Document and Entity Information
Document and Entity Information | 3 Months Ended |
Dec. 31, 2018 | |
Document And Entity Information | |
Entity Registrant Name | Pharmagreen Biotech Inc. |
Entity Central Index Key | 0001435181 |
Document Type | S-1 |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --09-30 |
Is Entity's Reporting Status Current? | No |
Is Entity Emerging Growth Company? | false |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets | |||
Cash | $ 29,801 | $ 151,869 | $ 16,442 |
Accounts receivable and other receivables | 32,939 | 31,765 | 3,194 |
Prepaid expenses and deposits | 19,591 | 14,476 | 10,957 |
Assets held for sale | 382,352 | ||
Total current assets | 82,331 | 198,110 | 412,945 |
Property, plant, and equipment | 262,393 | 251,310 | |
Assets held for sale | 62,351 | ||
Total assets | 344,724 | 449,420 | 475,296 |
Current liabilities | |||
Accounts payable and accrued liabilities | 626,366 | 624,684 | 722,639 |
Advance from Alliance Growers Corp. | 989,446 | 928,649 | |
Due to related parties | 222,247 | 282,855 | 322,120 |
Current portion of convertible notes | 1,542,090 | ||
Liabilities held for sale | 113,229 | ||
Total current liabilities | 1,838,059 | 1,836,188 | 2,700,078 |
Convertible notes, net of unamortized discount of $28,257, $28,618 and $nil, respectively | 854 | 693 | 171,876 |
Total liabilities | 1,838,913 | 1,836,881 | 2,871,954 |
Stockholders' deficit | |||
Common stock Authorized: 500,000,000 shares, $0.001 par value; 73,671,825 and 71,620,100 shares issued and outstanding, respectively (2017 - 20,600,000 shares) | 73,672 | 71,620 | 20,600 |
Additional paid-in capital | 2,649,529 | 2,464,136 | 534,269 |
Accumulated other comprehensive income (loss) | 137,492 | 38,722 | (63,169) |
Deficit | (4,354,882) | (3,961,939) | (2,888,358) |
Total stockholders' deficit | (1,494,189) | (1,387,461) | (2,396,658) |
Total liabilities and stockholders' deficit | $ 344,724 | $ 449,420 | $ 475,296 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | |||
Convertible Notes, Unamortized Discount | $ 28,257 | $ 28,618 | |
Common Stock, Par Value | $ 0.001 | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common Stock, Shares Issued | 73,671,825 | 71,620,100 | 20,600,000 |
Common Stock, Shares Outstanding | 73,671,825 | 71,620,100 | 20,600,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Expenses | ||||
Advertising and promotion | $ 3,669 | |||
Bad debts | 158,047 | |||
Consulting fees | $ 55,502 | $ 47,190 | 251,797 | 241,327 |
Foreign exchange loss | 43,187 | 239 | 78,920 | 130,930 |
General and administrative | 27,270 | 4,978 | 57,733 | 11,357 |
License application fees | 1,932 | 207,773 | ||
Professional fees | 43,560 | 124,034 | 153,971 | |
Rent | 15,985 | |||
Research and development | 29,716 | 7,619 | ||
Salaries and wages | 4,170 | 3,582 | 17,172 | 10,080 |
Travel | 1,353 | |||
Total expenses | 205,337 | 55,989 | 748,717 | 723,050 |
Net loss before other income (expense) | (205,337) | (55,989) | (748,717) | (723,050) |
Other income (expense) | ||||
Accretion of discount on convertible notes | (361) | (3,868) | ||
Write-off of related party debt | 10,478 | 28,805 | ||
Interest expense | (78,204) | |||
Loss on disposal of the net assets of Canna Companion Products, Inc. | (331,474) | |||
Finance costs | (187,245) | |||
Total other income (expense) | (187,606) | (324,864) | (49,399) | |
Net loss before discontinued operations | (392,943) | (55,989) | (1,073,581) | (772,449) |
Income from discontinued operations | 164,294 | |||
Net loss | (392,943) | (55,989) | (1,073,581) | (608,155) |
Comprehensive income (loss) | ||||
Foreign currency translation gain (loss) | 98,770 | 860 | 101,891 | (81,647) |
Comprehensive loss | $ (294,173) | $ (55,129) | $ (971,690) | $ (689,802) |
Basic and diluted loss per share | $ (0.01) | $ 0 | $ (0.04) | $ (0.03) |
Weighted average number of shares outstanding | 72,177,644 | 20,600,000 | 24,810,464 | 20,600,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Deficit (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated other comprehensive income (loss) | Deficit | Total |
Beginning Balance at Sep. 30, 2016 | $ 20,600 | $ 534,269 | $ 18,478 | $ (2,280,203) | $ (1,706,856) |
Beginning Balance, Shares at Sep. 30, 2016 | 20,600,000 | ||||
Beneficial conversion feature on convertible notes issued | |||||
Issuance of WFS common stock to convert notes payable and accrued interest | |||||
Issuance of common stock pursuant to conversion of convertible notes | |||||
Foreign currency translation gain (loss) | (81,647) | (81,647) | |||
Net loss for the year | (608,155) | (608,155) | |||
Ending Balance at Sep. 30, 2017 | $ 20,600 | 534,269 | (63,169) | (2,888,358) | (2,396,658) |
Ending Balance, Shares at Sep. 30, 2017 | 20,600,000 | ||||
Issuance of common stock pursuant to conversion of convertible notes | |||||
Issuance of common stock for financing services | |||||
Foreign currency translation gain (loss) | 860 | 860 | |||
Net loss for the year | (55,989) | (55,989) | |||
Ending Balance at Dec. 31, 2017 | $ 554,869 | (62,309) | (2,944,347) | (2,451,787) | |
Ending Balance, Shares at Dec. 31, 2017 | 20,600,000 | ||||
Beginning Balance at Sep. 30, 2017 | $ 20,600 | 534,269 | (63,169) | (2,888,358) | (2,396,658) |
Beginning Balance, Shares at Sep. 30, 2017 | 20,600,000 | ||||
Beneficial conversion feature on convertible notes issued | 32,485 | 32,485 | |||
Cancellation of common stock | $ (600) | 600 | |||
Cancellation of common stock, Shares | (600,000) | ||||
Issuance of WFS common stock to convert notes payable and accrued interest | $ 17,704 | 1,975,645 | 1,993,349 | ||
Issuance of WFS common stock to convert notes payable and accrued interest, Shares | 17,704,500 | ||||
Recapitalization transaction: Shares of Pharmagreen Biotech Inc. | $ 2,171 | (50,293) | (48,122) | ||
Recapitalization transaction: Shares of Pharmagreen Biotech Inc., Shares | 2,170,600 | ||||
Issuance of common stock pursuant to conversion of convertible notes | $ 31,745 | (28,570) | $ 3,175 | ||
Issuance of common stock pursuant to conversion of convertible notes, Shares | 31,745,000 | 31,745,000 | |||
Foreign currency translation gain (loss) | 101,891 | $ 101,891 | |||
Net loss for the year | (1,073,581) | (1,073,581) | |||
Ending Balance at Sep. 30, 2018 | $ 71,620 | 2,464,136 | 38,722 | (3,961,939) | (1,387,461) |
Ending Balance, Shares at Sep. 30, 2018 | 71,620,100 | ||||
Issuance of common stock pursuant to conversion of convertible notes | $ 2,000 | (1,800) | $ 200 | ||
Issuance of common stock pursuant to conversion of convertible notes, Shares | 2,000,000 | 2,000,000 | |||
Issuance of common stock for financing services | $ 52 | 187,193 | $ 187,245 | ||
Issuance of common stock for financing services, Shares | 51,725 | ||||
Foreign currency translation gain (loss) | 98,770 | 98,770 | |||
Net loss for the year | (392,943) | (392,943) | |||
Ending Balance at Dec. 31, 2018 | $ 73,672 | $ 2,649,529 | $ 137,492 | $ (4,354,882) | $ (1,494,189) |
Ending Balance, Shares at Dec. 31, 2018 | 73,671,825 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||||
Net loss from continuing operations | $ (392,943) | $ (55,989) | $ (1,073,581) | $ (608,155) |
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Accretion of discount on convertible notes | 361 | 3,868 | ||
Loss on disposal of net assets of Canna Companion Products, Inc. | 331,474 | |||
Write-off of related party debt | (10,478) | (28,805) | ||
Shares issued for services | 187,245 | |||
Changes in non-cash operating working capital | ||||
Accounts receivable and other receivables | (1,174) | (198) | (28,571) | (1,732) |
Prepaid expenses and deposits | (5,115) | 7 | (3,519) | (506) |
Accounts payable and accrued liabilities | 1,682 | (26,408) | 18,377 | 469,623 |
Due to related parties | (60,608) | 68,263 | (23,104) | 124,819 |
Net cash used in operating activities - continuing operations | (785,534) | (44,756) | ||
Net cash used in operating activities - discontinued operations | (153,869) | |||
Net cash used in operating activities | (270,552) | (14,325) | (785,534) | (198,625) |
INVESTING ACTIVITIES | ||||
Acquisition of property and equipment | (11,083) | (251,310) | ||
Net cash used in investing activities - continuing operations | (251,310) | |||
Net cash used in investing activities - discontinued operations | (900) | |||
Net cash used in investing activities | (11,083) | (251,310) | (900) | |
FINANCING ACTIVITIES | ||||
Proceeds from the issuance of convertible notes | 298,239 | 292,693 | ||
Repayment of convertible notes | 39,649 | (104,255) | ||
Proceeds from advances payable | 60,797 | 199,728 | 928,649 | |
Net cash provided by financing activities - continuing operations | 1,122,633 | 292,693 | ||
Net cash provided by financing activities - discontinuing operations | ||||
Net cash provided by financing activities | 60,797 | 239,377 | 1,122,633 | 292,693 |
Effect of foreign exchange rate changes on cash | 98,770 | 860 | 101,891 | (81,647) |
Increase in cash | (122,068) | 225,912 | 135,427 | 11,521 |
Cash, beginning of year | 151,869 | 16,442 | 16,442 | 4,921 |
Cash, end of year | 29,801 | 242,354 | 151,869 | 16,442 |
Non-cash investing and financing activities: | ||||
Issuance of common stock of WFS pursuant to the conversion of convertible notes and accrued interest | 1,993,349 | |||
Issuance of common stock pursuant to the conversion of convertible notes | 200 | 3,175 | ||
Issuance of convertible notes in exchange for amounts due to related parties | 32,485 | |||
Supplemental disclosures: | ||||
Interest paid | ||||
Income taxes paid |
Nature of Business and Continua
