Wellness Center USA (WCUI) 10-Q 17 Aug 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 13, 2016
Document and Entity Information
Entity Registrant Name	Wellness Center USA, Inc.
Entity Trading Symbol	wcui
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Entity Central Index Key	1,516,887
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		74,903,352
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	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Current Assets
Cash	$ 17,874	$ 34,227
Inventories	186,569	213,501
Current maturity of note receivable - Chairman and CEO	0	36,299
Prepaid expenses and other current assets	3,059	26,571
Total Current Assets	207,502	310,598
Property and equipment, net	16,794	29,624
Intangible assets, net	311,035	356,343
Goodwill, net	55,316	55,316
Note receivable - Chairman and CEO, net of current maturity	0	160,729
Other assets	16,760	1,760
Total Other Assets	399,905	603,772
TOTAL ASSETS	607,407	914,370
Current Liabilities
Accounts payable and accrued expenses	405,818	602,539
Accrued payroll - officers	132,051	132,051
Deferred revenue	0	37,500
Advances from shareholders	224,444	0
Advances from related party	39,404	40,773
Notes payable	126,500	114,000
Total Current Liabilities	928,217	928,217
Shareholders' Deficit
Common stock, par value $0.001, 75,000,000 shares authorized; 74,903,352 and 64,539,684 shares issued and outstanding	74,904	64,540
Additional paid-in capital	15,683,535	14,534,003
Common stock issuable, 1,194,143 shares	116,000	0
Accumulated deficit	(16,027,809)	(14,535,935)
Total Wellness Center USA shareholders' equity (deficit)	(153,370)	62,608
Non-controlling interest	(167,440)	(75,101)
Total Shareholder's deficit	(320,810)	(12,493)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$ 607,407	$ 914,370

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets Parentheticals - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Parentheticals
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	75,000,000	75,000,000
Common Stock, shares issued	74,903,352	64,539,684
Common Stock, shares outstanding	74,903,352	64,539,684

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Sales:
Trade	$ 23,276	$ 32,730	$ 91,787	$ 69,009
Related party	0	0	54,117	0
Consulting services	7,500	0	22,500	0
Management services to related party	92,033	91,888	305,578	276,098
Total Sales	122,809	124,618	473,982	345,107
Cost of goods sold	19,870	4,256	61,998	4,737
Gross profit	102,939	120,362	411,984	340,370
Operating expenses	430,370	646,235	1,852,809	1,804,032
Loss from operations	(327,431)	(525,873)	(1,440,825)	(1,463,662)
Other income (expenses)
Change in derivative liabilities	0	0	0	569,740
Gain on debt redemption	0	0	0	53,531
Loss on conversion of loans payable to equity	0	0	(146,301)	0
Interest income - related party	0	0	2,913	2,284
Other (income) expense, net	0	0	(143,388)	625,555
NET LOSS	(327,431)	(525,873)	(1,584,213)	(838,107)
Net loss attributable to non-controlling interest	48,281	57,563	92,339	57,563
NET LOSS ATTRIBUTABLE TO WELLNESS CENTER USA, INC.	$ (279,150)	$ (468,310)	$ (1,491,874)	$ (780,544)
BASIC AND DILUTED LOSS PER SHARE	$ 0	$ (0.01)	$ (0.02)	$ (0.01)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED	74,764,956	58,419,583	72,012,287	52,234,278

