Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2023 | May 15, 2023 | |
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 | 771,811,360 | |
Amendment Flag | false | |
Entity Central Index Key | 0001582249 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
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 ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash | $ 2,221 | $ 39,363 |
Prepaid expenses | 50,077 | 45,913 |
Total assets | 52,298 | 85,276 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,465,252 | 1,351,320 |
Related party payables | 236,918 | 195,322 |
Loan payable and accrued interest, related party | 188,018 | 86,400 |
Note payable | 32,385 | 20,420 |
Convertible notes payable, net - related party | 20,900 | |
Derivative liabilities | 7,544 | |
Total Current Liabilities | 1,922,573 | 1,681,906 |
Loan payable - related party – Long term liabilities | 91,967 | |
Total Liabilities | 1,922,573 | 1,773,873 |
Commitments and contingencies | ||
Shareholders’ deficit | ||
Preferred stock, $0.001 par value 20,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.001 par value; 1,500,000,000 shares authorized and 711,811,360 issued and outstanding at March 31, 2023; 600,000,000 shares authorized and 179,979,361 issued and outstanding at September 30, 2022 | 771,811 | 179,979 |
Additional paid-in capital | 25,858,025 | 22,352,491 |
Accumulated deficit | (28,500,111) | (24,221,067) |
Total shareholders’ deficit | (1,870,275) | (1,688,597) |
Total liabilities and shareholders’ deficit | $ 52,298 | $ 85,276 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized | 1,500,000,000 | 600,000,000 |
Common stock shares issued | 711,811,360 | 179,979,361 |
Common stock shares outstanding | 711,811,360 | 179,979,361 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating (income)/ expenses: | ||||
General and administrative | $ 93,955 | $ 126,041 | $ 198,811 | $ 198,697 |
Research and development | 13,704 | 17,224 | 31,660 | 26,359 |
Common stock issued for services (see Note 6) | 3,858,793 | 3,858,793 | ||
Gain on settlement of accounts payable | (150,000) | (150,000) | ||
Gain on settlement of related party payable | (375,000) | (375,000) | ||
Total operating expenses | 3,966,452 | (381,735) | 4,089,264 | (299,944) |
Loss from operations | (3,966,452) | 381,735 | (4,089,264) | 299,944 |
Other income/(expense): | ||||
Accretion of debt discount | (164,147) | (77,153) | (180,333) | (280,553) |
Interest expense | (6,489) | (20,706) | (18,191) | (39,001) |
Gain on derivative liability | 7,888 | 10,114 | 8,744 | 38,969 |
Total other expenses | (162,748) | (87,745) | (189,780) | (280,585) |
Income tax provision | ||||
Net (loss)/ income | $ (4,129,200) | $ 293,990 | $ (4,279,044) | $ 19,359 |
Basic and net(loss)/ income per share attributable to common shareholders (in Dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted net (loss)/ income per share attributable to common shareholders (in Dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Basic weighted average common shares outstanding (in Shares) | 588,518,916 | 68,908,003 | 384,249,138 | 68,908,003 |
Diluted weighted average common shares outstanding (in Shares) | 588,518,916 | 170,038,369 | 384,249,138 | 163,241,111 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders’ Deficit (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Sep. 30, 2021 | $ 68,909 | $ 20,711,758 | $ (23,534,479) | $ (2,753,812) |
Balance (in Shares) at Sep. 30, 2021 | 68,908,003 | |||
Beneficial conversion feature related to convertible notes | 596,480 | 596,480 | ||
Net income (loss) | 19,359 | 19,359 | ||
Balance at Mar. 31, 2022 | $ 68,909 | 21,308,238 | (23,515,120) | (2,137,973) |
Balance (in Shares) at Mar. 31, 2022 | 68,908,003 | |||
Balance at Dec. 31, 2021 | $ 68,909 | 21,236,238 | (23,809,110) | (2,503,963) |
Balance (in Shares) at Dec. 31, 2021 | 68,908,003 | |||
Beneficial conversion feature related to convertible notes | 72,000 | 72,000 | ||
Net income (loss) | 293,990 | 293,990 | ||
Balance at Mar. 31, 2022 | $ 68,909 | 21,308,238 | (23,515,120) | (2,137,973) |
Balance (in Shares) at Mar. 31, 2022 | 68,908,003 | |||
Balance at Sep. 30, 2022 | $ 179,979 | 22,352,491 | (24,221,067) | (1,688,597) |
Balance (in Shares) at Sep. 30, 2022 | 179,979,361 | |||
Beneficial conversion feature related to convertible notes | 28,800 | 28,800 | ||
