Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2022 | May 20, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --09-30 | |
Entity Registrant Name | VIRTUAL INTERACTIVE TECHNOLOGIES CORP. | |
Entity Central Index Key | 0001536089 | |
Entity Tax Identification Number | 36-4752858 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 600 17th Street | |
Entity Address, Address Line Two | Suite 2800 South | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | (303) | |
Local Phone Number | 228-7120 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,084,034 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 31,499 | $ 251,064 |
Royalties receivable | 111,448 | 115,830 |
Interest receivable | 4,238 | 3,340 |
Note receivable | 25,000 | 25,000 |
Total current assets | 172,185 | 395,234 |
Convertible note receivable | 7,500 | 7,500 |
Total non-current assets | 7,500 | 7,500 |
TOTAL ASSETS | 179,685 | 402,734 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 6,600 | 37,014 |
Note payable, related party – current | 741,030 | |
Interest payable, related party – current | 195,885 | |
Notes payable, net of discounts | 30,939 | 62,375 |
Interest payable | 3,365 | 2,091 |
Total current liabilities | 977,819 | 101,480 |
LONG-TERM LIABILITIES: | ||
Note payable, related party - net of current | 741,030 | |
Interest payable, related party - net of current | 167,597 | |
Total long-term liabilities | 908,627 | |
Total liabilities | 977,819 | 1,010,107 |
Commitments and contingencies | ||
STOCKHOLDERS’ DEFICIT | ||
Common stock, $ 0.001 par value; 90,000,000 shares authorized, 7,042,784 shares issued and 7,001,534 shares outstanding at March 31, 2022, and 6,900,284 shares issued and outstanding as of September 30, 2021 | 7,002 | 6,900 |
Additional paid-in-capital | 4,817,495 | 4,518,347 |
Treasury stock (41,250 and 0 shares at March 31, 2022 and September 30, 2021 respectively, $0 cost) | ||
Accumulated deficit | (5,629,087) | (5,139,076) |
Total stockholders’ deficit | (798,134) | (607,373) |
Total liabilities and stockholders’ deficit | 179,685 | 402,734 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS’ DEFICIT | ||
Preferred stock, value | 500 | 500 |
Series B Preferred Stock [Member] | ||
STOCKHOLDERS’ DEFICIT | ||
Preferred stock, value | $ 5,956 | $ 5,956 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 7,042,784 | 6,900,284 |
Common stock, shares outstanding | 7,001,534 | 6,900,284 |
Treasury stock, shares | 41,250 | 0 |
Treasury stock, cumulative cost | $ 0 | $ 0 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 595,612 | 595,612 |
Preferred stock, shares outstanding | 595,612 | 595,612 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenue - royalties | $ 29,638 | $ 61,726 | $ 60,030 | $ 95,131 |
Operating expenses: | ||||
General, administrative and selling | 115,788 | 45,334 | 313,597 | 127,031 |
Total operating expenses | 115,788 | 45,334 | 313,597 | 127,031 |
Income (loss) from operations | (86,150) | 16,392 | (253,567) | (31,900) |
Other income (expense) | ||||
Other income | 444 | 443 | 898 | 851 |
Amortization of debt discount | (96,376) | (192,439) | ||
Interest expense, related party | (13,136) | (12,164) | (28,289) | (24,599) |
Interest expense | (8,547) | (148) | (16,042) | (299) |
Gain (loss) from foreign currency transactions | (194) | (90) | (573) | 625 |
Total other income (expense) | (117,809) | (11,959) | (236,444) | (23,422) |
Net income (loss) | $ (203,959) | $ 4,433 | $ (490,011) | $ (55,322) |
Loss per share, Basic | $ (0.06) | $ 0 | $ (0.07) | $ (0.01) |
Fully Diluted | $ (0.06) | $ 0 | $ (0.07) | $ (0.01) |
Weighted average number of shares outstanding - | ||||
Basic | 6,963,492 | 6,817,784 | 6,940,772 | 6,817,784 |
Fully Diluted | 6,963,492 | 7,413,396 | 6,940,772 | 6,817,784 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) | Preferred Stock [Member]Series A Preferred Stock [Member] | Preferred Stock [Member]Preferred Stock Series B Convertible [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Beginning Balance at Sep. 30, 2020 | $ 500 | $ 5,956 | $ 6,817 | $ 4,353,430 | $ (5,020,055) | $ (653,352) | |
Balance, shares at Sep. 30, 2020 | 50,000 | 595,612 | 6,817,784 | ||||
Net Income (loss) | (55,322) | (55,322) | |||||
Ending Balance at Mar. 31, 2021 | $ 500 | $ 5,956 | $ 6,817 | 4,353,430 | (5,075,377) | (708,674) | |
Balance, shares at Mar. 31, 2021 | 50,000 | 595,612 | 6,817,784 | ||||
Beginning Balance at Dec. 31, 2020 | $ 500 | $ 5,956 | $ 6,817 | 4,353,430 | (5,079,810) | (713,107) | |
Balance, shares at Dec. 31, 2020 | 50,000 | 595,612 | 6,817,784 | ||||
Net Income (loss) | 4,433 | 4,433 | |||||
Ending Balance at Mar. 31, 2021 | $ 500 | $ 5,956 | $ 6,817 | 4,353,430 | (5,075,377) | (708,674) | |
Balance, shares at Mar. 31, 2021 | 50,000 | 595,612 | 6,817,784 | ||||
Beginning Balance at Sep. 30, 2021 | $ 500 | $ 5,956 | $ 6,900 | 4,518,347 | (5,139,076) | (607,373) | |
Balance, shares at Sep. 30, 2021 | 50,000 | 595,612 | 6,900,284 | ||||
Stock issued for commitment fee debt discount on note payable | $ 83 | 206,167 | 206,250 | ||||
Stock issued for commitment fee debt discount on note payable, shares | 82,500 | ||||||
Redemption of previously issued commitment shares | $ (41) | 41 | |||||
Redemption of previously issued commitment shares, shares | (41,250) | 41,250 | |||||
Net Income (loss) | (490,011) | (490,011) | |||||
Stock issued for services | $ 60 | 92,940 | 93,000 | ||||
