Retrieve Medical (RMHI) 10-Q 18 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	3 Months Ended
	Dec. 31, 2015	Feb. 17, 2016	Mar. 31, 2015
Document and Entity Information:
Entity Registrant Name	PEAK PHARMACEUTICALS, INC.
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Entity Central Index Key	1,452,804
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		78,363,562
Entity Public Float			$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	pkph

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Current Assets
Cash	$ 62,108	$ 201,656
Prepaid Expenses	7,500	7,250
Deposit	2,500	2,500
Assets of Discontinued Operations Held for Sale		50,383
Total Current Assets	72,108	261,789
Fixed Assets, Net of Depreciation	972	1,336
Intangible Asset, Net of Amortization	15,264	18,245
Total Assets	88,344	281,370
Current Liabilities
Accounts Payable	50,136	43,238
Account Payable - Related Parties	47,833	27,000
Accrued Liabilities	31,543	39,151
Liabilities of Discontinued Operations Held for Sale		179,243
Total Current Liabilities	129,512	288,632
Total Liabilities	129,512	288,632
Stockholders' Equity
Common Stock	7,836	7,836
Additional Paid-in Capital	6,432,050	6,151,997
Accumulated Deficit	(6,481,054)	(6,167,095)
Total Stockholders' Equity (Deficit)	(41,168)	(7,262)
Total Liabilities and Stockholders' Equity (Deficit)	$ 88,344	$ 281,370
Preferred Stock, Par Value	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	325,000,000	325,000,000
Common Stock, Shares Issued	78,363,562	78,363,562
Common Stock, Shares Outstanding	78,363,562	78,363,562

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating Expenses
General and Administrative	$ 381,712	$ 840,321
Depreciation and Amortization	3,346	2,917
Total Operating Expenses	385,058	843,238
Loss from Operations	(385,058)	(843,238)
Other Income (Expense)
Interest Expense		(260)
Total Other Income (Expense)	0	(260)
Loss from Continuing Operations	(385,058)	(843,498)
Income from Operations of Discontinued Canna-Pet Component	71,099	28,272
Net (Loss)	$ (313,959)	$ (815,226)
Basic and Diluted (Loss) per Common Share	$ 0	$ (0.01)
Weighted Average Number of Common Shares Outstanding	78,363,562	78,189,649

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities:
Net Cash Used in Operating Activities	$ (139,548)	$ (169,447)
Cash Flows From Investing Activities:
Increase (Decrease) in Cash	(139,548)	(169,447)
Initial Cash	201,656	451,431
Final Cash	62,108	281,984
Supplemental Disclosures
Cash Paid for Interest		260
Non-cash Investing and Financing Activities:
Gain on Disposal of Canna-Pet	$ 80,903
Common Shares Issued for Services		$ 36,000

