| Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting
polices consistently applied in the preparation of the accompanying consolidated financial statements in accordance with accounting
principles generally accepted in the United States of America (“GAAP”) is as follows. Basis of Consolidation The consolidated financial statements include
the accounts of its subsidiaries. All significant intercompany accounts and transactions have been eliminated on consolidation. Cash and Cash Equivalents The Company considers all highly liquid
investments with an initial maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash
balances at several financial institutions located throughout the United States, which at times may exceed insured limits. The
Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and
cash equivalents. Receivables Trade accounts receivable are carried at
the invoiced amount less an estimate made for doubtful accounts based on management’s review of outstanding balances. The
collectability of the Company’s accounts receivable is reviewed on an ongoing basis, using historical payment trends and
a review of specific accounts. Accounts receivable are written off after all reasonable collection efforts have been exhausted
and when management determines the amounts to be uncollectible. Recoveries of receivables previously written off are recorded when
received. The allowance for doubtful accounts was $0 as of December 31, 2019 and September 30, 2019, respectively. In the normal course of business, the Company
may extend credit to its customers, on an unsecured basis, substantially all of whom are located in the United States of America.
The Company does not believe that it is exposed to any significant risk of loss on accounts receivable. Prepaid Expenses Prepaid expenses consist of expenses the
Company has paid for prior to the service or good being provided. These prepaid expenses will be recorded as expense at the time
the service has been provided. Property and Equipment Property and equipment are stated at cost,
less accumulated depreciation. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to earnings
over their estimated service lives by the straight-line method. Maintenance and repairs are charged to
earnings as incurred; major repairs and replacements are capitalized. When items of property or equipment are sold or retired,
the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Leases In
February 2016, the FASB issued ASU 2016-02 Leases, which changed financial reporting as it relates to leasing transactions to
recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. In July 2018, the
FASB issued ASU No. 2018-10 Codification Improvements to Topic 842, Leases and ASU No. 2018-11 Leases (Topic 842): Targeted
Improvements. In March 2019, the FASB issued ASU No. 2019-1 Codification Improvements to Topic 842, Leases. The Company
adopted these ASUs on October 1, 2019 on a modified retrospective basis. The
initial adoption of the standard recognized right-of-use assets of $323,097 and lease liabilities of
$337,454 on the Company’s statement of financial position with no impact on the Company's results of
operations. The Company had no significant changes to processes or controls. The Company leases all their office
space through an operating lease, which expires at January 31, 2024. Many of the lease agreements obligate the Company to pay real
estate taxes, insurance and certain maintenance costs, which are accounted for separately. The Company’s lease agreements
do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement
is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All
other leases are recorded on the balance sheet as right-of-use assets and lease liabilities for the lease term. Lease assets and
lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include
options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments
is determined primarily using the incremental borrowing rate based on the information available at lease commencement date. The
Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in general and
administrative expenses. Proprietary Content The proprietary content acquired as a part
of the TMN purchase has been recognized in the accompanying consolidated balance sheets at $525,100, the value attributed to such
content on the date of the purchase. The proprietary content is being amortized on a straight-line basis over an eight-year estimated
life. During each of the three months ended December 31, 2019 and 2018, the Company recorded amortization expense of $16,410 on
this intangible asset, which is included in depreciation and amortization expense in the accompanying consolidated statements of
operations. Accumulated amortization at December 31, 2019 was $278,959 and $262,550 at September 30, 2019. Non-compete Agreements Non-compete agreements entered into as
a part of the TMN purchase have been recognized in the accompanying consolidated balance sheets at $26,300, the value attributed
to such agreements on the date of the purchase. The non-compete agreements are being amortized on a straight-line basis over the
five-year term of the non-compete clause of the agreement. During each of the three months ended December 31, 2019 and 2018, the
Company recorded amortization expense of $1,315 on this intangible asset, which is included in depreciation and amortization expense
in the accompanying consolidated statements of operations. Accumulated amortization at December 31, 2019 was $22,355 and $21,040
at September 30, 2019. Intellectual Property The Company accounts for intellectual property
