Barrel Energy (BRLL) 10-Q 27 Feb 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2019	Feb. 26, 2020
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	Dec. 31, 2019
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		57,486,618
EntityFileNumber	333-201740
EntityAddressAddressLine1	8275 S. Eastern Ave
EntityAddressAddressLine2	Suite 200
EntityAddressPostalZipCode	89123
EntityTaxIdentificationNumber	471963189
EntityAddressCityOrTown	Las Vegas
LocalPhoneNumber	5952247
CityAreaCode	702
EntityAddressStateOrProvince	NEVADA

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 9
Prepaid
Total current assets	9
Right of use lease	3,969,988
Total assets	3,969,997
Current liabilities:
Bank overdraft		182
Accounts payable and accrued expenses	463,248	315,775
Consulting payable- related parties	215,513	121,425
Advances from shareholder	31,201	48,702
Convertible notes payable- net of discount	208,458	175,494
Notes payable		100,000
Lease liability	544,213
Derivative liability	229,922	434,999
Total current liabilities	1,692,556	1,196,577
Lease liability	3,425,775
Total liabilities	5,118,332	1,196,577
Commitment and Contingencies
Stockholder's 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, 52,486,618 issued and outstanding as of December 31, 2019 and 41,093,618 as of September 30, 2019	52,486	41,093
Additional paid in capital	17,419,230	870,515
Accumulated other comprehensive loss	(12,770)	(5,361)
Accumulated deficit	(18,607,281)	(2,102,824)
Total stockholders' deficit	(1,148,335)	(1,196,577)
Total liabilities and stockholders' deficit	$ 3,969,997

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Sep. 30, 2019
Stockholders' equity (deficit)
Preferred stock, shares 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, shares par value	$ 0.001	$ 0.001
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	52,486,618	41,093,618
Common stock, shares outstanding	52,486,618	41,093,618

STATEMENTS OF OPERATIONS AND CO

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating expenses:
Consulting - related parties	$ 96,000	$ 103,333
Consulting		31,500
Rent expense	150,965
General and administrative expense	15,932	54,736
Loss from operations	(262,897)	(189,569)
Other income (expense)
Gain on debt forgiveness	(20,600)
Gain (loss) on currency	13,759	(24)
Change in fair value	205,077	(158,022)
Financing cost	(68,737)	(153,704)
Interest expense	(7,459)	(6,318)
Total other income (expense)	122,040	(318,068)
Net loss	(140,857)	(507,637)
Foreign currency translation adjustment	(7,409)	3,421
Comprehensive loss	$ (148,266)	$ (510,058)
Net loss per common share, Basic and Diluted	$ 0	$ (0.02)
Weighted average number of common shares outstanding, basic and diluted	49,161,871	29,828,277

STATEMENTS OF SHAREHOLDERS DEFI

STATEMENTS OF SHAREHOLDERS DEFICIT (Unaudited) - USD ($)	Total	Comprehensive Gain (Loss)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Stock Receivable [Member]
Balance, shares at Sep. 30, 2018			12,301,332
Balance, amount at Sep. 30, 2018	$ (76,428)	$ (6,857)	$ 23,801	$ 272,638	$ (354,510)	$ (11,500)
Common stock issued for cash, Shares			13,502,000
Common stock issued for cash, Amount	26,000		$ 25,002	998
Common stock issued for service, Shares			175,000
Common stock issued for service, Amount	131,250		$ 175	131,075
Shares issued for stock receivable, Shares			11,500,000
Shares issued for stock receivable, Amount			$ (11,500)			11,500
Comprehensive gain (loss)	3,420	3,420
Net Income (Loss)	$ (507,637)				$ (507,637)
Balance, shares at Dec. 31, 2018			37,478,332
Balance, amount at Dec. 31, 2018	$ (423,395)	$ (3,437)	$ 37,478	$ 404,711	$ (862,147)
Balance, shares at Sep. 30, 2019			41,093,618
Balance, amount at Sep. 30, 2019	$ (1,196,577)	$ (5,361)	$ 41,093	$ 870,515	$ (2,102,824)
Common stock issued for cash, Shares			2,000,000
Common stock issued for cash, Amount	40,000		$ 2,000	38,000
Comprehensive gain (loss)	(7,409)	(7,409)
Net Income (Loss)	(140,857)				(140,857)
Common stock issued for convertible debt, Shares			9,393,000
Common stock issued for convertible debt, Amount	156,508		$ 9,393	147,115
Deemed dividend on warrants				$ 16,363,600	$ (16,363,600)
Balance, shares at Dec. 31, 2019			52,486,618
Balance, amount at Dec. 31, 2019	$ (1,148,335)	$ (12,770)	$ 52,486	$ 17,419,230	$ (18,607,281)