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2015
Notes
Note 1 - Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies Throughout this report, the terms “our,” “we,” “us,” and the “Company” refer to Peak Pharmaceuticals, Inc. and its subsidiary. The accompanying unaudited condensed consolidated financial statements of Peak Pharmaceuticals, Inc., at December 31, 2015 and 2014 have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial statements, instructions to Form 10-Q, and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the year ended September 30, 2015. In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation to make our financial statements not misleading have been included. The results of operations for the periods ended December 31, 2015 and 2014 presented are not necessarily indicative of the results to be expected for the full year. The Company was incorporated in Nevada on December 18, 2007. After a number of name changes on December 23, 2014, we again changed our name to Peak Pharmaceuticals, Inc. This name change was made to make our name more consistent with our business operations and plans relating to development, manufacturing and marketing of hemp-based nutraceutical and supplement products for the human and animal health markets. On October 1, 2015 we discontinued certain operations of the Company. Financial statements prepared in conformity with GAAP contemplate a company’s continuation as a going concern. We have incurred net losses since inception. In addition, we have an accumulated deficit of $6,481,054 as of December 31, 2015. This condition raises substantial doubt as to our ability to continue as a going concern. In response to these conditions, we are evaluating raising additional capital through the sale of equity securities, through an offering of debt securities or through borrowings from financial institutions or individuals. These financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. Reclassification Certain amounts from prior year have been reclassified for consistency with the presentation of the three months ended December 31, 2015. These reclassifications had no effect on the reported results of operations. Basis of Consolidation The consolidated financial statements include the financial statements of the Company and our wholly owned subsidiary Peak BioPharma Corp. All inter-company balances and transactions among the companies have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses during the periods reported. Actual results may differ from these estimates. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less, at the time of purchase, to be cash equivalents. Financial Instruments Our financial instruments consist of cash, and payables. The carrying values of these instruments approximate fair value because of the short term maturities of these instruments. Inventory Inventory, which is included in assets of discontinued operations held for sale, consists of finished goods and is carried at the lower of cost or market on a first in first out basis. Fair Value Measurements Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC)” Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs. Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Intangible asset Intangible asset is our website and is being amortized over the expected useful life which we estimate to be three years. Amortization expense charged to operations for the three months ended December 31, 2015 and 2014, were $2,981 and $2,917, respectively. Long-lived assets On a periodic basis, management assesses whether there are any indicators that the value of our long-lived assets may be impaired. An asset’s value may be impaired only if management’s estimate of the aggregate future cash flows, on an undiscounted basis, to be generated by the asset are less than the carrying value of the asset. Our only longed lived assets are our website and computer equipment. If impairment has occurred, the loss is measured as the excess of the carrying amount of the asset over its fair value. Our estimates of aggregate future cash flows expected to be generated by our long-lived asset are based on a number of assumptions that are subject to economic and market uncertainties. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in their impairment analyses may not be achieved. As of December 31, 2015, there was no asset impairment. Revenue Recognition We recognize revenue from products sold when there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is determinable and collection is reasonably assured. Revenue represents the sale of products and related shipping fees. Cost of Revenue Cost of revenue includes the cost of products sold attributable to the revenue. Shipping costs Shipping costs are included in general and administrative expenses. Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. We incurred $532 in research and development expenses for the three months ended December 31, 2014. There were no research and development costs in the three months ended December 31, 2015. Loss per Share We calculate net loss per share in accordance with ASC Topic 260, Earnings per Share Recent Pronouncements From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective may have an impact on our results of operations and financial position. ASU Update 2014-15 Presentation of Financial Statements-Going Concern (Sub Topic 205-40) issued August 27, 2014 by FASB defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern. The additional disclosure requirement is effective after December 15, 2016 and will be evaluated as to impact and implemented accordingly. In addition, the FASB issued Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers), which is effective for annual reporting periods beginning after December 15, 2016. We have not yet assessed the impact, if any, of adopting this standard.

Note 2 - Discontinued Operation

Note 2 - Discontinued Operations	3 Months Ended
	Dec. 31, 2015
Notes
Note 2 - Discontinued Operations	Note 2 - Discontinued Operations Based upon recent regulatory activity related to imposition of restrictions and limitations on the sale of hemp-based health products for pets, we elected to terminate our license agreement with Canna-Pet effective as of October 1, 2015, and to cease all operations relating to sale of hemp-based products for pets. On October 12, 2015, we entered into an agreement for the termination (“Termination Agreement”) of the Canna-Pet License Agreement, effectively selling the discontinued operations. The Termination Agreement contained the following provisions: Termination of License Return of Licensed Intellectual Property Return of Other Property Office Space, Equipment and Employees Consideration. Collections The following is a summary of the net assets sold as initially determined at Septembers 30, 2015 and updated October 15, 2015: October 15, 2015 September 30, 2015 Inventory $ 45,436 $ 41,705 Prepaid expenses 8,821 - Deposits 8,179 8,678 Total assets 62,436 50,383 Accounts payable 103,548 124,396 Royalty payable 39,506 39,506 Accrued liabilities 285 15,341 143,339 179,243 $ 80,903 $ 128,860 The income from discontinued operations presented in the statements of operations consist of the following for the three-month periods ended December 31, 2015 and 2014, respectively: 2015 2014 Revenues $ - $ 184,024 Cost of goods sold - (43,972) General and administrative expenses (9,804) (111,780) Gain on disposal of discontinued operations 80,903 - $ 71,099 $ 28,272

