Barrel Energy (BRLL) 10-Q 21 Aug 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2019	Aug. 20, 2019
Document And Entity Information
Entity Registrant Name	Barrel Energy Inc.
Entity Central Index Key	0001631463
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2019
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		41,093,618

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 12,525	$ 3,458
Prepaid		33,333
Total current assets	12,525	36,791
Total assets	12,525	36,791
Current liabilities:
Accounts payable and accrued expenses	47,427	27,719
Consulting payable- related parties	64,361
Advances from shareholder	23,201	32,791
Convertible notes payable- net of discount of $218,736 and zero respectively	90,146	52,709
Notes payable	100,000
Derivative liability	334,338
Total current liabilities	659,473	113,219
Total liabilities	659,473	113,219
Commitment and Contingencies
Stockholders' equity (deficit):
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding
Common stock, $0.001 par value, 450,000,000 authorized, 41,093,618 issued and outstanding as of June 30, 2019 and 23,801,332 as of September 30, 2018	41,093	23,801
Additional paid in capital	870,515	272,638
Stock subscription receivable		(11,500)
Accumulated other comprehensive loss	(5,126)	(6,857)
Accumulated deficit	(1,553,430)	(354,510)
Total stockholders' equity (deficit)	(646,948)	(76,428)
Total liabilities and stockholders' equity (deficit)	$ 12,525	$ 36,791

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Current liabilities
Convertible notes payable net of discount	$ 218,736	$ 0
Stockholders' equity (deficit)
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	41,093,618	23,801,332
Common stock, shares outstanding	41,093,618	23,801,332

STATEMENTS OF OPERATIONS AND CO

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating expenses
Consulting - related parties	$ 87,155		$ 264,681
Consulting	77,627		174,824
General and administrative expense	154,647	7,319	306,788	192,025
Loss from operations	(319,429)	(7,319)	(746,293)	(192,025)
Other expense
Loss on currency			(24)
Change in fair value	(45,570)		(16,769)
Financing cost	(117,394)		(271,098)
Interest expense	(117,233)	(1,256)	(133,771)	(3,860)
Total other expense	(280,197)	(1,256)	(421,689)	(3,860)
Net loss	(599,262)	(8,575)	(1,167,982)	(195,885)
Foreign currency translation adjustment	(349)	6,188	1,731	(3,570)
Comprehensive loss	$ (599,611)	$ (2,387)	$ (1,166,251)	$ (199,455)
Net loss per common share, Basic and Diluted	$ (0.02)	$ 0	$ (0.03)	$ (0.02)
Weighted average number of common shares outstanding, basic and diluted	38,371,853	12,301,332	35,320,524	12,301,332