Issuance of stock for the conversion of promissory notes | $ 209,773 | 209,773 | ||
Issuance of stock for the conversion of promissory notes (in Shares) | 209,773,333 | |||
Common stock issued for services | $ 382,059 | 3,476,734 | 3,858,793 | |
Common stock issued for services (in Shares) | 382,058,666 | |||
Net income (loss) | (4,279,044) | (4,279,044) | ||
Balance at Mar. 31, 2023 | $ 771,811 | 25,858,025 | (28,500,111) | (1,870,275) |
Balance (in Shares) at Mar. 31, 2023 | 771,811,360 | |||
Balance at Dec. 31, 2022 | $ 179,979 | 22,381,291 | (24,370,911) | (1,809,641) |
Balance (in Shares) at Dec. 31, 2022 | 179,979,361 | |||
Issuance of stock for the conversion of promissory notes | $ 209,773 | 209,773 | ||
Issuance of stock for the conversion of promissory notes (in Shares) | 209,773,333 | |||
Common stock issued for services | $ 382,059 | 3,476,734 | 3,858,793 | |
Common stock issued for services (in Shares) | 382,058,666 | |||
Net income (loss) | (4,129,200) | (4,129,200) | ||
Balance at Mar. 31, 2023 | $ 771,811 | $ 25,858,025 | $ (28,500,111) | $ (1,870,275) |
Balance (in Shares) at Mar. 31, 2023 | 771,811,360 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss)/ income | $ (4,279,044) | $ 19,359 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Non-cash interest expense | 18,191 | 39,002 |
Accretion of debt discount | 180,333 | 280,553 |
Derivative liability | (8,744) | (38,969) |
Common stock issued for services | 3,858,793 | |
Gain on settlement of accounts payable | (150,000) | |
Gain on settlement of related party payable | (375,000) | |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued expenses | 113,932 | 41,801 |
Related party payable | 41,596 | 14,376 |
Prepaid expenses | 49,786 | 26,108 |
Net cash used in operating activities | (25,157) | (142,770) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of convertible notes payable | 30,000 | 160,000 |
Payments on note payable | (41,985) | |
Net cash (used in)/ provided by operating activities | (11,985) | 160,000 |
Net change in cash | (37,142) | 17,230 |
Cash, beginning of period | 39,363 | 10,848 |
Cash, end of period | 2,221 | 28,078 |
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Derivative liabilities in connection with issuance and extension of convertible notes. | 1,200 | 74,520 |
Beneficial conversion feature related to issuance and extension of convertible notes | 28,800 | 596,481 |
Issuance of common stock for conversions of promissory notes | 209,773 | |
Issuance of note payable relating to renewal of insurance policy | $ 53,950 |
General Information
General Information | 6 Months Ended |
Mar. 31, 2023 | |
General Information [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION Rasna Therapeutics, Inc. “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 target LSD1, which is 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 inflation and the economic environment on the Company, and has concluded that while it is reasonably possible that inflation could have a negative effect on the Company’s financial position, results of its operations and/or ability to secure additional cash resources, there is no current impact as cash resources are currently secured by existing shareholders. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Mar. 31, 2023 | |
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. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s annual report on Form 10-K for the Fiscal year ended September 30, 2022. 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, 2022 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on February 9, 2023. 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 three and six months ended March 31, 2023 may not be indicative of the results that may be expected for the year ending September 30, 2023. Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiary, Rasna Research Inc, and Rasna Research Inc’s subsidiary, Arna Therapeutics Limited. All significant intercompany accounts and transactions have been eliminated 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. 