Creative Waste Solutions (CWSS) 10-Q/A 25 Jun 18 2018 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 17, 2018
Document And Entity Information
Entity Registrant Name	Creative Waste Solutions, Inc.
Entity Central Index Key	1,385,329
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,010,936
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Current assets -
Cash	$ 4,382	$ 1,480
Accounts receivable, net	10,517	43,630
Total current assets	14,899	45,110
Deposits	7,000	57,000
Equipment, net	63,700	70,500
Intangible assets, net	179,167	272,917
Goodwill	149,500	149,500
Total assets	414,266	595,027
Current liabilities -
Accounts payable and accrued expenses	231,537	218,769
Convertible debentures and notes payable, related parties	241,896	241,896
Notes payable	396,500	396,500
Advances-related parties	77,546	76,546
Derivative liability	55,667	2,684,146
Total current liabilities	1,003,146	3,617,857
Total liabilities	1,003,146	3,617,857
Stockholders' deficit:
Preferred Stock; $.001 value 5,000,000 shares authorized, none issued and outstanding
Common Stock; $.001 par value, 225,000,000 authorized 6,010,936 and 6,010,936 shares issued and outstanding	6,011	6,011
Additional-paid in capital	3,011,613	3,011,613
Accumulated deficit	(3,606,504)	(6,040,454)
Total stockholders' deficit	(588,880)	(3,022,830)
Total liabilities and stockholders' deficit	$ 414,266	$ 595,027

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Sep. 30, 2017
Stockholders' deficit:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ .001
Common stock, shares authorized	225,000,000	225,000,000
Common stock, shares issued	6,010,936	6,010,936
Common stock, shares outstanding	6,010,936	6,010,936

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements Of Operations
Sales	$ 136,990	$ 225,273	$ 361,772	$ 454,812
Cost of goods sold	70,039	160,756	210,568	368,938
Gross profit	66,951	64,517	151,204	85,874
Operating expenses:
General and administrative	183,606	113,601	318,969	212,144
Loss from operations	(116,655)	(49,084)	(167,765)	(126,270)
Other income (expenses):
Gain (loss) on derivative liability	615,785	101,536	2,628,479	(26,540)
Interest expense	(13,382)	(15,318)	(26,764)	(31,188)
Total other income (expenses)	602,403	86,218	2,601,715	(57,728)
Net income (loss)	$ 485,748	$ 37,134	$ 2,433,950	$ (183,998)
Basic earnings (loss) per common share
Net income (loss)	$ 0.08	$ 0.01	$ 0.40	$ (0.03)
Diluted earnings (loss) per common share
Net income (loss)	$ 0.06	$ 0.01	$ 0.31	$ (0.03)
Basic weighted average shares outstanding	6,010,936	5,759,722	6,010,936	5,759,722
Diluted weighted average shares outstanding	7,931,569	6,582,529	7,931,569	5,759,722

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss)	$ 2,433,950	$ (183,998)
Adjustments to reconcile net income (loss) to net cash provided (used) in operating activities:
Loss (gain) in fair value of derivative liability	(2,628,479)	26,540
Depreciation and amortization	102,750	102,750
Forfeited deposit	50,000
Changes in operating assets and liabilities
Accounts receivable	33,113	6,665
Accounts payable and accrued expense	12,768	44,208
NET CASH PROVIDED (USED) IN OPERATING ACTIVITIES	4,102	(3,835)
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets	(2,200)
NET CASH USED IN INVESTING ACTIVITIES	(2,200)
CASH FLOW FROM FINANCING ACTIVITIES
Advances from related parties	1,000	2,750
NET CASH PROVIDED BY FINANCING ACTIVITIES	1,000	2,750
Net increase in cash	2,902	(1,085)
Cash, beginning of period	1,480	5,124
Cash, end of period	4,382	4,039
SUPPLEMENTAL CASH FLOWS INFORMATION
Interest paid		250
Income taxes paid