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Shareholders' Deficit (Unaudited) - 9 months ended Jun. 30, 2016 - USD ($)	Common Stock Shares	Common Stock Amount	Additional Paid-in Capital	Common Stock Issuable	Accumulated Deficit	Total WCUI Equity	Non-controlling Interest	Total
Balance at Sep. 30, 2015	64,539,684	64,540	14,534,003	0	(14,535,935)	62,608	(75,101)	(12,493)
Net proceeds from the sale of common stock	6,853,668	6,854	700,847	0	0	707,701	0	707,701
Exercise of stock options and warrants	500,000	500	4,500	0	0	5,000	0	5,000
Fair value of common stock issued for services	1,312,000	1,312	118,488	0	0	119,800	0	119,800
Fair value of stock options granted to an employee		$ 0	$ 11,294	$ 0	$ 0	$ 11,294	$ 0	$ 11,294
Issuance of common stock for repayment of accounts payable	1,000,000	1,000	99,000	0	0	100,000	0	100,000
Issuance of common stock and warrants for settlement of loans payable	698,000	698	215,403	0	0	216,101	0	216,101
Proceeds received from the sale of common stock (1,192,143 shares)		$ 0	$ 0	$ 116,000	$ 0	$ 116,000	$ 0	$ 116,000
Net loss for the nine months ended June 30, 2016		$ 0	$ 0	$ 0	$ (1,491,874)	$ (1,491,874)	$ (92,339)	$ (1,584,213)
Balance at Jun. 30, 2016	74,903,352	74,904	15,683,535	116,000	(16,027,809)	(153,370)	(167,440)	(320,810)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities
Net loss	$ (1,584,213)	$ (838,107)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense	13,350	10,026
Amortization expense	49,482	201,244
Gain on redemption of debts	0	(53,531)
Loss on shares issued for repayment of accounts payable	40,000	0
Loss on conversion of loans payable	146,301	0
Fair value of common stock issued for services	119,800	149,633
Fair value of stock options and warrants issued for services	11,294	114,090
Amortization of convertible note discount	0	152,185
Change in fair value of derivative liability	0	(569,740)
Note receivable from officer written-off as compensation	197,028	0
Other assets	(15,000)	0
(Increase) Decrease in:
Accounts receivable	0	12,863
Inventories	26,932	(45,113)
Prepaid expenses and other current assets	23,512	(40,621)
(Decrease) Increase in:
Accounts payable and accrued expenses	87,723	157,515
Deferred revenue	(37,500)	(23,916)
Net cash used in operating activities	(921,291)	(773,472)
Cash Flows from Investing Activities
Purchases of property and equipment	(520)	(1,284)
Patent application costs	(4,174)	(10,349)
Net cash used in investing activities	(4,694)	(11,633)
Cash Flows from Financing Activities
Proceeds from loans payable	82,300	0
Repayment of note receivable - Chairman and CEO	0	33,610
Advances from related party	1,900	0
Repayment of advances from related party	(3,269)	(60,071)
Proceeds from other payable	0	150,000
Repayments of convertible notes payable	0	(200,000)
Proceeds from sale of common stock and warrants, net of issuance cost	707,701	787,925
Exercise of stock options and warrants	5,000	24,000
Proceeds from common stock issuable	116,000	0
Net cash provided by financing activities	909,632	735,464
Net decrease in cash	(16,353)	(49,641)
Cash beginning of period	34,227	175,671
Cash end of period	17,874	126,030
Supplemental cash flows disclosures:
Interest paid	0	0
Taxes paid	0	0
Supplemental non-cash financing disclosures:
Conversion of loans payable to equity	69,800	0
Issuance of common stock for repayment of accounts payable	60,000	0
Issuance of common stock for convertible notes conversion	0	236,489
Reclassification of derivative liabilities to equity	0	(561,742)
Non-controlling interest's share in losses of a subsidiary	$ 92,339	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2016
BASIS OF PRESENTATION:
BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Wellness Center USA, Inc. and Subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending September 30, 2016. Organization and Operations Wellness Center USA, Inc. ("WCUI" or the “Company”) was incorporated in June, 2010 under the laws of the State of Nevada. The Company initially engaged in online sports and nutrition supplements marketing and distribution. Upon consummation of the share exchange agreements with CNS-Wellness Florida, LLC and Psoria-Shield Inc., the Company currently operates in the following business segments: (i) distribution of targeted Ultra Violet ("UV") phototherapy devices for dermatology; (ii) management of top-tier medical practices in the interventional and multi-modal pain management sector; and (iii) authentication and encryption products and services. Reclassifications Certain amounts reported in September 30, 2015 as accrued expenses have been reclassified to conform with the current period presentation. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying consolidated financial statements, the Company has not yet generated significant revenues and has incurred recurring net losses. During the nine months ended June 30, 2016, the Company incurred a net loss of $1,584,213 and used cash in operations of $921,291. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to raise additional funds and implement its strategies. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. In addition, the Company's independent registered public accounting firm, in its report on the Company's September 30, 2015 financial statements, has raised substantial doubt about the Company's ability to continue as a going concern. At June 30, 2016, the Company had cash on hand in the amount of $17,874. The ability to continue as a going concern is dependent on the Company attaining and maintaining profitable operations in the future and raising additional capital soon to meet its obligations and repay its liabilities arising from normal business operations when they come due. Since inception, we have funded our operations primarily through equity and debt financings, and we expect to continue to rely on these sources of capital in the future. During the three months ended September 30, 2016, the Company raised $95,000 through the sale of its common stock. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stock holders, in case of equity financing.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation The Company's consolidated subsidiaries and/or entities are as follows: Name of consolidated subsidiary or entity State or other jurisdiction of incorporation or organization Date of incorporation or formation (date of acquisition/disposition, if applicable) Attributable interest Psoria-Shield Inc. (“PSI”) The State of Florida June 17, 2009 (August 24, 2012) 100% National Pain Centers, Inc. (“NPC”) The State of Nevada January 24, 2014 (February 28, 2014) 100% StealthCo, Inc. (“StealthCo”) The State of Illinois March 18, 2014 100% Psoria Development Company LLC. (“PDC”) The State of Illinois January 15, 2015 50% The consolidated financial statements include all accounts of the Company, PSI, NPC, StealthCo and PDC as of reporting periods end date and for the reporting periods then ended from their respective dates of acquisition and disposition. Inter-company balances and transactions have been eliminated. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in valuing our intangible assets and goodwill for impairment, inventory valuations and stock-based compensation calculations, among others. Actual results could differ from these estimates. Income (Loss) Per Share Calculations Basic loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of outstanding common shares during the period. Diluted loss per share is computed by dividing the net loss applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. For the three and nine months ended June 30, 2016 and 2015, basic and diluted shares outstanding were the same, as potentially dilutive shares were considered anti-dilutive. At June 30, 2016 and September 30, 2015, the dilutive impact of outstanding stock options for 5,165,000 and 5,172,500 shares, respectively, and outstanding warrants for 47,675,698 and 36,371,578 shares, respectively, have been excluded because their impact on loss per share is anti-dilutive. Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. In addition to the aforementioned general policy, the following are the specific revenue recognition policies for each major category of revenue: (i) Sale of products : (ii) Management fees of medical practice: (iii) Consulting services: Payments received before the relevant criteria for revenue recognition are satisfied are recorded as deferred revenue. Deferred revenue at September 30, 2015 was $37,500. There was no deferred revenue at June 30, 2016. Property and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company has determined the estimated useful lives of its property and equipment, as follows: Computer equipment 5 years Medical equipment 5 years Furniture and fixtures 7 years Vehicles 3 years Software 3 years Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the related accounts and the resulting gain or loss is reflected in the statements of operations. Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. Income Taxes Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company recorded a valuation allowance against its deferred tax assets as of June 30, 2016 and September 30, 2015. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. Fair Value measurements The Company determines the fair value of its assets and liabilities based on the exchange price in U.S. dollars that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: · Level 1 — · Level 2 — · Level 3 — The carrying amounts of financial instruments such as cash, accounts receivable, inventories, and accounts payable and accrued liabilities, approximate the related fair values due to the short-term maturities of these instruments. Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value of the net assets at the date of acquisition. Goodwill acquired in a business combination with indefinite useful lives is not amortized; rather, goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired. Intangible Assets Other Than Goodwill The Company amortizes the acquisition costs of intangible assets other than goodwill on a straight-line basis over the estimated useful lives of the respective assets as follows: Exclusive license agreements (*) 18 years Acquired technologies 20 years Trademarks 7 years Patents 20 years (*) Amortized on a straight-line basis over the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the patents, whichever is shorter. Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts. Carrying Value, Recoverability and Impairment of Long-Lived Assets The Company follows ASC 360-10-35-17 for its evaluation of impairment for its long-lived assets. An impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. If an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited. The Company’s long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. Non-controlling Interest Non-controlling interest represents the non-controlling interest holder’s proportionate share of the equity of the Company’s majority-owned subsidiary, PDC. Non-controlling interest is adjusted for the non-controlling interest holder’s proportionate share of the earnings or losses and other comprehensive income (loss), if any, and the non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance. Stock-Based Compensation The Company periodically grants stock options and warrants to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option and stock warrant grants to employees based on the authoritative guidance provided by the Financial Accounting Standards Board where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and stock warrant grants to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option or warrant grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company’s common stock option and warrant grants are estimated using a Black-Scholes Merton option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the common stock options, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model, and based on actual experience. The assumptions used in the Black-Scholes Merton option pricing model could materially affect compensation expense recorded in future periods. Recently Issued Accounting Pronouncements In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory, which requires that inventory within the scope of ASU 2015-11 be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) and the retail inventory method are not impacted by the new guidance. ASU 2015-11 applies to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for public business entities in fiscal years beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2015-11 on the Company’s financial statements and disclosures. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is in the process of evaluating the impact of ASU 2014-09 on the Company’s financial statements and disclosures. In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases. ASU 2016-02 requires a lessee to record a right of use asset and a corresponding lease liability on the balance sheet for all leases with terms longer than 12 months. ASU 2016-02 is effective for all interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of ASU 2016-02 on the Company’s financial statements and disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

INVENTORIES

INVENTORIES	9 Months Ended
	Jun. 30, 2016
INVENTORIES
INVENTORIES	NOTE 3 – INVENTORIES Inventories consist of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Raw materials $ 6,218 $ 12,718 Purchased parts for assembly 72,638 134,385 Finished goods 107,713 66,398 Total inventories $ 186,569 $ 213,501

