Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2021 | Aug. 11, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | RASNA THERAPEUTICS, INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 68,908,003 | |
Amendment Flag | false | |
Entity Central Index Key | 0001582249 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | true | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-191083 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 39-2080103 | |
Entity Address, Address Line One | 420 Lexington Ave | |
Entity Address, Address Line Two | Suite 2525 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10170 | |
City Area Code | (646) | |
Local Phone Number | 396-4087 | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash | $ 50,840 | $ 14,241 |
Prepaid expenses | 43,816 | 17,641 |
Related party receivable | 748 | |
Total current assets | 94,656 | 32,630 |
Property and equipment, net | 314 | |
Total non-current assets | 314 | |
Total assets | 94,656 | 32,944 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,674,351 | 1,635,788 |
Related party payables | 557,757 | 550,000 |
Loan payable and accrued interest, related party | 79,200 | 74,880 |
Convertible notes payable, net - related party | 216,140 | 90,262 |
Convertible notes payable, net | 488,896 | 356,702 |
Total current liabilities | 3,016,344 | 2,707,632 |
Total liabilities | 3,016,344 | 2,707,632 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock, $0.001 par value; 200,000,000 shares authorized; 68,908,003 shares issued and outstanding | 68,909 | 68,909 |
Additional paid-in capital | 20,229,696 | 19,914,884 |
Accumulated deficit | (23,220,293) | (22,658,481) |
Total shareholders' deficit | (2,921,688) | (2,674,688) |
Total liabilities and shareholders’ deficit | $ 94,656 | $ 32,944 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 68,908,003 | 68,908,003 |
Common stock, shares outstanding | 68,908,003 | 68,908,003 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | ||||
Cost of revenue | ||||
Gross profit | ||||
Operating expenses: | ||||
General and administrative | 64,573 | 81,178 | 268,397 | 356,686 |
Research and development | 11,386 | 44,739 | 66,739 | |
Total operating expenses | 64,573 | 92,564 | 313,136 | 423,425 |
Loss from operations | (64,573) | (92,564) | (313,136) | (423,425) |
Other income/(expense): | ||||
Accretion of debt discount | (40,909) | (68,182) | ||
Beneficial conversion feature on convertible notes | (123,718) | |||
Interest expense | (18,108) | (11,631) | (56,824) | (29,785) |
Gain on sale of asset | 120,000 | 120,000 | ||
Impairment of goodwill | (2,722,985) | (2,722,985) | ||
Foreign currency transaction gain | 48 | |||
Total other income expense | (59,017) | (2,614,616) | (248,676) | (2,632,770) |
Loss from operations before income taxes | (123,590) | (2,707,180) | (561,812) | (3,056,195) |
Income tax provision | ||||
Net loss | $ (123,590) | $ (2,707,180) | $ (561,812) | $ (3,056,195) |
Basic and diluted net loss per share attributable to common shareholders (in Dollars per share) | $ 0 | $ (0.04) | $ (0.01) | $ (0.04) |
Basic and diluted weighted average common shares outstanding (in Shares) | 68,908,003 | 68,908,003 | 68,908,003 | 68,908,003 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders’ Equity/Deficit (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance at Sep. 30, 2019 | $ 68,909 | $ 19,780,252 | $ (17,311,809) | $ 2,537,352 |
Beginning Balance (in Shares) at Sep. 30, 2019 | 68,908,003 | |||
Share based compensation | 114,375 | 114,375 | ||
Net loss | (3,056,195) | (3,056,195) | ||
Ending Balance at Jun. 30, 2020 | $ 68,909 | 19,894,627 | (20,368,004) | (404,468) |
Ending Balance (in Shares) at Jun. 30, 2020 | 68,908,003 | |||
Beginning Balance at Mar. 31, 2020 | $ 68,909 | 19,869,933 | (17,660,824) | 2,278,018 |
Beginning Balance (in Shares) at Mar. 31, 2020 | 68,908,003 | |||
Share based compensation | 24,694 | 24,694 | ||
Net loss | (2,707,180) | (2,707,180) | ||
Ending Balance at Jun. 30, 2020 | $ 68,909 | 19,894,627 | (20,368,004) | (404,468) |
Ending Balance (in Shares) at Jun. 30, 2020 | 68,908,003 | |||
Beginning Balance at Sep. 30, 2020 | $ 68,909 | 19,914,884 | (22,658,481) | (2,674,688) |
Beginning Balance (in Shares) at Sep. 30, 2020 | 68,908,003 | |||
Share based compensation | 41,094 | 41,094 | ||
Beneficial conversion feature related to convertible notes | 273,718 | 273,718 | ||
Net loss | (561,812) | (561,812) | ||
Ending Balance at Jun. 30, 2021 | $ 68,909 | 20,229,696 | (23,220,294) | (2,921,688) |
Ending Balance (in Shares) at Jun. 30, 2021 | 68,908,003 | |||
Beginning Balance at Mar. 31, 2021 | $ 68,909 | 20,224,591 | (23,096,703) | (2,803,204) |
Beginning Balance (in Shares) at Mar. 31, 2021 | 68,908,003 | |||
Share based compensation | 5,107 | 5,107 | ||
Net loss | (123,591) | (123,591) | ||
Ending Balance at Jun. 30, 2021 | $ 68,909 | $ 20,229,696 | $ (23,220,294) | $ (2,921,688) |
