Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2021 | May 07, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Bantec, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 1,727,798,821 | |
Amendment Flag | false | |
Entity Central Index Key | 0001704795 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity File Number | 000-55789 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Current Assets | ||
Cash | $ 231,404 | $ 164,014 |
Accounts receivable | 207,542 | 349,389 |
Inventory | 112,506 | 44,599 |
Prepaid expenses and other current assets | 7,413 | 35,403 |
Total Current Assets | 558,865 | 593,405 |
Property and equipment, net | 3,919 | 8,835 |
Right of use lease asset | 112,077 | 138,776 |
Total non-current assets | 115,996 | 147,611 |
Total Assets | 674,861 | 741,016 |
Current Liabilities: | ||
Accounts payable | 2,690,652 | 2,832,790 |
Accrued expenses and interest | 4,031,722 | 3,595,428 |
Convertible notes payable - net of discounts and premiums | 7,573,019 | 8,310,950 |
Note payable - seller | 891,000 | 900,000 |
Line of credit - bank | 38,048 | 41,609 |
Current portion notes and loans payable – net of discounts | 571,984 | 903,251 |
Note payable – related party | 21,571 | |
Settlements payable | 42,850 | 42,850 |
Lease liability – current portion | 52,181 | 52,180 |
Derivative Liabilities | 144,937 | 128,628 |
Total Current Liabilities | 16,057,964 | 16,807,686 |
Long-term Liabilities: | ||
Convertible note payable, net of premiums - related party | 1,791,312 | |
Notes and loans payable – net of current portion | 304,790 | |
Lease liability, less current portion | 60,882 | 86,991 |
Total Long-term Liabilities | 365,672 | 1,878,303 |
Total Liabilities | 16,423,636 | 18,685,989 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ Deficit: | ||
Preferred stock - $0.0001 par value, 5,000,000 shares authorized, Series A preferred stock - no par value, 250 shares designated, issued and outstanding | ||
Common stock - $0.0001 par value, 6,000,000,000 shares authorized, 1,553,882,154 and 491,032,439 shares issued and outstanding at March 31, 2021 and September 30, 2020, respectively | 155,388 | 49,104 |
Additional paid-in capital | 15,360,046 | 13,080,692 |
Accumulated deficit | (31,264,209) | (31,074,769) |
Total Stockholders’ Deficit | (15,748,775) | (17,944,973) |
Total Liabilities and Stockholders’ Deficit | $ 674,861 | $ 741,016 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Sep. 30, 2020 |
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 6,000,000,000 | 6,000,000,000 |
Common stock, shares issued | 1,553,882,154 | 491,032,439 |
Common stock, shares outstanding | 1,553,882,154 | 491,032,439 |
Series A Preferred Stock | ||
Preferred stock, par value (in Dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 250 | 250 |
Preferred stock, shares issued | 250 | 250 |
Preferred stock, shares outstanding | 250 | 250 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations(Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Sales | $ 664,896 | $ 1,056,347 | $ 1,411,904 | $ 2,478,430 |
Cost of Goods Sold | 455,041 | 778,464 | 735,241 | 1,967,996 |
Gross Profit | 209,855 | 277,883 | 676,663 | 510,434 |
Operating Expenses: | ||||
Selling, general, and administrative expenses | 698,573 | 736,870 | 1,486,879 | 1,448,324 |
Depreciation | 2,458 | 2,772 | 4,916 | 5,544 |
Total Operating Expenses | 701,031 | 739,642 | 1,491,795 | 1,453,868 |
Loss from Operations | (491,176) | (461,759) | (815,132) | (943,434) |
Other Income (Expenses): | ||||
Gain (loss) on change in fair market value of derivative | 22,840 | (25,160) | ||
Other income | 11,113 | |||
Gains on debt extinguishment | 572,465 | 1,365,988 | 146,375 | |
Interest and financing costs | (314,115) | (392,461) | (715,136) | (735,117) |
Total Other Income (Expenses) | 281,190 | (392,461) | 625,692 | (577,629) |
Net Loss before Provision for Income Tax | (209,986) | (854,220) | (189,440) | (1,521,063) |
Provision for Income tax | ||||
Net Loss | $ (209,986) | $ (854,220) | $ (189,440) | $ (1,521,063) |
Basic and Diluted Loss Per Share (in Dollars per share) | $ 0 | $ (0.22) | $ 0 | $ (0.42) |
Weighted Average Number of Common Shares Outstanding: | ||||
Basic and diluted (in Dollars per share) | $ 1,400,878,070 | $ 3,940,276 | $ 1,044,359,997 | $ 3,662,376 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders’ Deficit (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Sep. 30, 2019 | $ 326 | $ 11,850,771 | $ (26,746,451) | $ (14,895,354) | |
Balance (in Shares) at Sep. 30, 2019 | 250 | 3,255,346 | |||
Share-based compensation | 132,599 | 132,599 | |||
Shares issued for services | $ 26 | 23,350 | 23,376 | ||
Shares issued for services (in Shares) | 263,948 | ||||
Shares issued for conversion of notes and reclassification of debt premiums | $ 109 | 43,048 | 43,157 | ||
Shares issued for conversion of notes and reclassification of debt premiums (in Shares) | 1,090,185 | ||||
Cancellation of shares issued for 3(a)(10) debt settlement | $ (19) | 19 | |||
Cancellation of shares issued for 3(a)(10) debt settlement (in Shares) | (194,520) | ||||
Net loss | (1,521,063) | (1,521,063) | |||
Balance at Mar. 31, 2020 | $ 442 | 12,049,787 | (28,267,514) | (16,217,285) | |
Balance (in Shares) at Mar. 31, 2020 | 250 | 4,414,959 | |||
Balance at Dec. 31, 2019 | $ 368 | 11,974,849 | (27,413,294) | (15,438,077) | |
Balance (in Shares) at Dec. 31, 2019 | 250 | 3,670,112 | |||
Share-based compensation | 66,097 | 66,097 | |||
Shares issued for services | $ 2 | 1,874 | 1,876 | ||
Shares issued for services (in Shares) | 23,948 | ||||
Shares issued for conversion of notes and reclassification of debt premiums | $ 72 | 6,967 | 7,039 | ||
Shares issued for conversion of notes and reclassification of debt premiums (in Shares) | 720,899 | ||||
Net loss | (854,220) | (854,220) | |||
Balance at Mar. 31, 2020 | $ 442 | 12,049,787 | (28,267,514) | (16,217,285) | |
Balance (in Shares) at Mar. 31, 2020 | 250 | 4,414,959 | |||
Balance at Sep. 30, 2020 | $ 49,104 | 13,080,692 | (31,074,769) | (17,944,973) | |
Balance (in Shares) at Sep. 30, 2020 | 250 | 491,032,439 | |||
Share-based compensation | 78,013 | 78,013 | |||
Shares issued to employees | $ 600 | 19,800 | 20,400 | ||
Shares issued to employees (in Shares) | 6,000,000 | ||||
Shares issued for cash | $ 62,143 | 1,092,889 | 1,155,032 | ||
Shares issued for cash (in Shares) | 621,447,910 | ||||
Shares issued to non-employees for services | $ 1,000 | 33,000 | 34,000 | ||
Shares issued to non-employees for services (in Shares) | 10,000,000 | ||||
Shares issued for conversion of notes, fees and including premiums reclassified | $ 42,541 | 1,055,652 | 1,098,193 | ||
Shares issued for conversion of notes, fees and including premiums reclassified (in Shares) | 425,401,805 | ||||
Net loss | (189,440) | (189,440) | |||
Balance at Mar. 31, 2021 | $ 155,388 | 15,360,046 | (31,264,209) | (15,748,775) | |
Balance (in Shares) at Mar. 31, 2021 | 250 | 1,553,882,154 | |||
Balance at Dec. 31, 2020 | $ 101,027 | 14,100,595 | (31,054,223) | (16,852,601) | |
Balance (in Shares) at Dec. 31, 2020 | 250 | 1,010,278,196 | |||
Share-based compensation | 38,578 | 38,578 | |||
Shares issued for cash | $ 29,890 | 560,681 | 590,571 | ||
Shares issued for cash (in Shares) | 298,897,714 | ||||