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 income 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. Diluted loss per share does not include any common stock equivalents as their effects are anti-dilutive. The fully diluted earnings per share includes the shares issuable upon the conversion of the outstanding convertible loan notes for the three and six months to March 31, 2022. Three months Six months Net Income, numerator, basic computation 293,990 19,359 Interest expense 19,266 36,122 Net Income, numerator, diluted computation 313,256 55,481 Weighted average shares, denominator, basic computation 68,908,003 68,908,003 Effect of convertible notes 101,130,366 94,333,108 Weighted average shares, denominator, diluted computation 170,038,369 163,241,111 Earnings per share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 The shares issuable on the exercise of options and warrants have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive. March 31, March 31, Stock options 938,675 3,648,675 Warrants 1,926,501 1,926,501 Total shares issuable upon exercise or conversion 2,865,176 5,575,176 Recent Accounting Pronouncements 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 | 6 Months Ended |
Mar. 31, 2023 | |
Liquidity and Going Concern [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 is subject to a number of risks similar to those of other pre-commercial stage companies, including its dependence on key individuals, uncertainty of product development and generation of revenues, dependence on outside sources of capital, risks associated with research, development, testing, and obtaining related regulatory approvals of its pipeline products, suppliers and collaborators, successful protection of intellectual property, competition with larger, better-capitalized companies, successful completion of the Company’s development programs and, ultimately, the attainment of profitable operations are dependent on future events, including obtaining adequate financing to fulfill its development activities and generating a level of revenues adequate to support the Company’s cost structure. The Company has experienced net losses and significant cash outflows from cash used in operating activities and as of March 31, 2023, had an accumulated deficit of $28,500,111, a net loss for the six months ended March 31, 2023 of $4,279,044 and net cash used in operating activities of $25,157. 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. |
Convertible Notes
Convertible Notes | 6 Months Ended |
Mar. 31, 2023 | |
Convertible Notes [Abstract] | |
CONVERTIBLE NOTES | 4. CONVERTIBLE NOTES The table below summarizes outstanding convertible notes as of March 31, 2023 and March 31, 2022: Balance of related party notes payable, net as of September 30, 2022 $ 20,900 Issuance of debt 30,000 Accrued interest 8,540 Accretion of debt discount 180,333 Beneficial conversion feature related to issuance of convertible notes (28,800 ) Derivative liabilities in connection with issuance of convertible notes (1,200 ) Conversion of convertible notes (209,773 ) Balance of related notes payable, net as of March 31, 2023 $ - Balance of non-related notes payable, net as of September 30, 2021 $ 371,997 Accrued Interest 14,847 Accretion of debt discount 152,090 Beneficial conversion feature related to issuance of convertible notes (206,801 ) Derivative liabilities in connection with issuance of convertible notes (28,200 ) Balance of non-related notes payable, net as of March 31, 2022 $ 303,933 Balance of related notes payable, net as of September 30, 2021 $ 230,287 Issuance of debt 160,000 Accrued Interest 21,275 Accretion of debt discount 128,463 Beneficial conversion feature related to issuance of convertible notes (389,680 ) Derivative liabilities in connection with issuance of convertible notes (46,320 ) Balance of related notes payable, net as of March 31, 2022 $ 104,025 On December 23, 2022, the Company entered into a 16% 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 $30,000 in cash. 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) $0.001 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 January 23, 2023, all outstanding notes with a principal value of $195,000 and accrued interest of $14,773 were converted into 209,773,333 shares with a par value of $0.001. Embedded Derivative Liability Under the promissory note agreement, the interest rate will reset upon the event of a default and an additional penalty of 6% will be accrued. The Company analyzed the conversion features of the note agreement for derivative accounting consideration under ASC 815, Derivatives and Hedging, and determined the interest rate resets met the definition of a