Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 23, 2019 | Mar. 31, 2019 | |
Document And Entity Information | |||
Entity Registrant Name | KINETIC GROUP INC. | ||
Entity Central Index Key | 0001696195 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,084,080 | ||
Entity Common Stock, Shares Outstanding | 29,060,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Current Assets: | ||
Cash | $ 19 | $ 5,748 |
Prepaid expenses | 275 | |
Total current assets | 19 | 6,023 |
Property and equipment, net | 1,609 | |
Total Assets | 19 | 7,632 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 2,972 | 21,876 |
Accounts payable - related parties | 6,025 | |
Payroll taxes payable | 516 | |
Client's deposits | 2,050 | |
Total current liabilities | 5,022 | 28,417 |
Total Liabilities | 5,022 | 28,417 |
Commitments and Contingencies | ||
Stockholders' Equity (Deficit): | ||
Common stock, par value $0.001 per share, 75,000,000 shares authorized; 5,060,000 shares issued and outstanding as of September 30, 2019 and 2018 | 5,060 | 5,060 |
Additional paid-in capital, includes $110,475 of forgiven debt by related parties as of September 30, 2019 and $57,452 as of September 30, 2018 | 152,040 | 99,017 |
Accumulated deficit | (162,103) | (124,862) |
Total stockholders' equity (deficit) | (5,003) | (20,785) |
Total Liabilities and Stockholder's Equity (Deficit) | $ 19 | $ 7,632 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 5,060,000 | 5,060,000 |
Common stock, shares outstanding | 5,060,000 | 5,060,000 |
Debt forgiveness, related party | $ 110,475 | $ 57,452 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 10,350 | $ 55,950 |
Cost of revenue | 4,200 | 10,450 |
Gross profit | 6,150 | 45,500 |
Operating Expenses: | ||
Compensation - officers | 7,000 | 30,652 |
Professional fees | 17,850 | 17,450 |
Salaries | 22,558 | |
General and administrative | 18,541 | 64,915 |
Total operating expenses | 43,391 | 135,575 |
Income (Loss) from Operations | (37,241) | (90,075) |
Income tax provision | ||
Net Income (Loss) | $ (37,241) | $ (90,075) |
Net Loss Per Common Share: | ||
Net Loss per common share - Basic and Diluted | $ 0 | $ 0.02 |
Outstanding - Basic and Diluted | 5,060,000 | 4,864,986 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficiency - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Common Stock [Member] | ||
Beginning balance | $ 5,060 | $ 4,780 |
Beginning balance, shares | 5,060,000 | 4,780,000 |
Common stock cancellation | $ (2,750) | |
Common stock cancellation, shares | (2,750,000) | |
Common stock issued for cash at $0.001 per share | $ 2,750 | |
Common stock issued for cash at $0.001 per share, shares | 2,750,000 | |
Common stock issued for cash at $0.02 per share | $ 180 | |
Common stock issued for cash at $0.02 per share, shares | 180,000 | |
Common stock issued for services at $0.02 per share | $ 100 | |
Common stock issued for services at $0.02 per share, shares | 100,000 | |
Debt forgiveness - related party | ||
Net income (loss) | ||
Ending balance | $ 5,060 | $ 5,060 |
Ending balance, shares | 5,060,000 | 5,060,000 |
Additional Paid-in Capital [Member] | ||
Beginning balance | $ 99,017 | $ 33,495 |
Common stock cancellation | 2,750 | |
Common stock issued for cash at $0.001 per share | ||
Common stock issued for cash at $0.02 per share | 3,420 | |
Common stock issued for services at $0.02 per share | 1,900 | |
Debt forgiveness - related party | 53,023 | 57,452 |
Net income (loss) | ||
Ending balance | 152,040 | 99,017 |
Accumulated Deficit [Member] | ||
Beginning balance | (124,862) | (34,787) |
Common stock cancellation | ||
Common stock issued for cash at $0.001 per share | ||
Common stock issued for cash at $0.02 per share | ||
Common stock issued for services at $0.02 per share | ||
Debt forgiveness - related party | ||
Net income (loss) | (37,241) | (90,075) |
Ending balance | (162,103) | (124,862) |
Beginning balance | (20,785) | 3,488 |
Common stock cancellation | ||
Common stock issued for cash at $0.001 per share | 2,750 | |
Common stock issued for cash at $0.02 per share | 3,600 | |
Common stock issued for services at $0.02 per share | 2,000 | |
Debt forgiveness - related party | 53,023 | 57,452 |
Net income (loss) | (37,241) | (90,075) |
Ending balance | $ (5,003) | $ (20,785) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Deficiency (Parenthetical) | Sep. 30, 2018$ / shares |
Common stock issued for cash | $ 0.02 |
Common Stock [Member] | |
Common stock issued for cash | 0.001 |
Common Stock 1 [Member] | |
Common stock issued for cash | 0.02 |
Common Stock 2 [Member] | |
Common stock issued for cash | $ 0.02 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities: | ||