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION	Creative Waste Solutions, Inc. (formally Silverstar Resources, Inc.) (the "Company") was incorporated under the laws of the State of Nevada on December 5, 2003. On June 23, 2016, the Company’s Board of Directors approved of a change of name from Silverstar Resources, Inc. to Creative Waste Solutions Inc. The Company operates in the waste management industry. On March 10, 2015, the Company formed 1030029 Ltd, an Alberta numbered company as a wholly owned subsidiary to meet the requirements of holding working interest of Alberta producing oil and gas properties. On April 7, 2016, the Company entered into a membership purchase agreement with Creative Waste Solutions, LLC, a Florida limited liability corporation (“Creative”) whereby the Company purchased 100% of the membership interest for $25,000 (see Note 12). On May 22, 2016, the Company entered into a stock purchase agreement with Florida based, Integrated Waste Transportation Services, Inc. ("Integrated"). Pursuant to the agreement, the Company acquired 100% of the outstanding equity of Integrated in exchange for $300,000 and 50,000 Shares of common stock of the Company (see Note 12). On August 26, 2016, the Company purchased certain assets of Easy Disposal, Inc. (“Easy”), for an aggregate amount of $396,500 which includes 50,000 shares of common stock of the Company, valued at $2.19 per share and the remainder in cash (see Note 12).

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. Presentation The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (SEC), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s September 30, 2017 Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year ended September 30, 2017 as reported on Form 10-K, have been omitted. Principles of Consolidation The consolidated financial statements of the Company include the Company and its wholly-owned subsidiaries, 1030029 Ltd., Creative and Integrated. The operations of Creative and Integrated have only been consolidated since their respective dates of acquisition of April 7, 2016 and May 22, 2016. All material intercompany balances and transactions have been eliminated. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable The Company grants credit to customers under credit terms that it believes are customary in the industry and does not require collateral to support customer receivables. The Company evaluates its provision for an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. At March 31, 2018 and September 30, 2017, the Company’s allowance for doubtful accounts was $0. Revenue Recognition The Company recognizes revenue from waste removal services it provides to its customers. The Company’s revenue recognition policies comply with FASB ASC Topic 605. Revenue is recognized at the time the waste removal services is completed, when a formal arrangement exists, the price is fixed or determinable, the service is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Equipment Equipment are carried at the cost of acquisition and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance is expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, “ Compensation – Stock Compensation Related Parties The Company follows ASC 850, Related Party Disclosures Long-lived Assets The Company assesses long-lived assets, including intangible assets, for impairment in accordance with the provisions of FASB ASC 360 Property, Plant and Equipment Goodwill Goodwill represents the excess of purchase price over the underlying net assets of businesses acquired. Under accounting requirements, goodwill is not amortized but is subject to annual impairment tests. The Company recorded goodwill of $149,500 related to its August 2016 acquisition of Easy. As of March 31, 2018 and September 30, 2017, the Company performed the required impairment review and concluded that the goodwill was not impaired. Basic and Diluted Earnings Per Share Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share Income Taxes Income taxes are provided in accordance with ASC Topic 740 Accounting for Income Taxes Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s consolidated financial statements. Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the previously reported net loss or stockholders’ deficit. Recently Issued Accounting Pronouncements No new accounting pronouncements were issued during the six months ended March 31, 2018 that would have a material effect on the Company’s consolidated financial statements.

GOING CONCERN

GOING CONCERN	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 3 - GOING CONCERN	As shown in the accompanying financial statements, the Company has an accumulated deficit of $3,606,504 as of March 31, 2018 and incurred a loss from operations of $167,765 for the six months then ended. Unless the Company is able to attain profitability and increases in stockholders’ equity, these conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company continues to review its expense structure in an attempt to reduce operating costs. The Company’s expenses are planned to decrease, which would result in an improvement to its results of operations.

EQUIPMENT

EQUIPMENT	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 4 - EQUIPMENT	Equipment at March 31, 2018 consisted of the following: Equipment $ 92,200 92,200 Less accumulated depreciation (28,500 ) Equipment, net $ 63,700 Depreciation expense for the six months ended March 31, 2018 and 2017 was $9,000 and $9,000, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 5 - INTANGIBLE ASSETS	Intangible assets at March 31, 2018 consisted of the following: Customer lists $ 375,000 Licenses 150,000 525,000 Less accumulated amortization (345,833 ) Intangible assets, net $ 179,167 The customer lists are being amortized over 24 months and the licenses are not being amortized. Amortization expense for the six months ended March 31, 2018 and 2017 was $93,750 and $93,750, respectively. Future amortization of intangible assets is as follows: Year ending September 30, 2018 29,167 $ 29,167

ASSET HELD FOR SALE

ASSET HELD FOR SALE	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 6 - ASSET HELD FOR SALE	On April 14, 2015, the Company acquired the working interest of two producing oil and gas properties in Alberta Canada for US $80,000. The Company has determined that the asset does not fit the future plans of the Company. Under the guidelines of ASC 360 Newly Acquired Asset Classified as Held for Sale