Nature of Business and Continuance of Operations | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Nature of Business and Continuance of Operations | 1. Nature of Business and Continuance of Operations Pharmagreen Biotech Inc. (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on November 26, 2007, under the name Azure International, Inc. On October 30, 2008, and effective as of the same date, the Company filed Articles of Merger (“Articles”) with the Secretary of State of the State of Nevada, to effect a merger by and between Air Transport Group Holdings, Inc., a Nevada corporation and Azure International, Inc. As a result of the merger, the Company changed its name to Air Transport Group Holdings, Inc. The Company was previously in the business of providing technical advisory and appraisals to the aircraft and aviation business as well as providing sourcing for aircraft leases and parts. Pursuant to a Share Exchange Agreement with WFS Pharmagreen Inc. (“WFS”) on May 2, 2019, the Company changed its name to Pharmagreen Biotech Inc. and changed its principal business to the construction of a biotech complex in Deroche, British Columbia, Canada, for the purpose of producing a variety of starter plantlets for the Canadian and international high CBD hemp and medical cannabis industries through the application of the proprietary plant tissue culture in vitro process called “Chibafreen”. This proprietary process will produce plantlets that will be genetically identical and free of pests and disease free with consistent and certifiable constituent properties. Going Concern These condensed interim consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at December 31, 2018, the Company has a working capital deficit of $1,755,728 and an accumulated deficit of $4,354,882. These factors raise substantial doubt upon the Company’s ability to continue as a going concern. These condensed interim consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. | 1. Nature of Business and Continuance of Operations Pharmagreen Biotech Inc. (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on November 26, 2007, under the name Azure International, Inc. On October 30, 2008, and effective as of the same date, the Company filed Articles of Merger (“Articles”) with the Secretary of State of the State of Nevada, to effect a merger by and between Air Transport Group Holdings, Inc., a Nevada corporation and Azure International, Inc. As a result of the merger, the Company changed its name to Air Transport Group Holdings, Inc. The Company was previously in the business of providing technical advisory and appraisals to the aircraft and aviation business as well as providing sourcing for aircraft leases and parts. Pursuant to a Share Exchange Agreement with WFS Pharmagreen Inc. (“WFS”) on May 2, 2019 (refer to Note 3), the Company changed its name to Pharmagreen Biotech Inc. and changed its principal business to the construction of a biotech complex in Deroche, British Columbia, Canada, for the purpose of producing a variety of strains of cannabis for the recreational and medical marijuana industries in Canada through the application of the proprietary plant tissue culture in vitro process called “Chibafreen”. This proprietary process will produce plantlets that will be genetically identical and free of pests and disease free with consistent and certifiable constituent properties. Going Concern These consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at September 30, 2018, the Company has a working capital deficit of $1,638,078 and an accumulated deficit of $3,961,939. These factors raise substantial doubt upon the Company’s ability to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying condensed interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and are expressed in US dollars. These condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, WFS Pharmagreen Inc., 1155097 BC Ltd., and 1174505 BC Ltd., companies incorporated in British Columbia, Canada, and Canna Companion Products, Inc., a company incorporated in the State of Washington. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is September 30 (b) Use of Estimates and Judgments The preparation of these condensed interim consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the allowance for doubtful accounts, the estimated useful lives and recoverability of long-lived assets, the equity component of convertible notes, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. (c) Recently Issued Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share- based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted (but no sooner than the adoption of Topic 606). The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. On November 22, 2017 the FASB issued ASU 2017-14 – “Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606)”. This update amends SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403, which bring existing guidance into conformity with Topic 606, Revenue from Contracts with Customers. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In February 2016, Topic 842, Leases was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Topic 842 will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied. Earlier application is permitted. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. | 2. Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and are expressed in US dollars. These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, WFS Pharmagreen Inc., 1155097 BC Ltd., and 1174505 BC Ltd., companies incorporated in British Columbia, Canada, and Canna Companion Products, Inc., a company incorporated in the State of Washington. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is September 30. (b) Use of Estimates and Judgments The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the allowance for doubtful accounts, the estimated useful lives and recoverability of long-lived assets, the equity component of convertible notes, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. (c) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the time of issuance to be cash equivalents. (d) Accounts Receivable The Company recognizes allowances for doubtful accounts to ensure accounts receivable are not overstated due to the inability or unwillingness of its customers to make required payments. The allowance is based on historical bad debt expense, the age of receivable and the specific identification of receivables the Company considers at risk. The Company had no allowance for doubtful accounts as of September 30, 2018, and 2017 (e) Property, Plant, and Equipment Property, plant and equipment is measured at cost less accumulated depreciation, residual values, and impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any other costs directly attributable to bringing the asset to a working condition for the intended use and borrowing costs on qualifying assets. During their construction, items of property, plant, and equipment are classified as construction in progress. When the asset is available for use, it is transferred from construction in progress to the appropriate category of property, plant, and equipment and depreciation on the item commences. The Company capitalizes borrowing costs on capital invested in projects under construction. Upon the asset becoming available for use, capitalized borrowing costs, as a portion of the total cost of the asset, are depreciated over the estimated useful life of the related asset. (f) Long-lived Assets In accordance with ASC 360, “Property, Plant and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value, which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. (g) Fair Value Measurements The Company measures and discloses the estimated fair value of financial assets and liabilities using the fair value hierarchy prescribed by U.S. generally accepted accounting principles. The fair value hierarchy has three levels, which are based on reliable available inputs of observable data. The hierarchy requires the use of observable market data when available. The three-level hierarchy is defined as follows: Level 1 – quoted prices for identical instruments in active markets. Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which significant inputs and significant value drivers are observable in active markets; and. Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Financial instruments consist principally of cash, accounts receivable and other receivables, assets and liabilities held for sale, accounts payable and accrued liabilities, advance from Alliance Growers Corp., amounts due to related parties, and convertible notes. The fair value of cash is determined based on Level 1 inputs. There were no transfers into or out of “Level 3” during the years ended September 30, 2018, and 2017. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. (h) Foreign Currency Translation The Company’s functional and reporting currency is the U.S. dollar. Transactions may occur in foreign currencies and management has adopted ASC 830, “Foreign Currency Translation Matters”. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the consolidated statement of operations. The Company uses the current rate method to translate the accounts of its wholly-owned subsidiaries into U.S. dollars. Monetary assets and liabilities are translated at the exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average rates for the period. The resulting exchange gains or losses are recognized in accumulated other comprehensive income. (i) Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” , The Company uses the Black-Scholes option pricing model to calculate the fair value of stock- based awards. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the consolidated statement of operations and comprehensive loss over the requisite service period. (j) Loss Per Share The Company computes loss per share in accordance with ASC 260, "Earnings per Share" (k) Comprehensive Loss ASC 220, “Comprehensive Income” establishes standards for the reporting and display of comprehensive income and its components in the consolidated financial statements. As at September 30, 2018 and 2017, comprehensive loss consists of foreign currency translation gains and losses. (l) Income Taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Income Taxes”. The asset and liability method provides that deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is believed more likely than not to be realized. As of September 30, 2018 and 2017, the Company did not have any amounts recorded pertaining to uncertain tax positions. The Company files federal and provincial income tax returns in Canada and federal, state and local income tax returns in the U.S., as applicable. The Company may be subject to a reassessment of federal and provincial income taxes by Canadian tax authorities for a period of three years from the date of the original notice of assessment in respect of any particular taxation year. For Canadian and U.S. income tax returns, the open taxation years range from 2014 to 2017. In certain circumstances, the U.S. federal statute of limitations can reach beyond the standard three year period. U.S. state statutes of limitations for income tax assessment vary from state to state. Tax authorities of Canada and U.S. have not examined any of the Company’s, or its subsidiaries’, income tax returns for the open taxation years noted above. (m) Recently Issued Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share- based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted (but no sooner than the adoption of Topic 606). The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. On November 22, 2017 the FASB issued ASU 2017-14 – “Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606)”. This update amends SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403, which bring existing guidance into conformity with Topic 606, Revenue from Contracts with Customers. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. In February 2016, Topic 842, Leases was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Topic 842 will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied. Earlier application is permitted. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Property and Equipment
Property and Equipment | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Property and Equipment | 3. Property and Equipment Cost Accumulated depreciation Net carrying value as at December 31, 2018 Net carrying value as at September 30, 2018 Construction in progress $ 262,393 — $ 262,393 $ 251,310 As at December 31, 2018, costs related to the construction of cannabis production complex were capitalized as construction in progress and not depreciated. Depreciation will commence when construction is completed, and the facility is available for its intended use. | 4. Property, Plant, and Equipment Cost Accumulated depreciation Net carrying value as at September 30, 2018 Net carrying value as at September 30, 2017 Construction in progress $ 251,310 $ — $ 251,310 $ — As at September 30, 2018, costs related to the construction of cannabis production complex were capitalized as construction in progress and not depreciated. Depreciation will commence when construction is completed, and the facility is available for its intended use. |
