolidated balance sheet. Commissions paid in connection with acquiring new customers are determined based on the value of the contractual fees. Deferred subscriber acquisition costs will be amortized over the license period. In transactions in which hardware is sold to the customer, the Company recognizes revenue over the related software license period as the hardware cannot be used without a license and has no other alternative use. The Company allocates the transaction price to each performance obligation based on a relative standalone selling price. Revenue associated with the sale and installation of system licenses is recognized once installation is complete. Customer billings for services not yet rendered are deferred and recognized as revenue as services are provided. These fees are recorded as current deferred revenue on the condensed consolidated balance sheet as the Company expects to satisfy any remaining performance obligations as well as recognize the related revenue within the next twelve months. Accordingly, the Company has applied the practical expedient regarding deferred revenue to exclude the value of remaining performance obligations if (i) the contract has an original expected term of one year or less or (ii) the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed. The adoption of this standard did not have a material impact on the Company's condensed consolidated statements of operations during the nine months ended June 30, 2019. |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic income (loss) per common share is calculated using the weighted average number of shares outstanding during the periods reported. Diluted earnings per share include the weighted average effect of all dilutive securities outstanding during the periods presented. Diluted per share loss is the same as basic per share loss when there is a loss from continuing operations. Accordingly, for purposes of dilutive earnings per share, the Company excluded the effect of warrants and options. As of June 30, 2019 and 2018, we had no options and warrants outstanding. As of June 30, 2019 and 2018, we had 4,433,375 and 3,633,375 shares of Series C Convertible Preferred stock outstanding, respectively, which are convertible into 22,166,875 and 18,166,875 shares of common stock, respectively. As of June 30, 2019 and 2018, we had 670,904 shares of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock. As of June 30, 2019, we had 3,000,000 shares of Series E Convertible Preferred stock outstanding which are convertible into 300,000,000 shares of common stock. As of June 30, 2018, we had 3,000,000 Series E Convertible Preferred stock outstanding which were subject to a two-year waiting period before conversion. |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company adopted ASC topic 820, Fair Value Measurements and Disclosures (ASC 820), formerly SFAS No. 157 Fair Value Measurements, effective January 1, 2009. ASC 820 defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There was no impact relating to the adoption of ASC 820 to the Companys consolidated financial statements. ASC 820 also describes three levels of inputs that may be used to measure fair value: § Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. § Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. § Level 3: Inputs that are generally observable. These inputs may be used with internally developed methodologies that result in managements best estimate of fair value. Financial instruments consist principally of cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and deferred revenue. The carrying amounts of such financial instruments in the accompanying condensed consolidated balance sheet approximate their fair values due to their relatively short-term nature. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities. The carrying amounts approximate fair value. It is managements opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments. |
INVENTORY | INVENTORY |
EQUITY INSTRUMENTS ISSUED TO PARTIES OTHER THAN EMPLOYEES FOR ACQUIRING GOODS OR SERVICES | EQUITY INSTRUMENTS ISSUED TO PARTIES OTHER THAN EMPLOYEES FOR ACQUIRING GOODS OR SERVICES The Company accounts for stock-based instruments issued for services in accordance with ASC 718 Compensation Stock Compensation. ASC 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued. The value of the portion of a stock award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. |