CONVERTIBLE DEBENTURES - RELATE

CONVERTIBLE DEBENTURES - RELATED PARTY	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 7 - CONVERTIBLE DEBENTURES - RELATED PARTY	On January 15, 2015, the Company amended the convertible debenture with the principal of $75,754 of a related party so that the debenture became anti-dilutive with a conversion price set at $0.35 regardless of any forward or reverse splits in the Company's common stock. On February 23, 2015, a shareholder holding a debenture with a principal balance of $75,754 and other advances to the Company of $149,142 of which $24,328 was borrowed during September 30, 2015 and $124,814 was the outstanding balance at September 30, 2014 made demand for payment of the total amounts owed including interest. The Company was not able to pay the outstanding balances. The Company and shareholder came to an agreement that the shareholder could convert his $75,754 convertible note payable and interest at $0.15 and the advances of $149,142 plus further advances up to $150,000 at a 15% discount to the closing price as of date of the agreement or $0.15 per share. The shareholder agreed to advance an additional $50,000 to the Company to acquire assets for the Company. The $50,000 is not convertible and is accounted for as advances due to related party see Note 10. The change in terms of the $75,754 convertible note created a derivative liability and required the Company to record fair value at the inception of the derivative and for each subsequent reporting period. The fair value of the embedded derivatives at March 31, 2018 was determined using the Black Scholes based on the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 173%, (3) weighted average risk-free interest rate of 1.29%, (4) expected life of one year, and (5) estimated fair value of the Company's common stock is $0.10. The fair value calculated as of March 31, 2018 was $55,667. During the six months ended March 31, 2018 the decrease in fair value of $2,628,479 resulted in a other income gain reflected in the statement of operations. During the six months ended March 31, 2017 the increase in fair value of $26,540 resulted in a other expense loss reflected in the statement of operations. The addition of a conversion feature for the advances of $149,142 created a beneficial conversion feature as of September 30, 2015 of $149,142. Due to the advances having no terms and being due on demand, this amount was expensed as interest expense for the year ended September 30, 2015. As of March 31, 2018 and September 30, 2017, the amount due under the convertible debentures to related parties was $224,896 and $224,896, respectively.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 8 - NOTES PAYABLE	On June 2, 2014, the Company issued a long term note payable for $81,989 to an entity for advances on work completed on the Company’s Ahbau Lake mining property in British Columbia, Canada. The note is unsecured, and bears interest at 10% per year and matures in one year at which time all principal and interest is due and payable. On April 6, 2017 the outstanding balance of $81,989 plus accrued interest of $23,242 was converted to 152,509 shares of the Company’s common stock. On April 2, 2015, the Company issued a $60,000 one-year note bearing interest of 9% as part of the acquisition of the working interest in the Alberta oil and gas property. On April 6, 2017 the outstanding balance of $60,000 plus accrued interest of $8,107 was converted to 98,705 shares of the Company’s common stock. On December 29, 2015, the Company issued a $17,500 note payable bearing interest of 6% to an unrelated party. The proceeds of the note were used for working capital. On April 4, 2016, the Company issued a $29,000 note payable bearing interest of 10% to an unrelated party. The proceeds of the note were used for working capital. On August 16, 2016, the Company issued a $17,000, 10% annual interest, demand note payable to a related party. On August 26, 2016, the Company issued two notes payable to unrelated parties for $300,000 that bear interest at 10%. The proceeds of the note were used to purchase Easy. On July 30, 2017, the Company issued a note payable on demand to an unrelated party for $50,000 that bears annual interest at 10%. The proceeds of the note were used to make a deposit for the planned purchase of a Florida Limited Liability Company as disclosed in Note 16. The Company is in default on certain of its notes payable obligations.

ADVANCES - RELATED PARTIES

ADVANCES - RELATED PARTIES	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 9 - ADVANCES - RELATED PARTIES	The Company received advances from related parties totaling $77,546 and $76,546 as of March 31, 2018 and September 30, 2017, respectively. The advances are unsecured, do not have a term and carry no interest rate.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 10 - DERIVATIVE INSTRUMENTS	During the year ended September 30, 2016, the Company changed the conversion features on a convertible instrument that require liability classification under ASC 815. These instruments are measured at fair value at the end of each reporting period. (See Note 7). As defined in FASB ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). The three levels of the fair value hierarchy are as follows: · Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities · Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. · Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of March 31, 2018 and 2017: Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Derivative liabilities at March 31, 2018 $ - $ - $ 55,667 $ 55,667 Derivative liabilities at March 31, 2017 $ - $ - $ 1,533,817 $ 1,533,817 The following table represents the change in the fair value of the derivative liabilities during the six months ended March 31, 2018 and 2017: Fair value of derivatives, September 30, 2016 $ 1,507,277 Change in fair value of derivative liability - loss 26,540 Fair value of derivatives, March 31, 2017 1,533,817 Fair value of derivatives, September 30, 2017 2,684,146 Change in fair value of derivative liability - gain (2,628,479 ) Fair value of derivatives, March 31, 2018 $ 55,667