Acquisition of WFS Pharmagreen
Acquisition of WFS Pharmagreen Inc. | 12 Months Ended |
Sep. 30, 2018 | |
Acquisition Of Wfs Pharmagreen Inc. | |
Acquisition of WFS Pharmagreen Inc. | 3. Acquisition of WFS Pharmagreen Inc. On April 12, 2018, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with WFS Pharmagreen Inc. (“WFS”). Pursuant to the Share Exchange Agreement, the Company issued 37,704,500 shares of common stock in exchange for 100% of the issued and outstanding Class A Voting shares of common stock of WFS. The acquisition closed on May 2, 2018. Immediately prior to closing of the Agreement, the majority shareholder of the Company was also the majority shareholder of WFS. As a result of the common ownership upon closing of the transaction, the acquisition was considered a common-control transaction and was outside the scope of the business combination guidance in ASC 805-50. The entities are deemed to be under common control as of February 27, 2018, which was the date that the majority shareholder acquired control of the Company and, therefore, held control over both companies. Pursuant to ASC 250-10 and ASC 805-50, the transaction resulted in a change in the reporting entity and was recognized retrospectively for all periods during which the entities were under common control. For common-control transactions that result in a change in the reporting entity and for which both receiving entity and the transferring entity were not under common control during the entire reporting period, it is necessary to determine which entity is the predecessor. The predecessor is the reporting entity deemed to be the receiving entity for accounting purposes in a common-control transaction. The predecessor is not always the entity that legally receives the net assets or equity interests transferred. Comparative financial information shall only be adjusted for periods during which the entities were under common control. Since common control between the Company and WFS did not occur until the current period, the comparative information does not need to be combined. Accordingly, for periods in which the combining entities were not under common control, the comparative financial statements presented are those of the entity that is determined to be the predecessor up to the date at which the entities became under common control. WFS was determined to be the predecessor entity and, therefore, was deemed to be the receiving entity for accounting purposes. Additionally, the consolidated financial statements and financial information presented for prior periods has been restated to reflect the financial position and results of operations of WFS. Assets acquired and liabilities assumed are reported at their historical carrying amounts and any difference between the proceeds transferred is recognized in additional paid-in capital. These consolidated financial statements include the accounts of the Company since the date common control commenced and the historical accounts of WFS since inception. The assets acquired and liabilities assumed from the Company are as follows: February 27, 2018 Accounts payable $ (948 ) Due to related parties (42,949 ) Due to WFS (4,225 ) Net liabilities assumed $ (48,122 ) |
Convertible Notes
Convertible Notes | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Debt Disclosure [Abstract] | ||
Convertible Notes | 4. Convertible Notes On April 4, 2018, $32,485 owed to related parties were converted to Series A convertible notes, which are unsecured, non-interest bearing, and due on April 4, 2023. These notes are convertible in whole or in part, any time until maturity, to common shares of the Company at $0.0001 per share. The outstanding balance remaining at maturity shall bear interest at 12% per annum until fully paid. The Company evaluated the convertible notes for a beneficial conversion feature in accordance with ASC 470-20 “Debt with Conversion and Other Options”. The Company determined that the conversion price was below the closing stock price on the commitment date, and the convertible notes contained a beneficial conversion feature. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $32,485 as additional paid-in capital and reduced the carrying value of the convertible note to $nil. The carrying value will be accreted over the term of the convertible notes up to their face value of $32,485. During the year ended September 30, 2018, the Company issued a total of 31,745,000 shares of common stock upon the conversion of $3,174 of Series A convertible notes, which included 18,000,000 common shares to the President of the Company and 5,320,000 common shares to family members of the President of the Company. Upon conversion the Company immediately recognized the related remaining debt discount of $3,112 as accretion expense. During the three months ended December 31, 2018, the Company issued a total of 2,000,000 shares of common stock upon the conversion of $200 of Series A convertible notes. As at December 31, 2018, the carrying value of the convertible notes was $854 (September 30, 2018 - $693) and had an unamortized discount of $28,257 (September 30, 2018 - $28,618). During the three months ended December 31, 2018, the Company recorded accretion expense of $361 (2017 - $nil). | 5. Convertible Notes (a) On April 16, 2014, WFS issued convertible debentures in the aggregate amount of Cdn$92,000. The convertible debentures are unsecured, non-interest bearing, and were due by April 16, 2016. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.10 per share if WFS sells all or substantially all of its assets to another entity. In connection with the financing, WFS paid finder’s fees of Cdn$5,200. WFS determined that the convertible debentures contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debentures into common shares of WFS will occur. On May 1, 2018, WFS issued 920,000 shares of WFS common stock for the conversion of Cdn$92,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debentures are $nil (2017 - $73,548 (Cdn$92,000)). (b) On September 15, 2014, WFS issued convertible debentures in the aggregate amount of Cdn$268,000. The convertible debentures are unsecured, non-interest bearing, and were due by September 15, 2016. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. In connection with the financing, WFS paid finder’s fees of Cdn$9,600. WFS determined that the convertible debentures contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debentures into common shares of WFS will occur. On May 25, 2017, WFS repaid $5,000 of the convertible debenture. On May 1, 2018, WFS issued 1,052,000 shares of WFS common stock for the conversion of Cdn$263,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $210,251 (Cdn$263,000)). (c) On September 16, 2014, WFS issued convertible debentures in the aggregate amount of Cdn$10,000. The convertible debentures are unsecured, non-interest bearing, and were due by September 16, 2016. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.25 per common share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debentures contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debentures into common shares of WFS will occur. On May 1, 2018, WFS issued 40,000 shares of WFS common stock for the conversion of Cdn$10,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $7,994 (Cdn$10,000)). (d) On September 16, 2014, WFS issued convertible debentures in the aggregate amount of Cdn$32,000. The convertible debentures are unsecured, non-interest bearing, and were due by September 16, 2016. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.10 per share if WFS sells all or substantially all of its assets to another entity. In connection with the financing, WFS paid finder’s fees of Cdn$3,200. WFS determined that the convertible debentures contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debentures into common shares of WFS will occur. On May 1, 2018, WFS issued 320,000 shares of WFS common stock for the conversion of Cdn$32,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $25,582 (Cdn$32,000)). (e) On September 17, 2014, WFS issued convertible debentures in the aggregate amount of Cdn$130,000. The convertible debentures are unsecured, non-interest bearing, and were due by September 17, 2016. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debentures contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debentures into common shares of WFS will occur. On May 1, 2018, WFS issued 520,000 shares of WFS common stock for the conversion of Cdn$130,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $103,925 (Cdn$130,000)). (f) On November 27, 2014, WFS issued convertible debentures in the aggregate amount of Cdn$15,000. The convertible debentures are unsecured, non-interest bearing, and due by November 27, 2016. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.10 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debentures contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debentures into common shares of WFS will occur. On May 1, 2018, WFS issued 150,000 shares of WFS common stock for the conversion of Cdn$15,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $11,991 (Cdn$15,000)). (g) On December 30, 2014, WFS issued convertible debentures in the aggregate amount of Cdn$20,000. The convertible debentures are unsecured, non-interest bearing, and due by December 30, 2016. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debentures contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debentures into common shares of WFS will occur. On May 1, 2018, WFS issued 80,000 shares of WFS common stock for the conversion of Cdn$20,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $15,988 (Cdn$20,000)). (h) On January 21, 2015, WFS issued a convertible debenture in the amount of Cdn$250,000. The convertible debenture is unsecured, non-interest bearing, and due by January 21, 2017. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.10 per common share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 2,500,000 shares of WFS common stock for the conversion of Cdn$250,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $199,856 (Cdn$250,000)). (i) On February 22, 2015, WFS issued a convertible debenture in the amount of Cdn$30,000. The convertible debenture is unsecured, non-interest bearing, and due by February 22, 2017. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. In connection with the financing, WFS paid finder’s fees of Cdn$3,000. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 120,000 shares of WFS common stock for the conversion of Cdn$30,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $23,983 (Cdn$30,000)). (j) On April 15, 2015, WFS issued a convertible debenture in the amount of Cdn$50,000. The convertible debenture is unsecured, non-interest bearing, and due by April 15, 2017. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 200,000 shares of WFS common stock for the conversion of Cdn$50,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $39,971 (Cdn$50,000)). (k) On April 22, 2015, WFS issued a convertible debenture in the amount of Cdn$15,000. The convertible debenture is unsecured, non-interest bearing, and due by April 22, 2017. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. In connection with the financing, WFS paid finder’s fees of Cdn$1,500. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 60,000 shares of WFS common stock for the conversion of Cdn$15,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $11,991 (Cdn$15,000)). (l) On May 29, 2015, WFS issued convertible debentures in the aggregate amount of Cdn$10,000. The convertible debentures are unsecured, non-interest bearing, and due by May 29, 2017. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debentures contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debentures into common shares of WFS will occur. On May 1, 2018, WFS issued 40,000 shares of WFS common stock for the conversion of Cdn$10,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $7,994 (Cdn$10,000)). (m) On June 3, 2015, WFS issued a convertible debenture in the amount of Cdn$15,000. The convertible debenture is unsecured, non-interest bearing, and due by June 3, 2017. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. In connection with the financing, WFS paid finder’s fees of Cdn$1,500. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 60,000 shares of WFS common stock for the conversion of Cdn$15,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $11,991 (Cdn$15,000)). (n) On June 26, 2015, WFS issued a convertible debenture in the amount of Cdn$10,000. The convertible debenture is unsecured, non-interest bearing, and due by June 26, 2017. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. In connection with the financing, WFS paid finder’s fees of Cdn$1,000. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 40,000 shares of WFS common stock for the conversion of Cdn$10,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $7,994 (Cdn$10,000)). (o) On June 29, 2015, WFS issued a convertible debenture in the amount of Cdn$325,000 to the father of the Chief Executive Officer of WFS. The convertible debenture is unsecured, bears interest at 12% per annum, and is due on June 29, 2016. The convertible debenture is convertible into common shares of WFS or common shares of a public company that is an affiliate of WFS ("Pubco") at a conversion price which is the higher of (i) Cdn$0.10 per share; and (ii) if WFS or Pubco is listed on a stock exchange, the price per share equal to the amount that is a 40% discount from the average trading price of the shares of WFS or Pubco over a period of 5 trading days before the date of conversion. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On February 28, 2018, WFS repaid Cdn$97,800 of the convertible debenture. On February 28, 2018, WFS issued 2,889,147 shares of common stock for the conversion of Cdn$227,200 of convertible debt and accrued interest. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $259,813 (Cdn$325,000)). (p) On July 23, 2015, WFS issued a convertible debenture in the amount of Cdn$100,000. The convertible debenture is unsecured, non-interest bearing, and due by July 22, 2017. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.20 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 500,000 shares of WFS common stock for the conversion of Cdn$100,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $79,942 (Cdn$100,000)). (q) On August 20, 2015, WFS issued a convertible debenture in the amount of Cdn$100,000 to the father of the Chief Executive Officer of WFS. The convertible debenture is unsecured, bears interest at 12% per annum, and was due on August 20, 2016. The convertible debenture is convertible into common shares of WFS or common shares of a public company that is an affiliate of WFS ("Pubco") at a conversion price which is the higher of (i) Cdn$0.10 per share; and (ii) if WFS or Pubco is listed on a stock exchange, the price per share equal to the amount that is a 40% discount from the average trading price of the shares of WFS or Pubco over a period of 5 trading days before the date of conversion. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On February 28, 2018, WFS issued 1,271,632 shares of common stock for the conversion of Cdn$100,000 of convertible debt and accrued interest. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $79,942 (Cdn$100,000)). (r) On October 4, 2015, WFS issued a convertible debenture in the amount of Cdn$100,000 to the father of the Chief Executive Officer of WFS, of which Cdn$30,000 was received on September 15, 2015. The convertible debenture is unsecured, bears interest at 12% per annum, and was due on October 4, 2016. The convertible debenture is convertible into common shares of WFS or common shares of a public company that is an affiliate of WFS ("Pubco") at a conversion price which is the higher of (i) Cdn$0.10 per share; and (ii) if WFS or Pubco is listed on a stock exchange, the price per share equal to the amount that is a 40% discount from the average trading price of the shares of WFS or Pubco over a period of 5 trading days before the date of conversion. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On February 28, 2018, WFS issued 1,271,632 shares of common stock for the conversion of Cdn$100,000 of convertible debt and accrued interest. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $79,942 (Cdn$100,000)). (s) On October 17, 2015, WFS issued a convertible debenture in the amount of Cdn$27,000. The convertible debenture is unsecured, non-interest bearing, and due by October 17, 2017. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.24545 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 110,000 shares of WFS common stock for the conversion of Cdn$27,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $21,584 (Cdn$27,000)). (t) On December 1, 2015, WFS issued a convertible debenture in the amount of Cdn$10,000. The convertible debenture is unsecured, non-interest bearing, and due by December 1, 2017. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 40,000 shares of WFS common stock for the conversion of Cdn$10,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $7,994 (Cdn$10,000)). (u) On February 1, 2016, WFS issued convertible debentures in the aggregate amount of Cdn$45,000. The convertible debentures are unsecured, non-interest bearing, and due by February 1, 2018. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debentures contain no embedded beneficial conversion features as there is no guarantee that the option to convert the convertible debentures into common shares of WFS will occur. On February 19, 2018, WFS repaid $25,000 of the convertible debenture. On May 1, 2018, WFS issued 80,000 shares of WFS common stock for the conversion of Cdn$20,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debentures is $nil (2017 - $35,974 (Cdn$45,000)). (v) On February 24, 2016, WFS issued convertible debenture in the aggregate amount of Cdn$30,000. The convertible debentures are unsecured, non-interest bearing, and due by February 24, 2018. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.20 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 150,000 shares of WFS common stock for the conversion of Cdn$30,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $23,983 (Cdn$30,000)). (w) On February 24, 2016, WFS issued convertible debenture in the aggregate amount of Cdn$25,000. The convertible debentures are unsecured, non-interest bearing, and due by February 24, 2018. The convertible debentures are convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 100,000 shares of WFS common stock for the conversion of Cdn$25,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $19,986 (Cdn$25,000)). (x) On May 31, 2016, WFS issued a convertible debenture in the amount of Cdn$115,000 to the father of the Chief Executive Officer of WFS, of which Cdn$40,000 was received on November 3, 2015, and Cdn$75,000 was received on April 28, 2016. The convertible debenture is unsecured, bears interest at 12% per annum, and is due on May 31, 2017. The convertible debenture is convertible into common shares of WFS or common shares of a public company that is an affiliate of WFS ("Pubco") at a conversion price which is the higher of (i) Cdn$0.10 per share; and (ii) if WFS or Pubco is listed on a stock exchange, the price per share equal to the amount that is a 40% discount from the average trading price of the shares of WFS or Pubco over a period of 5 trading days before the date of conversion. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On February 28, 2018, WFS issued 1,462,376 shares of common stock for the conversion of Cdn$115,000 of convertible debt and accrued interest. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $91,934 (Cdn$115,000)). (y) On July 12, 2016, WFS issued a convertible debenture in the amount of Cdn$35,000 to the father of the Chief Executive Officer of WFS. The convertible debenture is unsecured, bears interest at 12% per annum, and is due on July 12, 2017. The convertible debenture is convertible into common shares of WFS or common shares of a public company that is an affiliate of WFS ("Pubco") at a conversion price which is the higher of (i) Cdn$0.10 per share; and (ii) if WFS or Pubco is listed on a stock exchange, the price per share equal to the amount that is a 40% discount from the average trading price of the shares of WFS or Pubco over a period of 5 trading days before the date of conversion. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On February 28, 2018, WFS issued 445,071 shares of common stock for the conversion of Cdn$35,000 of convertible debt and accrued interest. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $27,980 (Cdn$35,000)). (z) On September 29, 2016, WFS issued a convertible debenture in the amount of Cdn$5,000. The convertible debenture is unsecured, non-interest bearing, and due by September 29, 2018. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 20,000 shares of WFS common stock for the conversion of Cdn$5,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $3,997 (Cdn$5,000)). (aa) On November 16, 2016, WFS issued a convertible debenture in the amount of $70,000 to the father of the Chief Executive Officer of WFS. The convertible debenture is unsecured, bears interest at 12% per annum, and is due on November 16, 2017. The convertible debenture is convertible into common shares of WFS or common shares of a public company that is an affiliate of WFS ("Pubco") at a conversion price which is the higher of (i) Cdn$0.10 per share; and (ii) if WFS or Pubco is listed on a stock exchange, the price per share equal to the amount that is a 40% discount from the average trading price of the shares of WFS or Pubco over a period of 5 trading days before the date of conversion. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On February 28, 2018, WFS issued 890,142 shares of common stock for the conversion of Cdn$70,000 of convertible debt and accrued interest. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $55,960 (Cdn$70,000)). (bb) On January 5, 2017, WFS issued a convertible debenture in the amount of Cdn$65,000. The convertible debenture is unsecured, non-interest bearing, and due by January 5, 2019. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 260,000 shares of WFS common stock for the conversion of Cdn$65,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $51,963 (Cdn$65,000)). (cc) On January 8, 2017, WFS issued a convertible debenture in the amount of Cdn$5,000. The convertible debenture is unsecured, non-interest bearing, and due by January 8, 2019. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 16, 2018, WFS repaid $5,000 of the convertible debenture. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $3,997 (Cdn$5,000)). (dd) On February 4, 2017, WFS issued a convertible debenture in the amount of Cdn$7,000. The convertible debenture is unsecured, non-interest bearing, and due by February 4, 2019. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 28,000 shares of WFS common stock for the conversion of Cdn$7,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $5,596 (Cdn$7,000)). (ee) On April 26, 2017, WFS issued a convertible debenture in the amount of Cdn$5,000. The convertible debenture is unsecured, non-interest bearing, and due by February 4, 2019. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 16, 2018, WFS repaid $5,000 of the convertible debenture. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $3,997 (Cdn$5,000)). (ff) On April 26, 2017, WFS issued a convertible debenture in the amount of Cdn$25,000. The convertible debenture is unsecured, non-interest bearing, and due by April 26, 2019. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 100,000 shares of WFS common stock for the conversion of Cdn$25,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $19,986 (Cdn$25,000)). (gg) On May 12, 2017, WFS issued a convertible debenture in the amount of Cdn$50,000. The convertible debenture is unsecured, non-interest bearing, and due by May 12, 2019. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 200,000 shares of WFS common stock for the conversion of Cdn$50,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $39,971 (Cdn$50,000)). (hh) On May 31, 2017, WFS issued a convertible debenture in the amount of Cdn$8,000. The convertible debenture is unsecured, non-interest bearing, and due by May 31, 2019. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 32,000 shares of WFS common stock for the conversion of Cdn$8,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $6,395 (Cdn$8,000)). (ii) On June 6, 2017, WFS issued a convertible debenture in the amount of Cdn$50,000. The convertible debenture is unsecured, non-interest bearing, and due by June 6, 2019. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.20 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 250,000 shares of WFS common stock for the conversion of Cdn$50,000 of convertible debt. As at September 30, 2018, the carrying value of the convertible debenture is $nil (2017 - $39,971 (Cdn$50,000)). (jj) On December 23, 2017, WFS issued a convertible debenture in the amount of Cdn$51,000. The convertible debenture is unsecured, non-interest bearing, and due by December 23, 2019. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.25 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 204,000 shares of WFS common stock for the conversion of Cdn$51,000 of convertible debt. (kk) On January 3, 2018, WFS issued a convertible debenture in the amount of Cdn$12,500. The convertible debenture is unsecured, non-interest bearing, and due by January 3, 2020. The convertible debenture is convertible into common shares of WFS at a conversion price of Cdn$0.20 per share if WFS sells all or substantially all of its assets to another entity. WFS determined that the convertible debenture contained no embedded beneficial conversion feature as there is no guarantee that the option to convert the convertible debenture into common shares of WFS will occur. On May 1, 2018, WFS issued 62,500 shares of WFS common stock for the conversion of Cdn$12,500 of convertible debt. (ll) On January 10, 2018, WFS issued a convertible debenture in the amount of Cdn$25,000. The convertible |
Related Party Transactions
Related Party Transactions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | 5. Related Party Transactions (a) As at December 31, 2018, the Company owed $167,113 (Cdn$228,009) (September 30, 2018 – $223,799 (Cdn$289,193)) to the President of the Company, which is non-interest bearing, unsecured and due on demand. (b) As at December 31, 2018, the Company owed $1,264 (Cdn$1,725) (September 30, 2018 - $2,176 (Cdn$2,812)) to a company controlled by the President of the Company, which is non-interest bearing, unsecured, and due on demand. (c) As at December 31, 2018, the Company owed $53,870 (Cdn$73,500) (September 30, 2018 - $56,880 (Cdn$73,500)) to the mother of the President of the Company, which is non-interest bearing, unsecured, and due on demand. (d) As at December 31, 2018, the Company owed $nil (September 30, 2018 - $12,522 (Cdn$16,181)) to the Chief Financial Officer of the Company, which is included in accounts payable and accrued liabilities. The amount due is non-interest bearing, unsecured, and due on demand. (e) As at December 31, 2018, the Company owed $240,975 (Cdn$328,786) (September 30, 2018 – $243,969 (Cdn$315,272)) to a company controlled by the Chief Financial Officer of the Company, which is included in accounts payable and accrued liabilities. The amount due is non-interest bearing, unsecured, and due on demand. (f) During the three months ended December 31, 2018, the Company incurred consulting fees of $22,726 (2017 - $23,595) to the President of the Company. (g) During the three months ended December 31, 2018, the Company incurred consulting fees of $22,726 (2017 - $23,595) to the Chief Financial Officer of the Company. | 6. Related Party Transactions (a) As at September 30, 2018, the Company owed $223,799 (Cdn$289,193) (2017 – $203,953 (Cdn$252,999)) to the President of the Company, which is non-interest bearing, unsecured and due on demand. (b) As at September 30, 2018, the Company owed $2,176 (Cdn$2,812) (2017 - $59,409 (Cdn$74,314)) to a company controlled by the President of the Company, which is non-interest bearing, unsecured, and due on demand. (c) As at September 30, 2018, the Company owed $56,880 (Cdn$73,500) (2017 - $58,758 (Cdn$73,500)) to the mother of the President of the Company, which is non-interest bearing, unsecured, and due on demand. (d) As at September 30, 2018, the Company owed $12,522 (Cdn$16,181) (2017 - nil) to the Chief Financial Officer of the Company, which is included in accounts payable and accrued liabilities. The amount due is non-interest bearing, unsecured, and due on demand. (e) As at September 30, 2018, the Company owed $243,969 (Cdn$315,272) (2017 - nil) to a company controlled by the Chief Financial Officer of the Company, which is included in accounts payable and accrued liabilities. The amount due is non-interest bearing, unsecured, and due on demand. (f) During the year ended September 30, 2018, the Company incurred consulting fees of $101,643 (2017 - $120,000) to the President of the Company. (g) During the year ended September 30, 2018, the Company incurred consulting fees of $101,643 (2017 - $120,000) to the Chief Financial Officer of the Company. |
Common Stock
Common Stock | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Equity [Abstract] | ||
Common Stock | 6. Common Stock (a) On December 6, 2018, the Company issued 2,000,000 shares of common stock upon the conversion of $200 of Series A convertible notes at $0.0001 per share. Refer to Note 5. (b) On December 6, 2018, the Company issued 51,725 shares of common stock with a fair value of $187,245 for financing costs. The fair value of common stock was determined based on the end of day trading price of the Company’s common stock on the date of issuance. | 7. Common Stock (a) On February 28, 2018, the Company issued 8,230,000 shares of WFS common stock for the conversion of $506,761 (Cdn$647,200) of convertible debentures and $137,652 (Cdn$175,800) of accrued interest. (b) On April 16, 2018, the Company filed a certificate of amendment to increase the authorized share capital to 9,000,000,000 shares of common stock. (c) On May 1, 2018, the WFS issued 9,474,500 shares of WFS common stock for the conversion of Cdn$1,736,500 convertible debentures. (d) On May 2, 2018, the Company issued 37,704,500 shares of common stock in exchange for all the issued and outstanding shares of WFS Pharmagreen Inc. pursuant to the share exchange agreement dated April 12, 2018. Refer to Note 3. (e) On May 24, 2018, the Company enacted a reverse split of its shares of common stock on a 200:1 basis. All reference to share and per share amounts have been retroactively restated to effect the reverse stock split as if the transaction had taken place as of the beginning of the earliest period presented. (f) On July 9, 2018, the Company issued 26,720,000 shares of common stock upon the conversion of $2,672 of Series A convertible notes at $0.0001 per share. Refer to Note 5(rr). (g) On July 24, 2018, the Company filed a certificate of amendment to decrease the authorized share capital to 500,000,000 shares of common stock. (h) On August 27, 2018, the Company issued 5,025,000 shares of common stock upon the conversion of $503 of Series A convertible notes at $0.0001 per share. Refer to Note 5(rr). |
Commitment
Commitment | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitment | 7. Commitment Effective December 11, 2017, as subsequently amended, the Company entered into a binding Letter of Intent (“LOI”) with Alliance Growers Corp. (“Alliance”), whereby the Company will build a new cannabis biotech complex (the “Biotech Complex”) located in British Columbia, through their subsidiary, 1155097 BC Ltd. (“115BC”). The LOI was superseded and replaced by an Option Agreement (the “Agreement”) made on January 25, 2019, between the Company’s wholly owned subsidiary WFS Pharmagreen Inc. (“WFS”) and Alliance. Refer to Note 9. | 8. Commitment Effective December 11, 2017, as subsequently amended, the Company entered into a binding Letter of Intent (“LOI”) with Alliance Growers Corp. (“Alliance”), whereby the Company will build a new cannabis biotech complex (the “Biotech Complex’) located in British Columbia, through their subsidiary, 1155097 BC Ltd. (“115BC”) Alliance may purchase up to a 30% equity interest in 115BC and the Biotech Complex, in consideration for funding up to 30% of the total construction costs. Alliance will have the first right of refusal to participate in future equity financing to maintain their percentage interest in 115BC, if it requires financing for growth and expansion. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations | |
Discontinued Operations | 9. Discontinued Operations On May 12, 2016, WFS entered into a Letter of Understanding and Intent (the “Agreement”) with Canna Companion, LLC (“CCL”), which outlines the verbal agreement made between WFS and CCL, in 2015. Pursuant to the Agreement, WFS and CCL, will equally share the net operating profits and losses from the sale, manufacturing, and distribution of the Canna Companion pet supplement through CCL, from June 1, 2015, to January 31, 2016. As of February 1, 2016, it was agreed that WFS’s subsidiary, Canna Companion Products, Inc. (“CCP”), would assume the manufacturing, sale and distribution of the Canna Companion pet supplement business and the net operating profit and loss sharing arrangement was terminated. In addition, it was agreed that CCL, will receive a 5% royalty on net sales and $10,000 per month to manage the production facility in Monroe, Washington on a full-time basis. On October 1, 2017, the WFS determined that access to the Canna Companion pet supplement, and the related operations, had been misappropriated by the licensors, CCL. As a result, all arrangements with CCL were terminated effective October 1, 2017. The operations of the WFS’s wholly-owned subsidiary, CCP, related solely to the Canna Companion pet supplement being licensed from CCL. CCP meets the criteria to be classified as discontinued operations as of September 30, 2017, and therefore, the results of operations of CCP for all periods have been classified as discontinued operations on the consolidated statements of operations and comprehensive loss. The carrying amounts of the major classes of assets and liabilities of CCP have been classified as held for sale on the consolidated balance sheets. Income / (Loss) From Discontinued Operations Year ended September 30, 2018 Year ended September 30, 2017 Canna Companion Products, Inc. Revenue $ — $ 1,493,921 Cost of goods sold — 411,043 Gross profit $ — $ 1,082,878 Expenses Advertising and promotion — 121,091 Amortization — 17,891 Bad debts — 18,915 Consulting fees — 120,425 General and administrative — 112,926 Professional fees — 68,179 Rent — 15,646 Repairs and maintenance — 48,070 Research and development — 2,438 Supplies — 320,286 Travel — 14,685 Website costs — 41,947 Total expenses $ — $ 902,499 Net income before other expense — 180,379 Interest expense — -16,085 Net income $ — $ 164,294 Assets and Liabilities of Discontinued Operations September 30, 2018 September 30, 2017 Canna Companion Products, Inc. Carrying amounts of major classes of assets included as part of discontinued operations Cash $ — $ 29,350 Amounts receivable — 10,019 Inventory — 303,467 Prepaid expenses and deposits — 39,516 Total current assets $ — $ 382,352 Property and equipment — 62,351 Total assets of discontinued operations $ — $ 444,703 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable and accrued liabilities — 45,560 Loan payable — 65,240 Lease payable — 2,429 Total liabilities of discontinued operations $ — $ 113,229 During the year ended September 30, 2018, the Company recognized a loss on disposal of the net assets of Canna Companion Products, Inc. of $331,474 due to the misappropriation on October 1, 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Taxes | |
Income Taxes | 10. Income Taxes The Company is subject to Canadian federal and provincial taxes at an approximate rate of 26.75% and United States federal and state income taxes at an approximate rate of 21% (2017 – 34%). The reconciliation of the provision for income taxes at the federal statutory rate compared to the Company’s income tax expense as reported is as follows: 2018 2017 Income tax recovery at statutory rate $ (281,940 ) $ (158,120 ) Permanent differences and other 80,404 (1,505 ) Change in enacted tax rate (2,442 ) 27,342 Change in substantive tax rates of foreign jurisdiction — (15,967 ) Change in valuation allowance 203,978 148,250 Income tax provision $ — $ — The significant components of deferred income tax assets and liabilities are as follows: 2018 2017 Net operating losses carried forward $ 708,497 $ 506,004 Property and equipment 152,406 152,996 Intangible assets 56,023 53,948 Valuation allowance (916,926 ) (712,948 ) Net deferred income tax asset $ — $ — The 2017 Act reduces the corporate tax rate from 34% to 21% for tax years beginning after December 31, 2017. For net operating losses arising after December 31, 2017, the 2017 Act limits a taxpayer’s ability to utilize net operating losses carryforwards to 80% of taxable income. In addition, net operating losses arising after 2017 can be carried forward indefinitely, but carryback is generally prohibited. Net operating losses generated in tax years beginning before January 1, 2018 will not be subject to the taxable income limitation. The 2017 Act would generally eliminate the carryback of all net operating losses arising in a tax year ending after 2017 and instead would permit all such net operating losses to be carried forward indefinitely. The Company has net operating losses carried forward of $2,672,742 which may be carried forward to apply against future years’ taxable income, subject to the final determination by taxation authorities, expiring in the following years: Canada USA 2029 $ — $ 54,040 2030 — 101,259 2034 367,617 — 2035 478,547 1,003 2036 188,742 1,000 2037 412,456 — 2038 976,901 99,586 $ 2,424,263 $ 256,888 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 8. Subsequent Event On January 25, 2019, the Company’s wholly owned subsidiaries WFS Pharmagreen Inc. and 115BC entered into an Option Agreement with Alliance Growers Corp. (Note 8). The Option Agreement grants an option to Alliance to purchase 10% equity interest in 115BC for Cdn$1,350,000 and grants a second option to purchase an additional 20% equity interest in 115BC for funding of 30% of the total construction and equipment costs for the biotech complex less Cdn$1,350,000. Upon exercise of the second option, Alliance will have the first right of refusal to participate in future equity financing to maintain their percentage interest in 115BC, if it requires financing for growth and expansion. On January 25, 2019, 115BC issued 8 shares of common stock to Alliance Growers Corp. upon exercise of the first option. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | (a) Basis of Presentation The accompanying condensed interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and are expressed in US dollars. These condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, WFS Pharmagreen Inc., 1155097 BC Ltd., and 1174505 BC Ltd., companies incorporated in British Columbia, Canada, and Canna Companion Products, Inc., a company incorporated in the State of Washington. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is September 30 | (a) Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and are expressed in US dollars. These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, WFS Pharmagreen Inc., 1155097 BC Ltd., and 1174505 BC Ltd., companies incorporated in British Columbia, Canada, and Canna Companion Products, Inc., a company incorporated in the State of Washington. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is September 30. |
Use of Estimates and Judgments | (b) Use of Estimates and Judgments The preparation of these condensed interim consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the allowance for doubtful accounts, the estimated useful lives and recoverability of long-lived assets, the equity component of convertible notes, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | (b) Use of Estimates and Judgments The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the allowance for doubtful accounts, the estimated useful lives and recoverability of long-lived assets, the equity component of convertible notes, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Cash and Cash Equivalents | (c) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the time of issuance to be cash equivalents. | |
Accounts Receivable | (d) Accounts Receivable The Company recognizes allowances for doubtful accounts to ensure accounts receivable are not overstated due to the inability or unwillingness of its customers to make required payments. The allowance is based on historical bad debt expense, the age of receivable and the specific identification of receivables the Company considers at risk. The Company had no allowance for doubtful accounts as of September 30, 2018, and 2017 | |
Property, Plant, and Equipment | (e) Property, Plant, and Equipment Property, plant and equipment is measured at cost less accumulated depreciation, residual values, and impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any other costs directly attributable to bringing the asset to a working condition for the intended use and borrowing costs on qualifying assets. During their construction, items of property, plant, and equipment are classified as construction in progress. When the asset is available for use, it is transferred from construction in progress to the appropriate category of property, plant, and equipment and depreciation on the item commences. The Company capitalizes borrowing costs on capital invested in projects under construction. Upon the asset becoming available for use, capitalized borrowing costs, as a portion of the total cost of the asset, are depreciated over the estimated useful life of the related asset. | |
Long-lived Assets | (f) Long-lived Assets In accordance with ASC 360, “Property, Plant and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value, which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. | |
Fair Value Measurements | (g) Fair Value Measurements The Company measures and discloses the estimated fair value of financial assets and liabilities using the fair value hierarchy prescribed by U.S. generally accepted accounting principles. The fair value hierarchy has three levels, which are based on reliable available inputs of observable data. The hierarchy requires the use of observable market data when available. The three-level hierarchy is defined as follows: Level 1 – quoted prices for identical instruments in active markets. Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which significant inputs and significant value drivers are observable in active markets; and. Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Financial instruments consist principally of cash, accounts receivable and other receivables, assets and liabilities held for sale, accounts payable and accrued liabilities, advance from Alliance Growers Corp., amounts due to related parties, and convertible notes. The fair value of cash is determined based on Level 1 inputs. There were no transfers into or out of “Level 3” during the years ended September 30, 2018, and 2017. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |
Foreign Currency Translation | (h) Foreign Currency Translation The Company’s functional and reporting currency is the U.S. dollar. Transactions may occur in foreign currencies and management has adopted ASC 830, “Foreign Currency Translation Matters”. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the consolidated statement of operations. The Company uses the current rate method to translate the accounts of its wholly-owned subsidiaries into U.S. dollars. Monetary assets and liabilities are translated at the exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average rates for the period. The resulting exchange gains or losses are recognized in accumulated other comprehensive income. | |