Ending Balance (in Shares) at Jun. 30, 2021 | 68,908,003 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (561,812) | $ (3,056,195) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Share based compensation | 41,094 | 114,375 |
Depreciation | 314 | 1,226 |
Beneficial conversion feature related to convertible notes | 123,718 | |
Impairment of goodwill | 2,722,985 | |
Accretion of debt discount | 68,182 | |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued expenses | 70,263 | 33,944 |
Related party payable | 30,267 | 4,265 |
Prepayments and other receivables | (26,175) | (28,106) |
Related party receivable | 748 | 13,587 |
Net cash used in operating activities | (253,401) | (193,919) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of loan payable - related party | 72,000 | |
Proceeds from issuance of convertible note payable | 290,000 | 108,500 |
Net cash provided by financing activities | 290,000 | 180,500 |
Effect of foreign exchange rate | ||
Net change in cash | 36,599 | (13,419) |
Cash, beginning of period | 14,241 | 50,068 |
Cash, end of period | $ 50,840 | $ 36,649 |
General Information
General Information | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION Rasna Therapeutics, Inc. (“Rasna DE”, “Rasna Inc.” or the “Company”), is a biotechnology company incorporated in the State of Delaware on March 28, 2016. The Company is engaged in modulating the molecular targets NPM1 and LSD1, which are implicated in the disease progression of leukemia and lymphoma. These unaudited condensed consolidated financial statements are presented in United States dollars (“USD”) which is also the functional currency of the primary economic environment in which the Company operates. Risks and Uncertainties Management continues to evaluate the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations and/or ability to secure additional cash resources, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | 2. ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these unaudited condensed consolidated financial statements are set out below. These policies have been applied consistently to all the periods presented unless otherwise stated. Basis of preparation These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission (the “SEC”) and United States generally accepted accounting principles (“US GAAP”) for interim reporting. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended September 30, 2020 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on January 15, 2021. The accompanying unaudited condensed consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (United States), but in the opinion of management, such financial statements include all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim financial information. The results of the operations for the Nine months ended June 30, 2021 may not be indicative of the results that may be expected for the year ending September 30, 2021. Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiary, Rasna DE, and Rasna DE’s subsidiary, Arna Therapeutics Limited. All significant intercompany accounts and transactions have been eliminates in the preparation of the accompanying consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its estimates on an ongoing basis, including those related to the fair values of share based awards, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates and such differences could be material to the Company’s consolidated financial position and results of operations. Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to current period presentation. These reclassifications had no effect on the reported results of operations. Net Loss per Share Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss per share includes potentially dilutive securities such as outstanding options, warrants and convertible loan notes, using various methods such as the treasury stock, modified treasury stock, and if converted methods in the determination of dilutive shares outstanding during each reporting period. The following table sets forth potential common shares issuable upon the exercise of outstanding options and the exercise of warrants and convertible loan notes, all of which have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive: June 30, June 30, Stock options 3,648,675 3,948,675 Warrants 1,926,501 1,926,501 Convertible notes & associated fees 81,877,887 12,233,333 Total shares issuable upon exercise or conversion 87,453,063 18,108,509 The following is the computation of net loss per share for the following periods: For the 2021 2020 (Unaudited) (Unaudited) Net loss for the period $ (123,590 ) $ (2,707,180 ) Weighted average number of shares 68,908,003 68,908,003 Net loss per share (basic and diluted) $ (0.00 ) $ (0.04 ) For the 2021 2020 (Unaudited) (Unaudited) Net loss for the period $ (561,812 ) $ (3,0056,195 ) Weighted average number of shares 68,908,003 68,908,003 Net loss per share (basic and diluted) $ (0.01 ) $ (0.04 ) Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). Among other items, the amendments in ASU 2019-12 simplify the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, current guidance provides an exception that when a loss in an interim period exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this exception and provides that, in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted. The Company has not yet evaluated the effect that this update will have on its financial statements and related disclosures. The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations. |
