Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended | |
Mar. 31, 2015 | 14-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | Smartag International, Inc. | |
Entity Central Index Key | 1469207 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $637,151 | |
Entity Common Stock, Shares Outstanding | 10,637,151 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2015 |
Balance_Sheets
Balance Sheets (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
CURRENT ASSETS | ||
Cash | $210,068 | $72,388 |
Accounts receivable | 30,894 | 17,037 |
Other receivable | 96,500 | 0 |
Inventory | 34,800 | 0 |
TOTAL CURRENT ASSETS | 372,262 | 89,425 |
Securities | 253,237 | 0 |
TOTAL ASSETS | 625,499 | 89,425 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 6,357 | 3,607 |
Note Payable, Related Party | 200,000 | 300,000 |
Secured Revolving Not Payable, Related Party | 192,457 | 192,457 |
TOTAL CURRENT LIABILITIES | 398,814 | 496,064 |
Other Payable, Related Party | 730,000 | 0 |
TOTAL LIABILITIES | 1,128,814 | 496,064 |
STOCKHOLDERS DEFICIT: | ||
Preferred stock, 25,000,000 shares authorized, no shares issued and outstanding, no rights or privileges designated | 0 | 0 |
Common Stock, $.001 par value, 500,000,000 shares authorized, 10,637,151 shares issued and outstanding at December 31, 2014 and September 30, 2014. | 10,637 | 10,637 |
Additional paid in capital | 1,228,361 | 1,228,361 |
Accumulated deficit | -1,742,313 | -1,645,637 |
TOTAL STOCKHOLDERS DEFICIT | -503,315 | -406,639 |
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT | $625,499 | $89,425 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) | Mar. 31, 2015 | Sep. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Authorized | 25,000,000 | 25,000,000 |
Preferred Stock, Issued | 0 | 0 |
Common Stock, Authorized | 500,000,000 | 500,000,000 |
Common Stock, Issued | 10,637,151 | 10,637,151 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||||
REVENUES | $13,857 | $29,922 | $13,857 | $45,181 |
COST OF SALES | 0 | 28,817 | 0 | 43,847 |
GROSS PROFIT | 13,857 | 1,105 | 13,857 | 1,334 |
OPERATING EXPENSES: | ||||
General and administrative expenses | 87,405 | 28,027 | 110,532 | 60,964 |
LOSS FROM OPERATIONS | -73,548 | -26,922 | -96,675 | -59,630 |
Interest expense and other, net | 0 | 0 | 0 | 0 |
LOSS BEFORE PROVISION FOR INCOME TAXES | -73,548 | -26,922 | -96,675 | -59,630 |
Provision for income taxes | 0 | 0 | 0 | 0 |
NET LOSS | ($73,548) | ($26,922) | ($96,675) | ($59,630) |
NET LOSS PER SHARE OF COMMON STOCK - Basic and diluted | $0 | $0 | $0 | $0 |
WEIGHTED AVERAGE SHARES OUTSTANDING - Basic and diluted | 10,637,151 | 10,637,151 | 10,637,151 | 10,637,151 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (USD $) | 6 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | ($96,675) | ($59,630) |
Unrealized loss on investment | 0 | 0 |
Changes in current assets and liabilities: | ||
Accounts receivable | -110,358 | 0 |
Inventory | -34,800 | 0 |
Accounts payable | 2,750 | 0 |
Other payable | 730,000 | 0 |
Net cash used in operating activities | 490,917 | -59,630 |
Cash flows from investing activities: | ||
Investment in securities | -253,237 | 0 |
Net cash provided by investing activities | -253,237 | 0 |
Cash flows from financing activities: | ||
Proceeds from Revolving Note | 0 | 0 |
Proceeds from note payable | 0 | 0 |
Repayment of note payable | -100,000 | |
Issuance of Common Stock for Cash | 0 | 0 |
Net cash provided by financing activities | -100,000 | 0 |
Net increase (decrease) in cash and cash equivalents | 137,680 | -59,630 |
Cash and cash equivalents - beginning balance | 72,388 | 92,319 |
Cash and cash equivalents - ending balance | 210,068 | 32,689 |
Interest paid | 0 | 0 |
Income taxes paid | $0 | $0 |
Nature_of_business
Nature of business | 6 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of business | NOTE 1 – ORGANIZATION |
Current Operations and Background | |
Smartag International, Inc., a Nevada corporation (“Smartag,” “Company,” “we,” “us,” or “our”), was formed as The ca Corporation on March 24, 1999 in Colorado. On November 29, 2004, we merged with Art4Love, Inc., a Delaware corporation, into Art4Love, Inc. a Nevada corporation. Art4love, Inc. attempted to sell and lease art to companies and individuals from artists’ collections worldwide. The Company ceased operations in December 2006. On February 19, 2009, Art4Love changed its name to Smartag International, Inc. On September 19, 2013, the Company commenced operations specializing in traceability and mobile payments. We provide food traceability, RFID solutions, near field communications, track and trace services and micro payment services and the products associated with these. | |
Licensing Agreement | |