Shares issued for conversion of notes, fees and including premiums reclassified | $ 24,471 | 660,192 | 684,663 | ||
Shares issued for conversion of notes, fees and including premiums reclassified (in Shares) | 244,706,244 | ||||
Net loss | (209,986) | (209,986) | |||
Balance at Mar. 31, 2021 | $ 155,388 | $ 15,360,046 | $ (31,264,209) | $ (15,748,775) | |
Balance (in Shares) at Mar. 31, 2021 | 250 | 1,553,882,154 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (189,440) | $ (1,521,063) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 4,916 | 5,544 |
Amortization of debt discounts | 82,827 | 88,956 |
Accretion of premium on convertible note | 219,089 | 157,055 |
Share-based compensation expense | 132,413 | 158,486 |
Shares issued for conversion fees | 6,830 | |
Default penalty | 31,500 | |
Fee notes issued | 17,500 | 132,000 |
(Gain) on debt extinguishment | (1,337,694) | (146,375) |
(Gain) on settlement of accounts payable and accrued expenses | (28,294) | (11,113) |
Loss on derivative, change in fair market value | 25,160 | |
Net loss (gain) on conversion of notes | ||
Loan fee expenses | 2,670 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 141,847 | 482,629 |
Inventory | (67,907) | (353,288) |
Prepaid expenses and other current assets | 27,990 | 47 |
Right of use lease asset | 26,699 | |
Accounts payable and accrued expenses | 369,873 | 1,329,625 |
Settlements payable | (131,724) | |
Right of use lease liability | (26,108) | |
Cash Provided by (Used in) Operating Activities | (591,628) | 222,279 |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of shares | 1,155,032 | |
Net proceeds from convertible notes payable | 240,000 | |
Repayments convertible notes | (18,000) | |
Net proceeds from note payable | 166,777 | |
Repayments promissory notes | (70,000) | |
Net proceeds from note payable, related party | 50,000 | |
Repayment note payable, related party | (28,429) | |
Repayments, Seller’s note payable | (9,000) | |
Repayment of line of credit | (3,561) | (525) |
Net proceeds from loan and factoring notes | 585,715 | 150,000 |
Repayment of factoring notes | (464,289) | (313,708) |
Proceeds from line of credit - related parties | 57,850 | |
Repayment of convertible notes - related party | (945,227) | (72,803) |
Cash (Used in) Provided by Financing Activities | 659,018 | (179,186) |
Net Increase in Cash | 67,390 | 43,093 |
Cash - beginning of period | 164,014 | 149,832 |
Cash - end of period | 231,404 | 192,925 |
Cash paid for: | ||
Interest | 84,895 | |
Taxes | ||
Supplemental disclosure of noncash financing and investing activities: | ||
Issuance of common stock for conversion of convertible notes and accrued interest | 612,468 | 24,370 |
Reclassification of debt premium upon conversion of convertible debt | 478,894 | 16,276 |
Debt discounts recorded | $ 162,283 | $ 58,500 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 - NATURE OF OPERATIONS Bantec, Inc. is a product and service company targeting the U.S. Government, state governments, municipalities, hospitals, universities, manufacturers and other building owners. Bantec also provides product procurement, distribution, and logistics services through its wholly-owned subsidiary, Howco Distributing Co., (“Howco”) (collectively, the “Company”) to the United States Department of Defense and Defense Logistics Agency. The Company established Bantec Sanitizing which offers sanitizing products and equipment through its new online web store bantec.store and through Bantec Sanitizing franchises. The Company has operations based in Little Falls, New Jersey and Vancouver, Washington. The Company continues to seek strategic acquisitions and partnerships that offer us an opportunity to grow sales and profit. On April 24, 2018 the Company amended its articles of incorporation, filed with the Delaware Secretary of State, changing the Company name from Drone USA, Inc. to Bantek, Inc., which was accepted by FINRA on February 19, 2019. Bantek, Inc. filed a change of name to Bantec, Inc. and to effect a reverse stock split (of the common stock) of 1 for 1,000 on August 6, 2019, which became effective on February 10, 2020. All share and per share related amounts in the accompanying consolidated financial statements and footnotes have been retroactively adjusted for all periods presented for the effect of the reverse split. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Going Concern | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Bantec, Inc. and its wholly-owned subsidiaries, Drone USA, LLC (inactive), Bantec Construction LLC (inactive), and Howco. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly certain information and footnote disclosures normally included in financial statements in accordance with GAAP have been omitted. 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 six months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending September 30, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended September 30, 2020 and footnotes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on January 12, 2021. The consolidated balance sheet as of September 30, 2020 contained herein has been derived from the audited consolidated financial statements as of September 30, 2020, but does not include all disclosures required by GAAP. Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. For the six months ended March 31, 2021, the Company has a net loss of $189,440 and used cash in operations of $591,628. The working capital deficit, stockholders’ deficit and accumulated deficit was $15,499,099, $15,748,775 and $31,264,209, respectively, at March 31, 2021. Furthermore, on September 6, 2019 the Company received a default notice on its payment obligations under the senior secured credit facility agreement (see Note 9), defaulted on its Note Payable – Seller in September 2017 and has since defaulted on other promissory notes. As of March 31, 2021, the Company has received demands for payment of past due amounts from several consultants and service providers. It is management’s opinion that these matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issuance date of this report. The ability of the Company to continue as a going concern is dependent upon management’s ability to further implement its business plan and raise additional capital as needed from the sales of stock or debt. The Company has continued to implement cost-cutting measures and restructuring or setting up payment plans with vendors and service providers and plans to raise equity through a private placement, and restructure or repay its secured obligations. The accompanying consolidated financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the allowance for bad debt on accounts receivable, reserves on inventory, valuation of the lease liability and related right-of-use asset, valuation of stock-based compensation, the valuation of derivative liabilities and the valuation allowance on deferred tax assets. Fair Value Measurements The Company follows the FASB Fair Value Measurements Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The standard establishes a hierarchy in determining the fair value of an asset or liability. The fair value hierarchy has three levels of inputs, both observable and unobservable. Level 1 inputs include quoted market prices for identical assets or liabilities in an active market that the Company has the