Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2016 | Sep. 27, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Renewable Energy & Power, Inc. | |
Entity Central Index Key | 1,608,430 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 410,191,592 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Current Assets: | ||
Cash | $ 4,653 | $ 60 |
Accounts receivable from MDI (Note 4) | 494,666 | 1,554,400 |
Accounts receivable from others | 10,064 | |
Loans receivable and prepaid expenses | 3,650 | |
Inventories | 70,424 | 250,047 |
Total current assets | 573,393 | 1,814,571 |
Property and equipment, net of accumulated depreciation of $171,827 and $131,021 respectively | 278,673 | 319,479 |
Technology license, net of accumulated amortization of $206,439 and $162,637 respectively | 85,571 | 129,373 |
Other assets (security deposit) | 5,000 | 5,000 |
Total Other Assets | 369,244 | 453,852 |
Total Assets | 942,637 | 2,268,423 |
Current Liabilities: | ||
Accounts payable to others | 56,281 | 46,819 |
Accounts payable to MDI (Note 4) | 292,617 | 1,429,046 |
Accrued interest payable to MDI (Note 4) | 65,646 | 58,333 |
Accrued interest payable to others | 7,296 | |
Payable to shareholder (Note 5) | 74,110 | 74,110 |
Consulting fees payable to officers and shareholder | 38,115 | 176,006 |
Short-term loan payable to officer (Note 5) | 45,907 | 25,901 |
Convertible notes payable, less discount and loan origination fees totaling $58,595 at June 30, 2016 | 14,677 | |
Convertible notes payable to MDI less discount of $48,793 at June 30, 2016 (Note 4) | 60,992 | |
Convertible notes payable to Officers and Shareholder less discount of $6,059 at June 30, 2016 (Note 5) | 5,554 | |
Total current liabilities | 661,195 | 1,810,215 |
Commitments and Contingencies | ||
Long term liabilities: | ||
Convertible notes payable to MDI | 250,000 | |
Total Liabilities | 661,195 | 2,060,215 |
Shareholders' Equity: | ||
Common stock, 750,000,000 shares authorized, par value $.001 per share, 410,191,592 and 74,521,720 shares issued and outstanding | 410,192 | 74,522 |
Additional paid-in capital | 1,257,747 | 798,530 |
Accumulated deficit | (1,386,497) | (664,844) |
Total shareholders' equity | 281,442 | 208,208 |
Total Liabilities and Equity | $ 942,637 | $ 2,268,423 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Condensed Balance Sheets Parenthetical | ||
Property and equipment, net of accumulated depreciation | $ 171,827 | $ 131,021 |
Technology license, net of accumulated amortization | 206,439 | 162,637 |
Convertible notes payable, less discount and loan origination fees | 58,595 | |
Convertible notes payable to MDI less discount | 48,793 | |
Convertible notes payable to Officers and Shareholder less discount | $ 6,059 | |
Shareholders' Equity: | ||
Common stock, par value | $ 0.001 | $ .001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 410,191,592 | 74,521,720 |
Common stock, shares outstanding | 410,191,592 | 74,521,720 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Statements Of Operations | ||||
Revenues (Note 4) | $ 140,942 | $ 118,509 | $ 473,442 | $ 363,509 |
Cost of revenues | 132,048 | 95,243 | 424,255 | 273,435 |
Gross profit | 8,894 | 23,266 | 49,187 | 90,074 |
Operating expenses: | ||||
General and administrative | 28,664 | 13,929 | 182,688 | 40,143 |
Amortization | 16,646 | 11,625 | 43,802 | 35,751 |
Depreciation | 13,602 | 13,602 | 40,806 | 38,153 |
Consultants | 12,250 | 18,850 | 51,658 | 54,850 |
Total Operating Expanses | 71,162 | 58,006 | 318,954 | 168,897 |
Loss from operations | (62,268) | (34,740) | (269,767) | (78,823) |
Interest expense | (248,425) | (5,000) | (451,886) | (15,000) |
Loss before federal income taxes | (310,693) | (39,740) | (721,653) | (93,823) |
Federal income taxes | 0 | 0 | ||
Net loss | $ (310,693) | $ (39,740) | $ (721,653) | $ (93,823) |
Loss per share, basic and dilutive | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average shares outstanding | 209,033,335 | 74,521,720 | 146,920,018 | 74,521,720 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (721,653) | $ (93,823) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 84,608 | 73,904 |
Amortization of debt discount | 385,059 | |
Amortization of loan fees | 1,953 | |
Issuance of common stock for services | 35,000 | |
Interest and penalties added to principal balance of convertible debt | 60,249 | |
Changes in operating assets and liabilities: | ||
Accounts receivable from MDI | (549,667) | (363,544) |
Accounts receivable from others | 10,064 | |
Inventories | 179,623 | 86,751 |
Account payable to others | 9,462 | (20,003) |