ADVERTISING COSTS | ADVERTISING COSTS Advertising costs are expensed as incurred. The Company had advertising costs of $1,797 and $883 during the three months ended June 30, 2019 and 2018, respectively, and $5,591 and $4,827 during the nine months ended June 30, 2019 and 2018, respectively. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in Accounting Standards Codification 605, "Revenue Recognition." This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date of the new revenue standard by one year, and allowed entities the option to early adopt the new revenue standard as of the original effective date. There have been multiple standards updates amending this guidance or providing corrections or improvements on issues in the guidance. The requirements for these standards relating to Topic 606 are effective for interim and annual periods beginning after December 15, 2017. This standard permitted adoption using one of two transition methods, either the retrospective or modified retrospective transition method. The Company adopted these standards at the beginning of fiscal year 2019 using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Compensation Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Royalty Payments | The company agreed to pay USFRF a royalty of 3% for sales of all Licensed Products and Licensed Processes and agreed to pay USFRF minimum royalty payments as follows: Payment Year $1,000 2019 $4,000 2020 $8,000 2021 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Included in Statements of Operations and Assets and Liabilities in Discontinued Operations | As of June 30, 2019 and September 30, 2018, assets and liabilities from discontinued operations are listed below: June 30, September 30, 2019 2018 (unaudited) Current assets: Cash $ 1,735 $ 285 Accounts receivable, net 1,600 - Assets from discontinued operations $ 3,335 $ 285 Current liabilities: Accounts payable and accrued expenses $ 38,885 $ 10,086 Deferred revenue, current portion 16,413 28,720 Deferred rent, current portion 401 - Installment loan, net, current portion 24,092 - Due to unrelated parties 68,000 68,000 Current liabilities from discontinued operations 147,791 106,806 Long Term Liabilities Deferred revenue, net of current 11,282 - Deferred rent, long term portion 1,890 - Long term liabilities from discontinued operations 13,172 - Liabilities from discontinued operations $ 160,963 $ 106,806 The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the three month periods ended June 30, 2019 and 2018: For the three For the three months ended months ended June 30, 2019 June 30, 2018 Revenue $ 18,661 $ 32,899 Cost of Revenue 2,294 823 Gross Profit 16,367 32,076 Operating Expenses: Selling expenses 3,130 3,845 Administrative expenses and professional fees (5,002) 31,107 Total Operating Expenses ( 1,872) 35,552 Income (Loss) from operations 18,239 (3,476) Other Income (Expense) Other Income 4,851 - Interest and other expense (8,753) - Total Other (Expense) (3,902) - Income (Loss) Before Income Taxes 14,337 (3,476) Provision for Income Taxes - - Income (Loss) from discontinued operations $ 14,337 $ (3,476) The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the nine month periods ended June 30, 2019 and 2018. For the nine For the nine months ended months ended June 30, 2019 June 30, 2018 Revenue $ 75,721 $ 167,661 Cost of Revenue 25,395 88,556 Gross Profit 50,326 79,105 Operating Expenses: Selling expenses 10,200 20,140 Administrative expenses and professional fees 66,645 71,339 Total Operating Expenses 76,845 91,479 Loss from operations (26,519) (12,374) Other Income (Expense) Other Income 19,947 - Interest and other (expense) (17,180) - Total Other Income 2,767 - Loss Before Income Taxes (23,752) (12,374) Provision for Income Taxes - - Loss from discontinued operations $ (23,752) $ (12,374) |
ORGANIZATION (Details)
ORGANIZATION (Details) | 1 Months Ended |
Nov. 30, 2016shares | |
Series E Preferred Stock [Member] | ReadyOp platform and Collabria's client list from Collabria, LLC [Member] | |
Number of shares issued in stock conversion | 3,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Cash balance insured by FDIC per financial institution | $ 250,000 | $ 250,000 | ||||
