Renewable Energy and Power (RBNW) 10-Q 30 May 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 30, 2018
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	Mar. 31, 2018
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		1,597,878,840
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Current assets:
Cash	$ 17,163
Accounts receivable from MDI	1,613,320	1,328,053
Accounts Receivable from others, net of allowance for bad debts	3,650	11,417
Inventory	76,516	66,574
Total current assets	1,710,649	1,406,044
Property, plant and equipment, net of depreciation	206,857	229,381
Intangible asset, net of amortization		12,567
Deposits	5,000	5,000
Total Assets	1,922,506	1,652,992
Current liabilities:
Accounts payable	112,240	44,560
Accounts payable MDI	1,482,589	1,291,772
Accrued interest (MDI $1,000)	46,586	131,308
Amounts due officers and shareholder	238,875	180,175
Short term notes payable to officer	59,774	56,974
Convertible note payable, officer	5,700	5,700
Convertible note payable to MDI	25,000	103,785
Convertible note payable, net of discounts	450,200	293,600
Derivative liability	434,290	3,047,887
Total current liabilities	2,855,254	5,155,761
Shareholders' deficit:
Common stock, $0.001 par value; 10,010,000,000 shares authorized; 1,597,878,840 shares issued and outstanding at March 31, 2018 and 109,393,022 at September 30, 2017	1,597,879	109,393
Additional paid in capital	7,499,754	8,124,248
Accumulated deficit	(10,040,381)	(11,736,410)
Total shareholders' deficit	(932,748)	(3,502,769)
Total Liabilities and Shareholders’ deficit	1,922,506	1,652,992
Series A Preferred Stock [Member]
Shareholders' deficit:
Preferred stock value	$ 10,000

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Sep. 30, 2017
Shareholders' deficit:
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	10,010,000,000	10,010,000,000
Common stock, shares issued	1,597,878,840	109,393,022
Common stock, shares outstanding	1,597,878,840	109,393,022
Preferred Stock, Par Value	$ 0.001
Preferred Stock, Shares Authorized	10,000,000
Preferred Stock, Shares Outstanding	10,000,000
Series A Preferred Stock [Member]
Shareholders' deficit:
Preferred Stock, Par Value	$ 0.001
Preferred Stock, Shares Authorized	10,000,000
Preferred Stock, Shares Issued	10,000,000
Preferred Stock, Shares Outstanding	10,000,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Condensed Statements Of Operations
Revenue	$ 191,893	$ 203,052	$ 306,756	$ 374,901
Cost of revenue	159,132	176,405	269,510	326,395
Gross profit	32,761	26,647	37,246	48,506
Operating expenses:
General and administrative	87,306	72,576	225,639	211,665
Depreciation and Amortization	11,262	25,863	35,091	51,726
Total operating expenses	98,568	98,439	260,730	263,391
Operating loss	(65,807)	(71,792)	(223,484)	(214,885)
Other income (expenses):
Interest	(488,598)	(69,595)	(704,246)	(79,969)
Gain (loss) on settlement of debt		(6,227,500)	1,415,696	(6,227,500)
Change in derivative liability	660,288	(67,800)	1,208,062	(113,200)
Total	171,690	(6,364,895)	1,919,512	(6,420,669)
Net income (loss)	$ 105,883	$ (6,436,687)	$ 1,696,028	$ (6,635,554)
Per share information - basic and fully diluted:
Weighted average shares outstanding	1,278,341,920	7,101,207	854,551,863	3,653,151
Net income (loss) per share	$ 0	$ (0.91)	$ 0	$ (1.82)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flow (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Statements Of Cash Flow
Net cash used in operating activities	$ (153,637)	$ (15,347)
Cash flows from financing activities:
Proceeds from issuance of convertible debt	158,000	9,072
Repayment of convertible debt	(10,000)
Proceeds from related party loans (MDI)	25,000
Repayment of related party loan	(5,000)
Proceeds from officer loans	2,800	5,720
Net cash provided by financing activities	170,800	14,792
Net increase (decrease) in cash	17,163	(555)
Cash at beginning of period		571
Cash at end of period	17,163	16
Supplemental Cash Flow Disclosures
Interest paid
Taxes paid
Supplemental Disclosures of Non-Cash Investing and Financing Activities
Conversion of convertible note payable and accrued interest to common stock	873,992	1,250
Debt discount on convertible notes payable	312,977
Non-cash additions to convertible notes payable:
Conversion of MDI note	191,570
Note payable to stockholder		1,200
Accounts payable to officer and shareholder for convertible debt		$ 25,000