Net loss | $ (37,241) | $ (90,075) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,609 | 4,012 |
Shares issued for services | 2,000 | |
Changes in Operating Assets and Liabilities- | ||
Accounts receivable | 1,500 | |
Prepaid expenses | 275 | (100) |
Accounts payable and accrued liabilities | (18,904) | 14,374 |
Accounts payable - related party | 11,200 | 38,477 |
Clients' deposits | 2,050 | |
Payroll taxes payable | (516) | 516 |
Net Cash Provided (Used) by Operating Activities | (41,527) | (29,296) |
Investing Activities: | ||
Acquisition of property and equipment | ||
Acquisition of software | ||
Net Cash Used in Investing Activities | ||
Financing Activities: | ||
Proceeds from issuance of common stock | 6,350 | |
Cash advances - related party | 35,798 | |
Net Cash Provided by Financing Activities | 35,798 | 6,350 |
Net Change in Cash | (5,729) | (22,946) |
Cash - Beginning of Period | 5,748 | 28,695 |
Cash - End of Period | 19 | 5,748 |
Cash paid during the period for: | ||
Interest | ||
Income tax paid | ||
Non Cash Financing and Investing Activities: | ||
Accrued compensation-officers-forgiven and contributed to capital | 17,225 | 57,452 |
Restricted common stock canceled and proceeds contributed to capital | 2,750 | |
Common stock issued for services | $ 2,000 |
Organization and Operations
Organization and Operations | 12 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | Note 1 – Organization and Operations Kinetic Group Inc., a Nevada corporation, (the “Company”) was formed under the laws of the State of Nevada on June 6, 2014. Kinetic Group Inc. is a full service integrated digital marketing agency. The company offers a full range of web services, including web marketing services, social and viral marketing campaigns, search engine optimization consulting, custom web design, website usability consulting and web analytics implementation. The Company generate revenue from sales of its marketing services made directly to small and medium business customers. On March 23, 2018, the Company formed a wholly owned subsidiary, Kinetic Development Inc., an Ontario, Canada Corporation (“KDI”). The subsidiary was incorporated to facilitate payroll transactions for the employees. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principle of consolidation The accompanying consolidated financial statements include all of the accounts of the Company as of September 30, 2019 and 2018. KDI is included as of September 30, 2019 and 2018 and for the period from March 23, 2018 (date of formation) through September 30, 2018. All intercompany balances and transactions have been eliminated. Development Stage company Kinetic Group Inc. is a development stage company as defined by section 915-10-20 of the FASB Accounting Standards Codification. Although the Company has recognized nominal amounts of revenue, it is still devoting substantially all of its efforts on establishing the business. All losses accumulated since Inception (June 4, 2014) have been considered as part of the Company’s development stage activities. In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Kinetic Group has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the company to remove the inception to date information and all references to development stage. Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s).Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: (i) Assumption as a going concern Management assumes that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business . (ii) Allowance for doubtful accounts (iii) Valuation allowance for deferred tax assets: These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses, accounts payable and accrued expenses, approximate their fair value because of the short maturity of those instruments. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. Property and Equipment Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives, which range from five (5) years for computer equipment to seven (7) years for office furniture. Upon sale or retirement of office equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. Related Parties The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include: a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Commitments and Contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Revenue Recognition The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. The Company derives its revenues from sales contracts with its customer with revenues being generated upon rendering of services. Persuasive evidence of an arrangement is demonstrated via invoice; service is considered provided when the service is delivered to the customers; and the sales price