derivative. It also noted that the Contingent Interest Rate feature required bifurcation from the host note contract and was to be accounted for at fair value. In accordance with ASC 815-15, the Company bifurcated the Contingent Interest Rate feature of the note and recorded a derivative liability. The embedded derivatives for the notes are carried on the Company’s balance sheet at fair value. During the three and six months ended March 31, 2023, the Company recognized an additional derivative liability of $1,200 due to the issuance of the convertible notes. During the three and six months ended March 31, 2023, the Company recognized a gain on derivative liability of $7,888 and $8,744 due to the conversion of outstanding notes. During the three and six months to March 31, 2022, the Company recognized an additional $3,000 and $71,520 respectively due to the extension and issuance of the convertible notes. During the three and six month period ended March 31, 2022, the Company recognized a gain of $10,114 and $38,969 relating to the issuance and extension of convertible notes. Beneficial Conversion Feature The conversion features for all notes issued are in the money as of the issuance date and accordingly a beneficial conversion feature was recorded upon issuance. As the intrinsic value of the beneficial conversion feature exceeds the face value, the recorded beneficial conversion feature was limited to the gross proceeds less any debt discounts. As at March 31, 2023 this amounted to $28,800 for the new notes issued, which was fully amortized upon conversion of the notes. As at March 31, 2022 the beneficial conversion feature amounted to $596,481 for the amended and new notes issued. |
Note Payable
Note Payable | 6 Months Ended |
Mar. 31, 2023 | |
Notes Payable [Abstract] | |
NOTE PAYABLE | 5. NOTE PAYABLE On March 31, 2023, the Company entered into a one-year Directors and Officers Liability Insurance agreement for $53,950. Under the terms of the agreement, the Company made a down payment of $13,500, with the remaining balance financed over the remaining term at an annual percentage rate of 6.99%, resulting in finance charge of $1,187. Beginning in March 2023, the Company is making 9 monthly payments of $4,626, with the last payment made in November 2023. The interest expense for this note payable for the three months ending March 31, 2023 was $236. On May 15, 2022, the Company entered into a one-year Directors and Officers Liability Insurance agreement for $89,242. Under the terms of the agreement, the Company made a down payment of $10,210, with the remaining balance financed over the remaining term at an annual percentage rate of 7.328%. Beginning in May 2022, the Company is making 8 monthly payments of $10,210, with the last payment made in December 2022. At December 31, 2022, the note was fully paid. The interest expense for this note payable for the three months ending December 31, 2022 was $186. |
Equity
Equity | 6 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Equity | 6. EQUITY In January 2023, the company issued 209,773,333 shares to Panetta Partners Ltd upon conversion of the outstanding promissory notes and accrued interest. In March 2023, the Company issued 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company. At the date of issuance this was valued at $3,858,793, based on the issuance date stock price of $0.01 per share. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 7. RELATED PARTY TRANSACTIONS The following is a summary of the related party transactions for the periods presented. 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. Keeren Shah, the Company’s Chief Financial Officer, is also Chief Financial Officer of Tiziana, and the Company’s directors, Willy Simon and John Brancaccio are also non-executive directors of Tiziana. As of March 31, 2023 and March 30, 2022, $18,041 and $25,822 respectively 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. In March 2020, Tiziana extended a loan facility to Rasna of $65,000. The loan is repayable within 18 months and incurs 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 March 31, 2023, the amount due to Tiziana under this loan facility were $89,280. The amount due to Tiziana under this agreement as of March 31, 2022 was $83,520. In July 2022, Tiziana extended another loan facility to Rasna of $85,000. The loan is repayable