Nature of Business

Nature of Business	6 Months Ended
	Mar. 31, 2018
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 Company's 2016 Annual Report on Form 10-K. The accompanying unaudited financial statements reflect all normal recurring adjustments necessary 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, 2017. 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 management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim results for the three months ended March 31, 2018 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. The LED products will lower the use of electrical power, lower maintenance costs for users and extend the useful life of lighting fixtures. The solar process will greatly increase the conversion of heat to electricity, and is patterned after technology that has been used in space exploration for many years. Management knows of no material adjustments needed in these financial statements to conform to Generally Accepted Accounting Principles.

Going Concern

Going Concern	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 2 - Going Concern	These financial statements for the six months ended March 31, 2018 were prepared assuming the Company will continue as a going concern. During the six months ended March 31, 2018, the Company had a loss from operations of $223,484, negative working capital of $1,144,605 and has an accumulated deficit of $10,040,381 at March 31, 2018. These factors raise a substantial doubt about the Company’s ability to continue as a going concern. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. 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 Company's 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	6 Months Ended
	Mar. 31, 2018
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. All of the Company's 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 March 31, 2018 and 2017. 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 LED light fixtures. The inventories were purchased vendors in Asia. Research and Development Costs Expenditures for research activities relating to product development and improvement are charged to expense as incurred. During the three months ended March 31, 2018 and 2017, research and development costs totaled $0 and $5,025, respectively, and for the six months ended March 31, 2018 and 2017 was $0 and $14,346, respectively. Fair Value Measurement Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows: Level 1 - Quoted prices are available Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of accounts receivable, accounts payable, accrued expenses and convertible and term debt. The carrying value of our financial instruments approximates their fair value due to their relative short maturities and the nature of the debt. Derivative Financial Instruments We do not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, we used a Black Scholes valuation model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. A reconciliation of the changes in the Company’s Level 3 derivative liability at fair value is as follows: Balance at September 30, 2017 $ 3,047,887 Conversions of debt to equity (1,405,854 ) Decrease in fair value of the liability (1,642,559 ) Additions to the liability 434,816 Balance at March 31, 2018 $ 434,290

Multichip Display, Inc. (MDI)

Multichip Display, Inc. (MDI)	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 4 - Multichip Display, Inc. (MDI)	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 parts from MDI. As part of the agreement, MDI has agreed to support the operations of the Company through December 31, 2018. MDI is both a significant customer and significant vendor of the Company. For the six months ending March 31, 2018 and 2017, much of the Company's sales resulted from transactions with MDI. The Company had the following related party transactions through March 31, 2018 for the time periods shown in the tables below. Six Months Ending March 31, 2018 2017 Sales to MDI $ 306,756 $ 374,901 Inventory purchases from MDI* 29,315 323,945 Interest expense to MDI 1,000 120,868 Receivable from MDI 1,613,320 610,000 Accounts payable to MDI 1,453,274 1,047,314 Accrued interest payable to MDI 1,000 120,868 Convertible note payable to MDI, net of discount of $18,298 in 2017 25,000 109,765 ____________ * 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. The Company issued three new 8% Convertible Promissory Notes in the amounts of $15,000, $5,000 and $5,000. These notes mature on December 31, 2018 and are convertible at the lower of common stock par value of $0.001 per share or 50% of the current market price at the time of conversion. During the quarter ended March 31, 2018, two unrelated lenders purchased the prior convertible note and accrued interest from MDI. The lenders exercised the conversion rights stipulated in the note and the Company issued an aggregate of 288,052,345 shares of $.001 par value common stock related thereto.