to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive. A right of return exists for customers’ retainers that were received prior to commencement of services. If a customer cancels a service contract subsequent to the commencement date, the customer is entitled to a refund, except for services already provided. Income Tax Provision The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. The Company adopted the provisions of paragraph 740-10-25-13 of the FASB Accounting Standards Codification. Paragraph 740-10-25-13 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. Uncertain Tax Positions The Company did not take any uncertain tax positions and had no unrecognized tax liabilities or benefits in accordance with the provisions of Section 740-10-25 at September 30, 2019 and 2018. Earnings per Share Earnings Per Share is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. There were no potentially debt or equity instruments issued and outstanding at any time during the years ended September 30, 2019 and 2018. Cash Flows Reporting The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. Subsequent Events The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Recently Issued Accounting Pronouncements Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, will have a material effect on the accompanying financial statements. |
Going Concern
Going Concern | 12 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 3 – Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the accompanying financial statements, the Company had accumulated deficit at September 30, 2019, which raise substantial doubt about the Company’s ability to continue as a going concern. The Company is attempting to generate sufficient revenue; however, the Company’s cash position may not be sufficient to support the Company’s daily operations. Management intends to raise additional funds by way of a private or public offering. While the Company believes in the viability of its strategy to continue operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern. |
Prepaid Expenses
Prepaid Expenses | 12 Months Ended |
Sep. 30, 2019 | |
Prepaid Expenses | |
Prepaid Expenses | Note 4 – Prepaid Expenses As of September 30, 2019 the Company had $0 (September 30, 2018: $275) in prepaid filing fees, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 5 – Property and Equipment Property and equipment at September 30, 2019 and 2018 consisted of the following: Estimated September 30, September 30, Computer equipment 5 $ 5,832 $ 5,832 Less accumulated depreciation (5,832 ) (4,223 ) Computer equipment, net - 1,609 Software 1 2,495 2,495 Less accumulated amortization (2,495 ) (2,495 ) Software, net - - Total property and equipment, net $ - $ 1,609 Depreciation expense Depreciation expense for the year ended September 30, 2019 and 2018 was $1,609 and $4,012, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6 – Related Party Transactions Consulting services from President, Chief Executive Officer, Secretary and Treasurer and Chief Financial Officer Consulting services provided by the Company’s officers for the years ended September 30, 2019 and 2018 were as follows: For the For the President, Chief Executive Officer $ 5,600 $ 6,000 Former President - 26,452 Chief Financial Officer, Secretary and Treasurer 5,600 6,000 $ 11,200 * $ 38,452 * * - During the year ended September 30, 2019, $4,200 of these related parties consulting services was recognized in cost of revenues and $7,000 in officers’ compensation within operating expenses. During the year ended September 30, 2018, $7,800 of these related parties consulting services was recognized in cost of revenues and $30,652 in officers’ compensation within operating expenses. Debt Settlement As of March 31, 2018 the Company owed to the Company’s officers, Mr. Yaroslav Startsev and Mr. Nikolai Kuzmin, $31,000 (the “Debt”) for management consulting fees incurred by the Company in accordance with the effective Management Consulting Agreements between the Company and its officers. The Company’s officers agreed to donate the Debt to the Company’s contributed capital in full satisfaction of the Debt, effective March 31, 2018. As of September 28, 2018 the Company owed to the Company’s former President, Mr. Timothy Barker, $26,451.61 (the “Debt”) for management consulting fees incurred by the Company in accordance with the effective Management Consulting Agreements between the Company and its President. The Company’s former President agreed to donate the Debt to the Company’s contributed capital in full satisfaction of the Debt, effective September 28, 2018. As of September 6, 2019 the Company owed to the Company’s