in accordance with GAAP and accordingly, intellectual property are stated at cost. Intellectual property with indefinite lives
are not amortized but are tested for impairment at least annually. Management has determined that the intellectual property have
an indefinite life and do not consider the value of intellectual property recorded in the accompanying consolidated balance sheets
to be impaired as of December 31, 2019 and September 30, 2019. Goodwill Goodwill represents the excess of the value
of the purchase price and related costs over the identifiable assets from business acquisitions. The Company conducts an annual
impairment assessment, at the reporting unit level, of its recorded goodwill. The Company assesses qualitative factors in order
to determine whether it is more likely than not that the fair value of a reporting unit is less than it is carrying amount. The
qualitative factors evaluated by the Company include: macro-economic conditions of the local business environment, overall financial
performance, and other entity specific factors as deemed appropriate. If, through this qualitative assessment, the conclusion is
made that it is more likely than not that a reporting unit’s fair value is less than it is carrying amount, a two-step impairment
test is performed. Management determined, by assessing the qualitative factors, that it is more likely than not that the fair value
of the reporting unit is greater than it carries value. Management does not consider the value of goodwill recorded for TMN in
the accompanying consolidated balance sheets to be impaired as of December 31, 2019 and September 30, 2019. Income Taxes The Company accounts for federal and state
income taxes pursuant to GAAP, which requires an asset and liability approach for financial accounting and reporting for income
taxes based on tax effects of differences between the financial statement and tax basis of assets and liabilities. The Company accounts for all uncertain
tax positions in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
740 – Income Taxes (“ASC 740”). ASC 740 provides guidance on de-recognition, classification, interest and penalties
and disclosure related to uncertain income tax positions. The Company recognizes accrued interest and penalties related to unrecognized
tax benefits as a component of income tax expense. There was no accrued interest or penalties as of December 31, 2019 and September
30, 2019. From time to time, the Company is audited
by taxing authorities. These audits could result in proposed assessments of additional taxes. The Company believes that its tax
positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations
by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes. The
Company’s Federal returns since 2016 are still subject for examination by taxing authorities. Earnings Per Share Basic earnings per common share is computed
by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding for the reporting
period. Average number of common shares were 41,495,070 and 35,837,900 for the three months ended December 31, 2019 and 2018, respectively. For the three months ended December 31, 2019,
approximately 2,161,605 common stock equivalents were not added to the diluted average shares because inclusion of such equivalents
would be antidilutive. For the three months ended December 31, 2018, approximately 3,840,121 common stock equivalents were not
added to the diluted average shares because inclusion of such equivalents would be antidilutive. Revenue Recognition The Company derives its revenues primarily
from six components: Investment Management Fees, Tax Master Network subscriptions, Tax Operating System subscriptions, Financial
Advisor subscriptions, Tax BluePrint sales, and Insurance Sales. Sofos Investments, Inc. generates investment
management fees for services provided by the Company. Investment management fees include fees earned from assets under management
by providing professional services to manage client investments. Investment management fees are calculated as a percentage of assets
under management for the period. Investment management fees are Revenue is recognized as earned, at the end of each period. Fees
are withdrawn from investor assets monthly, in arrears. Financial Gravity Tax, Inc. generates service income from its
consulting and other professional services performed. Revenue recognized as service is provided. Subscription income is billed
to client credit card monthly, on the monthly anniversary of client sign-up. Commission revenue is derived from the
sale of annuities and premiums on life insurance policies held by third parties. The revenue is recognized when commissions are
earned from insurers and issuers of the products. Commissions are received after products are issued and in force. Revenue represents gross billings less
discounts, and are net of sales taxes, as applicable. Amounts invoiced for work not yet completed are shown as deferred revenue
in the accompanying consolidated balance sheets. Tax Master Network has five levels of services that are charged
and collected on a month to month subscription basis. None of these programs come with a long-term commitment or contract, and
there is no up-front payment beyond the monthly subscription fee. Cancellations are processed within the month requested and memberships
are closed at the end of the period for which the most recent payment was made. Members are not entitled to refunds for unused
memberships. Any subscription fees paid for a future period are deferred in the financial statements. TMN also sells Tax Blueprint®.
These are tax planning strategies guides, to save customers taxes through the implementation of the recommended tax strategies.