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net loss	$ (140,857)	$ (507,637)
Adjustments to reconcile net loss to net cash used in operating activities:
Derivative change in fair value	(205,077)	158,022
Amortization of debt discount	68,737	4,833
Loss on debt settlement	20,600
Financing cost		153,704
Changes in operating assets and liabilities:
Accounts payable and accrued expense	152,475	(1,136)
Bank overdraft	(182)
Prepaid		33,333
Due to related party	94,088	9,000
Net cash used in operating activities	(10,216)	(149,881)
Cash flows from financing activities:
Cash received for the sale of common stock	40,000	26,000
Proceeds from notes payable		100,000
Proceeds from convertible notes payable		30,000
Repayment of related party advances and convertible note payable	(17,501)	(9,590)
Net cash provided by (used in) financing activities	22,499	146,410
Effects of currency translation	(12,274)	627
Net increase (decrease) in cash	9	(2,844)
Cash - beginning of period		3,458
Cash - end of period	9	614
SUPPLEMENT DISCLOSURES:
Interest paid
Income taxes paid
NON CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued for conversion of debt	156,508
Discount recorded on inception of derivatives		$ 36,000

NATURE OF BUSINESS

NATURE OF BUSINESS	3 Months Ended
	Dec. 31, 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 months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2020. 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, 2019 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 December 31, 2019 the potential shares at conversion Cstanding was 22,197,802. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)". The amendments in this ASU revise the accounting related to lessee accounting. Under the new guidance, lessees is required to recognize a lease liability and a right-of-use asset for all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018 and are to be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. The Company has adopted the new accounting pronouncement on October 1, 2019 and is recording a right of use lease asset and lease liability as of December 31, 2019.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Dec. 31, 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 1,692,547 as of December 31, 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	3 Months Ended
	Dec. 31, 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, as, in part or whole, until the date of maturity into common stock of the Company at CAD $0.00275 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 December 31, 2019, the convertible debt outstanding was USD $22,697 plus accrued interest of USD $27,948 for a total liability of USD $50,645. 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 12% 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 December 31, 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 in part or whole, at $0.25 per share for the first 180 days 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 December 31, 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) During the quarter ended December 31, 2019 the Company issued 9,393,000 shares of common stock with a value of $156,508 for the reduction of the notes.

RELATED PARTY

RELATED PARTY	3 Months Ended
	Dec. 31, 2019
RELATED PARTY
NOTE 4 - RELATED PARTY	During the period from October 1, 2018 through December 31, 2018 the Company paid the officers consulting fees of $57,000 of which Harp Sangha was paid $42,000 and Craig Alford was paid $15,000. Under the terms of their consulting agreements Mr. Alford is entitled to $21,000 for the period and Mr. Sangha $45,000. As of December 31, 2018 the Company owed the two related parties $9,000 in accrued consulting. In addition the Company paid five individuals consulting fees of $35,500 during the same period. The aggregate due the non-related party consultants per their agreements for the period is $31,500 and one related party $4,000. The terms of the consulting agreements all terminated on or before December 31, 2018 with no future commitments after that date. During the period ended December 31, 2018 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. During the year ended September 30, 2019, the Company signed a land lease agreement for the production of hemp. The lease is a 10 year lease with annual payments of $602,000 and was modified for the initial payments of $301,000 each in May and June 2020. A director of the Company is related to the owner of the land leased. During the quarter ended December 31, 2019 the Company accrued $96,000 in consulting fees for three officers for a total of $215,513 due the related parties.