officers, Mr. Yaroslav Startsev and Mr. Nikolai Kuzmin, $53,023 (the “Debt”) for cash advances of $35,798 and management consulting fees of $17,225 incurred by the Company in accordance with the effective Management Consulting Agreements between the Company and its officers. The Company’s officers agreed to donate the Debt to the Company’s contributed capital in full satisfaction of the Debt, effective September 6, 2019. These Debt settlements improved the Company’s financial position and increased its working capital. The Company’s current and former officers released and forever discharged the Company, its successors and assigns from all manner of actions, suits, debts due, accounts, bonds, contracts, claims and demands whatsoever which against the Company they ever had or now have in connection to the Debt. Accounts Payable – Related Parties As of September 30, 2019 and 2018 the Company owed its directors and officers $0 and $6,025 respectively. These amounts represent unpaid consulting fees and cash advances as of the end of the reporting period. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 12 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Note 7 – Stockholders’ Equity (Deficit) Shares authorized Upon formation the total number of shares of all classes of stock which the Company is authorized to issue is seventy-five million (75,000,000) shares of common stock, par value $0.001 per share. Unregistered shares of common stock In August 2015, the Company sold 2,750,000 shares of its common stock at par to its directors for $2,750 in cash. On March 27, 2018 the Board of Directors of the Company approved the Stock Cancellation Agreements with Yaroslav Startsev (1,500,000 shares) and Nikolai Kuzmin (1,250,000 shares) canceling their shares with the Company in exchange for the Company agreeing to accept new subscription agreements. The Company retained the subscription funds paid by Yaroslav Startsev and Nikolai Kuzmin for the cancelled shares of Common Stock as contributed capital to the Company. As of March 28, 2018, the Company received subscription agreements and subscription funds representing an aggregate of 1,300,000 shares of Common Stock from Yaroslav Startsev for $1,300 and 1,050,000 shares of Common stock from Nikolai Kuzmin for $1,050 which certificates shall bear an appropriate restricted legend under the Securities Act of 1933, as amended. As of March 28, 2018 the Company also received a subscription agreement and subscription funds from Timothy Barker, former President of the Company, representing 400,000 shares of Common Stock for $400 which shall bear an appropriate restricted legend under the Securities Act of 1933 as amended. The above transactions were undertaken to allow share ownership for all the officer and directors of the Company while no resulting in any dilution to the public shareholders or the Company. The above transactions were exempt under Section 4(a)2 of the Securities Act of 1933 as amended. The following table represents a summary of the restricted stock cancellation and issuance during the year ended September 30, 2018: Balance Number of Shares Balance Title of Class Name and Title of September 30, 2017 Canceled Issued September 30, 2018 Common T.Barker, former President - 400,000 400,000 Common Y.Startsev, President, C.E.O. 1,500,000 (1,500,000 ) 1,300,000 1,300,000 Common N.Kuzmin, C.F.O. 1,250,000 (1,250,000 ) 1,050,000 1,050,000 Total Number of Shares: 2,750,000 (2,750,000 ) 2,750,000 2,750,000 In September 2018 the Company issued 100,000 restricted shares of common stock at a price of $0.02 per share for consulting services related to business development provided by a third party. Registered shares of common stock During the year ended September 30, 2017, the Company’s Registration Statement on the Form S-1 filed with the Securities and Exchange Commission was declared effective. In April 2017, the Company completed the sale of 2,030,000 shares of common stock at $0.0175 per share for total proceeds of $35,525 pursuant to this Registration Statement. Regulation D Offering On April 9, 2018 the Company filed with the Securities and Exchange Commission a notice of an exempt offering of the Company’s securities on the Form D (the “Offering”). The Company is offering 10,000,000 Shares under the Offering at a price of $0.02 per Share for an aggregate Offering price of US $200,000. The Securities are being offered by the Company through its officers and directors on a “best efforts” basis, pursuant to a non-public offering exemption from the registration requirements imposed by the Securities Act of 1933, under Regulation D, Rule 506, as amended (“1933 Act”). The Securities are not being registered and may not be sold unless they are registered under applicable Federal and State securities laws or an exemption from such laws is available. This Offering was closed on August 21, 2018. The Company sold 180,000 shares of common stock for total proceeds of $3,600 pursuant to this Offering. No additional shares of common stock were issued during the year ended September 30, 2019. |