STATEMENTS OF SHAREHOLDERS DEFI

STATEMENTS OF SHAREHOLDERS DEFICIT (Unaudited) - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital	Accumulated Deficit	Stock Receivable	Comprehensive Gain Loss
Beginning Balance, Shares at Sep. 30, 2017		12,301,332
Beginning Balance, Amount at Sep. 30, 2017	$ 102,165	$ 12,301	$ 272,638	$ (178,477)		$ (4,298)
Comprehensive gain (loss), Amount	2,355					2,355
Net loss	(24,712)			(24,712)
Ending Balance, Shares at Dec. 31, 2017		12,301,332
Ending Balance, Amount at Dec. 31, 2017	79,808	$ 12,301	272,638	(203,189)		(1,943)
Comprehensive gain (loss), Amount	(12,112)					(12,112)
Net loss	(162,598)			(162,598)
Ending Balance, Shares at Mar. 31, 2018		12,301,332
Ending Balance, Amount at Mar. 31, 2018	(94,902)	$ 12,301	272,638	(365,787)		(14,055)
Comprehensive gain (loss), Amount	6,188					6,188
Net loss	(8,575)			(8,575)
Ending Balance, Shares at Jun. 30, 2018		12,301,332
Ending Balance, Amount at Jun. 30, 2018	(97,289)	$ 12,301	272,638	(374,362)		(7,867)
Beginning Balance, Shares at Sep. 30, 2018		12,301,332
Beginning Balance, Amount at Sep. 30, 2018	(76,428)	$ 23,801	272,638	(354,510)	(11,500)	(6,857)
Comprehensive gain (loss), Amount	3,420					3,420
Net loss	(507,637)			(507,637)
Common stock issued for cash, Shares		13,502,000
Common stock issued for service, Shares		175,000
Shares issued for stock receivable, Shares		11,500,000
Common stock issued for cash, Amount	26,000	$ 25,002	998
Common stock issued for service, Amount	131,250	175	131,075
Shares issued for stock receivable, Amount		$ (11,500)			11,500
Ending Balance, Shares at Dec. 31, 2018		37,478,332
Ending Balance, Amount at Dec. 31, 2018	(423,395)	$ 37,478	404,711	(862,147)		(3,437)
Comprehensive gain (loss), Amount	(1,340)					(1,340)
Net loss	(61,719)			(61,719)
Common stock issued for cash, Shares		440,286
Common stock issued for cash, Amount	220,143	$ 440	219,703
Ending Balance, Shares at Mar. 31, 2019		37,918,618
Ending Balance, Amount at Mar. 31, 2019	(266,311)	$ 37,918	624,414	(923,866)		(4,777)
Comprehensive gain (loss), Amount	(349)					(349)
Net loss	(598,626)			(598,626)
Common stock issued for cash, Shares		3,035,000
Common stock issued for convertible debt, Shares		140,000
Finance charges of note, Amount	134,938		134,938
Deemed dividend of warrants, Amount			30,938	(30,938)
Common stock issued for cash, Amount	78,500	3,035	75,465
Common stock issued for convertible debt, Amount	4,900	$ 140	4,760
Ending Balance, Shares at Jun. 30, 2019		41,093,618
Ending Balance, Amount at Jun. 30, 2019	$ (646,948)	$ 41,093	$ 870,515	$ (1,553,430)		$ (5,126)

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net loss	$ (1,167,982)	$ (195,885)
Adjustments to reconcile net loss to net cash used in operating activities:
Derivative change in fair value	16,769
Amortization of debt discount	134,938
Financing cost	253,583
Changes in operating assets and liabilities:
Accounts payable and accrued expense	11,644	53,111
Prepaid	33,333
Due to related party	64,361
Net cash used in operating activities	(653,354)	(142,744)
Cash flows from financing activities:
Cash received for the sale of common stock	323,643
Proceeds from notes payable	100,000
Proceeds from convertible notes payable	255,000
Repayment of related party advances and convertible note payable	(9,590)	(92,739)
Net cash provided by (used in) financing activities	669,053	(92,739)
Effects of currency translation	(6,632)	(6,587)
Net increase (decrease) in cash	9,067	(240,070)
Cash - beginning of period	3,458	250,160
Cash - end of period	12,525	8,090
SUPPLEMENT DISCLOSURES:
Interest paid		334
Income taxes paid
NON CASH INVESTING AND FINANCING ACTIVITIES
Discount recorded on inception of derivatives	36,000
Expenses paid on behalf of the Company		$ 51,898

NATURE OF BUSINESS

NATURE OF BUSINESS	9 Months Ended
	Jun. 30, 2019
NATURE OF BUSINESS
NOTE 1 - NATURE OF BUSINESS	BARREL ENERGY INC. is a Nevada corporation, incorporated January 17, 2014, which has engaged historically in the oil and gas sector of the energy industry. In January 2019 the Company terminated the agreement. It still maintains its interest in capped oil and gas properties in Alberta Canada. The Company entered into an agreement in the lithium exploration business but terminated the contract. The Company has leased land in central California to grow hemp for extracting CBD and the use of fiber in clothing and other materials. On April 11, 2019 the Company amended its articles of incorporation to increase its number of authorized shares of common stock from 75,000,000 to 450,000,000. BASIS OF PRESENTATION The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the audited September 30, 2018 financial statements and related notes included in the Company’s form 10-K filed with the SEC. Basic and diluted net income per share Basic loss per share is calculated as net loss to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted loss per share for the period equals basic loss per share as the effect of any stock based compensation awards or stock warrants would be antidilutive. As of June 30, 2019 the potential shares at conversion standing was 4,795,199.