Stock issued for services, shares | 60,000 | ||||||
Ending Balance at Mar. 31, 2022 | $ 500 | $ 5,956 | $ 7,002 | 4,817,495 | (5,629,087) | (798,134) | |
Balance, shares at Mar. 31, 2022 | 50,000 | 595,612 | 7,001,534 | 41,250 | |||
Beginning Balance at Dec. 31, 2021 | $ 500 | $ 5,956 | $ 6,960 | 4,611,287 | (5,425,128) | (800,425) | |
Balance, shares at Dec. 31, 2021 | 50,000 | 595,612 | 6,960,284 | ||||
Stock issued for commitment fee debt discount on note payable | $ 83 | 206,167 | 206,250 | ||||
Stock issued for commitment fee debt discount on note payable, shares | 82,500 | ||||||
Redemption of previously issued commitment shares | $ (41) | 41 | |||||
Redemption of previously issued commitment shares, shares | (41,250) | 41,250 | |||||
Net Income (loss) | (203,959) | (203,959) | |||||
Ending Balance at Mar. 31, 2022 | $ 500 | $ 5,956 | $ 7,002 | $ 4,817,495 | $ (5,629,087) | $ (798,134) | |
Balance, shares at Mar. 31, 2022 | 50,000 | 595,612 | 7,001,534 | 41,250 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (490,011) | $ (55,322) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock issued for services | 93,000 | |
Debt discount amortization | 192,439 | |
Changes in operating assets and operating liabilities: | ||
Interest receivable | (898) | (852) |
Royalty receivable | 4,382 | 40,004 |
Accounts payable and accrued liabilities | (30,414) | (2,970) |
Accounts payable, related parties | (1,494) | |
Accrued interest payable, related parties | 28,288 | 24,599 |
Accrued interest payable | 1,274 | 299 |
Net cash (used in) provided by operating activities | (201,940) | 4,264 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Advances to non-related party | (7,500) | |
Net cash used in investing activities | (7,500) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable | 217,375 | |
Payment to notes payable, related parties | (235,000) | |
Net cash used in financing activities | (17,625) | |
Net change in cash and cash equivalents | (219,565) | (3,236) |
Cash and cash equivalents, beginning of period | 251,064 | 36,244 |
Cash and cash equivalents, end of period | 31,499 | 33,008 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 14,769 | |
Income taxes paid | ||
Non-cash Investing and Financing Activities: | ||
Debt discount on notes payable | 17,625 | |
Stock issued for commitment fee debt discount on note payable | 206,250 | |
Redemption of commitment shares as treasury stock at $0 cost In March 2022 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Treasury stock cost | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation While the information presented in the accompanying March 31, 2022 financial statements is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted. These financial statements should be read in conjunction with the Company’s September 30, 2021 audited financial statements (and notes thereto). Operating results for the three and six months ended March 31, 2022 are not necessarily indicative of the results that can be expected for the year ending September 30, 2022. The accompanying unaudited condensed consolidated financial statements herein contain the operations of Virtual Interactive Technologies Corp (“VRVR”), and its wholly-owned subsidiaries Advanced Interactive Gaming Inc. (“AIG Inc.”) and Advanced Interactive Gaming Ltd. (“AIG Ltd”) (collectively, the “Company”). All significant intercompany amounts have been eliminated. |
Business
Business | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Business | Note 2. Business Nature of Operations Advanced Interactive Gaming, Ltd. (“AIG Ltd”) was incorporated in Bermuda on September 19, 2016, and is in the business of assisting in the development of video games through investments and royalty contracts. AIG Ltd had several royalty contracts with video game development companies during the past three years. On September 24, 2019, AIG Ltd was acquired by Advanced Interactive Gaming, Inc. (“AIG Inc”), a Colorado Corporation, through a reverse recapitalization and share exchange agreement. After the transaction, AIG Ltd became a wholly owned subsidiary of AIG Inc. Virtual Interactive Technologies Corp. (f/k/a Mascota Resources, Corp.) was incorporated in the State of Nevada on November 3, 2011. On September 25, 2019, Mascota Resources, Corp. effected a name change to Virtual Interactive Technologies Corp. (“VRVR”), and a 20:1 reverse stock split On September 27, 2019, AIG Inc effected a reverse recapitalization via a share exchange agreement with VRVR, resulting in AIG Inc becoming a wholly-owned subsidiary of VRVR. VRVR finances the development of video game projects to be released on various popular gaming platforms in exchange for a royalty stream on the games. To date the Company has financed several gaming titles including Carmageddon Max Damage, Carmageddon Crashers, Interplanetary: Enhanced Edition, Catch & Release and Worbital. Collectively these games are distributed world-wide on various gaming platforms including Sony PlayStation, Xbox, Steam and Oculus among others. In addition to financing solutions, VRVR offers expertise in development solutions, publishing and marketing video game products and is actively involved in the early stages of VR/AR game development. VRVR continues to reinvest its royalty income into growing its royalty contracts and intellectual property in the video game development industry. The Company’s strategy moving forward is to continue to invest in new game development through partnerships and royalty contracts. Management believes that there is significant opportunity in VR games given the relatively early stage in the product cycle and the growing need for content to support VR hardware sales. While the Company has historically participated mostly in the PC and console market, it will continue to explore addition opportunities in the gaming space as they present themselves. In addition, VRVR may explore strategic alliances and acquisitions in order to expand its business. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimated. Cash Equivalents The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. The Company had no Fair Value of Financial Instruments The Company accounts for fair value measurements in accordance with accounting standard ASC 820-10-50, “ Fair Value Measurements.” - Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. - Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. - Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. The Company’s financial instruments consist of cash, royalties receivable, notes receivable and related accrued interest receivable, accounts payable and accrued expenses, and notes payable and related accrued interest payable. The carrying value of these financial instruments approximates fair value due to the short-term nature of the instruments. Royalty Contracts The Company enters into agreements with third-party developers that require us to make payments for game development and production services. In exchange for our payments, we receive the exclusive publishing and distribution rights to the finished game titles as well as, in some cases, the underlying intellectual property rights. Such agreements typically allow us to fully recover these payments, plus a profit, to the developers at an agreed-upon royalty rate earned on the subsequent sales of such software, net of any agreed-upon costs. Prior to establishing technological feasibility of a product, we record any costs incurred by third-party developers as research and development expenses. Subsequent to establishing technological feasibility of a product, we capitalize all development and production service payments to third-party developers as royalty contracts. The Company had no Royalties Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts estimated in determining the allowance. The Company has determined that no Net Income (Loss) Per Share In accordance with ASC 260 “Earnings per Share,” 595,612 shares of common stock. These potentially dilutive securities were excluded from the EPS computation due to their anti-dilutive effect resulting from the Company’s net losses during the three and six months ended March 31, 2022 and the six months ended March 31, 2021. During the three months ended March 31, 2021, the Company had a net income, so fully diluted weighted average shares outstanding and income per share have been presented in the accompanying consolidated statements of operations. Foreign Currency The Company’s functional currency is the US dollar. With the exception of stockholders’ equity (deficit), all transactions that are originally denominated in foreign currency are translated to US dollars by our international customers, on a monthly basis, when recognized by them and prior to paying royalties to the Company. All royalty revenues that are received and recognized by the Company are recorded in US dollars. The Company has a Euro currency bank account located in Bermuda. This account is used for payments to vendors that bill the Company in a currency other than US dollars and for funds received from shareholders located outside the United States. As of March 31, 2022 and September 30, 2021, the Euro account had a balance of $ 0 0 Foreign currency translation gains/losses are recorded in other accumulated comprehensive income (“AOCI”) based exchange rates prevalent on reporting dates for balance sheet items, and at weighted average exchange rates during the reporting period for the statement of operations. Foreign currency transaction gains/losses are recorded as other income (expense) in the period of settlement. No AOCI items were present during the six months ended March 31, 2022 and 2021, as all financial statement items were denominated in the US dollar. (Losses) gains from foreign currency transactions during the six months ended March 31, 2022 and 2021 totaled ($573) and $ 625 , respectively. Concentration of Credit Risk Some of our US dollar balances are held in a Bermuda bank that is not insured. As of March 31, 2022 and September 30, 2021, uninsured deposits in the Bermuda bank totaled $ 20,495 20,616 250,000 Revenue Recognition The Company follows the guidance contained in ASC 606, “Revenue Recognition The Company has several contracts with video game developers that entitle us to royalty streams as a percentage of revenues generated by the game sales, which vary from contract to contract. As of March 31, 2022, the Company has four royalty contracts with three developers that are generating royalty revenue. Once a game has been developed and has met the terms of the underlying royalty agreement, the game is released for commercial sales. Per each contract, the Company will receive reports on a regular basis from the game developers’ sales platforms that