Income Tax
Income Tax | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Note 8 – Income Tax Deferred Tax Assets At September 30, 2019 and 2018, the Company had net operating loss (“NOL”) carry–forwards for Federal income tax purposes of $162,103 and $124,862, respectively, that may be offset against future taxable income through 2034. No tax benefit has been reported with respect to these net operating loss carry-forwards in the accompanying financial statements because the Company believes that the realization of the Company’s net deferred tax assets of approximately $24,315, was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are fully offset by a full valuation allowance. Components of deferred tax assets are as follows: September 30, September 30, Net deferred tax assets – Non-current: Expected income tax benefit from NOL carry-forwards $ 24,315 $ 18,730 Less valuation allowance (24,315 ) (18,730 ) Deferred tax assets, net of valuation allowance $ - $ - Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability. The valuation allowance increased approximately $5,585 during the year ended September 30, 2019 and $13,512 during the year ended September 30, 2018. Income Tax Provision in the Statements of Operations A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: For the For the Federal statutory income tax rate 15.0 % 15.0 % Change in valuation allowance on net operating loss carry-forwards (15.0 )% (15.0 )% Effective income tax rate 0.00 % 0.00 % We follow ASC 740 Accounting for Uncertainty in Income Taxes Our policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended September 30, 2019 and 2018, we did not recognize any interest or penalties in our statement of operations, nor did we have any interest or penalties accrued in our balance sheet at September 30, 2019 and 2018 relating to unrecognized tax benefits. The tax years 2018-2019 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which we are subject. |
Concentrations
Concentrations | 12 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Note 9 – Concentrations Customers: The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenue for the years ended September 30, 2019 and 2018. For the For the Company A 19.08 % - % Company B 33.82 % - % Company C 19.32 % - % Company D 13.29 % - % Company E 14.49 % - % Company F - % 62.56 % Company G - % 23.68 % Other Companies (less than 10% each) - % 13.76 % 100.00 % 100.00 % |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10 – Subsequent Events In accordance with ASC 855-10 we have analyzed our operations subsequent to September 30, 2019 to December 12, 2019, date of these financial statement were issued, and have determined that we do not have any material subsequent events to disclose in these financial statements other than the events discussed below. On November 26, 2019, we entered into a warrant assignment and conveyance agreement (the “Warrant Agreement”) with 2672237 Ontario Limited On November 26, 2019, we also indirectly acquired 100% of the outstanding shares of Solstice Marketing Concepts LLC, a Delaware limited liability company (“Solstice”) by way of contribution of Fairway by Corette LLC, Fairway’s owner (“Corette”), in exchange for Fairway’s 2,349,800 shares of common stock of the Company. The Company now owns Fairway, which, in turn, owns 100% of Solstice. Solstice is the second largest retailer of sunglasses in the United States, carrying a wide range of contemporary and luxury brands with 72 physical stores and an online presence. On November 26, 2019, we entered into a service agreement with our general counsel, Mark Radom, for a term of three years. On December 4, we issued 24 million shares of common stock to Corette as compensation for its contribution of Solstice to the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principle of Consolidation | Principle of consolidation The accompanying consolidated financial statements include all of the accounts of the Company as of September 30, 2019 and 2018. KDI is included as of September 30, 2019 and 2018 and for the period from March 23, 2018 (date of formation) through September 30, 2018. All intercompany balances and transactions have been eliminated. |