Stock-based Compensation | (i) Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” , The Company uses the Black-Scholes option pricing model to calculate the fair value of stock- based awards. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the consolidated statement of operations and comprehensive loss over the requisite service period. | |
Loss Per Share | (j) Loss Per Share The Company computes loss per share in accordance with ASC 260, "Earnings per Share" | |
Comprehensive Loss | (k) Comprehensive Loss ASC 220, “Comprehensive Income” establishes standards for the reporting and display of comprehensive income and its components in the consolidated financial statements. As at September 30, 2018 and 2017, comprehensive loss consists of foreign currency translation gains and losses. | |
Income Taxes | (l) Income Taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Income Taxes”. The asset and liability method provides that deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is believed more likely than not to be realized. As of September 30, 2018 and 2017, the Company did not have any amounts recorded pertaining to uncertain tax positions. The Company files federal and provincial income tax returns in Canada and federal, state and local income tax returns in the U.S., as applicable. The Company may be subject to a reassessment of federal and provincial income taxes by Canadian tax authorities for a period of three years from the date of the original notice of assessment in respect of any particular taxation year. For Canadian and U.S. income tax returns, the open taxation years range from 2014 to 2017. In certain circumstances, the U.S. federal statute of limitations can reach beyond the standard three year period. U.S. state statutes of limitations for income tax assessment vary from state to state. Tax authorities of Canada and U.S. have not examined any of the Company’s, or its subsidiaries’, income tax returns for the open taxation years noted above. | |
Recently Issued Accounting Pronouncements | (c) Recently Issued Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share- based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted (but no sooner than the adoption of Topic 606). The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. On November 22, 2017 the FASB issued ASU 2017-14 – “Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606)”. This update amends SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403, which bring existing guidance into conformity with Topic 606, Revenue from Contracts with Customers. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In February 2016, Topic 842, Leases was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Topic 842 will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied. Earlier application is permitted. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. | (m) Recently Issued Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share- based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted (but no sooner than the adoption of Topic 606). The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. On November 22, 2017 the FASB issued ASU 2017-14 – “Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606)”. This update amends SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403, which bring existing guidance into conformity with Topic 606, Revenue from Contracts with Customers. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. In February 2016, Topic 842, Leases was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Topic 842 will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied. Earlier application is permitted. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied. The adoption of this standard is not expected to have a material impact on the Company´s consolidated financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of Property and Equipment | Cost Accumulated depreciation Net carrying value as at December 31, 2018 Net carrying value as at September 30, 2018 Construction in progress $ 262,393 — $ 262,393 $ 251,310 | Cost Accumulated depreciation Net carrying value as at September 30, 2018 Net carrying value as at September 30, 2017 Construction in progress $ 251,310 $ — $ 251,310 $ — |
Acquisition of WFS Pharmagree_2
Acquisition of WFS Pharmagreen Inc. (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure Acquisition Of Wfs Pharmagreen Inc.Tables Abstract | |
Schedule of Assets Acquired and Liabilities Assumed in Acquisition | The assets acquired and liabilities assumed from the Company are as follows: February 27, 2018 Accounts payable $ (948 ) Due to related parties (42,949 ) Due to WFS (4,225 ) Net liabilities assumed $ (48,122 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure Discontinued Operations Tables Abstract | |
Schedule of Discontinued Operations | Income / (Loss) From Discontinued Operations Year ended September 30, 2018 Year ended September 30, 2017 Canna Companion Products, Inc. Revenue $ — $ 1,493,921 Cost of goods sold — 411,043 Gross profit $ — $ 1,082,878 Expenses Advertising and promotion — 121,091 Amortization — 17,891 Bad debts — 18,915 Consulting fees — 120,425 General and administrative — 112,926 Professional fees — 68,179 Rent — 15,646 Repairs and maintenance — 48,070 Research and development — 2,438 Supplies — 320,286 Travel — 14,685 Website costs — 41,947 Total expenses $ — $ 902,499 Net income before other expense — 180,379 Interest expense — -16,085 Net income $ — $ 164,294 Assets and Liabilities of Discontinued Operations September 30, 2018 September 30, 2017 Canna Companion Products, Inc. Carrying amounts of major classes of assets included as part of discontinued operations Cash $ — $ 29,350 Amounts receivable — 10,019 Inventory — 303,467 Prepaid expenses and deposits — 39,516 Total current assets $ — $ 382,352 Property and equipment — 62,351 Total assets of discontinued operations $ — $ 444,703 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable and accrued liabilities — 45,560 Loan payable — 65,240 Lease payable — 2,429 Total liabilities of discontinued operations $ — $ 113,229 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure Income Taxes Tables Abstract | |
Schedule of income tax expense | The reconciliation of the provision for income taxes at the federal statutory rate compared to the Company’s income tax expense as reported is as follows: 2018 2017 Income tax recovery at statutory rate $ (281,940 ) $ (158,120 ) Permanent differences and other 80,404 (1,505 ) Change in enacted tax rate (2,442 ) 27,342 Change in substantive tax rates of foreign jurisdiction — (15,967 ) Change in valuation allowance 203,978 148,250 Income tax provision $ — $ — |
Schedule of deferred income tax assets and liabilities | The significant components of deferred income tax assets and liabilities are as follows: 2018 2017 Net operating losses carried forward $ 708,497 $ 506,004 Property and equipment 152,406 152,996 Intangible assets 56,023 53,948 Valuation allowance (916,926 ) (712,948 ) Net deferred income tax asset $ — $ — |
Schedule of net operating losses carried forward expiring | The Company has net operating losses carried forward of $2,672,742 which may be carried forward to apply against future years’ taxable income, subject to the final determination by taxation authorities, expiring in the following years: Canada USA 2029 $ — $ 54,040 2030 — 101,259 2034 367,617 — 2035 478,547 1,003 2036 188,742 1,000 2037 412,456 — 2038 976,901 99,586 $ 2,424,263 $ 256,888 |
Nature of Business and Contin_2
Nature of Business and Continuance of Operations (Details Narrative) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Working Capital Deficit | $ 1,755,728 | $ 1,638,078 | |
Accumulated Deficit | $ 4,354,882 | $ 3,961,939 | $ 2,888,358 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - shares | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Summary Of Significant Accounting Policies | ||
Potentially Dilutive Shares Outstanding | 293,103,700 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Abstract] | |||
Construction in progress | $ 262,393 | $ 251,310 | |
Accumulated depreciation | |||
Net Carrying Value | $ 262,393 | $ 251,310 |
Acquisition of WFS Pharmagree_3
Acquisition of WFS Pharmagreen Inc. (Details) - WFS Pharmagreen Inc. [Member] | Feb. 27, 2018USD ($) |
Accounts payable | $ (948) |
Due to related parties | (42,949) |
Due to WFS | (4,225) |
Net liabilities assumed | $ (48,122) |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) | Dec. 06, 2018USD ($)shares | Aug. 27, 2018USD ($)shares | Jul. 09, 2018USD ($)shares | Apr. 04, 2018USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($)shares | Sep. 30, 2017USD ($) | May 16, 2018USD ($) | May 01, 2018USD ($) | May 01, 2018CAD ($) | Feb. 28, 2018USD ($) |
Due to Related Party | $ 32,485 | |||||||||||
Common Shares issued upon conversion of Series A convertible notes | $ 200 | $ 503 | $ 2,672 | $ 200 | $ 3,175 | |||||||
Common Shares issued upon conversion of Series A convertible notes, Shares | shares | 2,000,000 | 5,025,000 | 26,720,000 | 2,000,000 | 31,745,000 | |||||||
Accretion Expense | $ 361 | $ 3,112 | ||||||||||
Carrying value of the Convertible Notes | 854 | 693 | 171,876 | |||||||||
Convertible Notes, Unamortized Discount | $ 28,257 | 28,618 | ||||||||||
Convertible Debentures - April 16, 2014 | ||||||||||||
Carrying value of the Convertible Notes | 73,548 | $ 73,548 | ||||||||||
Convertible Notes, Unamortized Discount | 920,000 | |||||||||||
Convertible Debentures - September 15, 2014 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 210,251 | 210,251 | ||||||||||
Convertible Notes, Unamortized Discount | 1,052,000 | |||||||||||
Convertible Debentures - September 16, 2014 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 7,994 | 7,994 | ||||||||||
Convertible Notes, Unamortized Discount | 40,000 | |||||||||||
Convertible Debentures - September 16, 2014 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 25,582 | 25,582 | ||||||||||
Convertible Notes, Unamortized Discount | 320,000 | |||||||||||
Convertible Debentures - September 17, 2014 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 103,925 | 103,925 | ||||||||||
Convertible Notes, Unamortized Discount | 520,000 | |||||||||||
Convertible Debentures - November 27, 2014 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 11,991 | 11,991 | ||||||||||
Convertible Notes, Unamortized Discount | 150,000 | |||||||||||
Convertible Debentures - December 30, 2014 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 15,988 | 15,988 | ||||||||||
Convertible Notes, Unamortized Discount | 80,000 | |||||||||||
Convertible Debentures - January 21, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 199,856 | 199,856 | ||||||||||
Convertible Notes, Unamortized Discount | 2,500,000 | |||||||||||
Convertible Debentures - February 22, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 23,983 | 23,983 | ||||||||||
Convertible Notes, Unamortized Discount | 120,000 | |||||||||||
Convertible Debentures - April 15, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 39,971 | 39,971 | ||||||||||
Convertible Notes, Unamortized Discount | 200,000 | |||||||||||
Convertible Debentures - April 22, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 11,991 | 11,991 | ||||||||||
Convertible Notes, Unamortized Discount | 60,000 | |||||||||||