within 18 months and incurs an interest charge of 16% per annum. As of March 31, 2023, the amounts due to Tiziana under this loan facility were $98,738. The amount due to Tiziana under this agreement as of September 30, 2022 was $91,967. Panetta Partners/ Gabriele Cerrone Panetta Partners Limited, a shareholder of Rasna, is a company in which Gabriele Cerrone is a major shareholder and also serves as a director. As of December 31, 2022, and September 30, 2022, the balance due to Gabriele Cerrone was $175,000 for past consultancy services. In July 2022, the Company entered into a promissory note with Panetta Partners Ltd for $165,000. The note carries an interest rate of 16% with a conversion price of $0.001 and is due for repayment by December 31, 2024. As at March 31, 2023, $184,580 was due with respect to notes issued. As at September 30, 2022 $171,233 was due with respect to notes issued. In December 2022, the Company entered into an additional promissory note with Panetta Partners Ltd for $30,000 under the same terms. As at March 31, 2023, $31,307 was due with respect to this note issued. In January 2023, the company issued 209,773,333 shares to Panetta Partners Ltd upon conversion of the outstanding promissory notes and accrued interest. In March 2023, the Company issued 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company. At the date of issuance this was valued at $3,858,793 based on the issuance date stock price of $0.01. Apart from the Convertible Promissory Notes, there is no interest charged on the balances with related parties. There are no defined repayment terms, and such amounts can be called for payment at any time. 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 and six months ended March 31, 2023 and March 31, 2022, Roberto Pellicciari did not supply the Company with consulting services. In March 2022, the Company agreed to return back to TES Pharma S.R.L all intellectual property rights and assignments relating to NPM1. In exchange for this, TES Pharma S.R.L agreed to waive any payments due to them and their affiliates (which includes Roberto Pelliciari) by Rasna. this amounted to a $175,000 gain on the settlement of the related party payable to Roberto Pellicciari and a $150,000 gain on the settlement of accounts payable to TES Pharma and its affiliates. Rasna may be entitled to 20% of any future royalties and/or milestone payments upon successful completion of a clinical Proof of Concept study under certain agreed upon circumstances. As of March 31, 2023, and September 30, 2022, the balance due to Roberto Pellicciari was $0 for past consultancy services. At March 31, 2023 and September 30, 2022, TES Pharma was owed $0. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
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, 2022 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on February 9, 2023. 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 three and six months ended March 31, 2023 may not be indicative of the results that may be expected for the year ending September 30, 2023. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiary, Rasna Research Inc, and Rasna Research Inc’s subsidiary, Arna Therapeutics Limited. All significant intercompany accounts and transactions have been eliminated 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. |
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 income 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. Diluted loss per share does not include any common stock equivalents as their effects are anti-dilutive. The fully diluted earnings per share includes the shares issuable upon the conversion of the outstanding convertible loan notes for the three and six months to March 31, 2022. Three months Six months Net Income, numerator, basic computation 293,990 19,359 Interest expense 19,266 36,122 Net Income, numerator, diluted computation 313,256 55,481 Weighted average shares, denominator, basic computation 68,908,003 68,908,003 Effect of convertible notes 101,130,366 94,333,108 Weighted average shares, denominator, diluted computation 170,038,369 163,241,111 Earnings per share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 The shares issuable on the exercise of options and warrants have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive. March 31, March 31, Stock options 938,675 3,648,675 Warrants 1,926,501 