Research and development | 44,248 | $ 49,417 | 157,789 | $ 171,992 | ||
Amortization | 48,897 | 48,897 | ||||
Advertising cost | 1,797 | 883 | 5,591 | 4,827 | ||
Allowances for doubtful accounts | $ 38,000 | $ 22,000 | $ 8,000 | $ 16,000 | ||
Series E Preferred Stock [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Preferred Stock, shares outstanding | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |
Preffered Stock, shares Issued | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |
Number common stock issued for convertible preferred stock | 300,000,000 | 300,000,000 | ||||
Series A Preferred Stock [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Preferred Stock, shares outstanding | 512,996 | 512,996 | 512,996 | 512,996 | 512,996 | |
Preffered Stock, shares Issued | 512,996 | 512,996 | 512,996 | 512,996 | 512,996 | |
Number common stock issued for convertible preferred stock | 51,299,600 | 4,075,000 | 51,299,600 | 4,075,000 | ||
Number of Common stock issued for convertible in two year period | 40,750 | 40,750 | ||||
Series C Preferred Stock [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Preferred Stock, shares outstanding | 4,433,375 | 3,633,375 | 4,433,375 | 3,633,375 | 4,433,375 | |
Preffered Stock, shares Issued | 4,433,375 | 3,633,375 | 4,433,375 | 3,633,375 | 4,433,375 | |
Number common stock issued for convertible preferred stock | 22,166,875 | 18,166,875 | 22,166,875 | 18,166,875 | ||
Series D Preferred Stock [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Preferred Stock, shares outstanding | 670,904 | 670,904 | 670,904 | 670,904 | 670,904 | |
Preffered Stock, shares Issued | 670,904 | 670,904 | 670,904 | 670,904 | 670,904 | |
Number common stock issued for convertible preferred stock | 3,354,520 | 3,354,520 | 3,354,520 | 3,354,520 | ||
Warrant [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Warrants and options excluded for purposes of dilutive earnings per share | 0 | 0 | ||||
ReadyOp platform and Collabria's client list from Collabria, LLC [Member] | Series E Preferred Stock [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Preffered Stock, shares Issued | 3,000,000 | |||||
Convertible Preferred stock with a fair value | $ 292,240 | |||||
ReadyOp platform [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Amortized Value | $ 195,600 | $ 195,600 | ||||
Number of amortized year over | 3 years | 3 years | ||||
Amortization | 16,299 | $ 16,297 | $ 48,897 | $ 48,897 | ||
Collabria's client list from Collabria, LLC [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Amortized Value | 96,640 | 96,640 | $ 96,640 | $ 96,640 | ||
Number of amortized year over | 2 years | 2 years | ||||
Amortization | $ 0 | $ 12,083 | $ 8,046 | $ 36,243 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) | Mar. 06, 2019USD ($) | Jun. 18, 2019USD ($)$ / sharesshares | Oct. 31, 2017USD ($) | Oct. 30, 2017USD ($) | Feb. 28, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 14, 2018USD ($)InstallmentDays | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face value | $ 24,092 | $ 24,092 | |||||||||
Notes payable repaid | $ 25,000 | $ 15,782 | $ 15,782 | ||||||||
Accrued interest | $ 1,770 | ||||||||||
Accrued dividends | 7,204 | 7,204 | |||||||||
Debt issuance cost | 8,499 | 8,499 | |||||||||
WebBank [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face value | $ 59,751 | ||||||||||
Debt issuance cost | $ 15,491 | ||||||||||
Number of installments | Installment | 308 | ||||||||||
Amount paid in installments | $ 194 | ||||||||||
Number of paid days | Days | 432 | ||||||||||
Notes Payable, Other Payables [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 8.00% | ||||||||||
Maturity date | Jun. 30, 2019 | ||||||||||
Debt instrument, face value | $ 15,000 | ||||||||||
Notes Payable, Other Payables [Member] | Investor [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notes payable - stockholders | 83,302 | 83,302 | $ 147,589 | ||||||||
Debt instrument, face value | $ 65,000 | $ 65,000 | |||||||||
Debt conversion converted amount | $ 65,000 | ||||||||||
Debt conversion converted shares | shares | 3,150,199 | ||||||||||
Accrued interest | $ 22,302 | ||||||||||
Accrued dividends | $ 7,204 | ||||||||||
Conversion price | $ / shares | $ 0.03 | ||||||||||