Related Party Transactions with

Related Party Transactions with Initial Shareholder Group	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 5 - Related Party Transactions with Initial Shareholder Group	Consulting fees payable to officers and shareholder During the six months ended March 31, 2018 and 2017, the Company incurred $63,700 and $109,889, respectively, of consulting fees which are payable to two officers and two shareholders of the Company. Total consulting fees payable to these officers and shareholder as of March 31, 2018 and September 30, 2017 were $177,515 and $112,315 respectively. Payable to shareholder Payable to shareholder totaled $61,360 and $67,860 at March 31, 2018 and September 30, 2017, respectively. Short-term loan payable to officer As of March 31, 2018 and September 30, 2017, convertible officer advances to the Company totaled $5,700 and short term notes amounted to $59,774 and $56,974 respectively.

Convertible Notes Payable

Convertible Notes Payable	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 6 - Convertible Notes Payable	The carrying value of all convertible notes at March 31, 2018 and September 30, 2017 was comprised of: March 31, September 30, 2018 2017 Convertible notes payable $ 552,483 $ 598,765 Unamortized original issue discount and debt discount (102,283 ) (305,165 ) $ 450,200 $ 293,600 Interest expense for the six months ended March 31, 2018 was $704,246 and includes $442,152 of amortization of debt discount and loan fees, origination interest of $220,000 and $19,706 of amortization of original issue discount. Interest expense for the six months ended March 31, 2017 amounted to $79,969. During the years ended September 30, 2017 and 2016 and the six months ended March 31, 2018, we executed a series of Promissory Notes (the “Notes”) to seven unrelated entities. The Notes have initial terms of one year or less. The notes carry face interest rates of from 8% to 12% per annum. The Lenders have the rights, at any time and/or after 180 days at their election to convert all or part of the outstanding and unpaid principal and accrued interest into shares of our common stock. The conversion price is generally a range of between 50% and 58% of a two-day average of the lowest trading price in the 15 to 25 range of trading days prior the conversion. During the quarter ending March 31, 2018 two of the lenders have sued for payment, which terminates their conversion rights. Aggregate amounts claimed pursuant to the lawsuits amounted to $448,833 including certain penalties and interest. Amounts included in convertible notes payable for these lenders amounted to $321,516 after the write-off of unamortized loan discounts of $181,869. Additionally, the Company eliminated $467,529 of the derivative liability related to these loans. Negotiations for settlement of the suits is currently in process. During the six months ended March 31, 2018 the Company’s lenders converted an aggregate of $356,044 of the face value of notes payable plus accrued interest into an aggregate of 1,488,485,818 shares of $.001 par value common stock. We valued the derivative liability at the end of each accounting period and the difference in value is recognized as gain or loss. At March 31, 2018, we determined the valuation using the Black-Sholes valuation model with the following assumptions: dividend yield of zero, 0.01 to 0.75 years to maturity, risk free interest rate of 2.09% and annualized volatility of 144% to 456%. We recognized $1,208,062 of income for the change in value of the derivative for the six months ended March 31, 2018.

Share Capital

Share Capital	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 7 - Share Capital	The Company is authorized to issue 10,010,000,000 shares of common stock with a par value of $.001 and 10,000,000 of $.001 par value preferred stock. The Company had 1,597,878,840 shares of $.001 par value common stock outstanding and 10,000,000 shares of $.001 par value preferred stock outstanding at March 31, 2018. Additionally, at March 31, 2018 there were 5,966,136,552 contingently issuable shares related to the Company’s convertible notes payable. Common Stock Purchase Warrants For warrants granted to non-employees in exchange for services, we recorded the fair value of the equity instrument using the Black-Scholes pricing model unless the value of the services is more reliably measurable. On July 11, 2017 we issued a common stock purchase warrant to a lender as additional compensation for its services provided to date. The warrant provides for the issuance of 167,667 shares of our $.001 par value common stock at a variable exercise price based on the market price of our stock but with a “floor price” of $.01 per share. The warrants are exercisable for a period of 5 years from the date of issue. The aggregate intrinsic value of the 167,667 outstanding and exercisable warrants at September 30, 2017 was approximately $8,500. The intrinsic value is the difference between the closing stock price on September 30, 2017 and the exercise price, multiplied by the number of in-the money warrants had all warrant holders exercised their warrants on September 30, 2017. The lender will be entitled to similar warrants issuances under a master lending agreement as additional funding to the Company is received. No warrants were exercised and no additional warrants were issued during the six months ended March 31, 2018.