identify the amount of game sales, from which consideration expected to be collected from the commercial customers is computed based on the applicable royalty percentages. Royalty revenue is based on a percentage of net receipts as defined in each customer agreement, and is recognized in accordance with the sale-based royalty provisions of ASC 606, which requires revenue recognition after the subsequent sales occur. The Company’s performance obligation under each royalty contract as an investor in the game is complete once funds are advanced to the gaming developer. Subsequent consideration is then received by the Company from the developers in the amount of the Company’s percentage fee of royalty income (net receipts) received by the customer. Net receipts include all gross revenues received by the customer as a result of sales of the games or related exploitation less certain taxes, refunds, manufacturing costs, freight, and other items specified in the underlying contract. New Accounting Pronouncements The Company has evaluated all recently issued or enacted accounting pronouncements, and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements. COVID-19 Uncertainties The COVID-19 pandemic could have an impact on our ability to obtain financing to fund the operations. The Company is unable to predict the ultimate impact at this time. Going Concern The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), which contemplates the Company’s continuation as a going concern. The Company has not established profitable operations and has incurred significant losses since its inception. The Company’s plan is to grow significantly over the next few years through strategic game development partnerships, through internal game development and through the acquisition of independent game development companies globally. The Company has taken much of the cash flow from its first royalty agreement and has invested in royalty agreements for the development of several other video games. By continuing to reinvest these royalties into agreements to develop new games, along with actively managing corporate overhead, management’s plan is to substantially increase its video game royalty portfolio and cash flow over the next several years. The Company intends to continue to grow its game portfolio over the next several years, focusing on console games, virtual reality games and mobile games. There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or debt financing necessary to support its working capital requirements. To the extent that funds generated from operations and any private placements, public offerings and/or debt financing are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available to the Company, it may be required to curtail or cease its operations. Due to uncertainties related to these matters, there exists a substantial doubt about the ability of the Company to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. The COVID-19 pandemic could have an impact on our ability to obtain financing to fund the operations. The Company is unable to predict the ultimate impact at this time. |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity (Deficit) | Note 3. Stockholders’ Equity (Deficit) The Company’s common stock is quoted under the symbol “VRVR” on the OTC Pink tier operated by OTC Markets Group, Inc. To date, an active trading market for the Company’s common stock has not developed. Treasury Stock The Company accounts for treasury stock using the cost method. During the three months ended March 31, 2022, the Company acquired 41,250 0 41,250 0 0 Common Stock The Company is authorized to issue 90,000,000 0.001 7,042,784 7,001,534 41,250 6,900,284 On September 23, 2021, the Company issued 82,500 165,000 235,000 1,958 41,250 0 On December 3, 2021, the Company issued shares to two of our directors for director compensation. Jerry Lewis received 35,000 25,000 1.55 93,000 On March 15, 2022, the Company issued 82,500 206,250 Preferred Stock The Company is authorized to issue 10,000,000 each of Series A and B preferred shares at a par value of $ 0.01 , respectively. At March 31, 2022 and September 30, 2021, the Company had 50,000 shares of Series A preferred stock and 595,612 shares of Series B convertible preferred stock issued and outstanding. The 50,000 Series A preferred shares currently outstanding are not convertible, but the Series B preferred shares are convertible to common stock on a one-for-one basis. |
Notes Payable
Notes Payable | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 4. Notes Payable On March 20, 2019, an unrelated individual loaned VRVR $ 10,000 6 March 20, 2022 10,000 1,820 1,520 On September 23, 2021, an unrelated third party loaned VRVR $ 235,000 that consisted of cash received by the Company in the amount of $ 217,375 and an original issue discount of $ 17,625 . This discount was amortized over the life of the note commencing October 1, 2021. The note carried a 12.5 % annual interest rate and matured on March 23, 2022 . In addition, under the terms of the agreement, the Company issued 82,500 commitment shares to the holder at $ 2.00 per share and an expense of $ 165,000 was applied as an additional discount to the note and amortized over the life of the note. The Company had the right to redeem 41,250 of the commitment shares if the note was repaid on or before the maturity date. On March 23, 