ability to access at the measurement date. Level 2 inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data. The standard requires the utilization of the lowest possible level of input to determine fair value and carrying amounts of current liabilities approximate fair value due to their short-term nature. The Company accounts for certain instruments at fair value using level 3 valuation. At March 31, 2021 At September 30, 2020 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative Liability - - $ 144,937 - - $ 128,628 A roll-forward of the level 3 valuation financial instruments is as follows: Derivative Balance at September 30, 2020 $ 128,628 Reclassification of derivative liability upon conversion (8,851 ) Changes in fair market value during the six months ended March 31, 2021 25,160 Balance at March 31, 2021 $ 144,937 The warrants were issued to a convertible note holder in November and December 2017 and initially determined to be equity instruments and recorded as note discount and as additional paid in capital. On June 4, 2018 the anti-dilutive provision of the warrants took effect and based on the new conversion formula management determined the warrant became a derivative liability and reclassified the Fair Value on June 4, 2018 from additional paid-in capital to derivative liability with fair market value changes recognized in operations for each reporting date. The derivative liability associated with the warrants is $144,937. Cash and Cash Equivalents Cash equivalents consist of liquid investments with maturities of three months or less at the time of purchase. There are no cash equivalents at the balance sheet dates. Accounts Receivable Trade receivables are recorded at net realizable value consisting of the carrying amount less the allowance for doubtful accounts, as needed. Factors used to establish an allowance include the credit quality of the customer and whether the balance is significant. The Company may also use the direct write-off method to account for uncollectible accounts that are not received. Using the direct write-off method, trade receivable balances are written off to bad debt expense when an account balance is deemed to be uncollectible. Inventory Inventory consists of finished goods, which are purchased directly from manufacturers. The Company utilizes a just in time type of inventory system where products are ordered from the vendor only when the Company has received sales order from its customers. Inventory is stated at the lower of cost and net realizable value on a first-in, first-out basis. Property & Equipment Property and equipment are stated at cost and depreciated over their estimated useful lives. Maintenance and repairs are charged to expense as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of these assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The assets are fully operational drones used as demonstration units and each unit exceeds management’s threshold for capitalization of $2,000. The Company depreciates these demonstration units over a period of 3 years. Depreciation expense was $4,916 and $5,544 for the six months ended March 31, 2021 and 2020, respectively. Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment is determined by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from use of the assets and their ultimate disposition. In instances where impairment is determined to exist, the Company writes down the asset to its fair value based on the present value of estimated future cash flows. Deferred Financing Costs All unamortized deferred financing costs related to the Company’s borrowings are presented in the consolidated balance sheets as a direct deduction from the related debt. Amortization of these costs is reported as interest and financing costs Revenue Recognition Effective October 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers, which is effective for public business entities with annual reporting periods beginning after December 15, 2017. This new revenue recognition standard (new guidance) has a five-step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied. The Company’s initial application of ASC 606 did not have a material impact on its financial statements and disclosures and there was no cumulative effect of the adoption of ASC 606. The Company sells a variety of products and related services (packaging) to government and other entities. The purchase orders received specifies each item and its manufacturer; the Company only needs to fulfill the performance obligation by shipping the specified items. No other performance obligations exist under the terms of the contracts. The Company recognizes revenue for the agreed upon sales price when the product is shipped to the customer, which satisfies the performance obligation. The Company sells drones and related products manufactured by third parties to various parties. The Company also offers technical services related to drone utilization and performs other services. The Company began offering insulation jackets for commercial and government facilities to insulate and monitor heating and cooling equipment. Contracts for drone related products and services and insulating jacket related sales will be evaluated using the five-step process outline above. There have been no material sales for drone products or other services for which full compliance with performance obligations has not been met. Sales of insulation jackets have not yet commenced. Upon significant sales for drone products and services and insulation jackets, the Company will disaggregate sales by these lines of business and within the lines of business to the extent that the product or service has different revenue recognition characteristics. Stock-based compensation Stock-based compensation is accounted for based on the requirements of ASC 718 – “Compensation –Stock Compensation ), Improvements to Employee Share-Based Payment Accounting As of October 1, 2018, the Company has early adopted ASU 2018-7 Compensation-Stock Compensation which conforms the accounting for non-employees to the accounting treatment for employees. The new standard replaces using a fair value as of each reporting date with use of the calculated fair value as of the grant date. The implementation of the standard provides for the use of the fair market value as of the adoption date, rather than using the value as of the original grant date. Therefore, the values calculated and reported at September 30, 2018 become a proxy for the grant date value. The Company utilizes the Black-Sholes option pricing model and uses the simplified method to determine expected term because of lack of sufficient exercise history. There was no cumulative effect on the adoption date. Shipping and Handling Costs The Company has included freight-out as a component of cost of sales, which amounted to $37,958 and $21,667 for the six months ended March 31, 2021 and 2020, respectively. The cost of goods related to this service includes shipping inbound and outbound. Convertible Notes with Fixed Rate Conversion Options The Company may enter into convertible notes, some of which contain, predominantly, fixed rate conversion features, whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible note liability at its fixed monetary amount by measuring and recording a premium, as applicable, on the Note date with a charge to interest expense in accordance with ASC 480 - “Distinguishing Liabilities from Equity”. Derivative Liabilities The Company has certain financial instruments that are derivatives or contain embedded derivatives. The Company evaluates all its financial instruments to determine if those contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 810-10-05-4 and 815-40. This accounting treatment requires that the carrying amount of any derivatives be recorded at fair value at issuance and marked-to-market at each balance sheet date. In the event that the fair value is recorded as a liability, as is the case with the Company, the change in the fair value during the period is recorded as either other income or expense. Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion, repayment or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on extinguishment. Lease Accounting In February 2016, the FASB issued a new accounting standard on leases. The new standard, among other changes, will require lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases. The lease liability will be measured at the present value of the lease payments over the lease term. The right-of-use asset will be measured at the lease liability amount, adjusted for lease prepayments, lease incentives received and the lessee’s initial direct costs (e.g. commissions). The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption will require a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest period presented. The Company’s subsidiary has renewed the lease for the warehouse and office facility in Vancouver, Washington in May 2020 effective June 1, 2020, which extends through May 30, 2023, and is accounted for under ASC 842. The corporate office is an annual arrangement which provides for a single office in a shared office environment and is exempt from ASC 842 treatment. During the year ended September 30, 2020 the Company recognized a lease liability of $156,554 and the related right-of-use asset for the same amount and will amortize both over the life of the lease. Income Taxes The Company’s current provision for income taxes is based upon its estimated taxable income in each of the jurisdictions in which it operates, after considering the impact on taxable income of temporary differences resulting from different treatment of items for tax and financial reporting purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made. The Company follows the accounting for uncertainty in income taxes guidance, which clarifies the accounting and disclosures for uncertainty in income taxes recognized in the Company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition and measurement of a tax position taken or expected to be taken in a tax return. The Company currently has no federal or state tax examinations in progress. As of March 31, 2021, the Company’s tax returns for the tax years 2020, 2019 and 2018 remain subject to audit, primarily by the Internal Revenue Service. The Company did not have material unrecognized tax benefits as of March 31, 2021 and September 30, 2020 and does not expect this to change significantly over the next 12 months. The Company will recognize interest and penalties accrued on any unrecognized tax benefits as a component of provision for income taxes. Earningt /Loss Per Share Basic loss per share is calculated by dividing the loss attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings (loss) of the Company. Diluted loss per share is computed by dividing the loss available to stockholders by the weighted average number of shares outstanding for the period and dilutive potential shares outstanding unless such dilutive potential shares would result in anti-dilution. As of March 31, 2021, 17,673 options were outstanding of which 14,544 were exercisable, 11,859,616 warrants were outstanding and exercisable, and related party convertible debt and accrued interest totaling $224,988 was convertible into 40,101,615 shares of common stock. Additionally, as of March 31, 2021, the outstanding principal balance, including accrued interest of the third-party convertible debt, totaled $7,583,010 and was convertible into 880,053,346 shares of common stock. It should be noted that contractually the limitations on the third-party notes (and the related warrant) limit the number of shares converted to either 4.99% or 9.99% of the then outstanding shares. As of March 31, 2021, and September 30, 2020, potentially dilutive securities consisted of the following: March 31, September 30, Stock options 17,673 17,755 Warrants 11,859,616 25,484,484 Related party convertible debt and accrued interest 40,101,615 526,400,307 Third party convertible debt (including senior debt) 880,053,346 2,068,874,206 Total 932,032,250 2,620,776,752 Segment Reporting The Company uses “the management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker is the chief executive officer of the Company, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. As of March 31, 2021, the Company did not report any segment information since the vast majority of Company sales were from its subsidiary, Howco. Sales of drones were not material during the six months ended March 31, 2021. Reclassifications The company reclassified $370,710 from short term loans at September 30, 2020 to long term loans at March 31, 2021. Recent Accounting Pronouncements On August 5, 2020, the Financial Accounting Standards Board (FASB) issued accounting standards update (ASU) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) The amendments in the ASU remove certain separation models for convertible debt instruments and convertible preferred stock that require the separation of a convertible debt instrument into a debt component and an equity or derivative component. The ASU also amends the derivative scope exception guidance for contracts in an entity’s own equity. The amendments remove three settlement conditions that are required for equity contracts to qualify for the derivative scope exception. In addition to the above, the ASU expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share calculations that are impacted by the amendments. The ASU is effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021. Early adoption is permitted. The FASB noted that an entity should adopt the guidance as of the beginning of its annual fiscal year. Entities may elect to adopt the amendments through either a modified retrospective method of transition or a fully retrospective method of transition. If an entity has convertible instruments that include a down round feature, early adoption of the ASU is permitted for fiscal years beginning after December 15, 2020. The Company does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 - ACCOUNTS RECEIVABLE The Company’s accounts receivable at March 31, 2021 and September 30, 2020 is as follows: March 31, September 30, Accounts receivable $ 207,542 $ 349,389 Reserve for doubtful accounts - - $ 207,542 $ 349,389 |
Inventory
Inventory | 6 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 4 - INVENTORY At March 31, 2021 and September 30, 2020, inventory consists of finished goods and was valued at $112,506 and $44,599, respectively. |
Line of Credit - Bank
Line of Credit - Bank | 6 Months Ended |
Mar. 31, 2021 | |