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Jun. 30, 2016
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment consists of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Vehicles $ 15,000 $ 15,000 Computer equipment 7,330 6,810 Furniture and fixtures 24,966 24,966 Medical equipment 18,889 18,889 Software 23,207 23,207 Leasehold improvements 15,170 15,170 104,562 104,042 Less: accumulated depreciation and amortization (87,768) (74,418) Property and equipment, net $ 16,794 $ 29,624 Depreciation expense for the three months ended June 30, 2016 and 2015 was $2,701 and $3,574, respectively, and for the nine months ended June 30, 2016 and 2015 was $13,350 and $10,026, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Jun. 30, 2016
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE 5 – INTANGIBLE ASSETS Intangible assets were as follows at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Patents and exclusive licenses $ 365,465 $ 361,291 Acquired technologies 2,095,000 2,095,000 Trademarks 630,000 630,000 3,090,465 3,086,291 Less: accumulated amortization (704,803) (655,321) Less: accumulated impairment (2,074,627) (2,074,627) Intangible assets, net $ 311,035 $ 356,343 Patents and Exclusive Licenses Patents and exclusive licenses were as follows at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Patents and exclusive licenses $ 365,465 $ 361,291 Less: accumulated amortization (96,771) (54,848) Patents and exclusive licenses, net $ 268,694 $ 306,443 Amortization expense was $10,788 and $9,046 for the three months ended June 30, 2016 and 2015 and was $41,923 and $27,134 for the nine months ended June 30, 2016 and 2015. Acquired Technologies Acquired technologies, stated at cost, less accumulated amortization and impairment, consists of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Acquired technologies $ 2,095,000 $ 2,095,000 Less: accumulated amortization (324,216) (322,973) Less: accumulated impairment (1,749,027) (1,749,027) Acquired technologies, net $ 21,757 $ 23,000 Amortization expense was $565 and $26,187 for the three months ended June 30, 2016 and 2015 and was $1,243 and $78,561 for the nine months ended June 30, 2016 and 2015. Trademarks Trademarks, stated at cost, less accumulated amortization and impairment, consists of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Trademarks $ 630,000 $ 630,000 Less: accumulated amortization (283,816) (277,500) Less: accumulated impairment (325,600) (325,600) Trademarks, net $ 20,584 $ 26,900 Amortization expense was $2,878 and $22,500 for the three months ended June 30, 2016 and 2015 and was $6,316 and $67,500 for the nine months ended June 30, 2016 and 2015.

GOODWILL

GOODWILL	9 Months Ended
	Jun. 30, 2016
GOODWILL
GOODWILL	NOTE 6 – GOODWILL Goodwill, stated at cost, less accumulated impairment, consists of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Goodwill $ 1,716,603 $ 2,916,603 Less: accumulated impairment (1,661,287) (2,861,287) Goodwill, net $ 55,316 $ 55,316

LOANS PAYABLE

LOANS PAYABLE	9 Months Ended
	Jun. 30, 2016
LOANS PAYABLE
LOANS PAYABLE	NOTE 7 – LOANS PAYABLE Loans payable at June 30, 2016 and September 30, 2015 consist of various unsecured note agreements issued between May 14, 2014 and November 18, 2015. The notes have various interest rates, varying between 3% and 10% per annum. Certain loans are due on demand and all loans are due by September 2016. At September 30, 2015, loans payable totaling to $114,000 were outstanding. During the nine months ended June 30, 2016, loans payable of $82,300 were issued for cash and loans payable of $69,800 were converted into 698,000 shares of the Company’s common stock and warrants to issue 1,047,000 shares of the Company’s common stock valued at $216,101 in the aggregate. This resulted in a loss on conversion of $146,301 (see Note 8). As of June 30, 2016, loans payable of $126,500 were outstanding.

SHAREHOLDERS' DEFICIT

SHAREHOLDERS' DEFICIT	9 Months Ended
	Jun. 30, 2016
SHAREHOLDERS' DEFICIT
SHAREHOLDERS' DEFICIT	NOTE 8 – SHAREHOLDERS’ DEFICIT During the nine months ended June 30, 2016, the Company issued 1,312,000 shares of its commons stock for services valued at $119,800. The shares were valued at the trading price of the common stock at the date of issuance. In December 2015, the Company issued 1,000,000 shares of its common stock valued at $100,000 for repayment of consulting fees due of $60,000. The shares were valued at the trading price of the common stock at the date of issuance. The Company recorded a $40,000 loss from extinguishment of debt relating to the repayment. During the nine months ended June 30, 2016, loans payable of $69,800 were converted into 698,000 shares of the Company’s common stock. The value of the shares issued was $125,640. In addition, the Company issued warrants to purchase 1,047,000 of the Company’s common stock to the debt holders. The warrants have an exercise price of $0.15 per share and expire in January 2021. The warrants were valued at $90,461, using a Black-Scholes pricing model with the following assumptions: Exercise price $ 0.15 Expected dividends - Expected volatility 140.92 % Risk free interest rate 1.44 % Expected life of option 5 The aggregate fair value of the common shares and issued warrants was $216,101. The Company recorded a $146,301 loss from extinguishment of debt relating to the debt conversion. During the nine months ended June 30, 2016, the Company raised $707,701 from the sale of 6,853,668 shares of its common stock. In connection with the sale, the Company issued warrants to the shareholders to purchase 9,557,168 shares of the Company’s common stock. The warrants expire five years from the date of grant and have exercise prices ranging from $0.15 per share to $0.18 per share. Common Stock Issuable During the nine months ended June 30, 2016, the Company received $116,000 from several investors to purchase 1,192,143 shares of the Company’s common stock. In connection with the sale, the Company issued warrants to the shareholders to purchase 2,384,286 shares of the Company’s common stock. The warrants expire five years from the date of grant and have an exercise prices ranging from $0.12 to $0.15 per share. As of June 30, 2016, the shares had not been issued to the investors. Stock Options On December 22, 2010, effective retroactively as of June 30, 2010, the Company’s board of directors approved the adoption of the “2010 Non-Qualified Stock Option Plan” (“2010 Option Plan”) by unanimous consent. The 2010 Option Plan was initiated to encourage and enable officers, directors, consultants, advisors and key employees of the Company to acquire and retain a proprietary interest in the Company by ownership of its common stock. A total of 7,500,000 of the authorized shares of the Company’s common stock may be subject to, or issued pursuant to, the terms of the plan. The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. Additionally, the Company’s policy is to issue new shares of common stock to satisfy stock option exercises. The Company applied fair value accounting for all share based payments awards. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. During the nine months ended June 30, 2016, the Company issued options to purchase 187,500 shares of its common stock to an officer of the Company with an exercise price of $0.14 per share. The options vested immediately and expire five years from the date of grant. During the nine months ended June 30, 2016, the Company valued the options using a Black-Scholes option-pricing model and recorded $11,294 of stock compensation for the value of the options. During the nine months ended June 30, 2016, the Company issued options to purchase 5,000 shares of its common stock to a consultant. The options will vest on August 31, 2016 and expire five years from the date of grant. The fair value of the options was calculated using a Black-Scholes option-pricing model and approximately $1,000 which will be expensed on the vesting date. During the nine months ended June 30, 2016, stock options were exercised to purchase 200,000 shares of the Company’s common stock for $2,000. The table below summarizes the Company’s stock option activities for the nine months ended June 30, 2016: Number of Option Shares Exercise Price Range Per Share Weighted Average Exercise Price Fair Value at Date of Grant Balance, September 30, 2015 5,172,500 $ 0.01 - 2.00 $ 0.60 $ 1,514,329 Granted 192,500 0. 14 0.14 11,294 Canceled - - - - Exercised (200,000) 0.01 0.01 - Expired - - - - Vested and exercisable, June 30, 2016 5,165,000 $ 0.01 - 2.00 $ 0.60 $ 1,525,613 Unvested, June 30, 2016 5,000 $ - $ - $ - There was no aggregate intrinsic value for any of the option shares outstanding at June 30, 2016. The following table summarizes information concerning outstanding and exercisable options as of June 30, 2016: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average Remaining Contractual Life (in years) Weighted Average Exercise Price $0.01 - 2.00 5,165,000 4.15 $ 0.60 5,160,000 4.15 $ 0.60 As of June 30, 2016, there were 2,335,000 shares of stock options remaining available for issuance under the 2010 Plan. Stock Warrants During the nine months ended June 30, 2016, the Company issued warrants to purchase 11,941,454 shares with exercise prices of $0.12 and $0.18 per share as part of the sale of equity units. The warrants expire five years from the date of grant. Also during the nine months ended June 30, 2016, the Company issued warrants to purchase 1,047,000 shares with an exercise price of $0.15 per share as part of the conversion of loans payable to equity (see Note 7). The warrants expire five years from the date of grant. The warrants, using a Black-Scholes pricing model, were valued at $90,461. During the nine months ended June 30, 2016, warrants were exercised to purchase 300,000 shares of the Company’s common stock for $3,000. The table below summarizes the Company’s warrants activities for the nine months ended June 30, 2016: Number of Warrant Shares Exercise Price Range Per Share Weighted Average Exercise Price Fair Value at Date of Issuance Aggregate Intrinsic Value Balance, September 30, 2015 36,371,578 $ 0.01-2.31 $ 0.32 $ 1,897,292 $ - Granted 12,988,454 0.12-0.18 0.15 222,703 - Canceled - - - - - Exercised (300,000) 0.01 0.01 (-) - Expired (1,384,334) - - (38) - Balance, June 30, 2016 47,675,698 $ 0.01 - 2.31 $ 0.28 $ 2,119,957 $ Earned and exercisable, June 30, 2016 47,675,698 $ 0.01 - 2.31 $ 0.28 $ 2,119,957 $ - Unvested, June 30, 2016 - $ - $ - $ - $ - The following table summarizes information concerning outstanding and exercisable warrants as of June 30, 2016: Warrants Outstanding Warrants Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average Remaining Contractual Life (in years) Weighted Average Exercise Price $0.01 – 2.31 47,675,698 3.65 $ 0.28 47,675,698 3.65 $ 0.28

