Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Feb. 17, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Smartag International, Inc. | |
Entity Central Index Key | 1,469,207 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
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 | 31,637,151 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
CURRENT ASSETS | ||
Cash | $ 40,255 | $ 54,531 |
Other receivable | 6,211 | 3,900 |
Assets from discontinued operations | 0 | 0 |
TOTAL CURRENT ASSETS | 46,466 | 58,431 |
TOTAL ASSETS | 46,466 | 58,431 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 200 | 0 |
Note Payable, Related Party | 1,035,000 | 1,035,000 |
Secured Revolving Not Payable, Related Party | 192,457 | 192,457 |
Other Payable, Related Party | 0 | 0 |
Current liabilities of discontinued operations | 0 | 0 |
TOTAL CURRENT LIABILITIES | 1,227,657 | 1,227,457 |
TOTAL LIABILITIES | 1,227,657 | 1,227,457 |
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, 31,637,151 shares issued and outstanding, respectively. | 31,637 | 31,637 |
Additional paid in capital | 1,948,395 | 1,940,632 |
Accumulated deficit | (3,161,223) | (3,141,295) |
Total Stockholders Deficit | (1,181,191) | (1,169,026) |
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT | $ 46,466 | $ 58,431 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Dec. 31, 2016 | Sep. 30, 2016 |
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 | 31,637,151 | 31,637,151 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
REVENUES | $ 1,694 | $ 0 |
COST OF SALES | 0 | 0 |
GROSS PROFIT | 1,694 | 0 |
OPERATING EXPENSES: | ||
General and administrative expenses | 13,859 | 10,325 |
LOSS FROM OPERATIONS | (12,165) | (10,325) |
Interest expense and other, net | (7,763) | 0 |
LOSS BEFORE PROVISION FOR INCOME TAXES | (19,928) | (10,325) |
Provision for income taxes | 0 | 0 |
Loss from discontinued operations | 0 | (44,224) |
NET LOSS | $ (19,928) | $ (54,549) |
NET LOSS PER SHARE OF COMMON STOCK - Basic and diluted | $ (.00) | $ (.00) |
WEIGHTED AVERAGE SHARES OUTSTANDING - Basic and diluted | 31,637,151 | 31,637,151 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (19,928) | $ (54,549) |
Stock based compensation | 0 | 0 |
Imputed interest expense | 7,763 | 0 |
Changes in current assets and liabilities: | ||
Accounts receivable | 0 | 0 |
Other receivable | (2,311) | 0 |
Inventory | 0 | (11,284) |
Accounts payable | 200 | (26,868) |
Other payable | 0 | 0 |
Net cash used in operating activities | (14,276) | (92,701) |
Cash flows from investing activities: | ||
Investment in securities | 0 | 0 |
Disposition of asset | 0 | 0 |
Net cash provided by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Advances from related parties | 0 | 81,439 |
Proceeds from Revolving Note | 0 | 0 |
Proceeds from note payable | 0 | 0 |
Repayment of note payable | 0 | (50,000) |
Issuance of Common Stock for Cash | 0 | 0 |
Net cash provided by financing activities | 0 | 31,439 |
Net increase (decrease) in cash and cash equivalents | (14,276) | (61,262) |
Cash and cash equivalents - beginning balance | 54,531 | 82,376 |
Cash and cash equivalents - ending balance | 40,255 | 21,114 |
Supplemental disclosure of cash flows information: | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 0 | $ 0 |
Nature of business
Nature of business | 3 Months Ended |
Dec. 31, 2016 | |
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 Theca Corporation on March 24, 1999 in Colorado. The Company is in the development stage as defined in Financial Accounting Standards Board Statement No. 7. On November 29, 2004, we merged with Art4Love, Inc., a Delaware corporation, into Art4Love, Inc. a Nevada corporation. On February 109, 2009, Art4Love changed its name to Smartag International, Inc. In November 2015, Smartag signed an agreement with Bobby Tang Siu Ki and Yang Ye Cai, the co-owners and founders of Shenzhen Shen Nan Shun Technology Co. Ltd (SSNST), a company based in Shenzhen, China which is involved in e-commerce trading on e-Bay, Amazon and Alipay platforms. Using the expertise of SSNST, Smartag will develop the business of e-Commerce trading, procurement, collection and distribution through a new joint venture company in Hong Kong. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND ORGANIZATION | NOTE 2 Basis of Presentation and Significant of Accounting Policies Basis of Presentation and Principles of Consolidation Going Concern Use of Estimates Cash and Cash Equivalents Accounts Receivable - Revenue Recognition Income Taxes Stock-Based Compensation The standard provides that income tax effects of share-based payments are recognized in the consolidated 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. Net Loss Per Share Concentration of Credit Risk Financial Instruments Marketable Securities Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date of the revenue recognition guidance to reporting periods beginning after December 15, 2017. Early adoption is permitted for reporting periods beginning after December 15, 2016. We have adopted guidance and believe it has not had a material impact on the Companys financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern. Continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entitys liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. Currently, there is no guidance under U.S. GAAP about managements responsibility to evaluate whether there is substantial doubt about an entitys ability to continue as a going concern or to provide related footnote disclosures. The amendments in this Update provide that guidance. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entitys ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of managements plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of managements plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). For the period ended December 31, 2015, management evaluated the Companys ability to continue as a going concern and concluded that substantial doubt has not been alleviated about the Companys ability to continue as a going concern. While the Company continues to explore further significant sources of financing, managements assessment was based on the uncertainty related to the amount and nature of such financing over the next twelve months. We have adopted guidance and believe it has not had a material impact on the Companys financial statements. In November 2015, the FASB issued an ASU amending the accounting for income taxes and requiring all deferred tax assets and liabilities to be classified as non-current on the consolidated balance sheet. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU may be adopted either prospectively or retrospectively. We have adopted guidance and believe it has not had a material impact on the Companys financial statements. In January 2016, the FASB issued a new standard to amend certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in the fair value of our equity investments, with certain exceptions, to be recognized through net income rather than other comprehensive income (OCI). The new standard will be effective for us beginning July 1, 2018. The application of the amendments will result in a cumulative-effect adjustment to our consolidated balance sheets as of the effective date. We are currently evaluating the impact of this standard on our consolidated financial statements. In February 2016, the FASB issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The new standard will be effective for us beginning July 1, 2019, with early adoption permitted. We are currently evaluating the impact of this standard on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In June 2016, the Financial Accounting Standards Board (FASB) issued a new standard to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The new standard will be effective for us beginning July 1, 2020, with early adoption permitted beginning July 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. We are currently evaluating the impact of this standard on our consolidated financial statements. |
Note Payable - Related Party
Note Payable - Related Party | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Note Payable | NOTE 3 Related Party During the year ended September 30, 2015, the Company received $810,000 advances from related. $730,000 was from a related entity to a former director and $80,000 was received from Chee Song Yap, the Director of the Company. The two parties entered into 0% interest notes which are to be repaid by September 30, 2017. During the year ended September 30, 2016, the Company is $3,900 owed from SSNST, a related party, which was a temporary overpayment and expected to be repaid as soon as practical. Additionally, the Company received $75,000 from Lock Sen Yow under a 0% interest notes which are to be repaid by September 30, 2017. 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, 2014. All advances shall be paid on or before September 30, 2017 and this advance has an interest rate of 0% per annum. On August 19, 2016, Smartag Solutions Bhd transferred the balance of the Secured Note to Lock Sen Yow as severance employment package from Smartag Solutions Bhd. As of December 31, 2016, the balance was $192,457. 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 August 15, 2014, the SSB increased the Loan to $300,000. The Loan shall be repaid on or before September 30, 2017 and this loan has an interest rate of 0% interest per annum. During the nine months ended June 30, 2015, the Company repaid $100,000 of the Loan. During the year ended September 30, 2016, the Company repaid $50,000 of the Loan. On August 19, 2016, Smartag Solutions Bhd transferred the balance of the Loan to Lock Sen Yow. The total amount owed as of December 31, 2106 and September 30, 2016, was $1,227,457. We recorded imputed interest of $37,560 for the year ended September 30, 2016 from all the aforementioned related party debt. During the quarter ended December 31, 2016, we recorded imputed interest of $7,763 from all the aforementioned related party debt. |
Equity
Equity | 3 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity | NOTE 4 Stockholders Deficit As of September 30, 2016, 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 $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholder of the corporation is sought. There are currently 31,637,151 shares of common stock issued and outstanding and zero shares of preferred stock issued and outstanding. |
Basis of Presentation and Sig10
Basis of Presentation and Significant Account Policies (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation ~ |
Going Concern | Going Concern ~ |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents ~ |
Accounts Receivable | Accounts Receivable - ~ |
Revenue Recognition | Revenue Recognition ~ |
Stock-based Compensation | Stock-Based Compensation The standard provides that income tax effects of share-based payments are recognized in the financial statements for those awards that will normally result in tax deduction under existing law. Under current U.S. federal tax law, the Company would receive a compensation expense deduction related to non-qualified stock options only when those options are exercised and vested shares are received. Accordingly, the financial statement recognition of compensation cost for non-qualified stock options creates a deductible temporary difference which results in a deferred tax asset and a corresponding deferred tax benefit in the income statement. The Company does not recognize a tax benefit for compensation expense related to incentive stock options unless the underlying shares are disposed in a disqualifying disposition. |
Income Taxes | Income Taxes |
Net Loss Per Share | Net Loss Per Share ~ |
Concentration of Credit Risk | Concentration of Credit Risk ~ |
Financial Instruments | Financial Instruments |
Marketable Securities | Marketable Securities ~ |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Notes to Financial Statements | ||
Note Payable | $ 1,035,000 | $ 1,035,000 |
Loan Payable - related party | $ 192,457 | $ 192,457 |
Equity (Details Narrative)
Equity (Details Narrative) - $ / shares | Dec. 31, 2016 | Sep. 30, 2016 |
Notes to Financial Statements | ||
Authorized Shares Common Stock | 500,000,000 | 500,000,000 |
par value common stock shares | $ 0.001 | |
Common Stock, Issued | 31,637,151 | 31,637,151 |
Preferred stock shares authorized | 25,000,000 | 25,000,000 |
preferred stock par value | $ 0.001 | |
Preferred Stock, Issued | 0 | 0 |