Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Jan. 14, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Smartag International, Inc. | |
Entity Central Index Key | 1,469,207 | |
Document Type | 10-K | |
Document Period End Date | Sep. 30, 2018 | |
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 | Non-accelerated Filer | |
Entity Public Float | $ 8,137,151 | |
Entity Common Stock, Shares Outstanding | 98,379,238 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,018 | |
Entity-Ex-Transition | false | |
entity emerging growth | false | |
Small business flag | true | |
Entity Shell Company | false |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
CURRENT ASSETS | ||
Cash | $ 87,461 | $ 114,353 |
Other receivable | 0 | 0 |
TOTAL CURRENT ASSETS | 87,461 | 114,353 |
TOTAL ASSETS | 87,461 | 114,353 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 0 | 0 |
Note Payable, Related Party | 0 | 0 |
Secured Revolving Not Payable, Related Party | 0 | 0 |
Other Payable, Related Party | 30,963 | 20,061 |
Current liabilities of discontinued operations | 0 | 0 |
TOTAL CURRENT LIABILITIES | 30,963 | 20,061 |
TOTAL LIABILITIES | 30,963 | 20,061 |
STOCKHOLDERS EQUITY / 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, 98,010,001 and 93,010,001 shares issued and outstanding, respectively. | 98,178 | 93,010 |
Additional paid in capital | 3,435,249 | 3,122,751 |
Subscription payable | 60,001 | 0 |
Accumulated deficit | (3,560,458) | (3,121,469) |
Total Smartag International Inc. Stockholders Equity | 32,970 | 94,292 |
Non-controlling interest | 23,528 | 0 |
Total Stockholders Equity / Deficit | 56,498 | 94,292 |
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY / DEFICIT | $ 87,461 | $ 114,353 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Sep. 30, 2018 | Sep. 30, 2017 |
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 | 98,179,368 | 93,010,001 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||
REVENUES | $ 0 | $ 124,769 |
COST OF SALES | 0 | 0 |
GROSS PROFIT | 0 | 124,769 |
OPERATING EXPENSES: | ||
General and administrative expenses | 440,970 | 88,908 |
INCOME / LOSS FROM OPERATIONS | (440,970) | 35,861 |
Interest expense and other, net | 0 | (16,036) |
INCOME / LOSS BEFORE PROVISION FOR INCOME TAXES | (440,970) | 19,825 |
Provision for income taxes | 0 | 0 |
Net loss applicable to non-controlling interest | (1,983) | 0 |
NET INCOME / LOSS | $ (438,987) | $ 19,825 |
NET INCOME / LOSS PER SHARE OF COMMON STOCK - Basic and diluted | $ (.00) | $ (.00) |
WEIGHTED AVERAGE SHARES OUTSTANDING - Basic and diluted | 96,861,440 | 63,752,807 |
Shareholders Equity
Shareholders Equity - USD ($) | Common Stock | Additional Paid-In Capital | Noncontrolling Interest | Retained Earnings / Accumulated Deficit | Total |
Begining balance at Sep. 30, 2016 | $ 31,637 | $ 1,940,632 | $ 0 | $ (3,141,295) | $ (1,169,026) |
Begining balance, shares at Sep. 30, 2016 | 31,637,151 | ||||
Common stock issued for debt | $ 61,373 | 1,166,084 | 1,227,457 | ||
Common stock issued for debt shares | 61,372,850 | ||||
Imputed interest | 16,035 | 16,035 | |||
Net loss | 19,825 | 19,825 | |||
Ending balance at Sep. 30, 2017 | $ 93,010 | 3,122,751 | 0 | (3,121,470) | 94,292 |
Ending balance, shares at Sep. 30, 2017 | 93,010,001 | ||||
Common stock issued for cash | $ 5,368 | $ 205,444 | $ 210,811 | ||
Common stock issued for cash, shares | 5,369,237 | ||||
Options issued to related party | 199,762 | 199,762 | |||
Contribution from related party | $ 9,016 | $ 9,016 | |||
Purchase of Vander HK | (41,923) | 25,510 | (16,412) | ||
Loss in Minority Interest in Subsidiary | (1,982) | (1,982) | |||
Net loss | (438,987) | (438,987) | |||
Ending balance at Sep. 30, 2018 | $ 98,378 | $ 3,495,050 | $ 23,528 | $ (3,560,457) | $ 32,970 |
Ending balance, shares at Sep. 30, 2018 | 98,379,238 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (438,987) | $ 19,825 |
Net loss applicable to non-controlling interest | 1,983 | 0 |
Stock based compensation | 199,762 | 0 |
Imputed interest expense | 16,035 | |
Changes in current assets and liabilities: | ||
Accounts receivable | 0 | 0 |
Other receivable | 0 | 0 |
Inventory | 0 | 0 |
Accounts payable | 10,902 | 23,961 |
Other payable | 0 | 0 |
Net cash provided by (used in) operating activities | (228,324) | 59,822 |
Cash flows from investing activities: | ||
Investment in securities | (18,395) | 0 |
Disposition of asset | 0 | 0 |
Net cash provided by investing activities | (18,395) | 0 |
Cash flows from financing activities: | ||
Advances from related parties | 9,016 | 0 |
Proceeds from Revolving Note | 0 | 0 |
Proceeds from note payable | 0 | 0 |
Repayment of note payable | 0 | 0 |
Issuance of Common Stock for Cash | 210,811 | 0 |