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2018
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 rates is as follows: For the Six Months Ended March 31, 2018 2017 Expected income tax (benefit) at statutory rates of 21% and 34%, respectively $ 356,200 $ (2,183,000 ) Change in non-deductable expenses (551,000 ) 2,155,800 Change in valuation allowance 194,800 27,200 $ - $ - The Company had a federal net operating tax loss carry-forward of approximately $3,268,000 as of March 31, 2018. The tax loss carry-forwards are available to offset future taxable income with the federal carry-forwards beginning to expire in 2033. At March 31, 2018 the deferred tax valuation allowance increased by $148,600 from September 30, 2017. 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 March 31, 2018 and September 30, 2017, 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 six months ended March 31, 2018 and 2017, 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.

Office Space lease

Office Space lease	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 9 - Office Space lease	Office space lease The Company leases office space from BKM Capital with the term commencing September 1, 2015 and ended August 31, 2020 at a monthly rate of $7,205.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2018
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. All of the Company's 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 March 31, 2018 and 2017. 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 LED light fixtures. The inventories were purchased vendors in Asia.
Research and Development Costs	Expenditures for research activities relating to product development and improvement are charged to expense as incurred. During the three months ended March 31, 2018 and 2017, research and development costs totaled $0 and $5,025, respectively, and for the six months ended March 31, 2018 and 2017 was $0 and $14,346, respectively.
Fair Value Measurement	Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows: Level 1 - Quoted prices are available Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of accounts receivable, accounts payable, accrued expenses and convertible and term debt. The carrying value of our financial instruments approximates their fair value due to their relative short maturities and the nature of the debt.
Derivative Financial Instruments	We do not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, we used a Black Scholes valuation model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. A reconciliation of the changes in the Company’s Level 3 derivative liability at fair value is as follows: Balance at September 30, 2017 $ 3,047,887 Conversions of debt to equity (1,405,854 ) Decrease in fair value of the liability (1,642,559 ) Additions to the liability 434,816 Balance at March 31, 2018 $ 434,290

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Mar. 31, 2018
Summary Of Significant Accounting Policies Tables
Reconciliation of fair value derivative liability	Balance at September 30, 2017 $ 3,047,887 Conversions of debt to equity (1,405,854 ) Decrease in fair value of the liability (1,642,559 ) Additions to the liability 434,816 Balance at March 31, 2018 $ 434,290

Multichip Display, Inc. (MDI) (

Multichip Display, Inc. (MDI) (Tables)	6 Months Ended
	Mar. 31, 2018
Multichip Display Inc. Mdi Tables
Summary of sales and accounts receivable MDI	Six Months Ending March 31, 2018 2017 Sales to MDI $ 306,756 $ 374,901 Inventory purchases from MDI* 29,315 323,945 Interest expense to MDI 1,000 120,868 Receivable from MDI 1,613,320 610,000 Accounts payable to MDI 1,453,274 1,047,314 Accrued interest payable to MDI 1,000 120,868 Convertible note payable to MDI, net of discount of $18,298 in 2017 25,000 109,765

Convertible Notes Payable (Tabl

Convertible Notes Payable (Tables)	6 Months Ended
	Mar. 31, 2018
Convertible Notes Payable Tables
Schedule of convertible notes	March 31, September 30, 2018 2017 Convertible notes payable $ 552,483 $ 598,765 Unamortized original issue discount and debt discount (102,283 ) (305,165 ) $ 450,200 $ 293,600

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Mar. 31, 2018
Income Taxes Tables
Schedule of Components of Income Tax Expense	For the Six Months Ended March 31, 2018 2017 Expected income tax (benefit) at statutory rates of 21% and 34%, respectively $ 356,200 $ (2,183,000 ) Change in non-deductable expenses (551,000 ) 2,155,800 Change in valuation allowance 194,800 27,200 $ - $ -

Nature of Business (Details Nar

Nature of Business (Details Narrative)	6 Months Ended
	Mar. 31, 2018
Nature Of Business Details Narrative
State or Country of Incorporation	Nevada
Date of incorporation	Oct. 15, 2012

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Going Concern Details Narrative
Loss from operations	$ (65,807)	$ (71,792)	$ (223,484)	$ (214,885)
Accumulated deficit	(10,040,381)		(10,040,381)		$ (11,736,410)
Working capital deficit	$ (1,144,605)		$ (1,144,605)