Note 3 - Intangibles

Note 3 - Intangibles	3 Months Ended
	Dec. 31, 2015
Notes
Note 3 - Intangibles	Note 3 - Intangibles Intangibles at December 31, 2015 and September 30, 2015, consists of a Website, $35,000, less accumulated amortization of $19,736 and $16,775, respectively. The website is being amortized over three years. Estimated future amortization expense related to intangible property as of December 31, 2015 is as follows: Years ending September 30, Total Amortization 2016 $ 8,750 2017 6,514 $ 15,264

Note 4 - Related Party Transact

Note 4 - Related Party Transactions	3 Months Ended
	Dec. 31, 2015
Notes
Note 4 - Related Party Transactions	Note 4 – Related Party Transactions Parties, which can be corporations or individuals, are considered to be related if we have the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Accounts payable – related parties are the amounts payable to officers and directors of the Company for reimbursement of expenses they incurred on behalf of the Company as well as Director fees and salaries.

Note 5 - Commitments and Contin

Note 5 - Commitments and Contingencies	3 Months Ended
	Dec. 31, 2015
Notes
Note 5 - Commitments and Contingencies	Note 5 – Commitments and Contingencies Operating Lease We leased office and lab space under an operating lease, which originally expires August 31, 2016. The lease may be cancelled upon a 30-day notice. During November, 2015 we exercised our right to cancel and notified the landlord that we would vacate the premises. Rent expense was $3,880 and $6,331 for the three months ended December 31, 2015 and 2014, respectively.

Note 6 - Stockholders' Equity

Note 6 - Stockholders' Equity	3 Months Ended
	Dec. 31, 2015
Notes
Note 6 - Stockholders' Equity	Note 6 – Stockholders’ Equity On December 22, 2014, pursuant to a Placement Agent Agreement, we issued 200,000 restricted shares of our common stock. The shares were valued at $36,000 $0.18 per share, the trading value, and charged to stock based compensation for the three months ended December 31, 2014.

Note 7 - Options

Note 7 - Options	3 Months Ended
	Dec. 31, 2015
Notes
Note 7 - Options	Note 7 – Options In March 2014, we issued non-qualified options to purchase 2,916,000 shares of our common stock for services rendered to a director of the Company. The options have a term of 10 years, are exercisable at $0.0067 per share and vested when they were issued. The fair value of the options, estimated at the date of grant using the Black-Scholes option pricing model was pricing model was $9,078. The options have been expensed as equity based compensation. The following assumptions were used in the Black-Scholes option pricing model: Expected life (in years) 10 Volatility (based on a comparable companies) 123 % Risk Free interest rate 2.73 % Dividend yield (on common stock) - In May 2014, we issued non-qualified options to purchase 4,500,000 shares of our common stock to certain officers of the Company. The options are exercisable at $0.20 per share and have graded vesting over 4 years. The fair value of the options, estimated at the date of grant using the Black-Scholes option pricing model was $4,415,649. The following assumptions were used in the Black-Scholes option pricing model: Expected life (in years) 10 Volatility (based on a comparable companies) 123 % Risk Free interest rate 2.56 % Dividend yield (on common stock) - As per guidance in the ASC Topic 718, Compensation - Stock Compensation (“ASC 718”), we are amortizing the fair value of the options on a straight line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards (graded vesting attribution method). The estimated future expense related to existing stock options is a follows: Years ending September 30, 2016 $ 602,713 2017 407,886 2018 86,961 $ 1,097,660 The following is a summary of outstanding stock options issued to employees and directors as of December 31, 2015: Number of Options Exercise price per share Average remaining term in years Aggregate intrinsic value at date of grant Outstanding October 1, 2014 7,416,000 $ 0.0067 -0.20 - Issued - $ - - - Cancelled - $ - - - Outstanding September 30, 2015 7,416,000 $ 0.0067 - 0.20 8.57 $ - Issued - Cancelled - Outstanding December 31, 2015 7,416,000 Exercisable 4,666,000 $ 0.0067 - 0.20 8.27 $ - The following is a summary of outstanding stock options issued to non-employees, excluding directors, as of December 31, 2015: Number of Options Exercise price per share Average remaining term in years Aggregate intrinsic value at date of grant Outstanding October 1, 2014 375,000 $ 0.0067 - $ - Issued - $ - Cancelled - $ - - Outstanding September 30, 2015 375,000 $ 0.0067 - $ - Issued - Cancelled - Outstanding December 31, 2015 375,000 Exercisable 375,000 $ 0.0067 7.79 $ - Total equity based compensation for the three months ended December 31, 2015 and 2014 was $280,053 and $657,988, respectively.