1,926,501 Total shares issuable upon exercise or conversion 2,865,176 5,575,176 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of diluted earnings per share issuable upon the conversion of the outstanding convertible loan notes | Three months Six months Net Income, numerator, basic computation 293,990 19,359 Interest expense 19,266 36,122 Net Income, numerator, diluted computation 313,256 55,481 Weighted average shares, denominator, basic computation 68,908,003 68,908,003 Effect of convertible notes 101,130,366 94,333,108 Weighted average shares, denominator, diluted computation 170,038,369 163,241,111 Earnings per share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 |
Schedule of diluted earnings per share issuable upon the conversion of the outstanding convertible loan notes | March 31, March 31, Stock options 938,675 3,648,675 Warrants 1,926,501 1,926,501 Total shares issuable upon exercise or conversion 2,865,176 5,575,176 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Convertible Notes [Abstract] | |
Schedule of convertible notes | Balance of related party notes payable, net as of September 30, 2022 $ 20,900 Issuance of debt 30,000 Accrued interest 8,540 Accretion of debt discount 180,333 Beneficial conversion feature related to issuance of convertible notes (28,800 ) Derivative liabilities in connection with issuance of convertible notes (1,200 ) Conversion of convertible notes (209,773 ) Balance of related notes payable, net as of March 31, 2023 $ - Balance of non-related notes payable, net as of September 30, 2021 $ 371,997 Accrued Interest 14,847 Accretion of debt discount 152,090 Beneficial conversion feature related to issuance of convertible notes (206,801 ) Derivative liabilities in connection with issuance of convertible notes (28,200 ) Balance of non-related notes payable, net as of March 31, 2022 $ 303,933 Balance of related notes payable, net as of September 30, 2021 $ 230,287 Issuance of debt 160,000 Accrued Interest 21,275 Accretion of debt discount 128,463 Beneficial conversion feature related to issuance of convertible notes (389,680 ) Derivative liabilities in connection with issuance of convertible notes (46,320 ) Balance of related notes payable, net as of March 31, 2022 $ 104,025 |
Accounting Policies (Details) -
Accounting Policies (Details) - Schedule of diluted earnings per share issuable upon the conversion of the outstanding convertible loan notes - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule Of Diluted Earnings Per Share Issuable Upon The Conversion Of The Outstanding Convertible Loan Notes Abstract | ||||
Net Income, numerator, basic computation | $ 293,990 | $ 19,359 | ||
Interest expense | 19,266 | 36,122 | ||
Net Income, numerator, diluted computation | $ 313,256 | $ 55,481 | ||
Weighted average shares, denominator, basic computation (in Shares) | 68,908,003 | 68,908,003 | ||
Effect of convertible notes | $ 101,130,366 | $ 94,333,108 | ||
Weighted average shares, denominator, diluted computation (in Shares) | 170,038,369 | 163,241,111 | ||
Basic (in Dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted (in Dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Accounting Policies (Details)_2
Accounting Policies (Details) - Schedule of common shares issuable upon the exercise of outstanding options, the exercise of warrants - shares | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares issuable upon exercise or conversion | 2,865,176 | 5,575,176 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares issuable upon exercise or conversion | 938,675 | 3,648,675 |
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 |
Liquidity and Going Concern (De
Liquidity and Going Concern (Details) | 6 Months Ended |
Mar. 31, 2023 USD ($) | |
Liquidity and Going Concern [Abstract] | |
Accumulated deficit | $ 28,500,111 |
Net loss | 4,279,044 |
Net cash used in operating activities | $ 25,157 |
Convertible Notes (Details)
Convertible Notes (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 23, 2023 | Dec. 23, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Convertible Notes (Details) [Line Items] | ||||||
Percentage of convertible promissory note | 16% | |||||
Cash | $ 30,000 | |||||
Debt discount (in Dollars per share) | $ 0.001 | |||||
Price of equity financing | $ 1,000,000 | |||||
Principal value | $ 195,000 | |||||
Accrued interest | $ 14,773 | |||||