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 11 - EARNINGS (LOSS) PER SHARE	Earnings (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the applicable period. Basic weighted average common shares outstanding is computed using the weighted average shares outstanding during the period. Diluted earnings (loss) per share is computed using the weighted average number of common shares outstanding and if dilutive, potential common shares outstanding during the period. Potential common shares consist of the additional common shares issuable upon the conversion of convertible debentures. The effect on the number of common shares outstanding assuming conversion of the convertible debentures as of March 31, 2018 would result in an increase of approximately 1,920,633 shares. The Company incurred a net loss for the six months ended March 31, 2017, accordingly, none of the convertible shares were used to calculate EPS for that period due to their anti-dilutive effect.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 12 - ACQUISITIONS	On April 7, 2016, the Company entered into a membership purchase agreement with Creative Waste Solutions, LLC whereby the Company purchased 100% of the membership interest for $25,000. On May 22, 2016, the "Company entered into a stock purchase agreement with Integrated. Pursuant to the agreement, the Company acquired 100% of the outstanding equity of Integrated in exchange for $300,000 and 50,000 shares of common stock of the Company. The common stock was valued at $1.00 per shares which was the closing price of the Company’s common stock on May 22, 2016. On August 26, 2016, the Company purchased certain assets of Easy for an aggregate amount of $396,500 which includes 50,000 shares of common stock of the Company and $287,000 in cash. The common stock was valued at $2.19 per shares, which was the closing price of the Company’s common stock on August 26, 2016. The Company purchased Creative, Integrated and Easy to integrate itself in the waste management business in southeastern region of the United States. The transactions are accounted for as business combinations in accordance with ASC 805. A summary of the purchase price allocations at fair value is below. Creative Integrated Easy Furniture and equipment $ - $ - $ 90,000 Deposit - - 7,000 Customer list 25,000 350,000 - License - - 150,000 Goodwill - - 149,500 Purchase price $ 25,000 $ 350,000 $ 396,500 The customer lists are being amortized over 24 months and licenses are not being amortized.