Note 8 - Income Tax

Note 8 - Income Tax	3 Months Ended
	Dec. 31, 2015
Notes
Note 8 - Income Tax	Note 8 – Income Tax We account for income taxes in interim periods in accordance with ASC Topic 740, Income Taxes (“ASC 740”). We have determined an estimated annual effective tax rate. The rate will be revised, if necessary, as of the end of each successive interim period during our fiscal year to our best current estimate. As of December 31, 2015 the estimated effective tax rate for the year will be zero. There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit our tax returns from 2011 through the current period. Our policy is to account for income tax related interest and penalties in income tax expense in the statement of operations. There have been no income tax related interest or penalties assessed or recorded. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This pronouncement also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. For the three months ended December 31, 2015 and 2014 we did not have any interest and penalties associated with tax positions. As of December 31, 2015 we did not have any significant unrecognized uncertain tax positions.

Note 9 - Subsequent Events

Note 9 - Subsequent Events	3 Months Ended
	Dec. 31, 2015
Notes
Note 9 - Subsequent Events	Note 9 – Subsequent Events Management has evaluated all activity and concluded that no subsequent events have occurred that would require recognition in these financial statements or disclosure in the notes to these financial statements.

Note 1 - Summary of Significa14

Note 1 - Summary of Significant Accounting Policies: Reclassification (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Reclassification	Reclassification Certain amounts from prior year have been reclassified for consistency with the presentation of the three months ended December 31, 2015. These reclassifications had no effect on the reported results of operations.

Note 1 - Summary of Significa15

Note 1 - Summary of Significant Accounting Policies: Basis of Consolidation (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Basis of Consolidation	Basis of Consolidation The consolidated financial statements include the financial statements of the Company and our wholly owned subsidiary Peak BioPharma Corp. All inter-company balances and transactions among the companies have been eliminated upon consolidation.

Note 1 - Summary of Significa16

Note 1 - Summary of Significant Accounting Policies: Use of Estimates (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses during the periods reported. Actual results may differ from these estimates.

Note 1 - Summary of Significa17

Note 1 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less, at the time of purchase, to be cash equivalents.

Note 1 - Summary of Significa18

Note 1 - Summary of Significant Accounting Policies: Financial Instruments (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Financial Instruments	Financial Instruments Our financial instruments consist of cash, and payables. The carrying values of these instruments approximate fair value because of the short term maturities of these instruments.

Note 1 - Summary of Significa19

Note 1 - Summary of Significant Accounting Policies: Inventory (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Inventory	Inventory Inventory, which is included in assets of discontinued operations held for sale, consists of finished goods and is carried at the lower of cost or market on a first in first out basis.

Note 1 - Summary of Significa20

Note 1 - Summary of Significant Accounting Policies: Fair Value Measurements (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Fair Value Measurements:	Fair Value Measurements Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC)” Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs. Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.

Note 1 - Summary of Significa21

Note 1 - Summary of Significant Accounting Policies: Intangible Asset (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Intangible Asset	Intangible asset Intangible asset is our website and is being amortized over the expected useful life which we estimate to be three years. Amortization expense charged to operations for the three months ended December 31, 2015 and 2014, were $2,981 and $2,917, respectively.

Note 1 - Summary of Significa22

Note 1 - Summary of Significant Accounting Policies: Long-lived Assets (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Long-lived Assets	Long-lived assets On a periodic basis, management assesses whether there are any indicators that the value of our long-lived assets may be impaired. An asset’s value may be impaired only if management’s estimate of the aggregate future cash flows, on an undiscounted basis, to be generated by the asset are less than the carrying value of the asset. Our only longed lived assets are our website and computer equipment. If impairment has occurred, the loss is measured as the excess of the carrying amount of the asset over its fair value. Our estimates of aggregate future cash flows expected to be generated by our long-lived asset are based on a number of assumptions that are subject to economic and market uncertainties. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in their impairment analyses may not be achieved. As of December 31, 2015, there was no asset impairment.