EQUITY

EQUITY	3 Months Ended
	Dec. 31, 2019
EQUITY
NOTE 5 - EQUITY	During the period from September 30, 2018 to December 31, 2018, the Company entered into separate Subscription Agreements with 17 persons under which 25,002,000 shares of the Company's common stock were sold for $0.001 per share plus one person was sold 2,000 shares at $0.50 per share plus an option to purchase 2,000 shares at $0.50 per share. 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. The subscription agreements dated September 30, 2018 for 11,500,000 shares of common stock with a value of $11,500 were treated as stock subscriptions receivable and funds were received in the period ending December 31, 2018. 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. During the quarter ended December 31, 2019 the Company issued 9,393,000 shares of common stock with a value of $156,508 for debt reduction. On December 10 2019 the Company issued 2,000,000 shares of common stock to a related party with a value of 40,000 for cash.

WARRANTS

WARRANTS	3 Months Ended
	Dec. 31, 2019
WARRANTS
NOTE 6 - WARRANTS	During the year ended September 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 year ended September 30, 2019 the Company issued 1,125,000 warrants to 2 convertible debt entities as part of the note issued. The warrants were issued as an inducement of the issuance of the two notes for an aggregate of $225,000. 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 also contain an antidilution clause allowing the holder to adjust the number of warrants and or price should the Company issue any convertible instrument at a lower value or conversion price than the warrants issue. 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. During the period ended September 30, 2019 the valuation resulted in a deemed dividend from the down round calculation of the 1,125,000 warrants of $30,938. The 1,125,000 warrants provided a provision that adjusted the conversion price if any other convertible instrument provides for a lower conversion price. As the Company agreed to the conversion price on a convertible note at $0.00275 during the quarter ended December 31, 2019, the warrants became eligible for that conversion price and triggered a down round and deemed dividend of $16,363,600. 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 December 31, 2019 1,602,286 $ 0.29 4,17 $ --

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Dec. 31, 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. During the quarter ended December 31, 2019 the Company issued 800,000 shares of common stock with a value of $100,000 for the payment of the note and implied interest. The transaction resulted in a loss on settlement of debt of $25,600.

DERIVATIVE LIABILITIES

DERIVATIVE LIABILITIES	3 Months Ended
	Dec. 31, 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 Black Scholes model to estimate the fair value of the derivative liability as of the date of issuance and as of December 31, 2019, using the following key inputs: market price of the Company’s common stock $0.20per share, volatility of 276% and discount rate of 2.00%. The fair value of the derivative liability was determined to $127,241 as of December 31, 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 Black Scholes model to estimate the fair value of the derivative liability as of the date of issuance and as of December 31, 2019, using the following key inputs: market price of the Company’s common stock $0.20 per share, volatility of 276% and discount rate of 2.00%. The fair value of the derivative liability was determined to $62,679 as of December 31, 2019. On December 3, 2019 the Company issued 93,000 shares of common stock with a value of $7,533 to retire principal and interest of the note 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, 2019 and December 31, 2019: Level 1 Level 2 Level 3 Total As of September 30, 2019: Assets None $ - $ - $ - $ - Liabilities Derivative liability $ - $ - $ 434,499 $ 434,499 As of December 31, 2019: Assets None $ - $ - $ - $ - Liabilities Derivative liability $ - $ - $ 229,922 $ 229,922 The following table summarizes the change in the fair value of the derivative liability during the three months ended December 31, 2019: Fair value as of September 30, 2019 $ 434,999 Change in fair value (205,077 ) Fair value as of December 31, 2019 $ 229,922