Line of Credit Facility [Abstract] | |
LINE OF CREDIT - BANK | NOTE 5 - LINE OF CREDIT - BANK The Company has a revolving line of credit with a financial institution, which balance is due on demand and principal payments are due monthly at 1/60 th |
Settlements Payable
Settlements Payable | 6 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Settlement Liabilities [Abstract] | |
SETTLEMENTS PAYABLE | NOTE 6 - SETTLEMENTS PAYABLE On July 20, 2018, the Company entered into a settlement agreement with a collection agent for American Express relating to $127,056 of past due charges. The agreement provides for initial payment of $12,706, the monthly payments of $6,500 and final payment on January 27, 2020 of $3,850. The amount due at March 31, 2021 and September 30, 2020, was $42,850, and $42,850, respectively. Under the terms of the stipulation and settlement agreement, this debt is in default. |
Note Payable - Seller
Note Payable - Seller | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE - SELLER | NOTE 7 - NOTE PAYABLE – SELLER In connection with the acquisition of Howco in September 2016, the Company issued a note payable in the amount of $900,000 to the sellers of Howco. The note matured on September 9, 2017 and bears interest at 5.50% per annum. The note requires payment of unpaid principal and interest upon maturity. The note is secured by all assets of Howco Distribution Co. and subordinated to the Senior Secured Credit Facility discussed below. The note is currently in default and the default interest rate is 8% per annum. The Company made three repayments totaling $9,000 during the three months ended March 31, 2021. At March 31, 2021 and September 30, 2020, principal and accrued interest on this note amounted to $891,000, $305,495 and $900,000 and $269,682, respectively. |
Convertible and Other Notes Pay
Convertible and Other Notes Payable – Related Party Officer and his Affiliates | 6 Months Ended |
Mar. 31, 2021 | |
Convertible Notes Payble For Related Parties [Abstract] | |
CONVERTIBLE AND OTHER NOTES PAYABLE – RELATED PARTY OFFICER AND HIS AFFILIATES | NOTE 8 - CONVERTIBLE AND OTHER NOTES PAYABLE – RELATED PARTY OFFICER AND HIS AFFILIATES Convertible Notes The related party officer and his affiliates convertible notes balance consisted of the following at March 31, 2021 and September 30, 2020: March 31, September 30, 2021 2020 Principal $ - $ 945,227 Premiums - 846,085 Total - 1,791,312 Current portion, including premiums - - Long term $ - $ 1,791,312 There was one non-convertible related party note as of March 31, 2021, which was issued by Howco for $50,000. The note carries a fixed amount of interest of $14,500 and weekly payments of interest and principal of $2,580. The principal balance at March 31, 2021 was $21,571. Most of the related party convertible notes included a cross-default clause which in event of a default on another note holder’s note causes a default on the related party notes. The CEO has amended those notes effective September 30, 2020 to remove the clauses. The Company has a $840,000 convertible note payable (“Note 1”) to a related party entity controlled by the Company’s CEO. Note 1 bear’s interest at an annual rate of 7% with an original maturity date of June 11, 2017, which has been extended to June 11, 2022, at which time all unpaid principal and interest is due. The holder of Note 1 has the option to convert the outstanding principal and accrued interest, in whole or in part, into shares of common stock at a conversion price equal to the volume weighted average price per share of common stock for the 30-day period prior to conversion. On April 15, 2020, the Company amended the above Note 1 first issued to AIG and subsequently assigned to Pike Falls LLC (entities controlled by the Company’s CEO) in amount of $840,000, with a principal and accrued interest balance of $688,444, and $210,409, respectively at June 30, 2020. The amendment changes conversion terms, which now state the note principal and interest may be converted to common stock at 50% of the lowest closing bid price during the thirty days prior to conversion, increases the interest rate to 10%, and has a maturity date of January 7, 2022. The change in conversion terms has been treated as a debt extinguishment and the modified note is treated stock settled debt under ASC 480, and a put premium of $688,444 was recognized with a charge to loss on debt extinguishment. The principal balance was $377,194 and accrued interest was $221,232 at September 30, 2020. As of March 31, 2021, Note 1 principal has been fully converted or paid in cash long with accrued interest of $142,773, and the accrued interest balance was $81,597 as of March 31, 2021. $377,194 was recognized as a gain on extinguishment of debt during the six months ended March 31, 2021. The Company has a convertible note payable (for an unspecified amount) with the Company’s CEO. This line of credit (“LoC”) bears interest at an annual rate of 7% with a maturity date of December 31, 2017, at which time all unpaid principal and interest was due. On December 15, 2017 the due date was extended to July 2, 2018 and then in July, 2018, the due date was extended to June 30, 2019, and on December 23, 2018 the maturity date of the LoC was extended to September 23, 2024. The holder of the LoC has the option to convert the outstanding principal and accrued interest, in whole or in part, into shares of common stock at a conversion price equal to the volume weighted average price per share of common stock for the 30-day period prior to conversion. This LoC is considered a stock settled debt in accordance with ASC 480 and the fixed monetary amount is equal to the principal amount based on the conversion formula. During the year ended September 30, 2020 the Company was advanced $64,940 and repaid $132,803, on this LoC. As of September 30, 2020, the LoC has not been converted, the balance was $99,142, and accrued interest was $31,260. During the six months ended March 31, 2021 the balance of the LoC principal was fully paid in cash and the balance of accrued interest was $32,900 as of March 31, 2021. On July 2, 2019, the Company issued a convertible note payable (“Note 2”) to an affiliate of the Company’s CEO for a $15,000, cash loan. The funds were paid directly to a vendor to the Company. The note had an original maturity of June 9, 2020, however the note was amended effective September 30, 2020 and new maturity is May 31, 2022. The note bears interest at 10% and may be converted to the Company’s common stock at 50% of the lowest closing bid in the 20 trading days prior to notification of conversion. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $15,000 with a charge to interest expense for the note. The note principal was fully repaid during the six months ended March 31, 2021 and put premium of $15,000, was recognized as gain on debt extinguishment. Accrued interest was $2,155 at March 31, 2021 and $1,843, at September 30, 2020. On September 13, 2019, the Company issued a convertible note payable to an entity controlled by the Company’s CEO for a $17,000, cash loan. The note had an original maturity of June 9, 2020, however the note was amended effective September 30, 2020 and the new maturity is May 31, 2022. The note bears interest at 10% and may be converted to the Company’s common stock at 50% of the lowest closing bid in the 20 trading days prior to notification of conversion. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium of $17,000 with a charge to interest expense for the notes. The note principal was fully repaid and put premium of $17,000, was recognized as gain on debt extinguishment during the six months ended March 31, 2021. Accrued interest was $2,152 at March 31, 2021 and $1,799, at September 30, 2020. On December 30, 2018 the Company issued a promissory note to the CEO for a $400,000, cash loan. The note bears interest at 12% per annum, matures on January 7, 2024 and required monthly payment of principal of $5,000 with a balloon payment at maturity. On April 14, 2020, the Company amended the above note first issued to Michael Bannon (the Company’s CEO) on December 30, 2018, in amount of $400,000, with a principal and interest balance of $367,500, and $76,619, respectively at September 30, 2020. The amendment adds conversion terms, which state the note principal and interest may be converted to common stock at 50% of the lowest closing bid price during thirty days prior to conversion, and reduces the interest rate to 10%, and extends the maturity date to January 7, 2024. The change in conversion terms has been treated as a debt extinguishment and the new note is considered a stock settled debt under ASC 480, and put premium of $367,500 has been recognized with a charge to interest expense. The note principal was fully repaid in cash during the six months ended March 31, 2021 and a gain on debt extinguishment was recognized for the premium upon receipt of cash repayments. The accrued interest balance was $83,113 at March 31, 2021 and $76,619 at September 30, 2020. On January 19, 2019 the Company issued a, promissory note to the CEO for a $200,000, cash loan. The note bears interest at 12% per annum, matures on September 23, 2021 and requires monthly payments of $2,500 principal. On April 14, 2020, the Company amended the note first issued to Michael Bannon (the Company’s CEO) on January 19, 2019, in amount of $200,000, with a principal and interest balance of $195,000, and $17,947. The amendment adds conversion terms, which state the note principal and interest may be converted to common stock at 50% of the lowest closing bid price during thirty days prior to conversion, and reduces the note interest rate to 10%, and extends the maturity date to April 15, 2026. The change in conversion terms has been treated as a debt extinguishment and the new note is considered a stock settled debt under ASC 480, and put premium of $195,000 has been recognized with a charge to loss on debt extinguishment. During 2020, $14,250 was repaid and $180,750 was converted to common stock. The note principal balance of $195,000 has been fully liquidated at March 31, 2021 and accrued interest was $20,855 as of March 31, 2021. On July 1, 2019, Howco entered into a purchase order financing agreement with an entity controlled by the Company’s CEO (“Pike Falls”) for cash advances to Howco. The advances are to be for 100% of the face value of the purchase orders to be repaid with accounts receivable related to the sales of the products underlying the purchase orders. Pike Falls receives 4% of the purchase price for the first 45 days and .00086% per day thereafter on the unpaid balance. On April 15, 2020, the Company issued a convertible note payable to Michael Bannon (the Company’s CEO) in the principal amount of $69,391, in replacement for the amounts owed to an entity controlled by Mr. Bannon (above) The new note interest rate is 10%, and it matures on January 31, 2022. The new note principal and interest may be converted into the Company’s common stock at 50% of the lowest closing bid price in the thirty days preceding the conversion notice. This issuance is treated as a debt extinguishment of the old note and the new note conversion terms have been treated as stock settled debt under ASC 480, and put premium of $69,391 has been recognized with a charge to interest expense. The principal and accrued interest were $69,391 and $5,332 respectively as of September 30, 2020. At March 31, 2021 the principal was fully paid in cash and $69,391 was recognized as gain on extinguishment of debt. Accrued interest was $6,206 at March 31, 2021. On December 22, 2020 a non-convertible promissory note was issued to the CEO by Howco for $50,000 having weekly payments of $2,580 for twenty-five weeks, which include a total of $14,500 of interest. During the six months ended March 31, 2021, repayments of principal and interest of $36,200 were made reducing the principal balance to $21,571. |
Convertible Notes Payable and A
Convertible Notes Payable and Advisory Fee Liabilities | 6 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Convertible Notes Payable And Advisory Fee Liabilities [Abstract] | |
CONVERTIBLE NOTES PAYABLE AND ADVISORY FEE LIABILITIES | NOTE 9 - CONVERTIBLE NOTES PAYABLE AND ADVISORY FEE LIABILITIES The senior secured credit facility note balance and convertible debt balances consisted of the following at March 31, 2021 and September 30, 2020: March 31, September 30, 2021 2020 Principal $ 6,114,157 $ 6,473,702 Premiums 1,472,666 1,846,471 Unamortized discounts (13,804 ) (9,223 ) $ 7,573,019 $ 8,310,950 For the six months ended March 31, 2021 and 2020, amortization of debt discount on the above convertible notes amounted to $12,919 and $2,981, respectively. Senior Secured Credit Facility Note - Default On September 13, 2016, the Company entered into a senior secured credit facility note with an investment fund for the acquisition of Howco. The Company can borrow up to $6,500,000, subject to lender approval, with an initial convertible promissory note at closing of $3,500,000 (the “Note”). The Note bears interest at a rate of 18% per annum, required monthly payments of $52,500, which is interest only, starting on October 13, 2016 through February 13, 2017, and monthly payments, including interest and principal, of $298,341 starting on March 13, 2017 through maturity on March 13, 2018. In the event of default, the Note balance will bear interest at 25% per annum. In connection with this Agreement, the Company was obligated to pay additional advisory fees of $850,000 payable in the form of cash or common stock in accordance with the terms of the Agreement. The Company was also required to reserve 7,000 shares of common stock related to this transaction. The reserved shares will be released upon the satisfaction of the loan. As of March 31, 2021, and September 30, 2020, the Company had issued 539, shares of common stock in satisfaction of the $850,000 advisory fee in accordance with the terms of the agreement, such shares being issued in September 2016. The proceeds from the sale of the 539, shares were to be applied to the $850,000 advisory fee due. Based upon the value of the shares, at the time the lender sells the shares, the Company may be required to redeem unsold shares for the difference between the $850,000 and the lender’s sales proceeds. Accordingly, the $850,000 was reflected as a current liability through December 31, 2017. In January 2018, in connection with a settlement agreement (see below), the accrued advisory fee was reclassified to the principal balance of the replacement