2022, the note payable and accrued interest was paid off in full in the amount of $ 236,958 and 41,250 of the commitment shares were redeemed at $ 0 cost and are being held in treasury. On March 15, 2022, an unrelated third party loaned VRVR $ 235,000 that consisted of cash received by the Company in the amount of $ 217,375 and an original issue discount of $ 17,625 . This discount is being amortized over the life of the note commencing March 15, 2022. The note carries a 15 % annual interest rate and matures on March 15, 2023 . As of March 31, 2022, the note balance was $ 235,000 and the accrued interest was $ 1,545 . The note is convertible at a price of $ 1.25 per share. As part of the March 15, 2022 note of $ 235,000 206,250 82,500 2.50 206,250 Debt discount amortization on the above notes totaled $ 192,439 0 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5. Related Party Transactions Note Payable, Related Party On March 29, 2018, the Company issued a $ 750,000 741,030 8,970 8,970 741,030 6 December 31, 2022 741,030 195,885 167,597 |
Note Receivable
Note Receivable | 6 Months Ended |
Mar. 31, 2022 | |
Note Receivable | |
Note Receivable | Note 6. Note Receivable On December 11, 2019, the Company issued a $ 25,000 6 3,834 3,086 |
Convertible Note Receivable
Convertible Note Receivable | 6 Months Ended |
Mar. 31, 2022 | |
Convertible Note Receivable | |
Convertible Note Receivable | Note 7. Convertible Note Receivable On November 20, 2020, the Company invested $ 7,500 November 20, 2022 4 1.25 404 254 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8. Subsequent Events On April 4, 2022, an unrelated third party loaned VRVR $ 235,000 that consisted of cash received by the Company in the amount of $ 217,375 and an original issue discount of $ 17,625 . This discount is being amortized over the life of the note commencing April 4, 2022. The note carries a 12 % annual interest rate and matures on April 4, 2023 . The note is convertible at $ 1.25 per share. As part of the note, the Company paid a commitment fee of $ 198,000 82,500 2.40 198,000 The Company has evaluated other events subsequent to the balance sheet date through the date these financial statements were issued and determined that there are no events requiring disclosure. |
Business (Policies)
Business (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Advanced Interactive Gaming, Ltd. (“AIG Ltd”) was incorporated in Bermuda on September 19, 2016, and is in the business of assisting in the development of video games through investments and royalty contracts. AIG Ltd had several royalty contracts with video game development companies during the past three years. On September 24, 2019, AIG Ltd was acquired by Advanced Interactive Gaming, Inc. (“AIG Inc”), a Colorado Corporation, through a reverse recapitalization and share exchange agreement. After the transaction, AIG Ltd became a wholly owned subsidiary of AIG Inc. Virtual Interactive Technologies Corp. (f/k/a Mascota Resources, Corp.) was incorporated in the State of Nevada on November 3, 2011. On September 25, 2019, Mascota Resources, Corp. effected a name change to Virtual Interactive Technologies Corp. (“VRVR”), and a 20:1 reverse stock split On September 27, 2019, AIG Inc effected a reverse recapitalization via a share exchange agreement with VRVR, resulting in AIG Inc becoming a wholly-owned subsidiary of VRVR. VRVR finances the development of video game projects to be released on various popular gaming platforms in exchange for a royalty stream on the games. To date the Company has financed several gaming titles including Carmageddon Max Damage, Carmageddon Crashers, Interplanetary: Enhanced Edition, Catch & Release and Worbital. Collectively these games are distributed world-wide on various gaming platforms including Sony PlayStation, Xbox, Steam and Oculus among others. In addition to financing solutions, VRVR offers expertise in development solutions, publishing and marketing video game products and is actively involved in the early stages of VR/AR game development. VRVR continues to reinvest its royalty income into growing its royalty contracts and intellectual property in the video game development industry. The Company’s strategy moving forward is to continue to invest in new game development through partnerships and royalty contracts. Management believes that there is significant opportunity in VR games given the relatively early stage in the product cycle and the growing need for content to support VR hardware sales. While the Company has historically participated mostly in the PC and console market, it will continue to explore addition opportunities in the gaming space as they present themselves. In addition, VRVR may explore strategic alliances and acquisitions in order to expand its business. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimated. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. The Company had no |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company accounts for fair value measurements in accordance with accounting standard ASC 820-10-50, “ Fair Value Measurements.” - Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. - Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. - Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. The Company’s financial instruments consist of cash, royalties receivable, notes receivable and related accrued interest receivable, accounts payable and accrued expenses, and notes payable and related accrued interest payable. The carrying value of these financial instruments approximates fair value due to the short-term nature of the instruments. |