Note 1 - Summary of Significa23

Note 1 - Summary of Significant Accounting Policies: Revenue Recognition (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Revenue Recognition	Revenue Recognition We recognize revenue from products sold when there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is determinable and collection is reasonably assured. Revenue represents the sale of products and related shipping fees.

Note 1 - Summary of Significa24

Note 1 - Summary of Significant Accounting Policies: Cost of Revenue (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Cost of Revenue	Cost of Revenue Cost of revenue includes the cost of products sold attributable to the revenue.

Note 1 - Summary of Significa25

Note 1 - Summary of Significant Accounting Policies: Shipping Costs (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Shipping Costs	Shipping costs Shipping costs are included in general and administrative expenses.

Note 1 - Summary of Significa26

Note 1 - Summary of Significant Accounting Policies: Research and Development (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Research and Development	Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. We incurred $532 in research and development expenses for the three months ended December 31, 2014. There were no research and development costs in the three months ended December 31, 2015.

Note 1 - Summary of Significa27

Note 1 - Summary of Significant Accounting Policies: Loss Per Share (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Loss Per Share	Loss per Share We calculate net loss per share in accordance with ASC Topic 260, Earnings per Share

Note 1 - Summary of Significa28

Note 1 - Summary of Significant Accounting Policies: Recent Pronouncements (Policies)	3 Months Ended
	Dec. 31, 2015
Policies
Recent Pronouncements	Recent Pronouncements From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective may have an impact on our results of operations and financial position. ASU Update 2014-15 Presentation of Financial Statements-Going Concern (Sub Topic 205-40) issued August 27, 2014 by FASB defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern. The additional disclosure requirement is effective after December 15, 2016 and will be evaluated as to impact and implemented accordingly. In addition, the FASB issued Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers), which is effective for annual reporting periods beginning after December 15, 2016. We have not yet assessed the impact, if any, of adopting this standard.

Note 1 - Summary of Significa29

Note 1 - Summary of Significant Accounting Policies: Fair Value Measurements: Schedule of Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Fair Value Measurements	Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs. Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.

Note 3 - Intangibles_ Schedule

Note 3 - Intangibles: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables)	3 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Years ending September 30, Total Amortization 2016 $ 8,750 2017 6,514 $ 15,264

Note 7 - Options_ Schedule of S

Note 7 - Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	3 Months Ended
	Dec. 31, 2015
Options
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	Expected life (in years) 10 Volatility (based on a comparable companies) 123 % Risk Free interest rate 2.73 % Dividend yield (on common stock) -
Non-qualified Options
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	Expected life (in years) 10 Volatility (based on a comparable companies) 123 % Risk Free interest rate 2.56 % Dividend yield (on common stock) -

Note 7 - Options_ Schedule of32

Note 7 - Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	3 Months Ended
	Dec. 31, 2015
Employee
Schedule of Share-based Compensation, Stock Options, Activity	Number of Options Exercise price per share Average remaining term in years Aggregate intrinsic value at date of grant Outstanding October 1, 2014 7,416,000 $ 0.0067 -0.20 - Issued - $ - - - Cancelled - $ - - - Outstanding September 30, 2015 7,416,000 $ 0.0067 - 0.20 8.57 $ - Issued - Cancelled - Outstanding December 31, 2015 7,416,000 Exercisable 4,666,000 $ 0.0067 - 0.20 8.27 $ -
Non-Employee
Schedule of Share-based Compensation, Stock Options, Activity	Number of Options Exercise price per share Average remaining term in years Aggregate intrinsic value at date of grant Outstanding October 1, 2014 375,000 $ 0.0067 - $ - Issued - $ - Cancelled - $ - - Outstanding September 30, 2015 375,000 $ 0.0067 - $ - Issued - Cancelled - Outstanding December 31, 2015 375,000 Exercisable 375,000 $ 0.0067 7.79 $ -