GOING CONCERN

GOING CONCERN	9 Months Ended
	Jun. 30, 2019
GOING CONCERN
NOTE 2 - GOING CONCERN	The Company’s unaudited interim financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has negative working capital and an accumulated deficit of $1,553,430 as of June 30, 2019. The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the company’s ability to continue as a going concern. The unaudited interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

CONVERTIBLE NOTE

CONVERTIBLE NOTE	9 Months Ended
	Jun. 30, 2019
CONVERTIBLE NOTE
NOTE 3 - CONVERTIBLE NOTE	On July 1, 2014, the Company issued a USD $67,215 (CAD $75,000) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2015. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid. On September 30, 2017 the Company issued 700,000 shares of common stock with a value of $5,612 (CDN $7,000) for partial conversion of the convertible note. As of June 30, 2019, the convertible debt outstanding was USD $52,032 plus accrued interest of USD $26,113 for a total liability of USD $78,145. On November 12, 2018 the Company issued a $36,000 convertible note to Crown Partners, LLC. The note bears an original discount of $10,000, matures in 12 months from the origination date and bears interest at 5% per annuum. The note is convertible at any time, in part or whole, at $0.50 per share until the 180 th On May 15, 2019 the Company issued a $100,000 convertible note plus 500,000 warrants to Auctus Funding, LLC. The note bears an original discount of $3,500, matures February 17, 2020 and bears interest at 5% per annuum. The note is convertible at any time, at 55% of the market price which is defined as the lowest trading price 25 days prior to conversion. Interest of $1,478 has been accrued as of June 30, 2019. The warrants are convertible at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. (See Note 6: Warrants) On May 16, 2019 the Company issued a $125,000 convertible note and 625,000 warrants to FirstFire Global Opportunity Fund, LLC. The note bears an original discount of $12,500, matures in 12 months from the origination date and bears interest at 7% per annuum. The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion. Interest of $1,055 has been accrued as of June 30, 2019. The warrants are convertible at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. (See Note 6: Warrants)

RELATED PARTY

RELATED PARTY	9 Months Ended
	Jun. 30, 2019
RELATED PARTY
NOTE 4 - RELATED PARTY	During the period from October 1, 2018 through June 30, 2019 the Company paid related parties consulting fees of $264,681 of which Harp Sangha was paid $174,000 and Craig Alford was paid $66,000. Under the terms of their consulting agreements Mr. Alford is entitled to $67,500 for the period and Mr. Sangha $135,000. As of June 30, 2019 the Company owed the related parties $64,361 in accrued consulting. The monthly payments, dates of their contracts termination and relation to the Company or family of the officers are set forth below: Name Monthly Terminates Related Party Louis Silver $ 2,000 1/31/2019 no Harkrishnan Giroh $ 2,500 1/31/2019 no Jagraj Sangha $ 4,000 6/30/2019 Son of Harp Sangha Remit Bains $ 3,000 9/30/2019 Wife of Brother of Harp Sangha Flora Mushi $ 3,000 9/30/2019 no William Monroe $ 5,833 3/31/2019 No Baljinder Cheema $ 5,000 2/28/2019 no Kulraj Sangha $ 3,000 9/30/2019 Yes to Harp Sangha Craig Alford $ 7,000 9/30/2019 Officer Harp Sangha $ 15,000 9/30/2019 Officer During the period ended June 30, 2019 Harpreet Sangha, the Company’s Chairman and Chief Financial Officer, entered into an agreement and purchased 10,000,000 shares of the Company’s common stock for $10,000 and Craig Alford, the Company’s President, who entered into an agreement and purchased 4,000,000 shares of the Company’s common stock for $4,000.