Liquidity and Going Concern
Liquidity and Going Concern | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY AND GOING CONCERN | 3. LIQUIDITY AND GOING CONCERN The Company has no present revenue and has experienced net losses and significant cash outflows from cash used in operating activities since inception. The Company expects to continue to incur net losses and have significant cash outflows for at least the next 12 months and will require significant additional cash resources to launch new development phases of existing products in its pipeline. In the event that the Company is unable to secure the additional cash resources needed, the Company may slow current development phases or halt new development phases in order to mitigate the effects of the costs of development. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the date of this filing. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern one year from the date of this filing. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business. A successful transition to attaining profitable operations is dependent upon achieving a level of positive cash flows adequate to support the Company’s cost structure. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 4. SHARE-BASED COMPENSATION For the three and Nine months ended June 30, 2021 $5,106 and $41,094 respectively, related to share based compensation to directors and employees respectively, has been included within the general and administrative expense category in the accompanying unaudited condensed consolidated interim financial statements. For the three and Nine months ended June 30, 2020 $24,694 and $114,375 respectively, related to share based compensation to directors and employees respectively, has been included within the general and administrative expense category in the accompanying unaudited condensed consolidated interim financial statements. As of June 30, 2021 there was $1,580 of total unrecognized compensation cost related to stock options. The cost is expected to be recognized over a weighted average period of 0.17 years. |
Convertible Notes
Convertible Notes | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES | 5. CONVERTIBLE NOTES The table below summarizes outstanding convertible notes as of June 30, 2021 and September 30, 2020: Convertible Notes Payable: June 30, September 30, Principal value of Non-Related Party Notes 392,500 292,500 Interest accrued 96,396 64,202 Carrying Value of Notes 488,896 356,702 Principal value of Related Party Notes 276,000 86,000 Interest accrued 21,958 4,262 Beneficial conversion feature of new notes (81,818 ) - Carrying Value of Notes 216,140 90,262 Total carrying value of convertible notes payable 705,036 446,964 Most notes accrue interest at 12% per annum and are due on December 31, 2021. The most recent note issued for $100,000 accrues interest at 1% per annum and is due on December 31, 2021. On February 3, 2021, all previously outstanding notes were reissued with amended expiry and conversion terms. The amended terms are as follows: 1. Conversion The amended Notes provide the Holders with the right to convert, at any time, all or any part of the outstanding principal and accrued but unpaid interest into shares of the Company’s common stock at a conversion price equal to the lower of (i) $0.01 per share or (ii) the price of the next equity financing, which raises at least US $1,000,000, subject to adjustments noted within the Agreement. 2. Expiry of the notes was amended to December 31, 2021. The fair value of the amended notes was calculated as the principal plus interest. The original notes were deemed to be extinguished, and a loss on extinguishment of $ nil On January 14, 2021, the Company entered into a 12% Convertible Promissory Note with Panetta Partners Ltd. (the “Holder”) pursuant to which the Company issued a Convertible Promissory Note to the Holder. The Holder provided the Company with $60,000 in cash. The Company promised to pay the principal amount, together with guaranteed interest at the annual rate of 12%, with principal and accrued interest on the Note due and payable on December 21, 2021 (unless converted under terms and provisions as set forth within the Agreement). The Note provides the Holder with the right to convert, at any time, all or any part of the outstanding principal and accrued but unpaid interest into shares of the Company’s common stock at a conversion price equal to the lower of (i) $0.01 per share or (ii) the price of the next equity financing, which raises at least