Note 1 - Summary of Significa33

Note 1 - Summary of Significant Accounting Policies (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Details
Accumulated Deficit	$ (6,481,054)	$ (6,167,095)

Note 1 - Summary of Significa34

Note 1 - Summary of Significant Accounting Policies: Intangible Asset (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Details
Amortization of Website	$ 2,981	$ 2,917

Note 1 - Summary of Significa35

Note 1 - Summary of Significant Accounting Policies: Research and Development (Details)	3 Months Ended
	Dec. 31, 2014USD ($)
Details
Research and Development Expense	$ 532

Note 2 - Discontinued Operati36

Note 2 - Discontinued Operations (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Details
Disposal Group, Including Discontinued Operation, Inventory, Current	$ 45,436	$ 41,705
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets, Current	8,821
Disposal Group, Including Discontinued Operation, Other Assets, Current	8,179	8,678
Disposal Group, Including Discontinued Operation, Assets, Current	62,436	50,383
Disposal Group, Including Discontinued Operation, Accounts Payable, Current	103,548	124,396
Disposal Group, Including Discontinued Operation, Deferred Revenue, Current	39,506	39,506
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current	285	15,341
Disposal Group, Including Discontinued Operation, Accounts Payable and Accrued Liabilities, Current	143,339	179,243
Gain on Disposal of Canna-Pet	80,903	$ 128,860
Disposal Group, Including Discontinued Operation, Revenue	184,024
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	(43,972)
Disposal Group, Including Discontinued Operation, General and Administrative Expense	(111,780)
Disposal Group, Including Discontinued Operation, Operating Income (Loss)	$ 28,272

Note 3 - Intangibles (Details)

Note 3 - Intangibles (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2014
Details
Website Development Cost	$ 35,000		$ 35,000
Amortization of Website	$ 19,736	$ 16,775

Note 3 - Intangibles_ Schedul38

Note 3 - Intangibles: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Details
Estimated Future Amortization Expense 2016	$ 8,750
Estimated Future Amortization Expense 2017	6,514
Intangible Asset, Net of Amortization	$ 15,264	$ 18,245

Note 5 - Commitments and Cont39

Note 5 - Commitments and Contingencies (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Details
Direct Operating Cost, Royalty Expense	$ 3,880	$ 6,331

Note 6 - Stockholders' Equity (

Note 6 - Stockholders' Equity (Details)	3 Months Ended
	Dec. 31, 2014USD ($)$ / sharesshares
Details
Stock Issued During Period, Shares, Restricted Stock Award, Gross | shares	200,000
Stock Issued During Period, Value, Restricted Stock Award, Gross | $	$ 36,000
Share Price | $ / shares	$ 0.18

Note 7 - Options (Details)

Note 7 - Options (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Details
Option Expense			$ 86,961	$ 407,886	$ 602,713
Share-based Compensation	$ 280,053	$ 657,988

Note 7 - Options_ Schedule of42

Note 7 - Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	3 Months Ended
	Dec. 31, 2015
Options
Expected Life	10 years
Volatility	123.00%
Risk Free Interest Rate	2.73%
Non-qualified Options
Expected Life	10 years
Volatility	123.00%
Risk Free Interest Rate	2.56%

Note 7 - Options_ Schedule of43

Note 7 - Options: Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares	12 Months Ended		15 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2015
Employee
Options Outstanding	7,416,000	7,416,000	7,416,000
Exercise Price Lower Limit - Options Outstanding	$ 0.0067	$ 0.0067
Exercise Price Upper Limit - Options Outstanding	$ 0.20	$ 0.20
Average Remaining Term in Years - Options Outstanding	8 years 6 months 25 days
Options Exercisable			4,666,000
Exercise Price - Options Exercisable			$ 0.20
Remaining Term in Years - Options Exercisable			8 years 3 months 7 days
Non-Employee
Options Outstanding	375,000	375,000	375,000
Options Exercisable			375,000
Exercise Price - Options Exercisable			$ 0.0067
Remaining Term in Years - Options Exercisable			7 years 9 months 14 days
Exercise Price	$ 0.0067	$ 0.0067