Accounts payable to MDI | 337,757 | 262,261 |
Accrued interest payable to MDI | 7,313 | 15,000 |
Accrued interest payable to others | 8,016 | |
Consulting fees payable to officers | 20,250 | 39,000 |
Net cash used in operating activities | (131,966) | (454) |
Cash flows from investing activities | ||
Advances made on loans receivable | (3,650) | |
Net cash used in investing activities | (3,650) | |
Cash flows from financing activities | ||
Loan fees | (6,797) | |
Proceeds from short-term loan payable to officer | 20,006 | |
Proceeds from issuance of convertible debt | 127,000 | |
Net cash provided by financing activities | 140,209 | |
Net increase (decrease) in cash | 4,593 | (454) |
Cash at beginning of period | 60 | 462 |
Cash at end of period | 4,653 | 8 |
Supplemental Cash Flow Disclosures | ||
Interest paid | ||
Taxes paid | ||
Supplemental Disclosures of Non-Cash Investing and Financing Activities | ||
Payment of convertible note to MDI through netting of accounts payable to MDI and accounts receivable from MDI | 135,215 | |
Conversion of convertible note payable and accrued interest to common stock | 103,240 | |
Debt discount on convertible notes payable | 498,506 | |
Consulting fees payable to officers and shareholder exchanged for convertible notes payable | 158,141 | |
Convertible notes payable to officers exchanged for common stock | $ 158,141 |
Nature of Business
Nature of Business | 9 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 1 - Nature of Business | Renewable Energy and Power (the Company or REAP) was incorporated on October 15, 2012, under the laws of the State of Nevada, for the purpose of conducting all legal business. The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the rules and regulations of the U.S. Securities and Exchange Commission (SEC), as amended for interim financial information These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Companys 2015 Annual Report on Form 10-K. The accompanying unaudited financial statements reflect all normal recurring adjustments necessary, unless otherwise indicated, to present fairly the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results for any subsequent quarter or the entire year ending September 30, 2016. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is managements opinion, however, that all material adjustments (consisting of normal recurring adjustments, unless otherwise indicated) have been made which are necessary for a fair financial statement presentation. The interim results for the nine months ended June 30, 2016, unless otherwise indicated, are not necessarily indicative of results for the full fiscal year. The Company is engaged in the business of new and retrofit applications for LED lighting and innovative solar electrical generation. |
Going Concern
Going Concern | 9 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 2 - Going Concern | These financial statements for the nine months ended June 30, 2016 were prepared assuming the Company will continue as a going concern. During the nine months ended June 30, 2016, the Company has incurred a loss of $721,653 and has an accumulated deficit of $1,386,497. These factors raise substantial doubt about the Companys ability to continue as a going concern. The Company will need to generate significant revenue in order to achieve profitability and may never become profitable. The Company has begun principal operations and, as is common with a start-up company, the Company has had recurring losses during its early stage. The Companys financial statements are prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company does not have significant cash or other material assets, nor does it have an established source of revenue sufficient to cover its operating costs and to allow it to continue as a going concern. In the interim, shareholders of the Company have committed to meeting its minimal operating expenses. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 3 - Summary of Significant Accounting Policies | Basis of presentation The Company reports revenues and expenses using the accrual method of accounting for financial and tax reporting purposes. These financial statements are presented in United States dollars and have been prepared in accordance with United States generally accepted accounting principles. Management estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue recognition The Company recognizes revenue from sales at the time the products are shipped, the price is determinable, the customers are invoiced and payment is reasonably assured. Invoices are due on a net 30 day basis.Shipping and handling costs are billed to customers and netted against shipping and handling expenses incurred by the Company, which are included in cost of revenues. Almost all of the Companys sales are to Multichip Display, Inc. (MDI), a shareholder of the Company. See Note 4. Accounts receivable The Company grants credit, generally without collateral. The Company performs periodic credit evaluations of its customers financial condition and believes that its customer acceptance, billing and collection policies are adequate to minimize potential credit risk. The Company has not incurred any credit losses to date. The Company provides an allowance for doubtful accounts that is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. The allowance for bad debt is $0 at June 30, 2016 and 2015. Normal accounts receivable past due more than 30 days are considered delinquent. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. See Note 4. Inventories Inventories are carried at the lower of cost (first-in, first-out, FIFO) or market (net realizable value) and include primarily Silicon wafers and LED displays with drivers. Wafer inventories were purchased from two related parties during the period ended September 30, 2013. At June 30, 2015 and 2016 inventories consisted of parts, supplies, silicon wafers, solar panel materials, and ARINC kits. See Notes 4 and 5. Research and Development Costs During the nine months ended June 30, 2016 research and development costs totaled $22,684. |
Related Party Transactions with
Related Party Transactions with Multichip Display, Inc. (MDI) | 9 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 4 - Related Party Transactions with Multichip Display, Inc. (MDI) | MDI is owned by a minority shareholder (2,000,000 shares or 0.5%) of the Company as of June 30, 2016. In addition, MDI became a minority shareholder (4,330,000 shares or 1.) through debt conversion (see below). The total direct and indirect ownership of REAP by MDI is 1.5% at June 30, 2016. The Company has an exclusive contract to manufacture products under contract from MDI. MDI will be the sales agent for certain government and private company contracts; REAP manufactures products based on bid prices as agreed between the parties. The Company has also agreed to purchase certain parts from MDI. As part of the agreement, MDI has agreed to support the operations of the Company through December 31, 2016. MDI is both a significant customer and significant vendor of the Company. For the three months ending June 30, 2015 and 2016, most of the Companys sales resulted from transactions with MDI. The Company had the following related party transactions through June 30, 2016 for the time periods shown in the tables below. Three and Nine Months Ending June 30, 2016 3 Months 9 Months Sales to MDI $ 132,500 $ 464,992 Inventory purchases from MDI* 115,275 396,300 Rent expense paid to MDI 12,823 73,639 Interest expense to MDI 2,196 54,787 June 30, 2016 September 30, 2015 Receivable from MDI $ 494,666 1,554,400 Accounts payable to MDI 292,617 1,429,046 Accrued interest payable to MDI 65,646 58,333 Convertible note payable to MDI, Net of discount of 48,793 60,992 250,000 _______ * Includes borrowings to pay for direct labor. The agreement with MDI includes an offset clause for accounts receivable from MDI and accounts payable to MDI. On November 11, 2015, the company and MDI agreed to offset the receivable from MDI of $1,609,401 with the accounts payable to MDI of $1,474,186 and $135,215 of the convertible note pay able to MDI to balance the accounts. The Company issued a new 8% Convertible Promissory Note for the remaining convertible note payable balance of $109,785. This new note matures on December 31, 2016 and is convertible at the common stock par value of $0.001 per share. |
Related Party Transactions wi10
Related Party Transactions with Initial Shareholder Group | 9 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 5 - Related Party Transactions with Initial Shareholder Group | Consulting fees payable to officers and shareholder During the three and nine month, periods ended June 30, 2016, the Company incurred $12,250 and $51,658, respectively, of consulting fees payable to three officers of the Company. One January 15, 2016, consulting fees payable to officers and shareholders of $158,141 were exchanged for convertible notes payable. Total consulting fees payable to these officers at June 30, 2016 and September 30, 2015 totaled $38,115 and $176,006, respectively. Payable to