EQUITY

EQUITY	9 Months Ended
	Jun. 30, 2019
EQUITY
NOTE 5 - EQUITY	During the period from September 30, 2018 to June 30, 2019, the Company entered into separate Subscription Agreements with 17 persons under which 25,000,000 shares of the Company’s common stock were sold for $0.001 per share. In addition, twenty individuals were sold 3,477,286 units, consisting of one share of common stock at $0.50 per share one warrant to purchase one share of common stock shares at $0.50 per share within three years. This included Harpreet Sangha, the Company’s Chairman, who entered into an agreement to purchase 10,000,000 shares of the Company’s common stock and Craig Alford, the Company’s President, who entered into an agreement to purchase 4,000,000 shares of the Company’s common stock. Three individuals purchasing a total of 3,250,000 shares of common stock with a value $3,250 are relatives of the company Chairman and CFO. . Subscription Agreements were approved by the Company’s Board of Directors. The sales were made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act of 1933 and, with respect to a majority of the purchasers, Regulation S. On November 13, 2018 the Company entered into a $3,000,000 equity purchase agreement with Crown Bridge Partners. Under the terms of the agreement, the Company may put to the investor shares of the Company common stock in minimums of $10,000 to maximums of either $100,000 or 200% of the average trading volume, whichever is less. The agreement may be terminated at any time by the Company or when the total commitment of shares are sold by the Company to the investor. As part of the agreement, the Company issued 175,000 shares of its common stock at $0.75 per share as a commitment fee. The value of the transaction of $131,250 was expensed as a financing cost.

WARRANTS

WARRANTS	9 Months Ended
	Jun. 30, 2019
WARRANTS
NOTE 6 - WARRANTS	During the nine months period ended June 30, 2019 the Company issued 477,286 warrants to twenty individuals as part of their purchase of 477,286 shares of common stock. The warrants mature in three years and are convertible into one share of common stock for each warrant at $0.50 per share. During the nine months period ended June 30, 2019 the Company issued 1,125,000 warrants to 2 convertible debt entities as part of the note issued. The warrants are convertible at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. The warrants were issued as an inducement of the issuance of the two notes for an aggregate of $225,000. The outstanding warrants are set out as follow: Warrants Weighted Average Exercise Price Weighted Average Remaining Contract Life Intrinsic Value Outstanding at September 30, 2018 -- -- -- -- Granted 1,602,286 0.29 4.32 -- Expired -- -- -- -- Exercised -- -- -- -- Outstanding at June 30, 2019 1,602,286 $ 0.29 4,32 $ 288,411 The Company used the Black Scholes Pricing model to estimate the fair value of the warrants as of grant date, using the following key inputs: market prices of the Company’s common stock at dates of grant between $0.28 - $3.00 per share, conversion price of $0.20-0.50, volatility of 272.63% and discount rate of 2.40%. Based on the fair value of the common stock of $221,000 and value of the warrants of $535,293 the fair value of the warrants was calculated to be 38 % of the total value or $288,411. The valuation resulted in a deemed dividend from the down round calculation of the 1,125,000 warrants of $30,938

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Jun. 30, 2019
NOTES PAYABLE
NOTE 7 - NOTES PAYABLE	On November 15, 2018 the Company received an advance from one non-related party for $65,000. On December 3, 2018 the Company received an additional advance of $35,000 from the same individual for a total of $100,000. Both advances are unsecured, on demand and bear no interest. The Company has calculated an imputed interest of $2,500 for the last period.