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Jun. 30, 2016
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 9 – RELATED PARTY TRANSACTIONS Advances from Shareholders From time to time, shareholders of the Company advance funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand. At June 30, 2016 and September 30, 2015, advances from shareholders were $39,404 and $40,773, respectively. In addition, another shareholder advanced $224,444 to the Company as of June 30, 2016 and September 30, 2015. The advances are non-interest bearing, are unsecured and do not have a determined date of repayment. Management service agreement between NPC and National Pain Centers, LLC On February 28, 2014, NPC, Inc. (“NPC”), the Company's wholly-owned subsidiary, entered into a management service agreement with National Pain Centers, LLC ("NPC LLC"), which is owned by Dr. Jay Joshi, the President and CEO of NPC. Per the agreement, NPC LLC engaged NPC to provide management services for a period of five years. During the term of the agreement, NPC LLC shall pay NPC the equivalent of 50% of all funds collected on a monthly basis. Management service revenue related to the collections was $92,033 and $91,888 for the three months ended June 30, 2016 and 2015, and was $305,578 and $276,098 for the nine months ended June 30, 2016 and 2015. Phototherapy Device Sales During the nine months ended June 30, 2016, the Company’s 50% owned subsidiary, PDC, sold one of its Ultra Violet ("UV") phototherapy devices (PL-1000) to NPC LLC for $54,117. Note Receivable – Chairman, President and CEO On September 30, 2013, the Company loaned $250,000 to its Chairman, President and CEO. At September 30, 2015, a balance of $160,729 was owed on the loan. During the nine months ended June 30, 2016, the loan and all accrued interest of $174,914 were written-off as compensation expense to the officer. No amounts were outstanding under the loan at June 30, 2016.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Jun. 30, 2016
SEGMENT REPORTING:
SEGMENT REPORTING	NOTE 10 – SEGMENT REPORTING Reportable segments are components of an enterprise about which separate financial information is available and that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company operates in following business segments: (i) Medical Devices: (ii) Management of Client Services: (iii) Authentication and Encryption Products and Services: The detailed segment information of the Company is as follows: Wellness Center USA, Inc. Assets By Segments June 30, 2016 Corporate Medical Devices Mgmt of Medical Practice Authentication and Encryption Total ASSETS Current Assets Cash $ 11,072 $ 296 $ 6,357 $ 149 $ 17,874 Inventories - 174,094 - 12,475 186,569 Prepaid expenses and other current assets - - 2,700 359 3,059 Total current assets 11,072 174,390 9,057 12,983 207,502 Property and equipment, net 5,833 8,123 - 2,838 16,794 Intangible assets, net - 45,958 - 265,077 311,035 Goodwill, net - 55,316 - - 55,316 Security deposits 15,000 1,760 - - 16,760 Total other assets 20,833 111,157 - 267,915 399,905 TOTAL ASSETS $ 31,905 $ 285,547 $ 9,057 $ 280,898 $ 607,407 Wellness Center USA, Inc. Operations by Segments For the Nine Months Ended June 30, 2016 Corporate Medical Devices Mgmt of Medical Practice Authentication and Encryption Total Sales: Trade $ 6,402 $ 54,117 $ - $ 31,268 $ 91,787 Related party - 54,117 - - 54,117 Consulting services - - - 22,500 22,500 Management services to related party - - 305,578 - 305,578 Total Sales 6,402 108,234 305,578 53,768 473,982 Cost of goods sold 7,299 41,559 - 13,140 61,998 Gross profit (loss) (897) 66,675 305,578 40,628 411,984 Total operating expenses 994,378 305,801 300,553 252,077 1,852,809 Income (loss) from operations $ (995,275) $ (239,126) $ 5,025 $ (211,449) $ (1,440,825)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Jun. 30, 2016
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 11 – SUBSEQUENT EVENTS Dr. Periklis Papadopoulos has resigned from the Company's Board of Directors. Dr. Papadopoulos had submitted a written letter of resignation in June 2015, indicating that he was resigning for personal reasons. However, the Company's CEO spoke with him upon receipt of the resignation and Dr. Papadopoulos agreed to remain on the Board of Directors until replaced pursuant to the By-Laws of the Company. Dr. Papadopoulos confirmed his resignation to the CEO on August 11, 2016, but indicated that his official resignation had been effective at a date in the past. Accordingly, the effective date of the resignation is, therefore, unknown at this time. The Company is attempting to confirm the effective date of Dr. Papadopoulos’s resignation and what, if any, impact it may have on prior actions the Company has taken, and on filings made, between June 2015 and August 11, 2016. Dr. Papadopoulos has indicated that his relationship with the Company was in good standing and the reasons for his resignation are personal. Subsequent to June 30, 2016, the Company raised $95,000 from the sale of 1,357,143 shares of its common stock. In connection with the sale, the Company issued warrants to the shareholders to purchase 2,714,286 shares of the Company’s common stock. The warrants expire five years from the date of grant and have an exercise price of $0.12 per share.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies (Policies)
Basis of Consolidation	Basis of Consolidation The Company's consolidated subsidiaries and/or entities are as follows: Name of consolidated subsidiary or entity State or other jurisdiction of incorporation or organization Date of incorporation or formation (date of acquisition/disposition, if applicable) Attributable interest Psoria-Shield Inc. (“PSI”) The State of Florida June 17, 2009 (August 24, 2012) 100% National Pain Centers, Inc. (“NPC”) The State of Nevada January 24, 2014 (February 28, 2014) 100% StealthCo, Inc. (“StealthCo”) The State of Illinois March 18, 2014 100% Psoria Development Company LLC. (“PDC”) The State of Illinois January 15, 2015 50% The consolidated financial statements include all accounts of the Company, PSI, NPC, StealthCo and PDC as of reporting periods end date and for the reporting periods then ended from their respective dates of acquisition and disposition. Inter-company balances and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in valuing our intangible assets and goodwill for impairment, inventory valuations and stock-based compensation calculations, among others. Actual results could differ from these estimates.
Income (Loss) Per Share Calculations	Income (Loss) Per Share Calculations Basic loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of outstanding common shares during the period. Diluted loss per share is computed by dividing the net loss applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. For the three and nine months ended June 30, 2016 and 2015, the basic and diluted shares outstanding were the same, as potentially dilutive shares were considered anti-dilutive. At June 30, 2016 and September 30, 2015, the dilutive impact of outstanding stock options for 5,165,000 and 5,172,500 shares, respectively, and outstanding warrants for 47,675,698 and 36,371,578 shares, respectively, have been excluded because their impact on the loss per share is anti-dilutive.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. In addition to the aforementioned general policy, the following are the specific revenue recognition policies for each major category of revenue: (i) Sale of products : (ii) Management fees of medical practice: (iii) Consulting services: Payments received before the relevant criteria for revenue recognition are satisfied are recorded as deferred revenue. Deferred revenue at September 30, 2015 was $37,500. There was no deferred revenue at June 30, 2016.
Property and Equipment	Property and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company has determined the estimated useful lives of its property and equipment, as follows: Computer equipment 5 years Medical equipment 5 years Furniture and fixtures 7 years Vehicles 3 years Software 3 years Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the related accounts and the resulting gain or loss is reflected in the statements of operations. Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value.
Income Taxes	Income Taxes Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company recorded a valuation allowance against its deferred tax assets as of June 30, 2016 and September 30, 2015. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.
Fair Value measurements	Fair Value measurements The Company determines the fair value of its assets and liabilities based on the exchange price in U.S. dollars that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: · Level 1 — · Level 2 — · Level 3 — The carrying amounts of financial instruments such as cash, accounts receivable, inventories, and accounts payable and accrued liabilities, approximate the related fair values due to the short-term maturities of these instruments.
Goodwill	Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value of the net assets at the date of acquisition. Goodwill acquired in a business combination with indefinite useful lives is not amortized; rather, goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired.
Intangible Assets Other Than Goodwill	Intangible Assets Other Than Goodwill The Company amortizes the acquisition costs of intangible assets other than goodwill on a straight-line basis over the estimated useful lives of the respective assets as follows: Exclusive license agreements (*) 18 years Acquired technologies 20 years Trademarks 7 years Patents 20 years (*) Amortized on a straight-line basis over the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the patents, whichever is shorter. Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts.
Carrying Value, Recoverability and Impairment of Long-Lived Assets	Carrying Value, Recoverability and Impairment of Long-Lived Assets The Company follows ASC 360-10-35-17 for its evaluation of impairment for its long-lived assets. An impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. If an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited. The Company’s long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events.
Non-controlling Interest	Non-controlling Interest Non-controlling interest represents the non-controlling interest holder’s proportionate share of the equity of the Company’s majority-owned subsidiary, PDC. Non-controlling interest is adjusted for the non-controlling interest holder’s proportionate share of the earnings or losses and other comprehensive income (loss), if any, and the non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance.
Stock-Based Compensation	Stock-Based Compensation The Company periodically grants stock options and warrants to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option and stock warrant grants to employees based on the authoritative guidance provided by the Financial Accounting Standards Board where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and stock warrant grants to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option or warrant grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company’s common stock option and warrant grants are estimated using a Black-Scholes Merton option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the common stock options, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model, and based on actual experience. The assumptions used in the Black-Scholes Merton option pricing model could materially affect compensation expense recorded in future periods.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory, which requires that inventory within the scope of ASU 2015-11 be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) and the retail inventory method are not impacted by the new guidance. ASU 2015-11 applies to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for public business entities in fiscal years beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2015-11 on the Company’s financial statements and disclosures. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is in the process of evaluating the impact of ASU 2014-09 on the Company’s financial statements and disclosures. In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases. ASU 2016-02 requires a lessee to record a right of use asset and a corresponding lease liability on the balance sheet for all leases with terms longer than 12 months. ASU 2016-02 is effective for all interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of ASU 2016-02 on the Company’s financial statements and disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