US $1,000,000, subject to adjustments noted within the Agreement. The number of shares issuable upon a conversion shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of the Note to be converted by (y) the Conversion Price. The Note requires the Company to reserve and keep available out of its authorized and unissued shares of common stock the amount of shares that would be issued upon conversion of the Note, which includes the outstanding principal amount of the Note and interest accrued and to be accrued through the date of maturity. On February 10, 2021, the Company entered into a 12% Convertible Promissory Note with Panetta Partners Ltd. (the “Holder”) pursuant to which the Company issued a Convertible Promissory Note to the Holder. The Holder provided the Company with $90,000 in cash. All other terms were the same as the note before. Upon issuance of these notes, the Company recognized a debt discount of approximately $150,000, resulting from the recognition of a beneficial conversion feature (BCF). This BCF will be amortized on a straight line basis over the term of the note due to its short life. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 6. RELATED PARTY TRANSACTIONS The following is a summary of the related party transactions for the periods presented. Eurema Consulting Eurema Consulting S.r.l. is a significant shareholder of the Company. During the three months ended June 30, 2021 and June 30, 2020 Eurema Consulting did not supply the Company with consulting services. As of June 30, 2021, and September 30, 2020, the balance due to Eurema Consulting S.r.l. was $200,000 for past consultancy services. Gabriele Cerrone Gabriele Cerrone is the majority shareholder of Panetta Partners, one of the Company’s principal shareholders. As of June 30, 2021, and September 30, 2020, the balance due to Gabriele Cerrone was $175,000 for past consultancy services. In March 2020, the Company entered into a 12% Convertible Promissory Note with Gabriele Cerrone for $20,000 with an extended maturity date of December 31, 2021. In February 2021, Gabriele Cerrone assigned the Note to Panetta Partners Ltd. Roberto Pellicciari and TES Pharma Roberto Pellicciari is the majority shareholder of TES Pharma Srl, one of the Company’s principal shareholders. During the three months ended June 30, 2021 and June 30, 2020 Roberto Pellicciari did not supply the Company with consulting services. As of June 30, 2021, and September 30, 2020, the balance due to Roberto Pellicciari was $175,000 for past consultancy services. At June 30, 2021 and September 30, 2020, TES Pharma was owed $75,000. Tiziana Life Sciences Plc (“Tiziana”) The Company is party to a Shared Services Agreement with Tiziana, whereby the Company is charged for shared services and rent. Tiziana had previously agreed to waive all charges for shared services from October 2018 onwards, until further notice since the amounts due for such services are de minimis. Notice was given and recharges from October 1, 2020 were resumed. Keeren Shah the Company’s Finance Director, is also Finance Director of Tiziana, and the Company’s directors, Willy Simon and John Brancaccio are also non executive directors of Tiziana. As of June 30, 2021, $7,757 was due to Tiziana under services charged under the shared services agreement. This is recorded as a related party payable in the accompanying condensed consolidated balance sheets. As of September 30, 2020, the Company made payments on behalf of Tiziana of $748, which are recorded as a related party receivable in the accompanying condensed consolidated balance sheets. On June 30, 2020, Tiziana extended a loan facility to Rasna of $65,000. The loan is repayable within 18 months and is incurring an interest charge of 8% per annum. In April 2020, the loan facility was extended by a further $7,000, so the loan facility totals $72,000. As of June 30, 2021, the amounts due to Tiziana under this loan facility were $79,200. Panetta Partners Panetta Partners Limited, a shareholder of Rasna, is a company in which Gabriele Cerrone is a major shareholder and also serves as a director. In February 2020, September 2020 and October 2020 the Company entered into 12% Convertible Promissory Notes with Panetta Partners for $31,000, $35,000 and $40,000 with extended maturity dates of December 31, 2021. The amount due for these notes at June 30, 2021, with respect to the principal and accrued interest is $36,198, $38,243 and $43,320 respectively. In February 2021, Gabriele Cerrone, a major shareholder of Panetta Partners Ltd, assigned a 12% Convertible Promissory Note that he entered into in February 2020 to Panetta Partners Ltd. The amount due for this note at June 30, 2021, with respect to the principal and accrued interest is $23,067. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 7. SUBSEQUENT EVENTS The Company has evaluated subsequent events that occurred after the balance sheet date up to the date that the consolidated financial statements were issued and did not identify any subsequent events that would have required adjustment or disclosure in the consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission (the “SEC”) and United States generally accepted accounting principles (“US GAAP”) for interim reporting. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended September 30, 2020 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on January 15, 2021. The accompanying unaudited condensed consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (United States), but in the opinion of management, such financial statements include all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim financial information. The results of the operations for the Nine months ended June 30, 2021 may not be indicative of the results that may be expected for the year ending September 30, 2021. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiary, Rasna DE, and Rasna DE’s subsidiary, Arna Therapeutics Limited. All significant intercompany accounts and transactions have been eliminates in the preparation of the accompanying consolidated financial statements. |
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 the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its estimates on an ongoing basis, including those related to the fair values of share based awards, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates and such differences could be material to the Company’s consolidated financial position and results of operations. |
Reclassifications | Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to current period presentation. These reclassifications had no effect on the reported results of operations. |
Net Loss per Share | Net Loss per Share Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss per share includes potentially dilutive securities such as outstanding options, warrants and convertible loan notes, using various methods such as the treasury stock, modified treasury stock, and if converted methods in the determination of dilutive shares outstanding during each reporting period. The following table sets forth potential common shares issuable upon the exercise of outstanding options and the exercise of warrants and convertible loan notes, all of which have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive: June 30, June 30, Stock options 3,648,675 3,948,675 Warrants 1,926,501 1,926,501 Convertible notes & associated fees 81,877,887 12,233,333 Total shares issuable upon exercise or conversion 87,453,063 18,108,509 The following is the computation of net loss per share for the following periods: For the 2021 2020 (Unaudited) (Unaudited) Net loss for the period $ (123,590 ) $ (2,707,180 ) Weighted average number of shares 68,908,003 68,908,003 Net loss per share (basic and diluted) $ (0.00 ) $ (0.04 ) For the 2021 2020 (Unaudited) (Unaudited) Net loss for the period $ (561,812 ) $ (3,0056,195 ) Weighted average number of shares 68,908,003 68,908,003 Net loss per share (basic and diluted) $ (0.01 ) $ (0.04 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). Among other items, the amendments in ASU 2019-12 simplify the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, current guidance provides an exception that when a loss in an interim period exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this exception and provides that, in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted. The Company has not yet evaluated the effect that this update will have on its financial statements and related disclosures. The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of potential common shares issuable upon the exercise of outstanding options and the exercise of warrants | June 30, June 30, Stock options 3,648,675 3,948,675 Warrants 1,926,501 1,926,501 Convertible notes & associated fees 81,877,887 12,233,333 Total shares issuable upon exercise or conversion 87,453,063 18,108,509 |
Schedule of net loss per share | For the 2021 2020 (Unaudited) (Unaudited) Net loss for the period $ (123,590 ) $ (2,707,180 ) Weighted average number of shares 68,908,003 68,908,003 Net loss per share (basic and diluted) $ (0.00 ) $ (0.04 ) For the 2021 2020 (Unaudited) (Unaudited) Net loss for the period $ (561,812 ) $ (3,0056,195 ) Weighted average number of shares 68,908,003 68,908,003 Net loss per share (basic and diluted) $ (0.01 ) $ (0.04 ) |
Convertible Notes (Tables)
Convertible Notes (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes | Convertible Notes Payable: June 30, September 30, Principal value of Non-Related Party Notes 392,500 292,500 Interest accrued 96,396 64,202 Carrying Value of Notes 488,896 356,702 Principal value of Related Party Notes 276,000 86,000 Interest accrued 21,958 4,262 Beneficial conversion feature of new notes (81,818 ) - Carrying Value of Notes 216,140 90,262 Total carrying value of convertible notes payable 705,036 446,964 |
Accounting Policies (Details) -