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 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 $301,000 on March 30, 2020 and second payment of $301,000 on June 30, 2020 with the balance of the annual payments being made on April 1 of each subsequent year. The lease holder is a related party to one of the directors of the Company. The yearly rental obligations including the lease agreements are as follows: Fiscal Year 2020 $ 451,500 2021 $ 602,000 2022 $ 602,000 2023 $ 602,000 2024 and years thereafter 3,612,000 Total $ 5,869,500 As noted in the recent accounting pronouncements the Company adapted ASC 842 on October 1, 2019 using the modified retrospective approach and has elected the practical expedient package by allowing for historical lease classification for this lease as the date of transition. The present value calculation discount rate used is considered the standard rate at which the Company can borrow funds.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Dec. 31, 2019
SUBSEQUENT EVENT
NOTE 10 - SUBSEQUENT EVENT	On January 14, 2020 the company issued 5,000,000 shares of common stock to two entities with a value of $13,750 for the conversion of debt. The Company has evaluated subsequent events to determine events occurring after December 31, 2019 through February 26, 2020 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)	3 Months Ended
	Dec. 31, 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 months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2020. 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, 2019 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 December 31, 2019 the potential shares at conversion standing was 22,197,802.
Recent Accounting Pronouncements	In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)". The amendments in this ASU revise the accounting related to lessee accounting. Under the new guidance, lessees is required to recognize a lease liability and a right-of-use asset for all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018 and are to be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. The Company has adopted the new accounting pronouncement and is recording a lease use asset and lease liability as of December 31, 2019.

WARRANTS (Tables)

WARRANTS (Tables)	3 Months Ended
	Dec. 31, 2019
WARRANTS
Schedule of Warrants Outstanding	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 December 31, 2019 1,602,286 $ 0.29 4,17 $ --

DERIVATIVE LIABILITIES (Tables)

DERIVATIVE LIABILITIES (Tables)	3 Months Ended
	Dec. 31, 2019
DERIVATIVE LIABILITIES
Schedule of fair value financial assets and liabilities measured on recurring basis	Level 1 Level 2 Level 3 Total As of September 30, 2019: Assets None $ - $ - $ - $ - Liabilities Derivative liability $ - $ - $ 434,499 $ 434,499 As of December 31, 2019: Assets None $ - $ - $ - $ - Liabilities Derivative liability $ - $ - $ 229,922 $ 229,922
Schedule of derivative liabilities at fair value	Fair value as of September 30, 2019 $ 434,999 Change in fair value (205,077 ) Fair value as of December 31, 2019 $ 229,922

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES
Schedule of Rental Obligation Of Lease	Fiscal Year 2020 $ 451,500 2021 $ 602,000 2022 $ 602,000 2023 $ 602,000 2024 and years thereafter 3,612,000 Total $ 5,869,500

NATURE OF BUSINESS (Details Nar

NATURE OF BUSINESS (Details Narrative) - shares	3 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Apr. 11, 2019
NATURE OF BUSINESS (Details Narrative)
Common stock, shares authorized	450,000,000	450,000,000	75,000,000
State of Incorporation	Nevada
Date of Incorporation	Jan. 17, 2014
Antidilutive securities excluded from computation of earnings per share	22,197,802

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative)	Dec. 31, 2019USD ($)
GOING CONCERN (Details Narrative)
Working capital deficit	$ (1,692,547)

CONVERTIBLE NOTE (Details Narra

CONVERTIBLE NOTE (Details Narrative) - USD ($)	May 16, 2019	May 15, 2019	Nov. 12, 2018	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2017	Jul. 01, 2014
Stock issued during reduction of notes, amount				$ 156,508
Stock issued during reduction of notes, shares				9,393,000
Original discount				$ 68,737	$ 4,833
Crown Partners, LLC [Member]
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 anat 55% of the market price which is defined as the lowest trading price 25 days prior to conversion.
Accrued interest				1,938
Convertible debt			36,000
Principal balance				$ 31,850
Original discount			10,000
Auctus Funding, LLC [Member]
Convertible debt		$ 100,000
Interest rate		5.00%
Warrant issued		500,000
Original discount		$ 3,500
Interest rate		12.00%
Terms of conversion feature		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.
Warrant per share				$ 0.20
Debt maturity date		Feb. 17, 2020
Accrued interest				$ 1,478
Convertible debt		$ 100,000
FirstFire Global Opportunity Fund [Member]
Interest rate	7.00%
Warrant issued	625,000
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.
Warrant per share				$ 0.20
Accrued interest	$ 1,055
Convertible debt	125,000
Convertible Note [Member]
Common Stock shares issued							67,215
Convertible debt				22,697
Convertible price							$ 0.00275
Interest rate							9.50%
Common stock issued for debt conversion, Shares						700,000
Common stock issued for debt conversion, Amount						$ 5,612
Accured interest				27,948
Total liability				$ 50,648