Company's consolidated subsidia

Company's consolidated subsidiaries or entities (Tables)	9 Months Ended
	Jun. 30, 2016
Company's consolidated subsidiaries or entities:
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net	The Company's consolidated subsidiaries and/or entities are as follows: Name of consolidated subsidiary or entity State or other jurisdiction of incorporation or organization Date of incorporation or formation (date of acquisition/disposition, if applicable) Attributable interest Psoria-Shield Inc. (“PSI”) The State of Florida June 17, 2009 (August 24, 2012) 100% National Pain Centers, Inc. (“NPC”) The State of Nevada January 24, 2014 (February 28, 2014) 100% StealthCo, Inc. (“StealthCo”) The State of Illinois March 18, 2014 100% Psoria Development Company LLC. (“PDC”) The State of Illinois January 15, 2015 50%

Property Equipment (Tables)

Property Equipment (Tables)	9 Months Ended
	Jun. 30, 2016
Property Equipment (Tables)
Schedule of estimated useful lives of property and equipment, as follows:	The Company has determined the estimated useful lives of its property and equipment, as follows: Computer equipment 5 years Medical equipment 5 years Furniture and fixtures 7 years Vehicles 3 years Software 3 years

Intangible Assets Other Than Go

Intangible Assets Other Than Goodwill (Tables)	9 Months Ended
	Jun. 30, 2016
Intangible Assets Other Than Goodwill {1}
Intangible Assets Other Than Goodwill	The Company amortizes the acquisition costs of intangible assets other than goodwill on a straight-line basis over the estimated useful lives of the respective assets as follows: Exclusive license agreements (*) 18 years Acquired technologies 20 years Trademarks 7 years Patents 20 years