Notes Payable, Other Payables [Member] | Investor [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 8.00% | 8.00% | |||||||||
Notes Payable, Other Payables [Member] | Investor [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 15.00% | 15.00% | |||||||||
Three Notes Payable [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Dec. 31, 2019 | Dec. 31, 2019 | |||||||||
Notes payable - stockholders | $ 65,000 | $ 65,000 | |||||||||
Interest expense | $ 3,990 | $ 3,243 | $ 11,155 | $ 10,081 |
EQUITY TRANSACTIONS (Details)
EQUITY TRANSACTIONS (Details) - USD ($) | Mar. 06, 2019 | Jun. 18, 2019 | Dec. 31, 2018 | Nov. 30, 2016 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | Apr. 23, 2018 |
Class of Stock [Line Items] | |||||||||
Cash received | $ 100,000 | ||||||||
Due from unrelated parties | $ 68,000 | 68,000 | |||||||
Accrued interest | $ 1,770 | ||||||||
Accrued dividends | $ 7,204 | $ 7,204 | |||||||
VoiceInterop Inc [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Cash received | $ 600,000 | ||||||||
Proceeds from due to unrelated parties | $ 68,000 | ||||||||
Dividend paid | $ .075 | ||||||||
Investor [Member] | Notes Payable, Other Payables [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Debt conversion converted shares | 3,150,199 | ||||||||
Debt conversion converted amount | $ 65,000 | ||||||||
Accrued interest | 22,302 | ||||||||
Accrued dividends | $ 7,204 | ||||||||
Series A Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preffered Stock, shares Issued | 512,996 | 512,996 | 512,996 | 512,996 | |||||
Cumulative undeclared dividend | $ 112,173 | $ 112,173 | $ 88,683 | ||||||
Series E Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preffered Stock, shares Issued | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |||||
Debt conversion converted shares | 100 | ||||||||
Series E Preferred Stock [Member] | ReadyOp platform and Collabria's client list from Collabria, LLC [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preffered Stock, shares Issued | 3,000,000 | ||||||||
Convertible Preferred stock with a fair value | $ 292,240 | ||||||||
Series C Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preffered Stock, shares Issued | 4,433,375 | 4,433,375 | 3,633,375 | 4,433,375 | |||||
Dividend paid | .375 | ||||||||
Series C Preferred Stock [Member] | VoiceInterop Inc [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend paid | .375 | ||||||||
Series D Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preffered Stock, shares Issued | 670,904 | 670,904 | 670,904 | 670,904 | |||||
Dividend paid | .375 | ||||||||
Series D Preferred Stock [Member] | VoiceInterop Inc [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend paid | $ 0.375 | ||||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Cash received | $ 100,000 | $ 33 | |||||||
Shares issued | 3,333,334 | 3,333,334 | |||||||
Accrued dividends |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Mar. 06, 2019 | Jun. 18, 2019 | Dec. 17, 2018 | Oct. 31, 2017 | Oct. 30, 2017 | Feb. 28, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Rent expense | $ 11,947 | $ 11,652 | $ 35,643 | $ 34,657 | ||||||
Debt instrument, face value | 24,092 | 24,092 | ||||||||
Repayments of notes payable | $ 25,000 | $ 15,782 | $ 15,782 | |||||||
Accrued interest | $ 1,770 | |||||||||
Accrued dividends | 7,204 | 7,204 | ||||||||
VoiceInterop Inc [Member] | ||||||||||
Interest rate | 35.00% | |||||||||
Maturity date | Feb. 10, 2019 | |||||||||
Notes Payable, Other Payables [Member] | ||||||||||
Interest rate | 8.00% | |||||||||
Debt instrument, face value | $ 15,000 | |||||||||
Maturity date | Jun. 30, 2019 | |||||||||
Notes Payable, Other Payables [Member] | Investor [Member] | ||||||||||
Debt instrument, face value | $ 65,000 | $ 65,000 | ||||||||
Accrued interest | $ 22,302 | |||||||||
Debt conversion converted amount | $ 65,000 | |||||||||
Debt conversion converted shares | 3,150,199 | |||||||||
Accrued dividends | $ 7,204 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | Dec. 02, 2018 | Mar. 13, 2015USD ($) | Nov. 28, 2016USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Sep. 30, 2018 |
Area of leased facility | ft² | 1,700 | |||||||
Monthly rental cost | $ 3,500 | |||||||
Annual percentage increase to base rent | 4.00% | |||||||
Lease expiration date | Nov. 30, 2021 | Nov. 30, 2018 | ||||||