Accounting Policies (Details) - Schedule of potential common shares issuable upon the exercise of outstanding options and the exercise of warrants - shares | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares issuable upon exercise or conversion | 87,453,063 | 18,108,509 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares issuable upon exercise or conversion | 1,926,501 | 1,926,501 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares issuable upon exercise or conversion | 3,648,675 | 3,948,675 |
Convertible notes & associated fees [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares issuable upon exercise or conversion | 81,877,887 | 12,233,333 |
Accounting Policies (Details)_2
Accounting Policies (Details) - Schedule of net loss per share - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of net loss per share [Abstract] | ||||
Net loss for the period | $ (123,590) | $ (2,707,180) | $ (561,812) | $ (30,056,195) |
Weighted average number of shares | 68,908,003 | 68,908,003 | 68,908,003 | 68,908,003 |
Net loss per share (basic and diluted) | $ 0 | $ (0.04) | $ (0.01) | $ (0.04) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Share based compensation | $ 5,106 | $ 24,694 | $ 41,094 | $ 114,375 |
Total unrecognized compensation cost related to stock options | $ 1,580 | $ 1,580 | ||
Weighted average period to costs are expected to be recognized over | 2 months 1 day |
Convertible Notes (Details)
Convertible Notes (Details) - USD ($) | Feb. 10, 2021 | Jan. 14, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2021 |
Convertible Notes (Details) [Line Items] | |||||
Accrues interest | $ 100,000 | ||||
Debt Instrument, Accrued Interest Rate | 1.00% | ||||
Conversion, description | The amended Notes provide the Holders with the right to convert, at any time, all or any part of the outstanding principal and accrued but unpaid interest into shares of the Company’s common stock at a conversion price equal to the lower of (i) $0.01 per share or (ii) the price of the next equity financing, which raises at least US $1,000,000, subject to adjustments noted within the Agreement. | ||||
Loss on extinguishment | |||||
Subsequent Event [Member] | |||||
Convertible Notes (Details) [Line Items] | |||||
Interest rate | 12.00% | ||||
Convertible Promissory Note [Member] | |||||
Convertible Notes (Details) [Line Items] | |||||
Interest rate | 12.00% | 12.00% | |||
Cash received from the Holder | $ 60,000 | ||||
Debt discount | $ 150,000 | $ 150,000 | |||
Convertible Promissory Note [Member] | |||||
Convertible Notes (Details) [Line Items] | |||||
Cash received from the Holder | $ 90,000 | ||||
Price of equity financing | $ 1,000,000 | ||||
Note Due On December 21, 2021 [Member] | Convertible Promissory Note [Member] | |||||
Convertible Notes (Details) [Line Items] | |||||
Interest rate | 12.00% | ||||
Debt discount | $ 0.01 |
Convertible Notes (Details) - S
Convertible Notes (Details) - Schedule of convertible notes - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Sep. 30, 2020 | |
Convertible Notes (Details) - Schedule of convertible notes [Line Items] | ||
Interest accrued | $ 21,958 | $ 4,262 |
Beneficial conversion feature of new notes | (81,818) | |
Carrying Value of Notes | 216,140 | 90,262 |
Total carrying value of convertible notes payable | 705,036 | 446,964 |
Principal value of Related Party Notes | 276,000 | 86,000 |
Construction Loan Payable [Member] | ||
Convertible Notes (Details) - Schedule of convertible notes [Line Items] | ||
Principal value of Non-Related Party Notes | 392,500 | 292,500 |
Interest accrued | 96,396 | 64,202 |
Carrying Value of Notes | $ 488,896 | $ 356,702 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2021 | Feb. 28, 2021 | Oct. 31, 2020 | Jun. 30, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | |
Related Party Transactions (Details) [Line Items] | ||||||||
Balance due to Eurema consulting services | $ 200,000 | $ 200,000 | ||||||
Balance due to related party | 550,000 | 557,757 | $ 7,000 | |||||
Interest charge | 12.00% | |||||||
Related party receivable | 748 | |||||||
Loan facility amount | $ 72,000 | |||||||
Accrued interest | 79,200 | |||||||
Gabriele Cerrone [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Balance due to related party | 175,000 | 175,000 | ||||||
Interest charge | 12.00% | |||||||
Related party receivable | $ 20,000 | |||||||
Roberto Pellicciari and TES Pharma [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Balance due to related party | 175,000 | 175,000 | ||||||
Company owed | 75,000 | 75,000 | ||||||
Tiziana Life Sciences PLC [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Interest charge | 8.00% | |||||||
Related party receivable | 23,067 | |||||||
Service charges | $ 7,757 | |||||||
Related party receivable | 748 | |||||||
Principal amount | $ 65,000 | |||||||
Panetta Partners [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Interest charge | 12.00% | 12.00% | 12.00% | |||||
Related party receivable | 35,000 | $ 40,000 | $ 31,000 | |||||
Principal amount | $ 38,243 | $ 36,198 | ||||||
Principal accured interest | $ 43,320 |