Schedule of Inventory (Tables)

Schedule of Inventory (Tables)	9 Months Ended
	Jun. 30, 2016
Schedule of Inventory
Schedule of Inventory (Tables)	Inventories consist of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Raw materials $ 6,218 $ 12,718 Purchased parts for assembly 72,638 134,385 Finished goods 107,713 66,398 Total inventories $ 186,569 $ 213,501

Schedule of Property and Equipm

Schedule of Property and Equipment (Tables)	9 Months Ended
	Jun. 30, 2016
Schedule of Property and Equipment (Tables):
Schedule of Property and Equipment (Tables)	Property and equipment consists of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Vehicles $ 15,000 $ 15,000 Computer equipment 7,330 6,810 Furniture and fixtures 24,966 24,966 Medical equipment 18,889 18,889 Software 23,207 23,207 Leasehold improvements 15,170 15,170 104,562 104,042 Less: accumulated depreciation and amortization (87,768) (74,418) Property and equipment, net $ 16,794 $ 29,624 Depreciation expense for the three months ended June 30, 2016 and 2015 was $2,701 and $3,574, respectively, and for the nine months ended June 30, 2016 and 2015 was $13,350 and $10,026, respectively.

Summary of Intangible Assets (T

Summary of Intangible Assets (Tables)	9 Months Ended
	Jun. 30, 2016
Summary of Intangible Assets
Summary of Intangible Assets	Intangible assets were as follows at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Patents and exclusive licenses $ 365,465 $ 361,291 Acquired technologies 2,095,000 2,095,000 Trademarks 630,000 630,000 3,090,465 3,086,291 Less: accumulated amortization (704,803) (655,321) Less: accumulated impairment (2,074,627) (2,074,627) Intangible assets, net $ 311,035 $ 356,343

Summary of Patents and Exclusiv

Summary of Patents and Exclusive Licenses (Tables)	9 Months Ended
	Jun. 30, 2016
Patents and Exclusive Licenses:
Summary of Patents and Exclusive Licenses	Patents and exclusive licenses were as follows at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Patents and exclusive licenses $ 365,465 $ 361,291 Less: accumulated amortization (96,771) (54,848) Patents and exclusive licenses, net $ 268,694 $ 306,443

Summary of Acquired Technologie

Summary of Acquired Technologies (Tables)	9 Months Ended
	Jun. 30, 2016
Summary of Acquired Technologies
Summary of Acquired Technologies	Acquired technologies, stated at cost, less accumulated amortization and impairment, consists of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Acquired technologies $ 2,095,000 $ 2,095,000 Less: accumulated amortization (324,216) (322,973) Less: accumulated impairment (1,749,027) (1,749,027) Acquired technologies, net $ 21,757 $ 23,000

Summary of Trademarks (Tables)

Summary of Trademarks (Tables)	9 Months Ended
	Jun. 30, 2016
Summary of Trademarks
Summary of Trademarks	Trademarks, stated at cost, less accumulated amortization and impairment, consists of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Trademarks $ 630,000 $ 630,000 Less: accumulated amortization (283,816) (277,500) Less: accumulated impairment (325,600) (325,600) Trademarks, net $ 20,584 $ 26,900

Schedule Of Goodwill (Tables)

Schedule Of Goodwill (Tables)	9 Months Ended
	Jun. 30, 2016
Schedule Of Goodwill
Schedule of Goodwill	Goodwill, stated at cost, less accumulated impairment, consists of the following at June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Goodwill $ 1,716,603 $ 2,916,603 Less: accumulated impairment (1,661,287) (2,861,287) Goodwill, net $ 55,316 $ 55,316

Stockholders Equity Deficit (Ta

Stockholders Equity Deficit (Tables)	9 Months Ended
	Jun. 30, 2016
Stockholders Equity Deficit (Tables):
Schedule of Summary of stock option activities	The table below summarizes the Company’s stock option activities for the nine months ended June 30, 2016: Number of Option Shares Exercise Price Range Per Share Weighted Average Exercise Price Fair Value at Date of Grant Balance, September 30, 2015 5,172,500 $ 0.01 - 2.00 $ 0.60 $ 1,514,329 Granted 192,500 0. 14 0.14 11,294 Canceled - - - - Exercised (200,000) 0.01 0.01 - Expired - - - - Vested and exercisable, June 30, 2016 5,165,000 $ 0.01 - 2.00 $ 0.60 $ 1,525,613 Unvested, June 30, 2016 5,000 $ - $ - $ - There was no aggregate intrinsic value for any of the option shares outstanding at June 30, 2016.
Schedule of Summary of information concerning outstanding and exercisable options	The following table summarizes information concerning outstanding and exercisable options as of June 30, 2016: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average Remaining Contractual Life (in years) Weighted Average Exercise Price $0.01 - 2.00 5,165,000 4.15 $ 0.60 5,160,000 4.15 $ 0.60 As of June 30, 2016, there were 2,335,000 shares of stock options remaining available for issuance under the 2010 Plan.
Schedule of Warrants activities	The table below summarizes the Company’s warrants activities for the nine months ended June 30, 2016: Number of Warrant Shares Exercise Price Range Per Share Weighted Average Exercise Price Fair Value at Date of Issuance Aggregate Intrinsic Value Balance, September 30, 2015 36,371,578 $ 0.01-2.31 $ 0.32 $ 1,897,292 $ - Granted 12,988,454 0.12-0.18 0.15 222,703 - Canceled - - - - - Exercised (300,000) 0.01 0.01 (-) - Expired (1,384,334) - - (38) - Balance, June 30, 2016 47,675,698 $ 0.01 - 2.31 $ 0.28 $ 2,119,957 $ Earned and exercisable, June 30, 2016 47,675,698 $ 0.01 - 2.31 $ 0.28 $ 2,119,957 $ - Unvested, June 30, 2016 - $ - $ - $ - $ -
Schedule of Summary of information concerning outstanding and exercisable warrants	The following table summarizes information concerning outstanding and exercisable warrants as of June 30, 2016: Warrants Outstanding Warrants Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average Remaining Contractual Life (in years) Weighted Average Exercise Price $0.01 – 2.31 47,675,698 3.65 $ 0.28 47,675,698 3.65 $ 0.28