Royalty Contracts | Royalty Contracts The Company enters into agreements with third-party developers that require us to make payments for game development and production services. In exchange for our payments, we receive the exclusive publishing and distribution rights to the finished game titles as well as, in some cases, the underlying intellectual property rights. Such agreements typically allow us to fully recover these payments, plus a profit, to the developers at an agreed-upon royalty rate earned on the subsequent sales of such software, net of any agreed-upon costs. Prior to establishing technological feasibility of a product, we record any costs incurred by third-party developers as research and development expenses. Subsequent to establishing technological feasibility of a product, we capitalize all development and production service payments to third-party developers as royalty contracts. The Company had no |
Royalties Receivable | Royalties Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts estimated in determining the allowance. The Company has determined that no |
Net Income (Loss) Per Share | Net Income (Loss) Per Share In accordance with ASC 260 “Earnings per Share,” 595,612 shares of common stock. These potentially dilutive securities were excluded from the EPS computation due to their anti-dilutive effect resulting from the Company’s net losses during the three and six months ended March 31, 2022 and the six months ended March 31, 2021. During the three months ended March 31, 2021, the Company had a net income, so fully diluted weighted average shares outstanding and income per share have been presented in the accompanying consolidated statements of operations. |
Foreign Currency | Foreign Currency The Company’s functional currency is the US dollar. With the exception of stockholders’ equity (deficit), all transactions that are originally denominated in foreign currency are translated to US dollars by our international customers, on a monthly basis, when recognized by them and prior to paying royalties to the Company. All royalty revenues that are received and recognized by the Company are recorded in US dollars. The Company has a Euro currency bank account located in Bermuda. This account is used for payments to vendors that bill the Company in a currency other than US dollars and for funds received from shareholders located outside the United States. As of March 31, 2022 and September 30, 2021, the Euro account had a balance of $ 0 0 Foreign currency translation gains/losses are recorded in other accumulated comprehensive income (“AOCI”) based exchange rates prevalent on reporting dates for balance sheet items, and at weighted average exchange rates during the reporting period for the statement of operations. Foreign currency transaction gains/losses are recorded as other income (expense) in the period of settlement. No AOCI items were present during the six months ended March 31, 2022 and 2021, as all financial statement items were denominated in the US dollar. (Losses) gains from foreign currency transactions during the six months ended March 31, 2022 and 2021 totaled ($573) and $ 625 , respectively. |
Concentration of Credit Risk | Concentration of Credit Risk Some of our US dollar balances are held in a Bermuda bank that is not insured. As of March 31, 2022 and September 30, 2021, uninsured deposits in the Bermuda bank totaled $ 20,495 20,616 250,000 |
Revenue Recognition | Revenue Recognition The Company follows the guidance contained in ASC 606, “Revenue Recognition The Company has several contracts with video game developers that entitle us to royalty streams as a percentage of revenues generated by the game sales, which vary from contract to contract. As of March 31, 2022, the Company has four royalty contracts with three developers that are generating royalty revenue. Once a game has been developed and has met the terms of the underlying royalty agreement, the game is released for commercial sales. Per each contract, the Company will receive reports on a regular basis from the game developers’ sales platforms that identify the amount of game sales, from which consideration expected to be collected from the commercial customers is computed based on the applicable royalty percentages. Royalty revenue is based on a percentage of net receipts as defined in each customer agreement, and is recognized in accordance with the sale-based royalty provisions of ASC 606, which requires revenue recognition after the subsequent sales occur. The Company’s performance obligation under each royalty contract as an investor in the game is complete once funds are advanced to the gaming developer. Subsequent consideration is then received by the Company from the developers in the amount of the Company’s percentage fee of royalty income (net receipts) received by the customer. Net receipts include all gross revenues received by the customer as a result of sales of the games or related exploitation less certain taxes, refunds, manufacturing costs, freight, and other items specified in the underlying contract. |