shareholder Payable to shareholder totaled $74,110 at June 30, 2016 and September 30, 2015. Short term loans payable to officers As of June 30, 2016, and September 30, 2015, officer advances to the company totaled $45,907 and $25,901 respectively. These loans are short term, informal borrowings that are not documented, bear no interest, and are due on demand. Convertible notes payable to shareholders and officers On January 2, 2016, the Company exchanged $11,613 payable to officer to convertible notes payable maturing on December 31, 2016 bearing an 8% interest rate and convertible into common shares at $.001 per share. A note payable discount of $11,613 was also recorded and will be amortized over the term of the convertible note payable. On January 15, 2016, The Company exchanged $158,141 of consulting fees payable to convertible notes payable maturing on December 31, 2016 bearing an 8% interest rate and convertible into common shares at $.001 per share. On April 14, 2016, the Company converted these notes payable to common stock. (See Note 7.) |
Convertible Notes Payable
Convertible Notes Payable | 9 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 6 - Convertible Notes Payable | During the nine months ended June 30, 2016, the Company issued convertible notes payable totaling $232,346 in exchange for $127,000 cash and $105,346 expenses. These convertible notes payable bear interest rate between 10% to 12% and are convertible at a rate of $.001 per share. The note maturity date ranges between July 6, 2016 and March 3, 2017. Notes payable discount of $218,968 was also recorded and will be amortized over the terms of the convertible notes payable. As of June 30, 2016, the Company has converted $103,240 of the convertible notes payable into common stock. (See Note 7.) |
Share Capital
Share Capital | 9 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 7 - Share Capital | The company is authorized to issue 750,000,000 shares of common stock with a par value of $0.001 and no preferred stock. During the nine months ended June 30, 2016, the Company issued 700,000 shares of common stock for services at $35,000. During the nine months ended June 30, 2016, convertible notes payable and accrued interest totaling $103,240 were converted into 176,828,872 shares of common stock. During the nine months ended June 30, 2016, convertible notes payable to shareholders and officers totaling $158,141 were converted into 158,141,000 shares of common stock. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 8 - Income Taxes | The difference between the expected income tax expense (benefit) and the actual tax expense (benefit) computed by using the Federal statutory rate of 34% is as follows: For the Nine Months Ended June 30, 2016 2015 Expected income tax benefit at statutory rate of 34% $ 245,400 $ 31,800 Change in valuation allowance (245,400 ) (31,800 ) Income tax expense (benefit) $ 0 $ 0 Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset, are as follows: June 30, 2016 September 30, 2015 Deferred tax assets: Tax benefit of net operating loss carry-forward $ 295,100 $ 190,600 Book and tax difference for amortization of intangibles 45,200 35,200 Amortization of debt discount 130,900 - Less: valuation allowance (471,200 ) (225,800 ) Net deferred tax asset $ 0 $ 0 The Company had a federal net operating tax loss carry-forward of approximately $868,000 as of June 30, 2016. The tax loss carry-forwards are available to offset future taxable income with the federal carry-forwards beginning to expire in 2033. At June 30, 2016 the deferred tax valuation allowance increased by $245,400 from September 30, 2015. The realization of the tax benefits is subject to the sufficiency of taxable income in future years. The deferred tax assets represent the amounts expected to be realized before expiration. The Company periodically assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible profits. As of June 30, 2016 and September 30, 2015 the Company established valuation allowances equal to the full amount of the net deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods. During the nine months ended June 30, 2016 and 2015, no amounts have been recognized for uncertain tax positions and no amounts have been recognized related to interest or penalties related to uncertain tax positions. The Company has determined that it is not reasonably likely for the amounts of unrecognized tax benefits to significantly increase or decrease within the next twelve months. The Company is currently subject to a three year statute of limitations by major tax jurisdictions. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 9 - Subsequent Events | Reverse Stock Split On July 27, 2016, the board of directors approved a reverse split for the common stock in the ratio of 1:2,000. The reverse split must be approved by FINA. Convertible Note Payable On August 2, 2016, the Company obtained financing through the issuance of a convertible note payable for $27,000 with an interest rate of 10% and matures on August 3, 2017. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies Policies | |