After an initial assessment, the customers pay half of the year one tax savings. Revenue is deferred until the customer reviews
and accepts the final Tax Blueprint® document and returns an executed delivery agreement. Subscription income is billed to
client credit card monthly, on the monthly anniversary of client sign-up. TBP sales are billed to the client after a preliminary
assessment and client approval to move forward. Revenue recognized in 2020, that was included in the deferred revenue liability
at the beginning of the year is $61,400. Advertising Advertising costs are charged to operations
when incurred. Advertising and marketing expense were $21,113 and $31,644 for the three months ended December 31, 2019 and 2018,
respectively. Stock-Based Compensation The Company recognizes
the fair value of stock-based compensation awards as wages in the accompanying statements of operations for employee grants, commissions
for non-employee grants, and stock appreciation rights grants, on a straight-line basis over the vesting period, using the Black-Scholes
option pricing model, which is based on risk-free rate of 2.89% rates in 2020 and 1.49% to 2.55% in 2019, dividend yield of 0%,
expected life of 10 years and volatility of 35% to 40%. Use of Estimates The preparation of the consolidated financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported assets and liabilities
and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of
revenues and expenses during the reporting period. Actual results could differ from these estimates. Adjustments The accompanying unaudited
consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting
principles in the United States (“GAAP”), pursuant to the applicable rules and regulations of the SEC. The
information furnished herein reflects all adjustments (consisting only of normal recurring adjustments) that are, in the
opinion of management, necessary to present a fair statement of the financial position and operating results of the Company
as of and for the respective periods. However, these operating results are not necessarily indicative of the results expected
for a full fiscal year or any other future period. Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However,
management of the Company believes, to the best of their knowledge, that the disclosures herein are adequate to make the
information presented not misleading. The Company has determined that there were no subsequent events that would require
disclosure or adjustments to the accompanying consolidated financial statements through the date the financial statements
were issued. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited
consolidated financial statements of the Company for the fiscal year ended September 30, 2019, included in its
Annual Report on Form 10K. Going Concern The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern, which contemplates the Company will need
to manage additional asset units under contract and/or additional financing to fully implement its business plan, including continued
growth and establishment of a stronger brand. On May 23, 2017, the Company and GHS Investments,
LLC (“GHS Investments”) entered into an Equity Financing Agreement (the “Agreement”). The Agreement was
filed as an exhibit to a registration statement on Form S-1, filed with the Securities and Exchange Commission on September 18,
2017. The Agreement contemplates a series of transactions, pursuant to which the Company will “put” shares of its common
stock to GHS in consideration of the payment to the Company of eighty percent (80%) of the “Market Price” of such shares.
“Market Price” shall mean the average of the two lowest trading prices of the Company’s Common Stock during the
ten (10) consecutive trading days preceding the receipt of the applicable put notice. Accordingly, on each instance the Company
exercises a put option, the Company will know in advance, both the number of shares issuable upon exercise of the put option, and
the dollar amount of the purchase price for such shares. The maximum purchase price for shares to be purchased by GHS Investments
under the Agreement is $11,000,000. To facilitate the sale of the shares so purchased by GHS Investments, the Company agreed to
file a registration statement with the Securities and Exchange Commission. The Company also entered into a Registration Rights
Agreement with GHS Investments, pursuant to which the Company has agreed to provide certain registration rights under the Securities
Act of 1933, the rules and regulations promulgated thereunder, and applicable state securities laws. The Agreement will terminate
(i) when GHS Investments has purchased an aggregate of $11,000,000 of the common stock of the Company, or (ii) 36 months after
the effective date of the Agreement, or (iii) at such time that the registration statement is no longer in effect. Additionally, the Company is also actively
seeking growth of its service offerings, both organically and via new client relationships. Management, in the ordinary course
of business, is trying to raise additional capital through sales of common stock as well as seeking financing via equity or debt,
or both from third parties. There are no assurances that additional financing will be available on favorable terms, or at all.
If additional financing is not available, the Company will need to reduce, defer or cancel development programs, planned initiatives
and overhead expenditures. The failure to adequately fund its capital requirements could have a material adverse effect on the
Company’s business, financial condition and results of operations. Moreover, the sale of additional equity securities to
raise financing will result in additional dilution to the Company’s stockholders and incurring additional indebtedness could
involve an increased debt service cash obligation, the imposition of covenants that restrict the Company’s operations or
the Company’s ability to perform on its current debt service requirements. The consolidated financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as a going concern. Future Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13
Financial Instruments-Credit Losses, which amends how entities will measure credit losses for most financial assets and certain
other instruments that are not measured at fair value through net income, which applies to trade accounts receivable and the calculation
of the allowance for uncollectible accounts receivable. The new standard will become effective for the Company for annual and interim
periods beginning after December 31, 2019, with early adoption permitted. The Company is currently evaluating the impact of the
adoption of this accounting guidance will have on the consolidated financial statements. Since the Company currently uses an expected
losses from customers method, the Company does not anticipate the adoption of ASU 2016-13 will have a material impact on the Company's
financial condition or results of operations. In January 2017, the FASB issued ASU No.
2017-04 Intangibles-Goodwill and Other Simplifying the Test for Goodwill Impairment, which provides guidance to simplify the subsequent
measurement of goodwill by eliminating the Step 2 procedure from the goodwill impairment test. The new guidance is effective for
the Company beginning October 1, 2020. |