New Accounting Pronouncements | New Accounting Pronouncements The Company has evaluated all recently issued or enacted accounting pronouncements, and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements. |
COVID-19 Uncertainties | COVID-19 Uncertainties The COVID-19 pandemic could have an impact on our ability to obtain financing to fund the operations. The Company is unable to predict the ultimate impact at this time. |
Going Concern | Going Concern The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), which contemplates the Company’s continuation as a going concern. The Company has not established profitable operations and has incurred significant losses since its inception. The Company’s plan is to grow significantly over the next few years through strategic game development partnerships, through internal game development and through the acquisition of independent game development companies globally. The Company has taken much of the cash flow from its first royalty agreement and has invested in royalty agreements for the development of several other video games. By continuing to reinvest these royalties into agreements to develop new games, along with actively managing corporate overhead, management’s plan is to substantially increase its video game royalty portfolio and cash flow over the next several years. The Company intends to continue to grow its game portfolio over the next several years, focusing on console games, virtual reality games and mobile games. There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or debt financing necessary to support its working capital requirements. To the extent that funds generated from operations and any private placements, public offerings and/or debt financing are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available to the Company, it may be required to curtail or cease its operations. Due to uncertainties related to these matters, there exists a substantial doubt about the ability of the Company to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. The COVID-19 pandemic could have an impact on our ability to obtain financing to fund the operations. The Company is unable to predict the ultimate impact at this time. |
Business (Details Narrative)
Business (Details Narrative) | Sep. 25, 2019 | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($)shares | Sep. 30, 2021USD ($) | Mar. 31, 2022EUR (€) |
Property, Plant and Equipment [Line Items] | |||||||
Stockholders' equity, reverse stock split | 20:1 reverse stock split | ||||||
Cash Equivalents, at Carrying Value | $ 0 | $ 0 | $ 0 | ||||
Charges on royalty contract | 0 | $ 0 | |||||
Royalties receivable, allowance | 0 | 0 | |||||
Foreign Currency Transaction Gain (Loss), before Tax | (194) | $ (90) | (573) | $ 625 | |||
Maximum [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cash, FDIC insured amount | 250,000 | 250,000 | |||||
Bermuda Bank [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cash | 0 | € 0 | |||||
Cash, uninsured deposits | $ 20,495 | $ 20,495 | $ 20,616 | ||||
Series B Convertible Preferred Stock [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 595,612 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) (Details Narrative) - USD ($) | Mar. 15, 2022 | Dec. 03, 2021 | Sep. 23, 2021 | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 24, 2022 | Sep. 30, 2021 |
Class of Stock [Line Items] | |||||||
Treasury stock shares acquired | 41,250 | ||||||
Treasury stock shares acquired, cost | $ 0 | $ 0 | |||||
Treasury stock, shares | 41,250 | 41,250 | 0 | ||||
Treasury stock, cumulative cost | $ 0 | $ 0 | $ 0 | ||||
Treasury stock, cummulative cost | $ 0 | $ 0 | |||||
Common stock, shares authorized | 90,000,000 | 90,000,000 | 90,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Common stock, shares issued | 7,042,784 | 7,042,784 | 6,900,284 | ||||
Common stock, shares outstanding | 7,001,534 | 7,001,534 | 6,900,284 | ||||
Stock issued for commitment fee debt discount on note payable, shares | 82,500 | ||||||
Commitment fee related to notes payable | $ 165,000 | $ 206,250 | $ 206,250 | ||||
Notes payable | $ 235,000 | ||||||
Accrued interest | $ 1,958 | $ 167,597 | |||||
Shares price | $ 1.55 | ||||||
Stock issued during period, value | $ 93,000 | ||||||
Preferred Stock, Conversion Basis | The 50,000 Series A preferred shares currently outstanding are not convertible, but the Series B preferred shares are convertible to common stock on a one-for-one basis. | ||||||
Series B Convertible Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred Stock, Shares Outstanding | 595,612 | 595,612 | 595,612 | ||||
Series A Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred Stock, Shares Outstanding | 50,000 | 50,000 | 50,000 | ||||
Notes Payable [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock issued for commitment fee debt discount on note payable, shares | 82,500 | 82,500 | |||||
Commitment fee related to notes payable | $ 206,250 | $ 165,000 | |||||
Notes payable | $ 235,000 | ||||||
Jerry Lewis [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock issued during period, shares | 35,000 | ||||||
Janelle Gladstone [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock issued during period, shares | 25,000 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Mar. 23, 2022 | Mar. 15, 2022 | Sep. 23, 2021 | Mar. 20, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 24, 2022 | Sep. 30, 2021 |
Short-Term Debt [Line Items] | ||||||||||