Consolidated Statements By Repo

Consolidated Statements By Reportable Segment (Tables)	9 Months Ended
	Jun. 30, 2016
Consolidated Statements By Reportable Segment (Tables):
Total Assets By Reportable Segment	The detailed segment information of the Company is as follows: Wellness Center USA, Inc. Assets By Segments June 30, 2016 Corporate Medical Devices Mgmt of Medical Practice Authentication and Encryption Total ASSETS Current Assets Cash $ 11,072 $ 296 $ 6,357 $ 149 $ 17,874 Inventories - 174,094 - 12,475 186,569 Prepaid expenses and other current assets - - 2,700 359 3,059 Total current assets 11,072 174,390 9,057 12,983 207,502 Property and equipment, net 5,833 8,123 - 2,838 16,794 Intangible assets, net - 45,958 - 265,077 311,035 Goodwill, net - 55,316 - - 55,316 Security deposits 15,000 1,760 - - 16,760 Total other assets 20,833 111,157 - 267,915 399,905 TOTAL ASSETS $ 31,905 $ 285,547 $ 9,057 $ 280,898 $ 607,407
Consolidated Statements By Reportable Segment	Wellness Center USA, Inc. Operations by Segments For the Nine Months Ended June 30, 2016 Corporate Medical Devices Mgmt of Medical Practice Authentication and Encryption Total Sales: Trade $ 6,402 $ 54,117 $ - $ 31,268 $ 91,787 Related party - 54,117 - - 54,117 Consulting services - - - 22,500 22,500 Management services to related party - - 305,578 - 305,578 Total Sales 6,402 108,234 305,578 53,768 473,982 Cost of goods sold 7,299 41,559 - 13,140 61,998 Gross profit (loss) (897) 66,675 305,578 40,628 411,984 Total operating expenses 994,378 305,801 300,553 252,077 1,852,809 Income (loss) from operations $ (995,275) $ (239,126) $ 5,025 $ (211,449) $ (1,440,825)

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
	Jun. 30, 2016USD ($)
Basis of Presentation Details
Net loss	$ (1,584,213)
Net cash used cash in operations	921,291
Cash on hand in the amount	17,874
Sale of common stock	$ 95,000

Consolidated Subsidiaries (Deta

Consolidated Subsidiaries (Details)	Jun. 30, 2016
Consolidated Subsidiaries
Psoria-Shield Inc Attributable Interest	100.00%
National Pain Centers, Inc Attributable Interest	100.00%
StealthCo, Inc Attributable Interest	100.00%
Psoria Development Company Attributable Interest	50.00%

Income (Loss) Per Share (Detail

Income (Loss) Per Share (Details) - shares	Jun. 30, 2016	Sep. 30, 2015
Income (Loss) Per Share Details
Dilutive impact of outstanding stock options	5,165,000	5,172,500
Outstanding warrants	47,675,698	36,371,578

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Revenue Recognition Details
Deferred revenue	$ 0	$ 37,500

Assets Estimated Useful Life (D

Assets Estimated Useful Life (Details)	Jun. 30, 2016
Assets Estimated Useful Life
Computer equipment Estimated Useful Life (Years)	5
Medical equipment Estimated Useful Life (Years)	5
Furniture and fixture Estimated Useful Life (Years)	7
Vehicles Estimated Useful Life (Years)	3
Software Estimated Useful Life (Years)	3
Exclusive license agreements Estimated Useful Life (Years)	18
Acquired technologies Estimated Useful Life (Years)	20
Trademarks Estimated Useful Life (Years)	7
Patents Estimated Useful Life (Years)	20

Inventories consisted of the fo

Inventories consisted of the following (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Inventories consisted of the following
Raw materials	$ 6,218	$ 12,718
Purchased parts for assembly	72,638	134,385
Finished goods	107,713	66,398
Total inventories	$ 186,569	$ 213,501

Property And Equipment (Details

Property And Equipment (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Property And Equipment Details
Vehicles	$ 15,000	$ 15,000
Computer equipment	7,330	6,810
Furniture and fixtures	24,966	24,966
Medical equipment	18,889	18,889
Software	23,207	23,207
Leasehold improvements	15,170	15,170
Property and equipment, gross	104,562	104,042
Less: accumulated depreciation and amortization	(87,768)	(74,418)
Property and equipment, net	$ 16,794	$ 29,624

Depreciation (Details)

Depreciation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Depreciation Details
Depreciation expense	$ 2,701	$ 3,574	$ 13,350	$ 10,026

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Intangible Assets Details
Patents and exclusive licenses	$ 365,465	$ 361,291
Acquired technologies	2,095,000	2,095,000
Trademarks	630,000	630,000
Intangible assets, gross	3,090,465	3,086,291
Less: accumulated amortization	(704,803)	(655,321)
Less: accumulated impairment	(2,074,627)	(2,074,627)
Intangible assets, net	311,035	356,343
Patents and Exclusive Licenses:
Patents and exclusive licenses	365,465	361,291
Less: accumulated amortization	(96,771)	(54,848)
Patents and exclusive licenses, net	268,694	306,443
Acquired Technologies:
Acquired technologies	2,095,000	2,095,000
Less: accumulated amortization	(324,216)	(322,973)
Less: accumulated impairment	(1,749,027)	(1,749,027)
Acquired technologies, net	21,757	23,000
Trademarks:
Trademarks	630,000	630,000
Less: accumulated amortization	(283,816)	(277,500)
Less: accumulated impairment	(325,600)	(325,600)
Trademarks, net	$ 20,584	$ 26,900

Amortization Expense (Details)

Amortization Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Amortization Expense Details
Amortization Expense Patents	$ 10,788	$ 9,046	$ 41,923	$ 27,134
Amortization Expense Acquired technologies	565	26,187	1,243	78,561
Amortization Expense Trademarks	$ 2,878	$ 22,500	$ 6,316	$ 67,500

Goodwill (Details)

Goodwill (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Goodwill Details
Goodwill	$ 1,716,603	$ 2,916,603
Less: accumulated impairment	(1,661,287)	(2,861,287)
Goodwill, net	$ 55,316	$ 55,316

Loans Payable (Details)

Loans Payable (Details) - USD ($)	Jun. 30, 2016	Nov. 18, 2015	Sep. 30, 2015	May 14, 2014
Loans Payable Details
Notes have various interest rates		10.00%		3.00%
Loans payable totaling			$ 114,000
Loans payable were issued for cash	$ 82,300
Loans payable of 69,800 were converted into shares of Company's common stock	698,000
Warrants to issue shares of the Company's common stock	1,047,000
Loss on conversion	$ 146,301
Loans payable were outstanding	$ 126,500

Capital stock (Details)

Capital stock (Details) - USD ($)	9 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Capital stock Details
Issued shares of commons stock for services	1,312,000
Issued shares of commons stock for services valued at	$ 119,800
Company issued shares of common stock		1,000,000
Company issued shares of common stock valued at		$ 100,000
Company issued shares of its common stock for repayment of consulting fees		60,000
Company recorded a loss from extinguishment of debt		$ 40,000
Loans payable	$ 69,800
Loans payable were converted into shares of the Company's common stock	698,000
Value of the shares issued	$ 125,640
Company issued warrants to purchase	1,047,000
Warrants have an exercise price per share	$ 0.15
Warrants were valued at	$ 90,461
Fair value of the common shares and issued warrants	216,101
Company recorded a loss from extinguishment of debt relating to the debt conversion	$ 146,301
Company raised $707,701 from the sale of shares of its common stock	6,333,668
Company issued warrants to the shareholders	9,557,168
Exercise prices ranging from $0.15 per share to	$ 0.18

Assumptions used for options gr

Assumptions used for options granted (Details)	9 Months Ended
	Jun. 30, 2016USD ($)$ / shares
Assumptions used for options granted Details
Exercise price | $ / shares	$ 0.15
Expected dividends | $	$ 0
Expected volatility	140.92%
Risk free interest rate	1.44%
Expected life of option	5

Common Stock Issuable (Details)