EQUITY

EQUITY	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 13 - EQUITY	During the six months ended March 31, 2018 and 2017, the Company did not issue any shares of common stock.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 14 - INCOME TAXES	The Company has losses carried forward for income tax purposes through March 31, 2018. There are no current or deferred tax expenses for the six months ended March 31, 2018 and 2017 due to the Company’s tax loss position. The Company had fully reserved for any benefits of these losses utilizing a statutory federal income tax rate of 34%, however, due to the recent tax law change the utilized rate is 21% to reflect benefits that may be realized at the new statutory rate. The deferred tax consequences of temporary differences in reporting items for financial statement and income tax purposes are recognized, as appropriate. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carry-forward period. Management has considered these factors in reaching its conclusion as to the valuation allowance for financial reporting purposes. The deferred income tax asset for the six months ended March 31, 2018 and 2017 consists of the following: 2018 2017 Deferred income tax asset attributed to: Current operations $ 41,041 $ 53,536 Less: Change in valuation allowance (41,041 ) (53,536 ) Net refundable amount $ - $ - The composition of the Company’s deferred tax assets as at March 31, 2018 and September 30, 2017 are as follows: March 31, 2018 Sept. 30, 2017 Income tax operating loss carryforward $ 3,069,417 $ 2,875,794 Statutory federal income tax rate 21 % 21 % Effective income rate 0 % 0 % Deferred tax assets: Net operating loss carryforward $ 585,515 $ 564,542 Amortization of intangible assets 59,063 39,375 Total deferred tax assets 644,578 603,917 Less: valuation allowance (644,578 ) (603,917 ) Net deferred tax asset - - The potential income tax benefit of these losses has been offset by a full valuation allowance. As of March 31, 2018, the Company has an unused net operating loss carry-forward balance of approximately $3,069,000 that is available to offset future taxable income. This unused net operating loss carry-forward balance expires between 2025 and 2037. The issuance of 2,532,054 shares of common stock during the year ended September 30, 2014 affected a change in control of the Company. Due to the change in control, the tax loss carryforward may only be used on a formula basis under IRS section 382 which will affect the benefit the Company can gain from the tax loss.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 15 - DISCONTINUED OPERATIONS	Prior to the business acquisitions referred to in Note 12, the Company operated in the oil and gas industry. The Company discontinued operating in the oil and gas industry and operates in the waste management industry. Accordingly, the financial statements for the year ended September 30, 2015 reflect a loss from discontinued operations from the oil and gas operations. The Company wrote-off an asset consisting of two oil and gas properties located in Alberta Canada in the September 30, 2015 fiscal year as disclosed in Note 6. The Company is actively seeking to dispose of the asset through a sale and will account for the disposition of this property as a discontinued operation.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 16 - COMMITMENTS AND CONTINGENCIES	Lease The Company leases its operations facility located in Hollywood, FL under a long-term operating lease expiring in January 2018, with the option to renew for an additional five years. For the twelve months ended January 31, 2017 the base monthly rent was $4,650 plus sales tax. For the twelve months ended January 31, 2018 the base monthly rent is $4,850 plus sales tax. The lease was acquired with the acquisition of Easy. The Company exercised the five year renewal option at a base monthly rent of $6,348 which includes sales tax. Rent expense was $49,976 and $29,998 for the six months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, future minimum annual payments, including sales tax, under operating lease agreements for fiscal year ending September 30 are as follows: 2018 $ 38,088 2019 76,176 2020 76,176 2021 76,176 2022 76,176 2023 19,044 $ 361,836 Membership Purchase Agreement: On August 2, 2017, the Company entered into a “Membership Purchase Agreement” with a Florida based Limited Liability Company (LLC). Pursuant to the agreement, the Company will acquire 100% of the membership interests of the LLC for a $2,600,000 purchase price. The acquisition is contingent on the Company’s raising of the funds needed to consummate the transaction. The Company made a non-refundable deposit of $50,000, an additional $943,371 is required at closing (net of closing credits) and the seller will provide $1,600,000 of financing. The closing date was extended to March 8, 2018. The Company was not able to raise the funds necessary for the acquisition and therefore forfeited the $50,000 deposit which was charged to operations and included in general and administrative expenses.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 17 - SUBSEQUENT EVENTS	In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial statements were issued and has determined that there are no material subsequent events that would require an adjustment to or disclosure in the financial statements.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2018
Summary Of Significant Accounting Policies Policies
Use of Estimates	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.
Presentation	The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (SEC), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s September 30, 2017 Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year ended September 30, 2017 as reported on Form 10-K, have been omitted.
Principles of Consolidation	The consolidated financial statements of the Company include the Company and its wholly-owned subsidiaries, 1030029 Ltd., Creative and Integrated. The operations of Creative and Integrated have only been consolidated since their respective dates of acquisition of April 7, 2016 and May 22, 2016. All material intercompany balances and transactions have been eliminated.
Cash and Cash Equivalents	The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Accounts Receivable	The Company grants credit to customers under credit terms that it believes are customary in the industry and does not require collateral to support customer receivables. The Company evaluates its provision for an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. At March 31, 2018 and September 30, 2017, the Company’s allowance for doubtful accounts was $0.
Revenue Recognition	The Company recognizes revenue from waste removal services it provides to its customers. The Company’s revenue recognition policies comply with FASB ASC Topic 605. Revenue is recognized at the time the waste removal services is completed, when a formal arrangement exists, the price is fixed or determinable, the service is completed, no other significant obligations of the Company exist and collectability is reasonably assured.
Equipment	Equipment are carried at the cost of acquisition and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance is expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets.
Stock-Based Compensation	The Company records stock-based compensation in accordance with FASB ASC Topic 718, “ Compensation – Stock Compensation
Related Parties	The Company follows ASC 850, Related Party Disclosures
Long-lived Assets	The Company assesses long-lived assets, including intangible assets, for impairment in accordance with the provisions of FASB ASC 360 Property, Plant and Equipment
Goodwill	Goodwill represents the excess of purchase price over the underlying net assets of businesses acquired. Under accounting requirements, goodwill is not amortized but is subject to annual impairment tests. The Company recorded goodwill of $149,500 related to its August 2016 acquisition of Easy. As of March 31, 2018 and September 30, 2017, the Company performed the required impairment review and concluded that the goodwill was not impaired.
Basic and Diluted Earnings Per Share	Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share
Income Taxes	Income taxes are provided in accordance with ASC Topic 740 Accounting for Income Taxes Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s consolidated financial statements.
Reclassifications	Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the previously reported net loss or stockholders’ deficit.
Recently Issued Accounting Pronouncements	No new accounting pronouncements were issued during the six months ended March 31, 2018 that would have a material effect on the Company’s consolidated financial statements.