Convertible Debentures - May 29, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 7,994 | 7,994 | ||||||||||
Convertible Notes, Unamortized Discount | 40,000 | |||||||||||
Convertible Debentures - June 3, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 11,991 | 11,991 | ||||||||||
Convertible Notes, Unamortized Discount | 60,000 | |||||||||||
Convertible Debentures - June 26, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 7,994 | 7,994 | ||||||||||
Convertible Notes, Unamortized Discount | 40,000 | |||||||||||
Convertible Debentures - June 29, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 259,813 | 259,813 | ||||||||||
Convertible Notes, Unamortized Discount | 2,889,147 | |||||||||||
Convertible Debentures - July 23, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 79,942 | 79,942 | ||||||||||
Convertible Notes, Unamortized Discount | 500,000 | |||||||||||
Convertible Debentures - August 20, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 79,942 | $ 79,942 | ||||||||||
Convertible Notes, Unamortized Discount | 1,271,632 | |||||||||||
Convertible Debentures - October 4, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 79,942 | 79,942 | ||||||||||
Convertible Notes, Unamortized Discount | 1,271,632 | |||||||||||
Convertible Debentures - October 17, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 21,584 | 21,584 | ||||||||||
Convertible Notes, Unamortized Discount | 110,000 | |||||||||||
Convertible Debentures - December 1, 2015 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 7,994 | 7,994 | ||||||||||
Convertible Notes, Unamortized Discount | 40,000 | |||||||||||
Convertible Debentures - February 1, 2016 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 35,974 | 35,974 | ||||||||||
Convertible Notes, Unamortized Discount | 80,000 | |||||||||||
Convertible Debentures - February 24, 2016 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 23,983 | 23,983 | ||||||||||
Convertible Notes, Unamortized Discount | 150,000 | |||||||||||
Convertible Debentures - February 24, 2016 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 19,986 | 19,986 | ||||||||||
Convertible Notes, Unamortized Discount | 100,000 | |||||||||||
Convertible Debentures - May 31, 2016 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 91,934 | 91,934 | ||||||||||
Convertible Notes, Unamortized Discount | 1,462,376 | |||||||||||
Convertible Debentures - July 12, 2016 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 27,980 | 27,980 | ||||||||||
Convertible Notes, Unamortized Discount | 445,071 | |||||||||||
Convertible Debentures - September 29, 2016 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 3,997 | 3,997 | ||||||||||
Convertible Notes, Unamortized Discount | 20,000 | |||||||||||
Convertible Debentures - November 16, 2016 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 55,960 | 55,960 | ||||||||||
Convertible Notes, Unamortized Discount | $ 890,142 | |||||||||||
Convertible Debentures - January 5, 2017 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 51,963 | 51,963 | ||||||||||
Convertible Notes, Unamortized Discount | 260,000 | |||||||||||
Convertible Debentures - January 8, 2017 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 3,997 | $ 3,997 | ||||||||||
Convertible Debentures - February 4, 2017 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 5,596 | 5,596 | ||||||||||
Convertible Notes, Unamortized Discount | 28,000 | |||||||||||
Convertible Debentures - April 26, 2017 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 3,997 | $ 3,997 | ||||||||||
Convertible Debentures - April 26, 2017 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 19,986 | 19,986 | ||||||||||
Convertible Notes, Unamortized Discount | 100,000 | |||||||||||
Convertible Debentures - May 12, 2017 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 39,971 | 39,971 | ||||||||||
Convertible Notes, Unamortized Discount | 200,000 | |||||||||||
Convertible Debentures - May 31, 2017 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 6,395 | 6,395 | ||||||||||
Convertible Notes, Unamortized Discount | 32,000 | |||||||||||
Convertible Debentures - June 6, 2017 [Member] | ||||||||||||
Carrying value of the Convertible Notes | $ 39,971 | 39,971 | ||||||||||
Convertible Notes, Unamortized Discount | 250,000 | |||||||||||
Convertible Debentures - December 23, 2017 [Member] | ||||||||||||
Carrying value of the Convertible Notes | $ 51,000 | |||||||||||
Convertible Notes, Unamortized Discount | 204,000 | |||||||||||
Convertible Debentures - January 3, 2018 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 12,500 | |||||||||||
Convertible Notes, Unamortized Discount | 62,500 | |||||||||||
Convertible Debentures - January 10, 2018 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 25,000 | |||||||||||
Convertible Notes, Unamortized Discount | 100,000 | |||||||||||
Convertible Debentures - January 11, 2018 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 13,000 | |||||||||||
Convertible Notes, Unamortized Discount | 52,000 | |||||||||||
Convertible Debentures - January 18, 2018 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 10,000 | |||||||||||
Convertible Notes, Unamortized Discount | 40,000 | |||||||||||
Convertible Debentures - January 25, 2018 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 10,000 | |||||||||||
Convertible Notes, Unamortized Discount | 40,000 | |||||||||||
Convertible Debentures - January 27, 2018 [Member] | ||||||||||||
Carrying value of the Convertible Notes | 5,000 | |||||||||||
Convertible Notes, Unamortized Discount | 20,000 | |||||||||||
Convertible Debentures - January 29, 2018 [Member] | ||||||||||||
Carrying value of the Convertible Notes | $ 246,000 | |||||||||||
Convertible Notes, Unamortized Discount | $ 984,000 | |||||||||||
President [Member] | ||||||||||||
Common Shares issued upon conversion of Series A convertible notes, Shares | shares | 18,000,000 | |||||||||||
Mother of President [Member] | ||||||||||||
Common Shares issued upon conversion of Series A convertible notes, Shares | shares | 5,320,000 | |||||||||||
Series A Preferred Stock [Member] | ||||||||||||
Due to Related Party | $ 32,485 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Due to Related Parties | $ 222,247 | $ 282,855 | $ 322,120 | |
Consulting Fees | 55,502 | $ 47,190 | 251,797 | 241,327 |
President [Member] | ||||
Due to Related Parties | 167,113 | 223,799 | 203,953 | |
Consulting Fees | 22,726 | 23,595 | 101,643 | 120,000 |
Company Controller By President [Member] | ||||
Due to Related Parties | 1,264 | 2,176 | 59,409 | |
Mother of President [Member] | ||||
Due to Related Parties | 53,870 | 56,880 | 58,758 | |
Chief Financial Officer [Member] | ||||
Due to Related Parties | 12,522 | |||
Consulting Fees | 22,726 | $ 23,595 | 101,643 | 120,000 |
Company Controller By Chief Financial Officer [Member] | ||||
Due to Related Parties | $ 240,975 | $ 243,969 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) | Dec. 06, 2018 | Aug. 27, 2018 | Jul. 09, 2018 | May 01, 2018 | Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jul. 24, 2018 | Apr. 16, 2018 |
Disclosure Common Stock Details Narrative Abstract | |||||||||||
Common Stock, Shares Issued | 9,474,500 | 8,230,000 | |||||||||
Common Stock for the conversion of convertible debentures and accured interest | $ 644,413 | $ 1,993,349 | |||||||||
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 9,000,000,000 | ||||||
Common Shares issued upon conversion of Series A convertible notes | $ 200 | $ 503 | $ 2,672 | $ 200 | $ 3,175 | ||||||
Common stock Issued upon conversion of convertible notes, Shares | 2,000,000 | 5,025,000 | 26,720,000 | 2,000,000 | 31,745,000 | ||||||
Common stock issued for financing cost | $ 187,245 | $ 187,245 | |||||||||
Common stock issued for financing cost, Shares | 51,725 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure Discontinued Operations Details Abstract | ||
Revenue | $ 1,493,921 | |
Cost of goods sold | 411,043 | |
Gross profit | 1,082,878 | |
Advertising and promotion | 121,091 | |
Amortization | 17,891 | |
Bad debts | 18,915 | |
Consulting fees | 120,425 | |
General and administrative | 112,926 | |
Professional fees | 68,179 | |
Rent | 15,646 | |
Repairs and maintenance | 48,070 | |
Research and development | 2,438 | |
Supplies | 320,286 | |
Travel | 14,685 | |
Website costs | 41,947 | |
Total expenses | 902,499 | |
Net income before other expense | 180,379 | |
Interest expense | (16,085) | |
Net income | $ 164,294 |
Discontinued Operations (Deta_2
Discontinued Operations (Details 2) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Carrying amounts of major classes of assets included as part of discontinued operations | ||
Cash | $ 29,350 | |
Amounts receivable | 10,019 | |
Inventory | 303,467 | |
Prepaid expenses and deposits | 39,516 | |
Total current assets | 382,352 | |
Property and equipment | 62,351 | |
Total assets of discontinued operations | 444,703 | |
Carrying amounts of major classes of liabilities included as part of discontinued operations | ||
Accounts payable and accrued liabilities | 45,560 | |
Loan payable | 65,240 | |
Lease payable | 2,429 | |
Total liabilities of discontinued operations | $ 113,229 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure Income Taxes Details Abstract | ||
Federal statutory rate | 21.00% | 34.00% |
Income tax recovery at statutory rate | $ (281,940) | $ (158,120) |
Permanent differences and other | 80,404 | (1,505) |
Change in enacted tax rate | (2,442) | 27,342 |
Change in substantive tax rates of foreign jurisdiction | (15,967) | |
Change in valuation allowance | 203,978 | 148,250 |
Income tax provision |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Disclosure Income Taxes Details 2Abstract | ||
Net operating losses carried forward | $ 708,497 | $ 506,004 |
Property and equipment | 152,406 | 152,996 |
Intangible assets | 56,023 | 53,948 |
Valuation allowance | (916,926) | (712,948) |
Net deferred income tax asset |
Income Taxes (Details 3)
Income Taxes (Details 3) | Sep. 30, 2018USD ($) |
Canada | |
Net Operating Loss Carryforward | $ 2,424,263 |
Canada | Tax Year 2029 [Member] | |
Net Operating Loss Carryforward | |
Canada | Tax Year 2030 [Member] | |
Net Operating Loss Carryforward | |
Canada | Tax Year 2034 [Member] | |
Net Operating Loss Carryforward | 367,617 |
Canada | Tax Year 2035 [Member] | |
Net Operating Loss Carryforward | 478,547 |
Canada | Tax Year 2036 [Member] | |
Net Operating Loss Carryforward | 188,742 |
Canada | Tax Year 2037 [Member] | |
Net Operating Loss Carryforward | 412,456 |
Canada | Tax Year 2038 [Member] | |
Net Operating Loss Carryforward | 976,901 |
United States | |
Net Operating Loss Carryforward | 256,888 |
United States | Tax Year 2029 [Member] | |
Net Operating Loss Carryforward | 54,040 |
United States | Tax Year 2030 [Member] | |
Net Operating Loss Carryforward | 101,259 |
United States | Tax Year 2034 [Member] | |
Net Operating Loss Carryforward | |
United States | Tax Year 2035 [Member] | |
Net Operating Loss Carryforward | 1,003 |
United States | Tax Year 2036 [Member] | |
Net Operating Loss Carryforward | 1,000 |
United States | Tax Year 2037 [Member] | |
Net Operating Loss Carryforward | |
United States | Tax Year 2038 [Member] | |
Net Operating Loss Carryforward | $ 99,586 |