Common Stock Issuable (Details)	9 Months Ended
	Jun. 30, 2016USD ($)shares
Common Stock Issuable Details
Company received from several investors | $	$ 116,000
Received from several investors to purchase shares of common stock	1,192,143
Issued warrants to the shareholders to purchase shares of common stock	2,384,286

Stock Options (Details)

Stock Options (Details)	9 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Stock Options Details
Authorized shares of the Company's common stock	7,500,000
Company issued options to purchase shares of its common stock	187,500
Options with an exercise price per share | $ / shares	$ 0.14
Company recorded stock compensation | $	$ 11,294
Stock options were exercised to purchase	200,000

Summary of the stock option act

Summary of the stock option activity during the period (Details)	9 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Number of Option Shares:
Balance, Exercise Price Range 0.01 - 2.00 September 30, 2015	5,172,500
Granted Exercise Price Range 0.14	192,500
Exercised Exercise Price Range 0.01	(200,000)
Vested and exercisable, Exercise Price Range 0.01 - 2.00 June 30, 2016	5,165,000
Unvested, June 30, 2016	5,000
Weighted-Average Exercise Price
Balance, Exercise Price Range 0.01 - 2.00 September 30, 2015 | $ / shares	$ 0.60
Granted Exercise Price Range 0.14 | $ / shares	0.14
Exercised Exercise Price Range 0.01 | $ / shares	0.01
Vested and exercisable, Exercise Price Range 0.01 - 2.00 June 30, 2016 | $ / shares	$ 0.60
Fair Value at Date of Grant
Balance, Exercise Price Range 0.01 - 2.00 September 30, 2015 | $	$ 1,514,329
Granted Exercise Price Range 0.14 | $	11,294
Vested and exercisable, Exercise Price Range 0.01 - 2.00 June 30, 2016 | $	$ 1,525,613

Summarizes information concerni

Summarizes information concerning outstanding and exercisable options (Details)	Jun. 30, 2016$ / sharesshares
Summarizes information concerning outstanding and exercisable options
Range of Exercise Prices 0.01 - 2.00 Number Outstanding | shares	5,165,000
Range of Exercise Prices 0.01 - 2.00 Average Remaining Contractual Life (in years) (Options Outstanding)	$ 4.15
Range of Exercise Prices 0.01 - 2.00 Weighted Average Exercise Price (Options Outstanding)	$ 0.60
Range of Exercise Prices 0.01 - 2.00 Number Exercisable | shares	5,160,000
Range of Exercise Prices 0.01 - 2.00 Average Remaining Contractual Life (in years) (Options Exercisable)	$ 4.15
Range of Exercise Prices 0.01 - 2.00 Weighted Average Exercise Price (Options Exercisable)	$ 0.60
Shares of stock options remaining | shares	2,402,500

Stock Warrants (Details)

Stock Warrants (Details)	9 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Stock Warrants Details
Company issued warrants to purchase shares	11,941,454
Purchase shares with exercise price | $ / shares	$ 0.12
Exercise price as part of the sale of equity units | $ / shares	$ 0.18
Warrants expire from the date of grant	5
Issued warrants to purchase shares	1,047,000
Exercise price as part of the conversion of loans payable to equity | $ / shares	$ 0.15
The warrants, using a Black-Scholes pricing model, were valued | $	$ 90,461
Warrants were exercised to purchase	300,000
Warrants were exercised to purchase shares of the Company's common stock	3,000

Summary Of Warrants Activities

Summary Of Warrants Activities (Details)	9 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Number of Warrant Shares
Balance of Warrants Exercise Price Range Per Share 0.01-2.31 | shares	36,371,578
Granted Warrants Exercise Price Range Per Share 0.12-0.18 | shares	12,988,454
Exercised Warrants Exercise Price Range Per Share 0.01 | shares	(300,000)
Expired Warrants Exercise Price Range Per Share 0 | shares	(1,384,334)
Balance Warrants Exercise Price Range Per Share 0.01 - 2.31 | shares	47,675,698
Earned and exercisable Warrants Exercise Price Range Per Share 0.01 - 2.31 | shares	47,675,698
Weighted Average Exercise Price (WARRANTS)
Balance of Warrants Exercise Price Range Per Share 0.01-2.31 | $ / shares	$ 0.32
Granted Warrants Exercise Price Range Per Share 0.15-0.18 | $ / shares	0.15
Exercised Warrants Exercise Price Range Per Share 0.01 | $ / shares	0.01
Balance Warrants Exercise Price Range Per Share 0.01 - 2.31 | $ / shares	0.28
Earned and exercisable Warrants Exercise Price Range Per Share 0.01 - 2.31 | $ / shares	$ 0.28
Fair Value at Date of Issuance
Balance of Warrants Exercise Price Range Per Share 0.01-2.31	$ 1,897,292
Granted Warrants Exercise Price Range Per Share 0.15-0.18	222,703
Expired Warrants Exercise Price Range Per Share	(38)
Balance Warrants Exercise Price Range Per Share 0.01 - 2.31	2,119,957
Earned and exercisable Warrants Exercise Price Range Per Share 0.01 - 2.31	2,119,957
Aggregate Intrinsic Value
Balance of warrants, September 30, 2015	0
Balance of warrants June 30, 2016	$ 0

Summarizes information concer51

Summarizes information concerning outstanding and exercisable warrants (Details)	Jun. 30, 2016$ / sharesshares
Summarizes information concerning outstanding and exercisable warrants
Range of Exercise Prices 0.01 - 2.31 Number of Warrants Outstanding | shares	47,675,698
Range of Exercise Prices 0.01 - 2.31 Warrants Outstanding Average Remaining Contractual Life (in years)	3.65
Range of Exercise Prices 0.01 - 2.31 Warrants Outstanding Weighted Average Exercise Price | $ / shares	$ 0.28
Range of Exercise Prices 0.01 - 2.31 Number of Warrants Exercisable | shares	47,675,698
Range of Exercise Prices 0.01 - 2.31 Warrants Exercisable Average Remaining Contractual Life (in years)	3.65
Range of Exercise Prices 0.01 - 2.31 Warrants Exercisable Weighted Average Exercise Price | $ / shares	$ 0.28

Related Party Advances from Sha

Related Party Advances from Shareholders (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015	Sep. 30, 2013
Related Party Advances from Shareholders Details
Advances from shareholders	$ 224,444	$ 0
Another shareholder advanced to the Company	$ 224,444	224,444
Note Receivable - Chairman, President and CEO
Company loaned to its Chairman, President and CEO			$ 250,000
Balance was owed on the loan		$ 160,729

Related Party Transactions Duri

Related Party Transactions During the Period (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transactions During the Period
Management service revenue related to the collections	$ 92,033	$ 91,888	$ 305,578	$ 276,098
Loan and all accrued interest written-off as compensation expense			$ 174,914

Subsequent Events Transactions

Subsequent Events Transactions (Details)	Jun. 30, 2016USD ($)shares
Subsequent Events Transactions Details
Company raised from the sale of common stock | $	$ 95,000
Shares of common stock	1,357,143
Company issued warrants to the shareholders to purchase shares of common stock at an an exercise price of $0.12 per share.	2,714,286