Development Stage Company | Development Stage company Kinetic Group Inc. is a development stage company as defined by section 915-10-20 of the FASB Accounting Standards Codification. Although the Company has recognized nominal amounts of revenue, it is still devoting substantially all of its efforts on establishing the business. All losses accumulated since Inception (June 4, 2014) have been considered as part of the Company’s development stage activities. In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Kinetic Group has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the company to remove the inception to date information and all references to development stage. |
Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions | Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s).Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: (i) Assumption as a going concern Management assumes that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business . (ii) Allowance for doubtful accounts (iii) Valuation allowance for deferred tax assets: These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses, accounts payable and accrued expenses, approximate their fair value because of the short maturity of those instruments. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives, which range from five (5) years for computer equipment to seven (7) years for office furniture. Upon sale or retirement of office equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. |
Related Parties | Related Parties The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include: a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and Contingencies | Commitments and Contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Revenue Recognition | Revenue Recognition The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. The Company derives its revenues from sales contracts with its customer with revenues being generated upon rendering of services. Persuasive evidence of an arrangement is demonstrated via invoice; service is considered provided when the service is delivered to the customers; and the sales price to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive. A right of return exists for customers’ retainers that were received prior to commencement of services. If a customer cancels a service contract subsequent to the commencement date, the customer is entitled to a refund, except for services already provided. |
Income Tax Provision | Income Tax Provision The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. The Company adopted the provisions of paragraph 740-10-25-13 of the FASB Accounting Standards Codification. Paragraph 740-10-25-13 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. |
Uncertain Tax Positions | Uncertain Tax Positions The Company did not take any uncertain tax positions and had no unrecognized tax liabilities or benefits in accordance with the provisions of Section 740-10-25 at September 30, 2019 and 2018. |
Earnings Per Share | Earnings per Share Earnings Per Share is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. There were no potentially debt or equity instruments issued and outstanding at any time during the years ended September 30, 2019 and 2018. |
Cash Flows Reporting | Cash Flows Reporting The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. |
Subsequent Events | Subsequent Events The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, will have a material effect on the accompanying financial statements. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment at September 30, 2019 and 2018 consisted of the following: Estimated September 30, September 30, Computer equipment 5 $ 5,832 $ 5,832 Less accumulated depreciation (5,832 ) (4,223 ) Computer equipment, net - 1,609 Software 1 2,495 2,495 Less accumulated amortization (2,495 ) (2,495 ) Software, net - - Total property and equipment, net $ - $ 1,609 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Consulting services provided by the Company’s officers for the years ended September 30, 2019 and 2018 were as follows: For the For the President, Chief Executive Officer $ 5,600 $ 6,000 Former President - 26,452 Chief Financial Officer, Secretary and Treasurer 5,600 6,000 $ 11,200 * $ 38,452 * * - During the year ended September 30, 2019, $4,200 of these related parties consulting services was recognized in cost of revenues and $7,000 in officers’ compensation within operating expenses. During the year ended September 30, 2018, $7,800 of these related parties consulting services was recognized in cost of revenues and $30,652 in officers’ compensation within operating expenses. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Restricted Stock Cancellation and Issuance | The following table represents a summary of the restricted stock cancellation and issuance during the year ended September 30, 2018: Balance Number of Shares Balance Title of Class Name and Title of September 30, 2017 Canceled Issued September 30, 2018 Common T.Barker, former President - 400,000 400,000 Common Y.Startsev, President, C.E.O. 1,500,000 (1,500,000 ) 1,300,000 1,300,000 Common N.Kuzmin, C.F.O. 1,250,000 (1,250,000 ) 1,050,000 1,050,000 Total Number of Shares: 2,750,000 (2,750,000 ) 2,750,000 2,750,000 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Deferred Tax Assets | Components of deferred tax assets are as follows: September 30, September 30, Net deferred tax assets – Non-current: Expected income tax benefit from NOL carry-forwards $ 24,315 $ 18,730 Less valuation allowance (24,315 ) (18,730 ) Deferred tax assets, net of valuation allowance $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: For the For the Federal statutory income tax rate 15.0 % 15.0 % Change in valuation allowance on net operating loss carry-forwards (15.0 )% (15.0 )% Effective income tax rate 0.00 % 0.00 % |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration Risk Percentage | The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenue for the years ended September 30, 2019 and 2018. For the For the Company A 19.08 % - % Company B 33.82 % - % Company C 19.32 % - % Company D 13.29 % - % Company E 14.49 % - % Company F - % 62.56 % Company G - % 23.68 % Other Companies (less than 10% each) - % 13.76 % 100.00 % 100.00 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Tax benefits recognized, description | The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. | |
Unrecognized tax liabilities |
Prepaid Expenses (Details Narra
Prepaid Expenses (Details Narrative) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Prepaid Expenses | ||
Prepaid Expenses | $ 275 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,609 | $ 4,012 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Total property and equipment, net | $ 1,609 | |
Computer Equipment [Member] | ||
Property, plant and equipment, useful life | 5 years | |
Property and equipment, gross | $ 5,832 | 5,832 |
Property and equipment, accumulated amortization | $ (5,832) | (4,223) |
Software [Member] | ||
Property, plant and equipment, useful life | 1 year | |
Property and equipment, gross | $ 2,495 | 2,495 |
Property and equipment, accumulated amortization | $ (2,495) | $ (2,495) |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Sep. 06, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 28, 2018 | Mar. 31, 2018 |
Cash Advances | $ 35,798 | ||||
Consulting fees | 17,850 | 17,450 | |||
Yaroslav Startsev [Member] | |||||
Due to Related Party | $ 53,023 | $ 31,000 | |||
Cash Advances | 35,798 | ||||
Consulting fees | 17,225 | ||||
Nikolai Kuzmin [Member] | |||||
Due to Related Party | 53,023 | $ 31,000 | |||
Cash Advances | 35,798 | ||||
Consulting fees | $ 17,225 | ||||
Timothy Barker [Member] | |||||
Due to Related Party | $ 26,452 | ||||
Directors and Officers [Member] | |||||
Consulting fees | $ 0 | $ 6,025 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Related Party Transactions | [1] | $ 11,200 | $ 38,452 |
President, Chief Executive Officer [Member] | |||
Related Party Transactions | 5,600 | 6,000 | |
Former President [Member] | |||
Related Party Transactions | 26,452 | ||
Chief Financial Officer, Secretary and Treasurer [Member] | |||
Related Party Transactions | $ 5,600 | $ 6,000 | |
[1] | During the year ended September 30, 2019, $4,200 of these related parties consulting services was recognized in cost of revenues and $7,000 in officers' compensation within operating expenses. During the year ended September 30, 2018, $7,800 of these related parties consulting services was recognized in cost of revenues and $30,652 in officers' compensation within operating expenses. |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Transactions (Details) (Parenthetical) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Related Party Transactions [Abstract] | ||
Cost of revenues | $ 4,200 | $ 10,450 |
Compensation - officers | $ 7,000 | $ 30,652 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) (Details Narrative) - USD ($) | Aug. 21, 2018 | Apr. 09, 2018 | Mar. 28, 2018 | Mar. 27, 2018 | Apr. 30, 2017 | Aug. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2019 |
Common stock, shares authorized | 75,000,000 | 75,000,000 | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||
Common stock sold, shares | 180,000 | 10,000,000 | ||||||
Common stock sold in cash | $ 2,030,000 | $ 2,750 | ||||||
Subscription of values | $ 2,000 | |||||||