Basis of presentation | The Company reports revenues and expenses using the accrual method of accounting for financial and tax reporting purposes. These financial statements are presented in United States dollars and have been prepared in accordance with United States generally accepted accounting principles. |
Management estimates | The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue recognition | The Company recognizes revenue from sales at the time the products are shipped, the price is determinable, the customers are invoiced and payment is reasonably assured. Invoices are due on a net 30 day basis.Shipping and handling costs are billed to customers and netted against shipping and handling expenses incurred by the Company, which are included in cost of revenues. Almost all of the Companys sales are to Multichip Display, Inc. (MDI), a shareholder of the Company. See Note 4. |
Accounts receivable | The Company grants credit, generally without collateral. The Company performs periodic credit evaluations of its customers financial condition and believes that its customer acceptance, billing and collection policies are adequate to minimize potential credit risk. The Company has not incurred any credit losses to date. The Company provides an allowance for doubtful accounts that is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. The allowance for bad debt is $0 at June 30, 2016 and 2015. Normal accounts receivable past due more than 30 days are considered delinquent. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. See Note 4. |
Inventories | Inventories are carried at the lower of cost (first-in, first-out, FIFO) or market (net realizable value) and include primarily Silicon wafers and LED displays with drivers. Wafer inventories were purchased from two related parties during the period ended September 30, 2013. At June 30, 2015 and 2016 inventories consisted of parts, supplies, silicon wafers, solar panel materials, and ARINC kits. See Notes 4 and 5. |
Research and Development Costs | During the nine months ended June 30, 2016 research and development costs totaled $22,684. |
Related Party Transactions wi16
Related Party Transactions with Multichip Display, Inc. (MDI) (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions With Multichip Display Inc. Mdi Tables | |
Schedule of Related Party Transactions | The Company had the following related party transactions through June 30, 2016 for the time periods shown in the tables below. Three and Nine Months Ending June 30, 2016 3 Months 9 Months Sales to MDI $ 132,500 $ 464,992 Inventory purchases from MDI* 115,275 396,300 Rent expense paid to MDI 12,823 73,639 Interest expense to MDI 2,196 54,787 June 30, 2016 September 30, 2015 Receivable from MDI $ 494,666 1,554,400 Accounts payable to MDI 292,617 1,429,046 Accrued interest payable to MDI 65,646 58,333 Convertible note payable to MDI, Net of discount of 48,793 60,992 250,000 _______ * Includes borrowings to pay for direct labor. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Income Taxes Tables | |
Summary of expected income tax expense (benefit) and the actual tax expense (benefit) | The difference between the expected income tax expense (benefit) and the actual tax expense (benefit) computed by using the Federal statutory rate of 34% is as follows: For the Nine Months Ended June 30, 2016 2015 Expected income tax benefit at statutory rate of 34% $ 245,400 $ 31,800 Change in valuation allowance (245,400 ) (31,800 ) Income tax expense (benefit) $ 0 $ 0 |
Summary of Deferred tax assets and liabilities | Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset, are as follows: June 30, 2016 September 30, 2015 Deferred tax assets: Tax benefit of net operating loss carry-forward $ 295,100 $ 190,600 Book and tax difference for amortization of intangibles 45,200 35,200 Amortization of debt discount 130,900 - Less: valuation allowance (471,200 ) (225,800 ) Net deferred tax asset $ 0 $ 0 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | |
Going Concern Details Narrative | |||||