RELATED PARTY (Details Narrativ

RELATED PARTY (Details Narrative) - USD ($)	May 14, 2019	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Consulting Fees			$ 31,500
Initial Lease Payment		301,000
Lease liability	$ 602,000	$ 602,000
Initial lease payment description		The lease is a 10 year lease with annual payments of $602,000 and was modified for the initial payments of $301,000 each in May and June 2020.
Lease term	10 years	10 years
Consulting - related parties		$ 96,000	103,333
Consulting payable- related parties		215,513		$ 121,425
Related Parties [Member]
Accrued consulting fees			9,000
Three Officers [Member]
Consulting - related parties		96,000
Consulting payable- related parties		215,513
Five Individuals [Member]
Consulting Fees			35,500
Officer [Member]
Consulting Fees			57,000
Stock issued during period value			4,000
Accrued consulting fees			$ 21,000
Stock issued during period			4,000,000
Harpreet Sangha [Member]
Consulting Fees			$ 42,000
Stock issued during period value			10,000
Accrued consulting fees			$ 45,000
Stock issued during period			10,000,000
Craig Alford [Member]
Consulting Fees			$ 15,000
Stock issued during period value			$ 4,000
Stock issued during period			4,000,000

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)	Dec. 10, 2019	Dec. 31, 2019	Dec. 31, 2018	Oct. 12, 2019	Sep. 30, 2019
Common stock shares issued		52,486,618			41,093,618
Common stock per share		$ 0.001			$ 0.001
Common stock, shares value		$ 52,486			$ 41,093
Officer [Member]
Common stock, shares purchased			4,000,000
Harpreet Sangha [Member]
Common stock, shares purchased			10,000,000
Subscription Agreements [Member]
Number of persons			17
Sale of stock per share			$ 0.001
Sale of stock, number issued and transaction			25,002,000
Subscription Agreement [Member]
Stock issued during debt reduction, shares	2,000,000	9,393,000	11,500,000
Stock issued during debt reduction, amount	$ 40,000	$ 156,508	$ 11,500
Equity Purchase Agreement [Member]
Common stock shares issued			175,000
Common stock per share			$ 0.75
Financing cost			$ 131,250
Equity Purchase Agreement [Member] | Crown Bridge Partners [Member]
Equity purchase amount			$ 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.
Three individuals [Member] | CFO [Member]
Common stock, shares purchased			3,250,000
Common stock, shares value			$ 3,250
Option [Member] | Twenty Individuals [Member]
Number of persons			20
Common stock shares issued			2,000
Options issued			2,000
Common stock per share			$ .50
Exercise price of option			$ 0.50

WARRANTS (Details)

WARRANTS (Details) - Warrant [Member]	3 Months Ended
	Dec. 31, 2019USD ($)$ / sharesshares
Number of Shares
Outstanding, beginning
Granted	1,602,286
Expired
Exercised
Outstanding, ending | $	$ 1,602,286
Weighted Average Exercise Price
Weighted average exercise price outstanding, beginning | $ / shares
Granted | $ / shares	0.29
Weighted average exercise price outstanding, ending | $ / shares	$ 0.29
Weighted Average Remaining Contractual Life
Weighted Average Remaining Contractual Life outstanding, beginning
Granted	4 years 3 months 26 days
Expired
Exercised
Weighted Average Remaining Contractual Life outstanding, ending	4 years 2 months 1 day
Intrinsic Value
Outstanding, beginning | $
Outstanding, ending | $

WARRANTS (Details Narrative)