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details)	6 Months Ended
	Mar. 31, 2018USD ($)
Summary Of Significant Accounting Policies Details
Balance at September 30, 2017	$ 3,047,887
Conversion of debt to equity	(1,405,854)
Decrease in fair value of the liability	(1,642,559)
Additions to the liability	434,816
Balance at March 31, 2018	$ 434,290

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2016	Mar. 31, 2018	Mar. 31, 2017
Summary Of Significant Accounting Policies Details Narrative
Allowance for bad debt	$ 0	$ 0
Research and development costs	$ 0	$ 5,025	$ 0	$ 14,346

Multichip Display, Inc. (MDI)24

Multichip Display, Inc. (MDI) (Details) - USD ($)		6 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Sales [Member]
Related Party Transactions with MDI, Amount		$ 306,756	$ 374,901
Inventory purchases [Member]
Related Party Transactions with MDI, Amount	[1]	29,315	323,945
Interest Expense [Member]
Related Party Transactions with MDI, Amount		1,000	120,868
Receivable [Member]
Related Party Transactions with MDI, Amount		1,613,320	610,000
Accounts payable [Member]
Related Party Transactions with MDI, Amount		1,453,274	1,047,314
Accrued interest payable [Member]
Related Party Transactions with MDI, Amount		1,000	120,868
Convertible note payable [Member]
Related Party Transactions with MDI, Amount		$ 25,000	$ 109,765
[1]	* Includes borrowings to pay for direct labor.

Multichip Display, Inc. (MDI)25

Multichip Display, Inc. (MDI) (Details Narrative) - USD ($)	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Common stock, par value	$ 0.001	$ 0.001
Convertible Notes Payable [Member]
Interest rate	8.00%
Maturity date	Dec. 31, 2018
Terms of convertible conversion description	These notes mature on December 31, 2018 and are convertible at the lower of common stock par value of $0.001 per share or 50% of the current market price at the time of conversion.
Conversion rate	$ 0.001
Convertible Notes Payable One [Member]
Related Party Transactions with MDI, Amount	$ 15,000
Convertible Notes Payable Two [Member]
Related Party Transactions with MDI, Amount	5,000
Convertible Notes Payable Three [Member]
Related Party Transactions with MDI, Amount	$ 5,000
MULTICHIP DISPLAY, INC. [Member]
Common stock aggregate shares issued upon conversion of debt	288,052,345
Common stock, par value	$ 0.001

Related Party Transactions wi26

Related Party Transactions with Initial Shareholder Group (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Short-term loan payable to officer	$ 59,774		$ 56,974
Shareholder [Member]
Due to related party	61,360		67,860
Two officers and two shareholders [Member]
Consulting fees payable	63,700	$ 109,889
Consulting fees	177,515		112,315
Officer [Member]
Proceeds from short-term loan payable to officer	$ 5,700		$ 5,700

Convertible Notes Payable (Deta

Convertible Notes Payable (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Convertible note payable, net of discounts	$ 450,200	$ 293,600
Convertible Notes Payable [Member]
Convertible notes payable	552,483	598,765
Unamortized original issue discount and debt discount	(102,283)	(305,165)
Convertible note payable, net of discounts	$ 450,200	$ 293,600