Notes payable | $ 235,000 | |||||||||
Accrued interest | $ 3,365 | $ 3,365 | $ 2,091 | |||||||
Stock issued for commitment fee debt discount on note payable, shares | 82,500 | |||||||||
Commitment fee related to notes payable | $ 165,000 | $ 206,250 | $ 206,250 | |||||||
Treasury Stock, Common, Shares | 41,250 | 41,250 | 0 | |||||||
Acquire notes payable and interest | $ 236,958 | |||||||||
Treasury stock, cumulative cost | $ 0 | $ 0 | $ 0 | |||||||
Amortization of debt discount | 96,376 | 192,439 | ||||||||
Notes Payable [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Notes payable | $ 235,000 | |||||||||
Stock issued for commitment fee debt discount on note payable, shares | 82,500 | 82,500 | ||||||||
Price per shares | $ 2.50 | $ 2 | ||||||||
Commitment fee related to notes payable | $ 206,250 | $ 165,000 | ||||||||
Unrelated Individuals [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Notes payable | $ 10,000 | 10,000 | 10,000 | 10,000 | ||||||
Debt instrument interest rate | 6.00% | |||||||||
Debt instrument, maturity date | Mar. 20, 2022 | |||||||||
Accrued interest | 1,820 | 1,820 | $ 1,520 | |||||||
Unrelated Third Party [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Notes payable | $ 235,000 | $ 235,000 | 235,000 | 235,000 | ||||||
Debt instrument interest rate | 15.00% | 12.50% | ||||||||
Debt instrument, maturity date | Mar. 15, 2023 | Mar. 23, 2022 | ||||||||
Accrued interest | $ 1,545 | $ 1,545 | ||||||||
Proceeds from Related Party Debt | $ 217,375 | $ 217,375 | ||||||||
Debt Instrument, Unamortized Discount | $ 17,625 | $ 17,625 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 1.25 | $ 1.25 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 6 Months Ended | ||||||
Mar. 31, 2022 | Mar. 24, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 11, 2019 | Sep. 30, 2019 | Mar. 29, 2018 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Note payable, related party | $ 741,030 | ||||||
Note payable, related party | 741,030 | 741,030 | |||||
Accrued interest, related party | $ 195,885 | ||||||
Accrued interest | $ 1,958 | $ 167,597 | |||||
Unsecured Promissory Note [Member] | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Note payable, related party | $ 741,030 | $ 741,030 | |||||
Notes receivable, related parties | $ 8,970 | $ 8,970 | |||||
Debt instrument, interest rate | 6.00% | 6.00% | |||||
Debt instrument, maturity date | Dec. 31, 2022 | ||||||
Chief Executive Officer [Member] | Unsecured Promissory Note [Member] | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Unsecured promissory note | $ 750,000 |
Note Receivable (Details Narrat
Note Receivable (Details Narrative) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 | Dec. 11, 2019 |
Short-Term Debt [Line Items] | |||
Note receivable | $ 25,000 | $ 25,000 | |
Accrued interest | $ 4,238 | 3,340 | |
Unsecured Promissory Note [Member] | |||
Short-Term Debt [Line Items] | |||
Note receivable | $ 25,000 | ||
Debt instrument, interest rate | 6.00% | 6.00% | |
Accrued interest | $ 3,834 | $ 3,086 |
Convertible Note Receivable (De
Convertible Note Receivable (Details Narrative) - USD ($) | Nov. 20, 2020 | Mar. 31, 2022 | Sep. 30, 2021 |
Short-Term Debt [Line Items] | |||
Convertible note receivable | $ 7,500 | $ 7,500 | |
Convertible Debt [Member] | |||
Short-Term Debt [Line Items] | |||
Convertible note receivable | $ 7,500 | ||
Debt instrument, maturity date | Nov. 20, 2022 | ||
Debt instrument, interest rate | 4.00% | ||
Convertible interest rate | 1.25% | ||
Accrued interest | $ 404 | $ 254 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Apr. 04, 2022 | Mar. 15, 2022 | Sep. 23, 2021 | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 24, 2022 |
Subsequent Event [Line Items] | ||||||
Notes Payable | $ 235,000 | |||||
Commitment fee related to notes payable | $ 165,000 | $ 206,250 | $ 206,250 | |||
Stock issued for commitment fee debt discount on note payable, shares | 82,500 | |||||
Notes Payable [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Notes Payable | $ 235,000 | |||||
Commitment fee related to notes payable | $ 206,250 | $ 165,000 | ||||
Stock issued for commitment fee debt discount on note payable, shares | 82,500 | 82,500 | ||||
Shares issued price per share | $ 2.50 | $ 2 | ||||
Subsequent Event [Member] | Notes Payable [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Commitment fee related to notes payable | $ 198,000 | |||||
Stock issued for commitment fee debt discount on note payable, shares | 82,500 | |||||
Shares issued price per share | $ 2.40 | |||||
Unrelated Third Party [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Notes Payable | $ 235,000 | $ 235,000 | $ 235,000 | $ 235,000 | ||
Proceeds from Related Party Debt | 217,375 | 217,375 | ||||
Debt Instrument, Unamortized Discount | $ 17,625 | $ 17,625 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 15.00% | 12.50% | ||||
Debt Instrument, Maturity Date | Mar. 15, 2023 | Mar. 23, 2022 | ||||
Debt Instrument, Convertible, Conversion Price | $ 1.25 | $ 1.25 | ||||
Unrelated Third Party [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Notes Payable | $ 235,000 | |||||
Proceeds from Related Party Debt | 217,375 | |||||
Debt Instrument, Unamortized Discount | $ 17,625 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||
Debt Instrument, Maturity Date | Apr. 4, 2023 | |||||
Debt Instrument, Convertible, Conversion Price | $ 1.25 |