DERIVATIVE LIABILITIES

DERIVATIVE LIABILITIES	9 Months Ended
	Jun. 30, 2019
DERIVATIVE LIABILITIES
NOTE 8 - DERIVATIVE LIABILITIES	On November 12, 2018 the Company issued a $36,000 convertible note to Crown Partners, LLC. The note bears an original discount of $3,500, matures in 12 months from the origination date and bears interest at 5% per annuum. The note is convertible at any time, in part or whole, at $0.50 per share until the 180 th On May 15, 2019 the Company issued a $100,000 convertible note to Auctus Funding, LLC. The note bears an original discount of $3,500, matures February 17, 2020 and bears interest at 5% per annuum. The note is convertible at any time, at 5% of the market price which is defined as the lowest trading price 25 days prior to conversion. The Company used the American Option Binomial Tree Pricing model to estimate the fair value of the derivative liability as of the date of issuance and as of June 30, 2019, using the following key inputs: market price of the Company’s common stock $0.11 per share, volatility of 269,66% and discount rate of 2.37%. The fair value of the derivative liability was determined to $243,418 as of June 30, 2019. On May 16, 2019 the Company issued a $125,000 convertible note to FirstFire Global Opportunity Fund, LLC. The note bears an original discount of $12,500, matures in 12 months from the origination date and bears interest at 7% per annuum. The note is convertible at any time, in part or whole, at $0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion. The Company used the American Option Binomial Tree Pricing model to estimate the fair value of the derivative liability as of the date of issuance and as of June 30, 2019, using the following key inputs: market price of the Company’s common stock $0.11 per share, volatility of 269.66% and discount rate of 2.37%. The fair value of the derivative liability was determined to $38,742 as of June 30, 2019. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and shareholder loans. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Financial assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels: Level 1— Quoted market prices in active markets for identical assets or liabilities at the measurement date. Level 2— quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data. Level 3— Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Financial assets and liabilities measured at fair value on a recurring basis are summarized below as of September 30, 2018 and June 30, 2019: Level 1 Level 2 Level 3 Total As of September 30, 2018: Assets None $ - $ - $ - $ - Liabilities Derivative liability $ - $ - $ -- $ -- As of June 30, 2019: Assets None $ - $ - $ - $ - Liabilities Derivative liability $ - $ - $ 334,338 $ 334,338 The following table summarizes the change in the fair value of the derivative liability during the nine months ended June 30, 2019: Fair value as of September 30, 2018 $ -- Additions 462,119 Debt discount charged to derivative 106,300 Financing cost charged to derivative 70,000 Change in fair value (16,769 ) Fair value as of June 30, 2019 $ 334,338

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2019
COMMITMENTS AND CONTINGENCIES
NOTE 9 - COMMITMENTS AND CONTINGENCIES	On May 14, 2019 the Company signed a land lease in central California for 602 acres at $1,000 per acre to grow hemp for fiber usage. The lease is for 10 years with annual costs of $602,000 with the initial payment of $200,000 due September 30, 2019. The yearly rental obligations including the lease agreements are as follows: Fiscal Year 2019 $ 602,000 2020 $ 602,000 2021 $ 602,000 2022 $ 602,000 2023 and years thereafter 3,612,000 Total $ 6,020,000

SUBSEQUENT EVENT

SUBSEQUENT EVENT	9 Months Ended
	Jun. 30, 2019
SUBSEQUENT EVENT
NOTE 10 - SUBSEQUENT EVENT	The Company has evaluated subsequent events to determine events occurring after June 30, 2019 through August 20, 2019 that would have a material impact on the Company’s financial results or require disclosure and have determined none exist other than those noted above in this footnote.

NATURE OF BUSINESS (Policies)

NATURE OF BUSINESS (Policies)	9 Months Ended
	Jun. 30, 2019
NATURE OF BUSINESS (Policies)
Basis of Presentation	The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the audited September 30, 2018 financial statements and related notes included in the Company’s form 10-K filed with the SEC.
Basic and diluted net income per share	Basic loss per share is calculated as net loss to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted loss per share for the period equals basic loss per share as the effect of any stock based compensation awards or stock warrants would be antidilutive. As of June 30, 2019 the potential shares at conversion standing was 4,795,199.

RELATED PARTY (Tables)

RELATED PARTY (Tables)	9 Months Ended
	Jun. 30, 2019
RELATED PARTY (Tables)
Schedule of monthly payments for related parties	Name Monthly Terminates Related Party Louis Silver $ 2,000 1/31/2019 no Harkrishnan Giroh $ 2,500 1/31/2019 no Jagraj Sangha $ 4,000 6/30/2019 Son of Harp Sangha Remit Bains $ 3,000 9/30/2019 Wife of Brother of Harp Sangha Flora Mushi $ 3,000 9/30/2019 no William Monroe $ 5,833 3/31/2019 No Baljinder Cheema $ 5,000 2/28/2019 no Kulraj Sangha $ 3,000 9/30/2019 Yes to Harp Sangha Craig Alford $ 7,000 9/30/2019 Officer Harp Sangha $ 15,000 9/30/2019 Officer

WARRANTS (Tables)