On September 19, 2013, we entered into a Licensing and Technology Agreement (“Licensing Agreement”) with, Smartag Solutions Berhad, a Malaysian company (“SSB”). Under the terms of the Licensing Agreement, SSB licensed to the Company the exclusive rights to use, modify and further enhance and develop SSB’s Smartrack™ software engine for any project handled or sponsored by the Company and hereby designates the Company in perpetuity from the date hereof to redistribute, outsource or further enhance the Smartrack™ engine for any projects, whether within North America or even between North America and any other country in the world provided however that the traceability project is sponsored by the Company. The Company is to pay $200,000 for the license (“Licensing Fee”). The Licensing Fee shall be made within three months from the date of invoice from SSB to the Company after the completion and handing over to the Company of the server with the Smartrack™ engine together with the installation and commissioning of the Company’s new website. Smartag and SSB has agreed to an extension of time for the completion of the Smartrack™ engine to September 30, 2015, as such SSB will invoice Smartag in due course. | |
Under the Agreement, SSB also agrees to develop, install and commission the Smartrack™ in North America at its own costs and place one SSB’s server in a data center in the United States and subsequently develop and install traceability systems for the retail North American market as well as link up SSB’s related solutions and services currently in place with all the certification and/or accreditation as may be required by EPC GS1 Global within two months from the date hereof. | |
Loan Agreement | |
On September 19, 2013, we entered into a Loan Agreement (“Loan Agreement”) with SSB. Under the terms of the agreement, SSB loaned the Company $200,000 (“Loan”). On May 16, 2014, the SSB increased the Loan to $300,000. The Loan shall be repaid on or before September 30, 2015 and this loan has an interest rate of 0% interest per annum. | |
Investment | |
During the quarter ended March 31, 2015, the Company entered into a partnership agreement with Essentials Beverage Company (“Essentials”) whereby the Company agreed to contribute Essentials operational funds in exchange for 65% of the revenues generated by Essentials. As of March 31, 2015, the Company had funded Essentials $253,237 and was recorded under investment. |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND ORGANIZATION | NOTE 2 – Basis of Presentation and Significant of Accounting Policies |
Basis of Presentation — | |
The unaudited condensed interim financial statements have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and notes for the year ended September 30, 2014 included in our Annual Report on Form 10-K. The results of the three and six month periods ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year ending September 30, 2015. | |
Going Concern – | |
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the company as a going concern. However, we have an accumulated deficit of $1,742,313 as of March 31, 2015. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon our continued operations, which in turn is dependent upon our ability to raise additional capital, and obtain financing. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. | |
Use of Estimates — | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America 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. Actual results could differ from those estimates. | |
Cash and Cash Equivalents — | |
The Company considers investments with original maturities of 90 days or less to be cash equivalents. | |
Accounts Receivable – | |
Accounts receivable are carried at their estimated collectible amounts. Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition. The Company has no allowance for doubtful accounts as of March 31, 2015 and September 30, 2014. | |
Revenue Recognition – | |
The Company recognizes revenue in accordance with ASC 605, Revenue Recognition. ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery of product has met the criteria established in the arrangement or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. This occurs when the products or services are completed in accordance with the contracts we have with clients. In connection with our products and services arrangements, when we are paid in advance, these amounts are classified as deferred revenue and amortized over the term of the agreement. | |
Income Taxes — The Company records income taxes in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes.” The standard requires, among other provisions, an asset and liability approach to recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the financial statement carrying amounts and tax basis of assets and liabilities. Valuation allowances are provided if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |
Net Loss Per Share — The Company computes net loss per share in accordance with FASB ASC Topic 260, “Earnings per Share,” Under the provisions of the standard, basic and diluted net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. Common equivalent shares related to stock options and warrants have been excluded from the computation of basic and diluted earnings per share because their effect is anti-dilutive. | |
Concentration of Credit Risk — Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash. The Company maintains its cash with high credit quality financial institutions; at times, such balances with any one financial institution may exceed FDIC insured limits. | |