Convertible Notes Payable (De28

Convertible Notes Payable (Details Narrative)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)$ / shares	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)Number$ / sharesshares	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)Number$ / shares	Sep. 30, 2016Number
Derivative liability	$ 434,290		$ 434,290		$ 3,047,887
Change in derivative liability, income	660,288	$ (67,800)	1,208,062	$ (113,200)
Interest expense	$ 488,598	$ 69,595	$ 704,246	79,969
Common stock, par value | $ / shares	$ 0.001		$ 0.001		$ 0.001
Convertible promissory note [Member]
Derivative liability	$ 467,529		$ 467,529
Interest expense			704,246	$ 79,969
Amortization of debt discount and loan fees			442,152
Amortization of original issue discount			19,706
Origination interest			220,000
Penalties and interest			448,833
Convertible notes payable	321,516		321,516
Unamortized loan discounts	$ 181,869		$ 181,869
Convertible promissory note [Member] | Derivative liability [Member]
Risk-free interest rate			2.09%
Expected dividend yield			0.00%
Change in derivative liability, income			$ 1,208,062
Convertible promissory note [Member] | Minimum [Member] | Derivative liability [Member]
Maturity period			3 days
Expected volatility			144.00%
Convertible promissory note [Member] | Maximum [Member] | Derivative liability [Member]
Maturity period			9 months
Expected volatility			456.00%
Convertible promissory note [Member] | 2017 Notes [Member]
Number of unrelated parties | Number			7		7
Conversion description			The Lenders have the rights, at any time and/or after 180 days at their election to convert all or part of the outstanding and unpaid principal and accrued interest into shares of our common stock		The Lenders have the rights, at any time and/or after 180 days at their election to convert all or part of the outstanding and unpaid principal and accrued interest into shares of our common stock.
Conversion price, description			The conversion price is generally a range of between 50% and 58% of a two-day average of the lowest trading price in the 15 to 25 range of trading days prior the conversion		The conversion price is generally a range of between 50% and 58% of a two-day average of the lowest trading price in the 15 to 25 range of trading days prior the conversion
Maturity period			1 year		1 year
Debt conversion converted instrument shares issue | shares			1,488,485,818
Debt conversion converted amount			$ 356,044
Common stock, par value | $ / shares	$ .001		$ .001
Convertible promissory note [Member] | 2017 Notes [Member] | Minimum [Member]
Convertible notes payable interest rate			8.00%		8.00%
Convertible promissory note [Member] | 2017 Notes [Member] | Maximum [Member]
Convertible notes payable interest rate			12.00%		12.00%
Convertible promissory note [Member] | 2016 Notes [Member]
Number of unrelated parties | Number						7
Conversion description						The Lenders have the rights, at any time and/or after 180 days at their election to convert all or part of the outstanding and unpaid principal and accrued interest into shares of our common stock
Conversion price, description						The conversion price is generally a range of between 50% and 58% of a two-day average of the lowest trading price in the 15 to 25 range of trading days prior the conversion
Maturity period						1 year
Convertible promissory note [Member] | 2016 Notes [Member] | Minimum [Member]
Convertible notes payable interest rate						8.00%
Convertible promissory note [Member] | 2016 Notes [Member] | Maximum [Member]
Convertible notes payable interest rate						12.00%

Share Capital (Details Narrativ

Share Capital (Details Narrative) - USD ($)	Jul. 11, 2017	Sep. 30, 2017	Mar. 31, 2018
Common stock, par value		$ 0.001	$ 0.001
Common stock, shares authorized		10,010,000,000	10,010,000,000
Preferred Stock, Par Value			$ 0.001
Preferred Stock, Shares Authorized			10,000,000
Preferred Stock, Shares Outstanding			10,000,000
Common stock, shares outstanding		109,393,022	1,597,878,840
Outstanding and exercisable warrants, aggregate intrinsic value		$ 8,500
Warrants Outstanding and Exercisable		167,667
Common Stock Purchase Warrants [Member]
Common stock for issuance of outstanding warrants	167,667
Warranty exercisable period	5 years
Exercise price description	The warrant provides for the issuance of 167,667 shares of our $.001 par value common stock at a variable exercise price based on the market price of our stock but with a “floor price” of $.01 per share.
Convertible Notes Payable [Member]
Contingently Issuable Shares			5,966,136,552

Income Taxes (Details)

Income Taxes (Details) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Taxes Details
Expected income tax (benefit) at statutory rates of 21% and 34%, respectively	$ 356,200	$ (2,183,000)
Change in non-deductible expenses	(551,000)	2,155,800
Change in valuation allowance	194,800	27,200
Income tax expense (benefit)

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	6 Months Ended
	Mar. 31, 2018USD ($)
Income Taxes Details Narrative
Federal net operating tax loss carry-forward	$ 3,268,000
Net operating loss carryforwards, expiration year	2,033
Deferred Tax Assets, Valuation Allowance	$ 148,600

Office Space lease (Details Nar

Office Space lease (Details Narrative) - BKM Capital [Member]	6 Months Ended
	Mar. 31, 2018USD ($)
Monthly lease rate	$ 7,205
Lease expire date	Aug. 31, 2020