WARRANTS (Tables)	9 Months Ended
	Jun. 30, 2019
WARRANTS (Tables)
Schedule of warrants	Warrants Weighted Average Exercise Price Weighted Average Remaining Contract Life Intrinsic Value Outstanding at September 30, 2018 -- -- -- -- Granted 1,602,286 0.29 4.32 -- Expired -- -- -- -- Exercised -- -- -- -- Outstanding at June 30, 2019 1,602,286 $ 0.29 4,32 $ 288,411

DERIVATIVE LIABILITIES (Tables)

DERIVATIVE LIABILITIES (Tables)	9 Months Ended
	Jun. 30, 2019
DERIVATIVE LIABILITIES (Tables)
Schedule of fair value financial assets and liabilities measured on recurring basis	Level 1 Level 2 Level 3 Total As of September 30, 2018: Assets None $ - $ - $ - $ - Liabilities Derivative liability $ - $ - $ -- $ -- As of June 30, 2019: Assets None $ - $ - $ - $ - Liabilities Derivative liability $ - $ - $ 334,338 $ 334,338
Schedule of derivative liabilities at fair value	Fair value as of September 30, 2018 $ -- Additions 462,119 Debt discount charged to derivative 106,300 Financing cost charged to derivative 70,000 Change in fair value (16,769 ) Fair value as of June 30, 2019 $ 334,338

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Jun. 30, 2019
COMMITMENTS AND CONTINGENCIES
Yearly Lease Rental Obligations	Fiscal Year 2019 $ 602,000 2020 $ 602,000 2021 $ 602,000 2022 $ 602,000 2023 and years thereafter 3,612,000 Total $ 6,020,000

NATURE OF BUSINESS (Details Nar

NATURE OF BUSINESS (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2019	Apr. 11, 2019	Sep. 30, 2018
Common stock, shares authorized	450,000,000		450,000,000
Common Stock [Member]
State of Incorporation
Date of Incorporation	Jan. 17, 2014
Antidilutive securities excluded from computation of earnings per share	4,795,199
Common stock, shares authorized		450,000,000

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
GOING CONCERN (Details Narrative)
Accumulated deficit	$ (1,553,430)	$ (354,510)

CONVERTIBLE NOTE (Details Narra

CONVERTIBLE NOTE (Details Narrative) - USD ($)	May 16, 2019	May 15, 2019	Nov. 12, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2017	Sep. 30, 2018
Original discount				$ 134,938
Original discount				134,938
November 12, 2018 [Member]
Principal balance				31,850
Auctus Funding, LLC [Member]
Convertible debt			$ 78,145	$ 26,113
Warrant issued		500,000
Original discount		$ 3,500
Terms of conversion feature
Interest rate		5.00%		9.50%
Terms of conversion feature
Warrant per share				$ 0.20
Total liability				$ 78,145
Warrant issued		500,000
Original discount		$ 3,500
Debt maturity date				May 17, 2020
Interest rate		5.00%		9.50%
Warrant per share				$ 0.20
Convertible debt outstanding			$ 78,145	$ 26,113
Common stock issued for debt conversion, Shares						700,000
Common stock issued for debt conversion, Amount						$ 5,612
Accrued interest				$ 1,142
Principal balance
Terms of conversion feature
Original discount			$ 10,000
Debt maturity date				Dec. 31, 2015
Convertible debt
FirstFire Global Opportunity Fund [Member]
Warrant issued
Original discount	$ 12,500
Terms of conversion feature	The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion.
Interest rate	7.00%
Terms of conversion feature	The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion.
Warrant issued
Original discount	$ 12,500
Interest rate	7.00%
Accrued interest
Terms of conversion feature	The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion.
Convertible debt	$ 125,000

RELATED PARTY (Details)