Financial Instruments — Our financial instruments consist of cash, accounts payable, and notes payable. The carrying values of cash, accounts payable, and notes payable are representative of their fair values due to their short-term maturities. | |
Marketable Securities— The Company classifies its marketable equity securities as available-for-sale and carries them at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. Losses that the Company believes are other-than-temporary are realized in the period that the determination is made. As of March 31, 2015, the Company had $25,000 in unrealized losses. None of the investments have been hedged in any manner. | |
Recently Issued Accounting Pronouncements | |
The Company reviewed all recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC and they did not or are not believed by management to have a material impact on the Company's present or future financial statements. |
Other_Receivable_and_Investmen
Other Receivable and Investments | 6 Months Ended |
Mar. 31, 2015 | |
Receivables [Abstract] | |
Other Receivable | NOTE 3 – Other Receivable and Investments |
During the six months ending March 31, 2015, the Company advanced Legendary Liquids LLC. $96,500 which is being classified as other receivable. The amount due is unsecured and interest free. | |
During the quarter ended March 31, 2015, the Company entered into a partnership agreement with Essentials Beverage Company (“Essentials”) whereby the Company agreed to contribute Essentials operational funds in exchange for 65% of the revenues generated by Essentials. As of March 31, 2015, the Company had funded Essentials $253,237 and was recorded under investment. |
Other_Payable
Other Payable | 6 Months Ended |
Mar. 31, 2015 | |
Payables and Accruals [Abstract] | |
Other Payable | NOTE 4 – Other Payable |
During the six months ended March 31, 2015, the Company received $730,000 advances from related parties which the terms were still being negotiated and currently were recorded under long term other payable. |
Note_Payable_Related_Party
Note Payable - Related Party | 6 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Note Payable | NOTE 5 – Note Payable – Related Party |
Secured Note | |
On March 17, 2009, we entered into a Secured Revolving Promissory Note (the “Secured Note”) with Smartag Solutions Bhd, a Malaysian corporation, the majority stockholder of the Company. Under the terms of the Note, Smartag Solutions Bhd, agreed to advance to the Company, from time to time and at the request of the Company, amounts up to an aggregate of $200,000 until September 30, 2013. All advances shall be paid on or before September 30, 2015 and this advance has an interest rate of 0% per annum. As of March 31, 2015, Smartag Solutions Bhd advanced us $192,457. The Secured Note ranks senior to all current and future indebtedness of Smartag and is secured by substantially all of the assets of Smartag. The Secured Note shall be repaid on or before September 30, 2015. | |
Loan Agreement | |
On September 19, 2013, we entered into a Loan Agreement (“Loan Agreement”) with SSB. Under the terms of the agreement, SSB loaned the Company $200,000 (“Loan”). On May 16, 2014, the SSB increased the Loan to $300,000. The Loan shall be repaid on or before September 30, 2015 and this loan has an interest rate of 0% interest per annum. During the three months ended March 31, 2015, the Company repaid $100,000 of the Loan. |
Equity
Equity | 6 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Equity | NOTE 6 – Stockholder’s Deficit |
Authorized Stock: | |
As of December 31, 2014, there were authorized 500,000,000 shares of common stock, par value $0.001 per share and 25,000,000 shares of preferred stock, par value $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholder of the corporation is sought. | |
There are currently 10,637,151 shares of common stock issued and outstanding and zero shares of preferred stock issued and outstanding. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Account Policies (Policies) | 6 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The unaudited condensed interim financial statements have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and notes for the year ended September 30, 2014 included in our Annual Report on Form 10-K. The results of the three and six periods ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year ending September 30, 2015. |
Going Concern | Going Concern – |
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the company as a going concern. However, we have an accumulated deficit of $1,742,313 as of March 31, 2015. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon our continued operations, which in turn is dependent upon our ability to raise additional capital, and obtain financing. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. | |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America 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. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents — The Company considers investments with original maturities of 90 days or less to be cash equivalents. As of June 30, 2014 and September 30, 2013, we have no cash equivalents. |