Converted amount (in Shares) | 209,773,333 | |||||
Converted par value (in Dollars per share) | $ 0.001 | |||||
Interest rate | 6% | 6% | ||||
Additional derivative liability | $ 1,200 | $ 1,200 | ||||
Gain on derivative liability | $ 7,888 | 8,744 | ||||
Recognized a gain derivative liability | $ 10,114 | $ 38,969 | ||||
Notes issued | 31,307 | |||||
Beneficial Conversion Feature [Member] | ||||||
Convertible Notes (Details) [Line Items] | ||||||
Notes issued | $ 28,800 | |||||
Notes issued | 596,481 | |||||
Embedded Derivative Liability [Member] | ||||||
Convertible Notes (Details) [Line Items] | ||||||
Recognized a gain derivative liability | $ 3,000 | $ 71,520 |
Convertible Notes (Details) - S
Convertible Notes (Details) - Schedule of convertible notes - USD ($) | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related party notes payable [Member] | ||
Convertible Notes (Details) - Schedule of convertible notes [Line Items] | ||
Beginning balance | $ 20,900 | $ 230,287 |
Issuance of debt | 30,000 | 160,000 |
Accrued interest | 8,540 | 21,275 |
Accretion of debt discount | 180,333 | 128,463 |
Beneficial conversion feature related to issuance of convertible notes | (28,800) | (389,680) |
Derivative liabilities in connection with issuance of convertible notes | (1,200) | (46,320) |
Conversion of convertible notes | (209,773) | |
Ending balance | 104,025 | |
Non-related notes payable [Member] | ||
Convertible Notes (Details) - Schedule of convertible notes [Line Items] | ||
Beginning balance | 371,997 | |
Accrued interest | 14,847 | |
Accretion of debt discount | 152,090 | |
Beneficial conversion feature related to issuance of convertible notes | (206,801) | |
Derivative liabilities in connection with issuance of convertible notes | (28,200) | |
Ending balance | $ 303,933 |
Note Payable (Details)
Note Payable (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
May 15, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Notes Payable [Abstract] | |||
Insurance agreement | $ 89,242 | $ 53,950 | |
Term agreement | $ 10,210 | $ 13,500 | |
Annual percentage | 7.328% | 6.99% | |
Annual rate finance charge | $ 1,187 | ||
Payments | $ 10,210 | 4,626 | |
Interest expense | $ 236 | $ 186 |
Equity (Details)
Equity (Details) - USD ($) | Mar. 31, 2023 | Jan. 31, 2023 |
Stockholders' Equity Note [Abstract] | ||
Shares issued | 382,058,666 | 209,773,333 |
Issuance value (in Dollars) | $ 3,858,793 | |
Stock price (in Dollars per share) | $ 0.01 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2023 | Sep. 30, 2022 | Jul. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transactions (Details) [Line Items] | |||||||||
Loan facility | $ 89,280 | ||||||||
Agreement amount | 83,520 | ||||||||
Loan facility amount | $ 85,000 | ||||||||
Interest charge, percentage | 16% | ||||||||
Consulting services amount | $ 0 | 0 | $ 0 | ||||||
Promissory note | $ 165,000 | ||||||||
Interest rate | 16% | ||||||||
Conversion price per share (in Dollars per share) | $ 0.001 | ||||||||
Notes issued | $ 31,307 | ||||||||
Common stock shares (in Shares) | 209,773,333 | 382,058,666 | |||||||
Common stock issuance value | $ 3,858,793 | ||||||||
Stock price (in Dollars per share) | $ 0.01 | ||||||||
Company owed | $ 0 | 0 | |||||||
Tiziana Life Sciences Plc [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Service charges | 18,041 | $ 25,822 | |||||||
Loan facility, description | In March 2020, Tiziana extended a loan facility to Rasna of $65,000. The loan is repayable within 18 months and incurs 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. | ||||||||
Loan facility amount | $ 98,738 | ||||||||
Roberto Pellicciari and TES Pharma [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Consulting services amount | 91,967 | 91,967 | |||||||
Related party payable | $ 175,000 | ||||||||
Accounts payable | $ 150,000 | $ 150,000 | |||||||
Royalties future percentage | 20% | ||||||||
Gabriele Cerrone [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Consulting services amount | 175,000 | $ 175,000 | $ 175,000 | ||||||
Additional promissory note amount | $ 30,000 | ||||||||
Convertible promissory notes, description | Apart from the Convertible Promissory Notes, there is no interest charged on the balances with related parties. | ||||||||
Panetta Partners [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Notes issued | $ 171,233 | $ 184,580 |