Rent expense | $ 11,947 | $ 17,345 | $ 35,643 | $ 52,331 | ||||
Monthly base rent | 3,630 | |||||||
Sublease rent per month | 1,150 | |||||||
Sublease rental income | $ 2,870 | $ 8,616 | ||||||
Accounts Receivable [Member] | Three customer [Member] | ||||||||
Concentration risk percentage | 51.00% | |||||||
Accounts Receivable [Member] | Two Customers [Member] | ||||||||
Concentration risk percentage | 24.00% | |||||||
Revenue [Member] | One customer [Member] | ||||||||
Concentration risk percentage | 11.00% | |||||||
USFRF [Member] | ||||||||
Reimbursement of expenses | $ 7,253 | |||||||
Royalty percentage | 3.00% | |||||||
Percentage of right to purchase securities | 5.00% | |||||||
USFRF [Member] | License [Member] | ||||||||
License fees | $ 3,000 | |||||||
Chief Financial Officer [Member] | ||||||||
Officers salary | $ 96,000 | |||||||
Chief Executive Officer [Member] | ||||||||
Officers salary | $ 200,000 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Schedule of Minimum Royalty Payments) (Details) - USFRF [Member] | Jun. 30, 2019USD ($) |
Related Party Transaction [Line Items] | |
2019 | $ 1,000 |
2020 | 4,000 |
2021 | $ 8,000 |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) | Apr. 23, 2018$ / sharesshares |
Series C Preferred Stock [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Dividend paid | $ .375 |
Series D Preferred Stock [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Dividend paid | .375 |
VoiceInterop Inc [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Dividend paid | $ .075 |
VoiceInterop Inc [Member] | Series C Preferred Stock [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of common shares distribute to shareholders | shares | 17,697,448 |
Dividend paid | $ .375 |
VoiceInterop Inc [Member] | Series D Preferred Stock [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of common shares distribute to shareholders | shares | 17,697,448 |
Dividend paid | $ 0.375 |
DISCONTINUED OPERATIONS (Schedu
DISCONTINUED OPERATIONS (Schedule of Discontinued Operations Included in Statements of Operations) (Details) - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Assets from discontinued operations | $ 3,335 | $ 285 |
Current liabilities: | ||
Current liabilities from discontinued operations | 147,791 | 106,806 |
Long Term Liabilities | ||
Long term liabilities from discontinued operations | 13,172 | |
VoiceInterop Inc [Member] | ||
Current assets: | ||
Cash | 1,735 | 285 |
Accounts receivable, net | 1,600 | |
Assets from discontinued operations | 3,335 | 285 |
Current liabilities: | ||
Accounts payable and accrued expenses | 38,885 | 10,086 |
Deferred revenue, current portion | 16,413 | 28,720 |
Deferred rent, current portion | 401 | |
Installment loan, net, current portion | 24,092 | |
Due to unrelated parties | 68,000 | 68,000 |
Current liabilities from discontinued operations | 147,791 | 106,806 |
Long Term Liabilities | ||
Deferred revenue, net of current | 11,282 | |
Deferred rent, long term portion | 1,890 | |
Long term liabilities from discontinued operations | 13,172 | |
Liabilities from discontinued operations | $ 160,963 | $ 106,806 |
DISCONTINUED OPERATIONS (Sche_2
DISCONTINUED OPERATIONS (Schedule of Assets and Liabilities from Discontinued Operations) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income (Expense) | ||||
Loss Before Income Taxes | $ 14,337 | $ (3,476) | $ (23,752) | $ (12,374) |
Provision for income taxes | ||||
Loss from discontinued operations | 14,337 | (3,476) | (23,752) | (12,374) |
VoiceInterop Inc [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 18,661 | 32,899 | 75,721 | 167,661 |
Cost of revenue | 2,294 | 823 | 25,395 | 88,556 |
Gross profit | 16,367 | 32,076 | 50,326 | 79,105 |
Selling expenses | 3,130 | 3,845 | 10,200 | 20,140 |
Administrative expenses and professional fees | 5,002 | 31,107 | 66,645 | 71,339 |
Total operating expenses | (1,872) | 35,552 | 76,845 | 91,479 |
Income (Loss) from operations | 18,239 | (3,476) | (26,519) | (12,374) |
Other Income (Expense) | ||||
Other income | 4,851 | 19,947 | ||
Interest and other expense | (8,753) | (17,180) | ||
Total Other Income | (3,902) | 2,767 | ||
Loss Before Income Taxes | 14,337 | (3,476) | (23,752) | (12,374) |
Provision for income taxes | ||||
Loss from discontinued operations | $ 14,337 | $ (3,476) | $ (23,752) | $ (12,374) |