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Revenue Recognition | Revenue Recognition – The Company recognizes revenue in accordance with ASC 605, Revenue Recognition. ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. |
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Accounts Receivable | Accounts Receivable – |
Accounts receivable are carried at their estimated collectible amounts. Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition. The Company has no allowance for doubtful accounts as of March 31, 2015 and September 30, 2014. | |
Stock-based Compensation | Stock-Based Compensation — The Company records transactions under share based payment arrangements in accordance with the provisions of the FASB ASC Topic 718, “Share Based Payment Arrangements”. The standard requires recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements over the period the employee is required to perform the services in exchange for the award. The standard also requires measurement of the cost of employee services received in exchange for an award. The Company is using the modified prospective method allowed under this standard. Accordingly, upon adoption, prior period amounts have not been restated. Under this application, the Company recorded the cumulative effect of compensation expense for the unvested portion of previously granted awards that remain outstanding at the date of adoption and recorded compensation expense for all awards granted after the date of adoption. |
The standard provides that income tax effects of share-based payments are recognized in the financial statements for those awards that will normally result in tax deduction under existing law. Under current U.S. federal tax law, the Company would receive a compensation expense deduction related to non-qualified stock options only when those options are exercised and vested shares are received. Accordingly, the financial statement recognition of compensation cost for non-qualified stock options creates a deductible temporary difference which results in a deferred tax asset and a corresponding deferred tax benefit in the income statement. The Company does not recognize a tax benefit for compensation expense related to incentive stock options unless the underlying shares are disposed in a disqualifying disposition. | |
Income Taxes | Income Taxes — The Company records income taxes in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes.” The standard requires, among other provisions, an asset and liability approach to recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the financial statement carrying amounts and tax basis of assets and liabilities. Valuation allowances are provided if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. |
Net Loss Per Share | Net Loss Per Share — The Company computes net loss per share in accordance with FASB ASC Topic 260, “Earnings per Share,” Under the provisions of the standard, basic and diluted net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. Common equivalent shares related to stock options and warrants have been excluded from the computation of basic and diluted earnings per share because their effect is anti-dilutive. |
Concentration of Credit Risk | Concentration of Credit Risk — Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash. The Company maintains its cash with high credit quality financial institutions; at times, such balances with any one financial institution may exceed FDIC insured limits. |
Financial Instruments | Financial Instruments — Our financial instruments consist of cash, accounts payable, and notes payable. The carrying values of cash, accounts payable, and notes payable are representative of their fair values due to their short-term maturities. |
Marketable Securities | Marketable Securities— The Company classifies its marketable equity securities as available-for-sale and carries them at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. Losses that the Company believes are other-than-temporary are realized in the period that the determination is made. As of March 31, 2015, the Company had $25,000 in unrealized losses. None of the investments have been hedged in any manner. |
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Other_Receivable_Details_Narra
Other Receivable (Details Narrative) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
Receivables [Abstract] | ||
Other receivable | $96,500 | |
Securities | $253,237 | $0 |
Other_Payable_Details_Narrativ
Other Payable (Details Narrative) (USD $) | Mar. 31, 2015 |
Payables and Accruals [Abstract] | |
Other Payable | $730,000 |
Note_Payable_Details_Narrative
Note Payable (Details Narrative) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
Notes to Financial Statements | ||
Note Payable | $200,000 | $300,000 |
Loan Payable - related party | $192,457 |
Equity_Details_Narrative
Equity (Details Narrative) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
Notes to Financial Statements | ||
Authorized Shares Common Stock | 500,000,000 | 500,000,000 |
par value common stock shares | $0.00 | |
Common Stock, Issued | 10,637,151 | 10,637,151 |
Preferred stock shares authorized | 25,000,000 | 25,000,000 |
preferred stock par value | $0.00 | |
Preferred Stock, Issued | 0 | 0 |