Net cash provided by financing activities | 219,827 | 0 |
Net increase (decrease) in cash and cash equivalents | (26,892) | 59,822 |
Cash and cash equivalents - beginning balance | 114,353 | 54,531 |
Cash and cash equivalents - ending balance | 87,461 | 114,353 |
Supplemental disclosure of cash flows information: | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 0 | $ 0 |
Nature of business
Nature of business | 12 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of business | NOTE 1 Nature of business Current Operations and Background Smartag International, Inc., a Nevada corporation (“Smartag,” “Company,” “we,” “us,” or “our”), is in the development stage as defined in Financial Accounting Standards Board Statement No. 7. 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 is developing block chain technology used in the business of e-Commerce trading, procurement, collection and distribution through a new joint venture company in Hong Kong. On January 1, 2016, the Company entered into a revenue sharing agreement with Vander. The Company charged 5% commission as a collection and processing agent for some of Vander’s Ecommerce platform sales. On February 2, 2018, Smartag entered into a Joint Venture & Shareholder’s Agreement with Vander (“JV Agreement”). As a result, the previous agreements with SSNST and Vander was terminated. Under the terms of the JV Agreement, Smartag and Vander formed a new Hong Kong entity called Smartag HK. Smartag HK shall pursue e-Commerce and related Fintech e-Money and e-remittance solutions. Smartag owns 70% and Vander owns 30% of Smartag HK. On the February 27, 2018, Smartag International, Inc. (“Smartag,” “we” or “Company) entered into joint venture agreement with PT. Supratama Makmur Sejahtera (“PTSMS”) an Indonesian Fintech company to form a Joint Venture Indonesian PMA company in which Smartag shall own 51% equity and PTSMS shall own 49%. The new Indonesian PMA company plans to undertake the Project to provide up to 10,000 boarding schools which are owned by the local Islamic Baitu Maal or BMT co-operatives in their respective villages or districts within Indonesia with sharia financial technology (Fintech) e-Wallet platform. Smartag plans to provide the financing, to develop the Fintech technology for the Islamic Fintech e-Wallet platform. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND ORGANIZATION | NOTE 2 – Basis of Presentation and Significant of Accounting Policies Going Concern Use of Estimates Cash and Cash Equivalents Revenue Recognition Income Taxes 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. Net Loss Per Share Concentration of Credit Risk Financial Instruments Marketable Securities Recently Issued Accounting Pronouncements 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 Company’s 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 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 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 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 financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not or are not believed by management to have a material impact on our present or future statements. |
Note Payable - Related Party
Note Payable - Related Party | 12 Months Ended |
Sep. 30, 2018 | |
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, a former director of the Company. The two parties entered into 0% interest notes which are to be repaid by September 30, 2017. On March 23, 2017, the Company issued 40,500,000 shares of common stock in exchange for the cancelation of this notes. The Company valued the fair market value of the shares at $0.02 per share on the date of issuance which was the stock price on the date of issuance. The Company received $75,000 from Lock Sen Yow under a 0% interest notes which are to be repaid by September 30, 2017.On March 23, 2017, the Company issued 3,750,000 shares of common stock in exchange for the cancelation of this note. The Company valued the fair market value of the shares at $0.02 per share on the date of issuance which was the stock price on the date of issuance. 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 September 30, 2017, the balance was $0. On March 23, 2017, the Company issued 9,622,850 shares of common stock in exchange for the cancelation of this note. 