WARRANTS (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2019	Sep. 30, 2019
Deemed dividend	$ 16,363,600
Convertible note conversion price per share	$ 0.00275
Warrant issued	1,125,000
Discount rate	2.00%
Warrant [Member]
Discount rate		2.40%
Volatility rate		272.63%
Fair value of common stock		$ 221,000
Fair value of warrants		$ 535,293
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 was calculated to be 38 % of the total value or $288,411.
Warrants outstanding	$ 288,411
Warrant [Member] | Twenty Individual [Member]
Warrant 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.
Convertible Debt Entities [Member]
Warrant issued		1,125,000
Debt conversion converted instrument warrants issued, value		$ 30,938
Issuance of Notes		$ 225,000
Warrant per share	$ 0.20
Warrants [Member] | Minimum [Member]
Market prices per share	0.28
Conversion price	0.20
Warrants [Member] | Maximum [Member]
Market prices per share	3
Conversion price	$ 0.50

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Dec. 03, 2018	Nov. 15, 2018	Sep. 30, 2018
Common stock, share issued, value	$ 100,000
Imputed interest	2,500
Loss on settlement of debt	$ 25,600
Common stock, share issued
Non-Related Parties [Member]
Common stock, share issued	800,000
Advance received for non-related party	$ 100,000			$ 35,000	$ 65,000

DERIVATIVE LIABILITIES (Details

DERIVATIVE LIABILITIES (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
None
Derivative liability	229,922	434,499
Level 1 [Member]
None
Derivative liability
Level 2 [Member]
None
Derivative liability
Level 3 [Member]
None
Derivative liability	$ 229,922	$ 434,499

DERIVATIVE LIABILITIES (Detai_2

DERIVATIVE LIABILITIES (Details 1)	3 Months Ended
	Dec. 31, 2019USD ($)
DERIVATIVE LIABILITIES
Fair value as of September 30, 2019	$ 434,999
Change in fair value	(205,077)
Fair value as of December 31, 2019	$ 229,922

DERIVATIVE LIABILITIES (Detai_3

DERIVATIVE LIABILITIES (Details Narrative) - USD ($)	May 16, 2019	May 15, 2019	Nov. 12, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 03, 2019	Sep. 30, 2019
Discount rate				2.00%
Volatility rate				276.00%
Original discount				$ 68,737	$ 4,833
Common stock, share issued value				$ 52,486			$ 41,093
Auctus Funding, LLC [Member]
Discount rate				2.00%
Volatility rate				276.00%
Derivative liability				$ 127,241
Convertible debt		$ 100,000
Original discount		$ 3,500
Debt maturity date				Feb. 17, 2020
Interest rate		5.00%
Terms of conversion feature		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.
Market price per share				$ 0.20
FirstFire Global Opportunity Fund [Member]
Discount rate				2.00%
Volatility rate				276.00%
Derivative liability				$ 62,679
Convertible debt	$ 125,000
Original discount	$ 12,500
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.
Market price per share				$ 0.20
Common stock, share issued						93,000
Common stock, share issued value						$ 7,533
Crown Partners, LLC [Member]
Discount rate				2.00%
Volatility rate				276.00%
Derivative liability				$ 40,002
Convertible debt			$ 36,000
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 at 55% of the market price which is defined as the lowest trading price 25 days prior to conversion.
Market price per share				$ 0.20
Frequency of maturity			12 months
Original discount			$ 3,500

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2019USD ($)
COMMITMENTS AND CONTINGENCIES
2020	$ 451,500
2021	602,000
2022	602,000
2023	602,000
2024 and years thereafter	3,612,000
Total	$ 5,869,500

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	May 14, 2019	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES
Lease term	10 years	10 years
Lease liability	$ 602,000	$ 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	$ 301,000
Maturity of initial payment	Mar. 30, 2020
Second payment for lease land	$ 301,000
Maturity of second payment	Jun. 30, 2020

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Two entities [Member]	Jan. 14, 2020USD ($)shares
Debt conversion, converted instrument, shares issued | shares	5,000,000
Debt conversion, converted instrument, amount | $	$ 13,750