RELATED PARTY (Details)	9 Months Ended
	Jun. 30, 2019USD ($)
Louis Silver [Member] | Non-Related Parties [Member]
Monthly payment	$ 2,000
Contact termination date	Jan. 31, 2019
Harkrishnan Giroh [Member] | Non-Related Parties [Member]
Monthly payment	$ 2,500
Contact termination date	Jan. 31, 2019
Jagraj Sangha [Member] | Son Of Harp Sangha [Member]
Monthly payment	$ 4,000
Contact termination date	Jun. 30, 2019
Remit Bains [Member] | Wife Of Brother Of Harp Sangha [Member]
Monthly payment	$ 3,000
Contact termination date	Sep. 30, 2019
Flora Mushi [Member] | Non-Related Parties [Member]
Monthly payment	$ 3,000
Contact termination date	Sep. 30, 2019
William Monroe [Member] | Non-Related Parties [Member]
Monthly payment	$ 5,833
Contact termination date	Mar. 31, 2019
Baljinder Cheema [Member] | Non-Related Parties [Member]
Monthly payment	$ 5,000
Contact termination date	Feb. 28, 2019
Kulraj Sangha [Member] | Yes To Harp Sangha [Member]
Monthly payment	$ 3,000
Contact termination date	Sep. 30, 2019
Officer [Member] | Craig Alford [Member]
Monthly payment	$ 7,000
Contact termination date	Sep. 30, 2019
Officer [Member] | Harp Sangha [Member]
Monthly payment	$ 15,000
Contact termination date	Sep. 30, 2019

RELATED PARTY (Details Narrativ

RELATED PARTY (Details Narrative)	9 Months Ended
	Jun. 30, 2019USD ($)shares
Consulting fees	$ 264,681
Harpreet Sangha [Member]
Consulting fees	174,000
Accrued consulting fees	$ 135,000
Stock issued during period | shares	10,000,000
Stock issued during period value	$ 10,000
Related Parties [Member]
Accrued consulting fees	$ 64,361
Craig Alford [Member]
Stock issued during period | shares	4,000,000
Craig Alford [Member] | Officer [Member]
Consulting fees	$ 66,000
Accrued consulting fees	$ 67,500
Stock issued during period | shares	4,000,000
Stock issued during period value	$ 4,000

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Sale of stock per shares	$ .11		$ .11
Common stock shares issued	41,093,618		41,093,618		23,801,332
Common stock per shares	$ 0.001		$ 0.001		$ 0.001
Financing cost	$ (117,394)		$ (271,098)
Proceeds from issuance of common stock			$ 323,643
Subscription Agreements [Member]
Sale of stock per shares	$ 0.001		$ 0.001
Number of persons			17
Sale of stock, number issued and transaction			25,000,000
Equity Purchase Agreement [Member]
Common stock shares issued	175,000		175,000
Common stock per shares	$ 0.75		$ 0.75
Financing cost			$ 131,250
Harpreet Sangha [Member]
Stock issued during period			10,000,000
Person [Member] | Subscription Agreements [Member]
Sale of stock per shares	$ 0.50		$ 0.50
Crown Bridge Partners [Member] | Equity Purchase Agreement [Member]
Equity purchase amount	$ 3,000,000		$ 3,000,000
Equity purchase agreement description			The Company may put to the investor shares of the Company common stock in minimums of $10,000 to maximums of either $100,000 or 200% of the average trading volume, whichever is less.
Craig Alford [Member]
Stock issued during period			4,000,000
Three individuals [Member] | CFO [Member]
Common stock shares issued	3,250,000		3,250,000
Proceeds from issuance of common stock			$ 3,250
Option [Member] | Twenty Individuals [Member]
Common stock shares issued	3,477,286		3,477,286
Common stock per shares	$ .50		$ .50
Number of persons			20
Description of related parties			In addition, twenty individuals were sold 442,286 units, consisting of one share of common stock at $0.50 per share one warrant to purchase one share of common stock shares at $0.50 per share within three years
Exercise price of warrants	$ 0.50		$ 0.50

WARRANTS (Details)

WARRANTS (Details) - Warrant [Member]	9 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares
Number of Shares
Outstanding, Beginning | shares
Granted | shares	1,602,286
Expired | shares
Exercised | shares
Outstanding, Ending | shares	1,602,286
Weighted Average Exercise Price
Outstanding, Beginning
Granted	0.29
Expired
Exercised
Outstanding, Ending
Weighted Average Remaining Contractual Life
Granted	4 years 3 months 26 days
Granted	$ 0.29
Expired
Exercised
Outstanding, Ending
Intrinsic Value
Outstanding, Beginning | $
Granted | $
Expired | $
Outstanding at End of Year | $
Exercisable at End of Year | $	$ 288,411

WARRANTS (Details Narrative)