Restricted shares | 100,000 | |||||||
Common stock at price per share | $ 0.02 | $ 0.0175 | $ 0.02 | |||||
Total proceeds | $ 3,600 | $ 35,525 | ||||||
Offering price | $ 200,000 | |||||||
Directors [Member] | ||||||||
Common stock sold, shares | 2,750,000 | |||||||
Common stock sold in cash | $ 2,750 | |||||||
Yaroslav Startsev [Member] | ||||||||
Subscription of shares | 1,300,000 | 1,500,000 | ||||||
Subscription of values | $ 1,300 | |||||||
Nikolai Kuzmin [Member] | ||||||||
Subscription of shares | 1,050,000 | 1,250,000 | ||||||
Subscription of values | $ 1,050 | |||||||
Timothy Barker [Member] | ||||||||
Subscription of shares | 400,000 | |||||||
Subscription of values | $ 400 |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) - Schedule of Restricted Stock Cancellation and Issuance (Details) | 12 Months Ended |
Sep. 30, 2018shares | |
Number of shares, beginning balance | 2,750,000 |
Number of shares, canceled | (2,750,000) |
Number of shares, issued | 2,750,000 |
Number of shares, ending balance | 2,750,000 |
T.Barker, Former President [Member] | |
Number of shares, beginning balance | |
Number of shares, canceled | |
Number of shares, issued | 400,000 |
Number of shares, ending balance | 400,000 |
Y.Startsev, President, C.E.O. [Member] | |
Number of shares, beginning balance | 1,500,000 |
Number of shares, canceled | (1,500,000) |
Number of shares, issued | 1,300,000 |
Number of shares, ending balance | 1,300,000 |
N.Kuzmin, C.F.O. [Member] | |
Number of shares, beginning balance | 1,250,000 |
Number of shares, canceled | (1,250,000) |
Number of shares, issued | 1,050,000 |
Number of shares, ending balance | 1,050,000 |
Income Tax (Details Narrative)
Income Tax (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry-forwards | $ 162,103 | $ 124,862 |
Operating loss carry-forwards expired date, description | Future taxable income through 2034 | |
Deferred tax assets | $ 24,315 | 18,730 |
Valuation Allowance | 5,585 | 13,512 |
Unrecognized tax benefits |
Income Tax - Schedule of Compon
Income Tax - Schedule of Components of Deferred Tax Assets (Details) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Net deferred tax assets - Non-current: | ||
Expected income tax benefit from NOL carry-forwards | 24,315 | 18,730 |
Less valuation allowance | (24,315) | (18,730) |
Deferred tax assets, net of valuation allowance |
Income Tax - Schedule of Effect
Income Tax - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 15.00% | 15.00% |
Change in valuation allowance on net operating loss carry-forwards | (15.00%) | (15.00%) |
Effective income tax rate | 0.00% | 0.00% |
Concentrations - Schedule of Co
Concentrations - Schedule of Concentration Risk Percentage (Details) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Concentration Risk, Percentage | 100.00% | 100.00% |
Customer Concentration Risk [Member] | Revenue [Member] | Company A [Member] | ||
Concentration Risk, Percentage | 19.08% | 0.00% |
Customer Concentration Risk [Member] | Revenue [Member] | Company B [Member] | ||
Concentration Risk, Percentage | 33.82% | 0.00% |
Customer Concentration Risk [Member] | Revenue [Member] | Company C [Member] | ||
Concentration Risk, Percentage | 19.32% | 0.00% |
Customer Concentration Risk [Member] | Revenue [Member] | Company D [Member] | ||
Concentration Risk, Percentage | 13.29% | 0.00% |
Customer Concentration Risk [Member] | Revenue [Member] | Company E [Member] | ||
Concentration Risk, Percentage | 14.49% | 0.00% |
Customer Concentration Risk [Member] | Revenue [Member] | Company F [Member] | ||
Concentration Risk, Percentage | 0.00% | 62.56% |
Customer Concentration Risk [Member] | Revenue [Member] | Company G [Member] | ||
Concentration Risk, Percentage | 0.00% | 23.68% |
Customer Concentration Risk [Member] | Revenue [Member] | Other Companies [Member] | ||
Concentration Risk, Percentage | 0.00% | 13.76% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - shares | Nov. 26, 2019 | Dec. 04, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Common stock issued | 5,060,000 | 5,060,000 | ||
Subsequent Event [Member] | Solstice Marketing Concepts LLC [Member] | ||||
Acquired voting rights percentage | 100.00% | |||
Subsequent Event [Member] | Corette LLC [Member] | ||||
Stock issued during shares in exchange | 2,349,800 | |||
Common stock issued | 24,000,000 | |||
Subsequent Event [Member] | Delaware Limited Liability Company [Member] | ||||
Ownership rights percentage | 100.00% | |||
Subsequent Event [Member] | Warrant Agreement [Member] | Ontario Limited [Member] | ||||
Ownership rights percentage | 100.00% | |||
Subsequent Event [Member] | Service Agreement [Member] | Mark Radom [Member] | ||||
Agreement term | 3 years |