Net loss | $ (310,693) | $ (39,740) | $ (721,653) | $ (93,823) | |
Accumulated deficit | $ (1,386,497) | $ (1,386,497) | $ (664,844) |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Summary Of Significant Accounting Policies Details Narrative | ||
Allowance for bad debt | $ 0 | $ 0 |
Research and development costs | $ 22,684 | $ 0 |
Related Party Transactions wi20
Related Party Transactions with Multichip Display, Inc. (MDI) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | ||
Sales [Member] | ||||
Related Party Transactions with MDI, Amount | $ 132,500 | $ 464,992 | ||
Inventory purchases [Member] | ||||
Related Party Transactions with MDI, Amount | [1] | 115,275 | 396,300 | |
Rent expense [Member] | ||||
Related Party Transactions with MDI, Amount | 12,823 | 73,639 | ||
Interest expense [Member] | ||||
Related Party Transactions with MDI, Amount | $ 2,196 | 54,787 | ||
Receivable [Member] | ||||
Related Party Transactions with MDI, Amount | 494,666 | $ 1,554,400 | ||
Accounts payable [Member] | ||||
Related Party Transactions with MDI, Amount | 292,617 | 1,429,046 | ||
Accrued interest payable [Member] | ||||
Related Party Transactions with MDI, Amount | 65,646 | 58,333 | ||
Convertible note payable [Member] | ||||
Related Party Transactions with MDI, Amount | $ 60,992 | $ 250,000 | ||
[1] | Includes borrowings to pay for direct labor. |
Related Party Transactions wi21
Related Party Transactions with Multichip Display, Inc. (MDI) (Details Narrative) - shares | Jun. 30, 2016 | Sep. 30, 2015 |
Related Party Transactions With Multichip Display Inc. Mdi Details Narrative | ||
Owned by a minority shareholder | 2,000,000 | 2,000,000 |
Shares of the company | 0.50% | 0.50% |
The total direct and indirect ownership of REAP | 1.50% | 1.50% |
Related Party Transactions wi22
Related Party Transactions with Initial Shareholder Group (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | |
Related Party Transactions With Initial Shareholder Group Details Narrative | |||||
Consulting fees payable to officers and shareholder | $ 12,250 | $ 18,850 | $ 51,658 | $ 54,850 | |
Consulting fees | 38,115 | 38,115 | $ 176,006 | ||
Payable to shareholder (Note 5) | 74,110 | 74,110 | 74,110 | ||
Short-term loan payable to officer (Note 5) | $ 45,907 | $ 45,907 | $ 25,901 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details Narrative) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Issuance of convertible notes payable | $ 232,346 | |
Issuance of convertible notes payable for cash | 127,000 | |
Issuance of convertible notes payable for expenses | 105,346 | |
Conversion of convertible note payable to common stock | $ 103,240 | |
Convertible notes payable bear interest rate, per share | $ .001 | |
Minimum [Member] | ||
Convertible notes payable bear interest rate | 10.00% | |
Maximum [Member] | ||
Convertible notes payable bear interest rate | 12.00% |
Share Capital (Details Narrativ
Share Capital (Details Narrative) - USD ($) | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | |
Share Capital Details Narrative | |||
Common stock, par value | $ 0.001 | $ .001 | |
Common stock, shares authorized | 750,000,000 | 750,000,000 | |
Issuance of common stock for services, shares | 700,000 | ||
Issuance of common stock for services, amount | $ 35,000 | ||
Conversion of convertible note payable and accrued interest to common stock, value | $ 103,240 | ||
Conversion of convertible note payable and accrued interest to common stock, shares | 176,828,872 | ||
Convertible notes payable to officers exchanged for common stock, value | $ 158,141 | ||
Convertible notes payable to officers exchanged for common stock, shares | 158,141,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes Details | ||
Expected income tax benefit at statutory rate of 34% | $ 245,400 | $ 31,800 |
Change in valuation allowance | (245,400) | (31,800) |
Income tax expense (benefit) | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Deferred tax assets: | ||
Tax benefit of net operating loss carry-forward | $ 295,100 | $ 190,600 |
Book and tax difference for amortization of intangibles | 45,200 | 35,200 |
Amortization of debt discount | 130,900 | |
Less: valuation allowance | (471,200) | (225,800) |
Net deferred tax asset | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes Details Narrative | ||
Federal net operating tax loss carry-forward | $ 868,000 | |
Net operating loss carryforwards, expiration date | 2,033 | |
Change in valuation allowance | $ (245,400) | $ (31,800) |
Income tax examination penalties and interest expense | $ 0 | $ 0 |