WARRANTS (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2019	Sep. 30, 2018
Discount rate	2.37%
Common stock per shares	$ 0.001	$ 0.001
Common stock shares issued	41,093,618	23,801,332
Warrant [Member]
Discount rate	2.40%
Description of fair value of warrants
Conversion price	$ .50
Volatility rate	272.63%
Fair value of common stock	$ 221,000
Fair value of warrants	535,293
Warrants outstanding	$ 288,411
Warrant [Member] | Twenty Individuals [Member]
Common stock per shares	$ 0.50
Common stock shares issued	477,286
Description of maturity	The warrants mature in three years and are convertible into one share of common stock for each warrant at $0.50 per share.
Warrant [Member] | Minimum [Member]
Common stock per shares	$ .28
Warrant [Member] | Maximum [Member]
Common stock per shares	$ 3
Convertible Debt Entities [Member]
Debt conversion converted instrument warrants issued, Shares	1,125,000
Debt conversion converted instrument warrants issued, Amount	$ 30,938
Discount rate	2.20%
Issuance of Notes	$ 225,000
Warrant per share	$ 0.20
Description of fair value of warrants	Based on the fair value of the common stock of $221,000 and value of the warrants of $535,293 the fair value of the warrants were calculated to be 70.7 % of the total value or $378,872 .

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	Jun. 30, 2019	Dec. 03, 2018	Nov. 15, 2018
Non-Related Parties [Member]
Advance received for related party	$ 100,000	$ 35,000	$ 65,000

DERIVATIVE LIABILITIES (Details

DERIVATIVE LIABILITIES (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
None
Liabilities
Derivative liability	334,338
Level 1 [Member]
None
Liabilities
Derivative liability
Level 2 [Member]
None
Liabilities
Derivative liability
Level 3 [Member]
None
Liabilities
Derivative liability	$ 334,338

DERIVATIVE LIABILITIES (Detai_2

DERIVATIVE LIABILITIES (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
DERIVATIVE LIABILITIES (Details 1)
Fair value as of September 30, 2018
Additions			462,119
Debt discount charged to derivative			36,000
Financing cost charged to derivative			70,000
Change in fair value	$ 45,570		16,769
Fair value as of June 30, 2019	$ 334,338		$ 334,338

DERIVATIVE LIABILITIES (Detai_3

DERIVATIVE LIABILITIES (Details Narrative) - USD ($)	May 16, 2019	May 15, 2019	Nov. 12, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Volatility rate				269.66%
Discount rate				2.37%
Note origination fee				$ 61,178
Common stock price per share				$ .11
Fair value of derivative liability				$ 243,418
Original discount				$ 134,938
Auctus Funding, LLC [Member]
Volatility rate				269.66%
Discount rate				2.37%
Note origination fee				$ 243,418
Convertible debt
Original discount		$ 3,500
Debt maturity date				Feb. 17, 2020
Interest rate		5.00%		9.50%
Terms of conversion feature
FirstFire Global Opportunity Fund [Member]
Volatility rate				269.66%
Discount rate				2.37%
Note origination fee				$ 38,742
Convertible debt	$ 125,000
Original discount	$ 12,500
Debt maturity date				May 17, 2020
Interest rate	7.00%
Terms of conversion feature	The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion.
Crown Partners, LLC [Member]
Convertible debt			$ 36,000
Original discount			$ 10,000
Interest rate			5.00%
Terms of conversion feature			The note is convertible at any time, in part or whole, at $0.50 per share until the 180th date of the note at which time it is convertible an 55% of the market price which is defined as the lowest trading price 25 days prior to conversion.

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2018USD ($)
COMMITMENTS AND CONTINGENCIES
2019	$ 602,000
2020	602,000
2021	602,000
2022	602,000
2023 and years thereafter	3,612,000
Total	$ 6,020,000

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details Narrative)	9 Months Ended
	Jun. 30, 2019USD ($)
COMMITMENTS AND CONTINGENCIES
Lease term	10 years
Lease costs	$ 602,000
Description of lease	land lease in central California for 602 acres at $1,000 per acre to grow hemp for fiber usage.
Initial Lease Payment	$ 200,000