EQUIPMENT (Tables)

EQUIPMENT (Tables)	6 Months Ended
	Mar. 31, 2018
Equipment Tables
Summary of equipment	Equipment at March 31, 2018 consisted of the following: Equipment $ 92,200 92,200 Less accumulated depreciation (28,500 ) Equipment, net $ 63,700

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Mar. 31, 2018
Intangible Assets Tables
Summary of intangible assets	Intangible assets at March 31, 2018 consisted of the following: Customer lists $ 375,000 Licenses 150,000 525,000 Less accumulated amortization (345,833 ) Intangible assets, net $ 179,167
Summary of future amortization of intangible assets	Future amortization of intangible assets is as follows: Year ending September 30, 2018 29,167 $ 29,167

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Mar. 31, 2018
Intangible Assets Tables
Financial assets and liabilities that were accounted for at fair value	The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of March 31, 2018 and 2017: Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Derivative liabilities at March 31, 2018 $ - $ - $ 55,667 $ 55,667 Derivative liabilities at March 31, 2017 $ - $ - $ 1,533,817 $ 1,533,817
Change in the fair value of the derivative liabilities	The following table represents the change in the fair value of the derivative liabilities during the six months ended March 31, 2018 and 2017: Fair value of derivatives, September 30, 2016 $ 1,507,277 Change in fair value of derivative liability - loss 26,540 Fair value of derivatives, March 31, 2017 1,533,817 Fair value of derivatives, September 30, 2017 2,684,146 Change in fair value of derivative liability - gain (2,628,479 ) Fair value of derivatives, March 31, 2018 $ 55,667

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Mar. 31, 2018
Acquisitions Tables
Summary of purchase price allocations at fair value	The transactions are accounted for as business combinations in accordance with ASC 805. A summary of the purchase price allocations at fair value is below. Creative Integrated Easy Furniture and equipment $ - $ - $ 90,000 Deposit - - 7,000 Customer list 25,000 350,000 - License - - 150,000 Goodwill - - 149,500 Purchase price $ 25,000 $ 350,000 $ 396,500

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Mar. 31, 2018
Income Taxes Tables
Provision for refundable federal income tax	The deferred income tax asset for the six months ended March 31, 2018 and 2017 consists of the following: 2018 2017 Deferred income tax asset attributed to: Current operations $ 41,041 $ 53,536 Less: Change in valuation allowance (41,041 ) (53,536 ) Net refundable amount $ - $ -
Composition of the Company's deferred tax assets	The composition of the Company’s deferred tax assets as at March 31, 2018 and September 30, 2017 are as follows: March 31, 2018 Sept. 30, 2017 Income tax operating loss carryforward $ 3,069,417 $ 2,875,794 Statutory federal income tax rate 21 % 21 % Effective income rate 0 % 0 % Deferred tax assets: Net operating loss carryforward $ 585,515 $ 564,542 Amortization of intangible assets 59,063 39,375 Total deferred tax assets 644,578 603,917 Less: valuation allowance (644,578 ) (603,917 ) Net deferred tax asset - -

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Tables
Summary of future minimum annual payments under operating lease agreements	As of March 31, 2018, future minimum annual payments, including sales tax, under operating lease agreements for fiscal year ending September 30 are as follows: 2018 $ 38,088 2019 76,176 2020 76,176 2021 76,176 2022 76,176 2023 19,044 $ 361,836

ORGANIZATION AND BASIS OF PRE30

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($)	Apr. 07, 2016	Aug. 26, 2016	May 22, 2016	Mar. 31, 2018
Entity incorporation date				Dec. 5, 2003
Entity incorporation state name				Nevada
Name of acquired entity		Easy Disposal, Inc.
Membership interest	$ 25,000
Percentage of membership purchase agreement	100.00%
Exchange of common stock, shares		50,000
Aggregate amount of assets		$ 396,500
Share price		$ 2.19
Integrated [Member]
Name of acquired entity			Integrated Waste Transportation Services, Inc.
Percentage of membership purchase agreement			100.00%
Exchange of common stock, shares			50,000
Exchange of common stock, amount			$ 300,000

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Summary Of Significant Accounting Policies Details Narrative
Allowance for doubtful accounts	$ 0	$ 0
Goodwill	$ 149,500	$ 149,500
Description of tax position recognized	Greater than 50% likely of being realized on examination.