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. On March 23, 2017, the Company issued 7,500,000 shares of common stock in exchange for the cancelation of this note. The total amount owed as of June 30, 2018 was $0. During the quarter ended June 30, 2018 and 2017, we recorded imputed interest of $0 and $7,763, respectively, from all the aforementioned related party debt. Employment Agreement Effective April 1, 2018, we entered into an Employment Agreement (the “Employment Agreement”) with Lock Sen Yow, the Company’s CEO. Under the Employment Agreement, Mr. Yow will receive a base salary of $200,000 per year and a guaranteed bonus of $40,000 per year. Mr. Yow shall receive 10,000,000 options to purchase the Company’s common at an exercise price of $0.30 per share (“Employee Options”). Employee Options shall vest quarterly over a five-year period. To the extent, the Employee Agreement is terminated, Employee has 90 days from termination to exercise the options or they will expire. The term of the options shall be 5 years. Employee Options were valued at $1,997,620 which was calculated using the Black Scholes model to attain the fair market value. Mr. Yow will be eligible for an incentive bonus based on his performance. Additionally, Mr. Yow will receive a car allowance of $500 per month and an office allowance of $2,000 per month per location. The term of the contract is from April 1, 2018 to September 30, 2022. As of September 30, 2018, $15,200 is owed to Mr. Yow. Formation of Smartag HK On February 2, 2018, Smartag entered into a Joint Venture & Shareholder’s Agreement with Vander a related party. As a result, the previous agreements with SSNST and Vander was terminated. Under the terms of the JV Agreement, Smartag and Vander formed a new Hong Kong entity called Smartag HK. Smartag HK shall pursue e-Commerce and related Fintech e-Money and e-remittance solutions. Smartag owns 70% and Vander owns 30% of Smartag HK. Smartag forgave Vander’s liability of $41,923 and Vander contributed US$25,510. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 4 – Income Taxes We have incurred operating losses of $3,560,458, which, if not utilized, will begin to expire in 2019. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, and have been offset by a valuation allowance. There are additional limitations due to our change in control. Therefore, we believe we will be unable to utilize these loss carryforwards. The effective income tax rate for the years ended September 30, 2018 and 2017 consisted of the following: September 30, 2018 2017 Federal statutory income tax rate 34.00 % 34.00 % State income taxes 0 % 0 % Change in valuation allowance (34.00 )% (34.00 )% Net effective income tax rate — — Current year added tax asset from net loss for the years ended September 30, 2018 and 2017 are as follows: September 30, 2018 2017 Net operating loss $ (3,560,458 ) $ (3,121,469 ) Statutory tax rate (combined federal and state) 34 % 34 % Non-capital tax (income) loss (1,210,555 ) (1,061,300 ) Valuation allowance 1,210,555 1,061,300 $ — $ — The potential future tax benefits of these losses have not been recognized in these financial statements due to uncertainty of their realization. When the future utilization of some portion of the carryforwards is determined not to be “more likely than not,” a valuation allowance is provided to reduce the recorded tax benefits from such assets. The Company annually conducts an analysis of its tax positions and has concluded that it has no uncertain tax positions as of September 30, 2018. |
Equity
Equity | 12 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity | NOTE 5 – Stockholder’s Equity / Deficit As of September 30, 2018, 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. On March 23, 2017, various related parties relieved the Company of loans totaling $1,227,457 in exchange for the issuance of 61,372,850 shares of the Company’s common stock. On December 29, 2017, we issued 5,000,000 of the Company’s common stock for $100,000 in cash. In the quarter ending June 30, 2018, we issued 169,367 shares of the Company’s common stock for $50,810 in cash. In the quarter ending September 30, 2018, 199,870 shares of the Company’s common stock was subscribed for. The Company received $60,001 in cash. These shares were issued subsequent to September 30, 2018. There are currently 98,179,368 shares of common stock issued and outstanding and zero shares of preferred stock issued and outstanding as of September 30, 2018. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Account Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Going Concern | Going Concern |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
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 |
Equity (Details Narrative)
Equity (Details Narrative) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 |
Notes to Financial Statements | ||
Authorized Shares Common Stock | 500,000,000 | 500,000,000 |
par value common stock shares | $ 0.001 | |
Common Stock, Issued | 98,179,368 | 93,010,001 |
Preferred stock shares authorized | 25,000,000 | 25,000,000 |
preferred stock par value | $ 0.001 | |
Preferred Stock, Issued | 0 | 0 |