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Going Concern Details Narrative
Accumulated deficit	$ (3,606,504)		$ (3,606,504)		$ (6,040,454)
Loss from operations	$ (116,655)	$ (49,084)	$ (167,765)	$ (126,270)

EQUIPMENT (Details)

EQUIPMENT (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Equipment, gross	$ 92,200
Less accumulated depreciation	(28,500)
Equipment, net	63,700	$ 70,500
Equipment [Member]
Equipment, gross	$ 92,200

EQUIPMENT (Details Narrative)

EQUIPMENT (Details Narrative) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equipment Details Narrative
Depreciation expense	$ 9,000	$ 9,000

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details)	Mar. 31, 2018USD ($)
Intangible assets, gross	$ 525,000
Less accumulated amortization	(345,833)
Intangible assets, net	179,167
Customer Lists [Member]
Intangible assets, gross	375,000
Licenses [Member]
Intangible assets, gross	$ 150,000

INTANGIBLE ASSETS (Details 1)

INTANGIBLE ASSETS (Details 1)	Mar. 31, 2018USD ($)
Intangible Assets Details 1
Year ending September 30, 2018	$ 29,167
Future amortization of intangible assets	$ 29,167

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Amortization expense	$ 93,750	$ 93,750
Customer Lists [Member]
Amortization period	24 months

ASSET HELD FOR SALE (Details Na

ASSET HELD FOR SALE (Details Narrative)	Apr. 14, 2015USD ($)Number	Mar. 31, 2018Number	Sep. 30, 2015USD ($)
Asset Held For Sale Details Narrative
Impairment charge from discontinued operation			$ 80,000
Number of producing oil and gas properties | Number	2	2
Acquisition of oil and gas properties	$ 80,000

CONVERTIBLE DEBENTURES - RELA39

CONVERTIBLE DEBENTURES - RELATED PARTY (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2017	Feb. 23, 2015	Jan. 15, 2015
Convertible Debentures And Notes Payable - Related Parties Details Narrative
Convertible debentures	$ 241,896		$ 241,896				$ 241,896	$ 75,754	$ 75,754
Conversion price interest	$ 0.15		$ 0.15						$ 0.35
Other advances	$ 150,000		$ 150,000					$ 149,142
Borrowing amount from other advances					$ 24,328	$ 124,814
Convertible Debentures And Notes Payable- Related Parties Advance	$ 149,142		$ 149,142				149,142
Closing price discount	15.00%		15.00%
Additional advance from shareholder	$ 50,000		$ 50,000
Fair value of the embedded debt derivative	75,754		$ 75,754
Fair value of the embedded debt derivative dividend yield			0.00%
Fair value of the embedded debt derivative expected volatility			173.00%
Fair value of the embedded debt derivative weighted average risk-free interest rate			1.29%
Fair value of the embedded debt derivative, expected life			1 year
Fair value of the embedded debt derivative common stock price			$ 0.10
Fair value of the embedded debt derivative estimated fair value of the Company's common stock			$ 55,667
Change in fair value of derivative liability- loss (gain)	(615,785)	$ (101,536)	(2,628,479)	$ 26,540
Beneficial conversion amount					$ 149,142
Convertible debentures, related party	$ 224,896		$ 224,896				$ 224,896

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	Apr. 06, 2017	Mar. 31, 2018	Sep. 30, 2017	Jul. 30, 2017	Aug. 26, 2016	Aug. 16, 2016	Apr. 04, 2016	Dec. 29, 2015	Apr. 02, 2015	Jun. 02, 2014
Note payable		$ 396,500	$ 396,500	$ 50,000	$ 300,000	$ 17,000	$ 29,000	$ 17,500
Interest rate				10.00%	10.00%	10.00%	10.00%	6.00%
Ahbau Lake mining property [Member]
Note payable										$ 81,989
Interest rate										10.00%
Ahbau Lake mining property [Member] | Notes Payable [Member]
Debt conversion converted amount, Principal	$ 81,989
Debt conversion converted amount, Accrued interest	$ 23,242
Debt conversion converted instrument, Shares issued	152,509
Alberta oil and gas property [Member]
Note payable									$ 60,000
Interest rate									9.00%
Alberta oil and gas property [Member] | Notes Payable [Member]
Debt conversion converted amount, Principal	$ 60,000
Debt conversion converted amount, Accrued interest	$ 8,107
Debt conversion converted instrument, Shares issued	98,705

ADVANCES - RELATED PARTIES (Det

ADVANCES - RELATED PARTIES (Details Narrative) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Advances - Related Parties Details Narrative
Advances - related parties	$ 77,546	$ 76,546

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - USD ($)	Mar. 31, 2018	Mar. 31, 2017
Derivative liabilities	$ 55,667	$ 1,533,817
Level 1 [Member]
Derivative liabilities
Level 2 [Member]
Derivative liabilities
Level 3 [Member]
Derivative liabilities	$ 55,667	$ 1,533,817

DERIVATIVE INSTRUMENTS (Detai43

DERIVATIVE INSTRUMENTS (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments Details 1
Fair value of derivatives, Beginning			$ 2,684,146	$ 1,507,277
Change in fair value of derivative liability- loss (gain)	$ (615,785)	$ (101,536)	(2,628,479)	26,540
Fair value of derivatives, Ending	$ 55,667	$ 1,533,817	$ 55,667	$ 1,533,817

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details Narrative)	Mar. 31, 2018shares
Earnings Loss Per Share Details
Increase in common stock shares outstanding upon conversion of debentures	1,920,633

ACQUISITIONS (Details)

ACQUISITIONS (Details)	6 Months Ended
	Mar. 31, 2018USD ($)
Creative [Member]
Furniture and equipment
Deposit
Customer list	25,000
License
Goodwill
Purchase price	25,000
Integrated [Member]
Furniture and equipment
Deposit
Customer list	350,000
License
Goodwill
Purchase price	350,000
Easy [Member]
Furniture and equipment	90,000
Deposit	7,000
Customer list
License	150,000
Goodwill	149,500
Purchase price	$ 396,500

ACQUISITIONS (Details Narrative

ACQUISITIONS (Details Narrative) - USD ($)	1 Months Ended		6 Months Ended
	Aug. 26, 2016	May 22, 2016	Mar. 31, 2018	Sep. 30, 2017	Apr. 07, 2016
Common stock amount			$ 6,011	$ 6,011
Aggregate amount of assets	$ 396,500
Exchange of common stock, shares	50,000
Customer Lists [Member]
Amortization period			24 months
Creative [Member]
Membership percentage					100.00%
Membership amount					$ 25,000
Integrated [Member]
Acquired equity percentage		100.00%
Common stock price per share		$ 1
Exchange of common stock, shares		50,000
Exchange of common stock, amount		$ 300,000
Easy [Member]
Common stock price per share	$ 2.19
Common stock amount	$ 287,000
Aggregate amount of assets	$ 396,500
Exchange of common stock, shares	50,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Deferred tax asset attributable to:
Current operations	$ 41,041	$ 53,536
Less: Change in valuation allowance	(41,041)	(53,536)
Net refundable amount

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Income Taxes Details 1
Income tax operating loss carry-forward	$ 3,069,417	$ 2,875,794
Statutory federal income tax rate	21.00%	21.00%
Effective income tax rate	0.00%	0.00%
Deferred tax assets
Net operating loss carryforward	$ 585,515	$ 564,542
Amortization of intangible assets	59,063	39,375
Total deferred tax assets	644,578	603,917
Less: Valuation allowance	(644,578)	(603,917)
Net deferred tax asset

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2014
Income Taxes Details Narrative
Statutory federal income tax rate	21.00%	21.00%
Income tax operating loss carry-forward	$ 3,069,417	$ 2,875,794
Net operating loss carry forwards, expiration period	Expires between 2025 and 2037.
Issuance of common shares			2,532,054

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details Narrative) - Number	Apr. 14, 2015	Mar. 31, 2018
Discontinued Operations Details Narrative
Number of oil and gas properties written-off	2	2

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2018USD ($)
Future minimum annual payments under operating lease
2,018	$ 38,088
2,019	76,176
2,020	76,176
2,021	76,176
2,022	76,176
2,023	19,044
Total	$ 361,836

COMMITMENTS AND CONTINGENCIES52

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 31, 2018	Jan. 31, 2017	Mar. 08, 2018	Aug. 02, 2017
Oerating lease expiry date	Jan. 31, 2018
Base monthly rent and sales tax	$ 6,348		$ 4,850	$ 4,650
Rent expense	$ 49,976	$ 29,998
Renewal option			5 years	5 years
Membership Purchase Agreement [Member] | Florida based Limited Liability Company [Member]
Business acquisition, Membership interests						100.00%
Membership interests, Purchase price						$ 2,600,000
Business acquisition, Non-refundable deposits						50,000
Business acquisition, Non-refundable deposits forfeited					$ 50,000
Business acquisition, Consideration payable in cash						943,371
Business acquisition, Loan payable amount						$ 1,600,000