Convertible Note. Through the date of the settlement agreement and through September 30, 2020 and March 31, 2021, the lender had not reported any proceeds from the sale of these shares (see below). Prior to the settlement agreement in January 2018, notwithstanding anything contained in the Agreement to the contrary, in the event the Lender has not realized net proceeds from the sale of Advisory Fee Shares equal to at least the Advisory Fee by the earlier to occur of: (A) September 13, 2017; (B) the occurrence of an Event of Default; or (C) the Maturity Date, then at any time thereafter, the Lender shall have the right, upon written notice to the Borrower, to require that the Borrower redeem all Advisory Fee Shares then in Lender’s possession for cash equal to the Advisory Fee, less any cash proceeds received by the Lender from any previous sales of Advisory Fee Shares, if any within five (5) Business Days from the date the Lender delivers such redemption notice to the Borrower. The Note is only convertible upon default or mutual agreement by both parties at a conversion rate of 85% of the lowest of the daily volume weighted average price of the Company’s common stock during the 5 business days immediately prior to the conversion date. At any time and from time to time while this Note is outstanding, but only upon: (i) the occurrence of an Event of Default under any of the Loan Documents; or (ii) mutual agreement between the Company and the Holder, this Note may be, at the sole option of the Holder, convertible into shares of the Company’s common stock, in accordance with the terms and conditions of the Note Upon liquidation by the Holder of Conversion Shares issued pursuant to a conversion notice, provided that the Holder realizes a net amount from such liquidation equal to less than the conversion amount specified in the relevant conversion notice, the Company shall issue to the Holder additional shares of the Company’s common stock equal to: (i) the Conversion Amount specified in the relevant conversion notice; minus divided by Once a default occurs, the Note and the $850,000 advisory fee payable will be accounted for as stock settled debt at its fixed monetary value. On March 13, 2017 the Company defaulted on the monthly principal and interest payment of $298,341. Due to this default, as of June 30, 2017, the Company has accounted for the embedded conversion option as stock settled debt and recorded a debt premium of $617,647 with a charge to interest expense, and the interest rate increased to 25% (default rate). On March 28, 2017, the Company entered into an additional agreement with the above senior secured credit facility lender to receive a range of advisory services for a total of $1,200,000 with no definitive terms or length of service which was expensed in fiscal 2017 and had been recorded as an accrued liability – advisory fees through December 31, 2017. In connection with the settlement agreement discussed below, in January 2018, the advisory services fees payable were reclassified to the principal balance of the replacement Convertible Note. On January 3, 2018, the Company entered into a settlement agreement (the “Settlement Agreement”) and replacement note agreements with the investment fund related to a senior secured credit facility note dated September 13, 2016. On the effective date of the Settlement Agreement, all amounts owed to the investment fund aggregated $5,788,642 and consisted of a convertible promissory note of $3,500,000, accrued interest payable of $238,642, and accrued advisory fees payable of $2,050,000. On the effective date of the Settlement Agreement, the amount due of $5,788,642 was split and apportioned into two separate replacement notes (“Replacement Note A” and Note B”). Replacement Note A had a principal amount of $1,000,000 and Replacement Note B had a principal balance of $4,788,642, both of which remained secured by the original security, pledge and guarantee agreements; and other applicable loan documents, and bear interest at 18% per annum. The default was not waived by this settlement agreement. The Company originally recorded a premium on stock settled debt of $617,647 on the $3,500,000, and subsequent to the settlement agreement recorded an additional premium on stock settled debt of $403,878 on the additional $2,288,642 for accrued interest and advisory fees payable that were capitalized as note principal. The interest rate was amended to 12% effective June 12, 2018. The Credit Agreement was amended such that the maturity date was extended to January 13, 2019 (the “Extended Maturity Date”) for replacement Note B, while the Note A maturity date remained at March 13, 2018 but was due as of March 2017 due to the principal and interest payment default discussed above. Notwithstanding anything contained in this Agreement to the contrary, all obligations owing by the Company and all other Credit Parties under the Credit Agreement, First Replacement Note B, and all other Loan Documents shall be paid in full by the Extended Maturity Date as follows: $52,500 per month from January 13, 2018 to December 13, 2018 and the remaining principal and accrued interest on January 13, 2019. Interest payments made since the amendment have totaled $323,440 and are therefore not in accord with that amendment. However, TCA has received payments under the 3(a) (10) settlement (below) totaling $308,100 during the year ended September 30, 2018, and another $270,320, during the year ended September 30, 2019. The principal balance was $4,788,642 at September 30, 2018. On October 30, 2018, TCA the Company’s senior lender amended its credit facility which had been restructured in January 2018 when fees for advisory and other matters along with accrued but unpaid interest were capitalized and separated into two notes, Note A having $1,000,000 principal and Note B having $4,788,642 both having the same maturity terms, interest rates and conversion rights. Under the current amendment total amounts outstanding under the notes along with accrued interest of $537,643 has been capitalized with the principal amount due of $6,018,192, $5,326,285 for Note B and $691,907 for Note A. The restated note has the same conversion price discount and therefore continues to be stock settled debt under ASC 480, an additional $94,878 was charged to interest with a credit to debt premium. The restated note accrues interest on the principal balance at 12% per annum, includes amortization to the new maturity date of December 15, 2020. The amortization payments credited toward the principal amount and accrued interest vary and include payments made under the 3(a)(10) settlement agreement with a third party related to Note A. Economically the total principal and accrued interest outstanding remain unchanged as reported in the consolidated balance sheet. All other terms including conversion rights and a make-whole provision in the case of a conversion shortfall remain the same as stated in the footnotes above. On September 6, 2019, the Company received a default notice on its payment obligations under the senior secured credit facility agreement from TCA. The Company has proposed a number of solutions including refinancing the debt with other parties. The default was declared due to non-payment of monthly scheduled amortization (principal and interest). TCA holds security interests in all assets of the Company including its subsidiary Howco. The Company is in negotiation with the receiver appointed by the court related to the senior secured creditor’s claim and has proposed a preliminary settlement. At March 31, 2021 and September 30, 2020, the principal of the Note B portion was $5,326,285 and accrued interest was $1,418,826 and $1,099,250 respectively and the Note A principal subject to the 3(a) (10) court order was $421,587. During the six months ended March 31, 2021, the Company has not paid interest or principal and Livingston Asset Management (under the 3(a) (10) settlement) has not made any payments to TCA. On January 30, 2018 pursuant to the Liability Purchase Term Sheet, the TCA Replacement Note A in the principal amount of $1,000,000 was acquired by Livingston Asset Management LLC (“Livingston”) from the original lender. Principal of Replacement Note A is due to Livingston with all then accrued but unpaid interest due to the original lender. In accordance with the terms of the Settlement Agreement, the Court was advised of Company’s intention to rely upon the exception to registration set forth in Section 3(a) (l0) of the Securities Act to support the issuance of its common shares and the Court held a fairness hearing regarding the issuance on March 12, 2018. Following entry of an Order by the Court which occurred on March 12, 2018, in settlement of the claims, the Company shall issue and deliver to Livingston shares of its common stock (the “Settlement Shares”) in one or more tranches as necessary, and subject to adjustment and ownership limitations as set forth in the Settlement Agreement, sufficient to generate proceeds such that the aggregate Remittance Amount equals the Claim Amount. The Company will issue free trading shares of its common stock under section 3(a) (10) of the Securities Act to Livingston in the amount of such judgment in a series of tranches so that Livingston will not own more than 9.99% of our outstanding shares per tranche. The parties reasonably estimate that the fair market value of the Settlement Shares to be received by Livingston is equal to approximately $1,666,667 which is based on a discount of 40%. In the six months ended March 31, 2021, there were no 3(a) (10) issuances. As of March 31, 2021, there have been seventeen issuances under section 3(a) (10) of the Securities Act totaling 1,374,885 shares; 1,273,261, in 2019, and 101,624, in 2018, which have been recorded at par value with an equal charge to additional paid-in capital. On November 17, 2019, 194,520 of the shares issued under the 3(a) (10) were cancelled at the request of Livingston. The value originally recorded as a liability remains in the convertible note balance, until these shares have been sold and reported to the Company by the lender as part of the Make-Whole provision at which time the proceeds value of such shares are reclassified to additional paid-in capital. During the year ended September 30, 2019, proceeds of $270,320 were remitted to TCA by Livingston and applied to reduce the liability with corresponding credits to additional paid in capital. $180,618 of debt premium was credited to additional paid in capital in conjunction with the payments to TCA. At March 31, 2021 the balance of $421,587 along with related debt premium of $281,054 are included in convertible notes payable on the balance sheet. On March 7, 2018 the Company entered into a placement agent and advisory agreement with Scottsdale Capital Advisors in connection with the Livingston liability purchase term sheet executed on November 15, 2017. The placement agent services fee amounted to $15,000 payable to Scottsdale Capital Advisors in the form of a convertible note. The note matures six months from the date of issuance and shall accrue interest at the rate of 10% per annum. The $15,000 note is convertible into shares of the Company’s common stock at a discount of 30% of the low closing bid price for the twenty trading days prior to the conversion and is not subject to any registration rights. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $6,429 with a charge to interest expense. The note has not been converted and the principal balance is $15,000, at March 31, 2021 and September 30, 2020 with $5,279, and $4,293, of accrued interest, respectively. As the note has matured it is technically in default. Under the terms of the note no default interest or penalties accrue. Other Convertible Debt On June 1, 2018 the Company entered into a consulting and services arrangement with Livingston Asset Management which has no stipulated term. The arrangement provides for financial management services including accounting and related periodic reporting among other advisory services. Under the agreement the Company will issue to Livingston Asset Management Convertible Fee Notes having principal of $12,500, interest of 10% per annum, maturity of six or seven months. The notes are convertible into common shares at a discount of 50% to the lowest bid price in the 30 trading days immediately preceding the notice of conversion. The notes were charged to professional fees for each corresponding service month. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $12,500 with a charge to interest expense for each note. As of March 31, 2021, the following notes had been issued, assigned and converted as indicated: December 1, 2018, $12,500 principal, maturing May 31, 2019 – partially converted, principal balance $10,375 at September, 30, 2019 – assigned to Alpha Capital Anstalt and fully converted; January 1, 2019, $12,500 principal, maturing June 30, 2019 – assigned to Alpha Capital Anstalt and fully converted; February 1, 2019, $12,500 principal, maturing July 31, 2019– assigned to Alpha Capital Anstalt and fully converted; March 1, 2019, $12,500 principal, maturing August 31, 2019– assigned to Alpha Capital Anstalt and fully converted; April 1, 2019, $12,500 principal, maturing September 30, 2019– assigned to Alpha Capital Anstalt and fully converted; May 1, 2019, $12,500 principal, maturing October 31, 2019– assigned to Alpha Capital Anstalt and fully converted; and June 1, 2019, $12,500 principal, maturing November 30, 2019– assigned to Alpha Capital Anstalt and fully converted. The $85,375 of principal from the Livingston Asset Management LLC notes issued December 1, 2018 through June 1, 2019, along with $8,475 of accrued interest were sold and assigned to Alpha Capital Anstalt, on February 20, 2020. The assigned notes became convertible as of the date of the assignment by virtue of an agreement between the Company and the new note holder. The terms of the notes provide for conversion of principal and accrued interest at a 50% discount to the lowest closing bid price over the 20 days prior to conversion. The notes have been accounted for as stock settled debt under ASC 480, and put premium of $93,850 has been recognized with a charge to interest expense. During the year ended September 30, 2020, $2,200 of the principal was converted into common stock. The total accrued unpaid interest (also not converted) is $5,277 at September 30, 2020. The assigned notes are in default and there are cross-default terms in the original notes or the assignment documentation. Following conversions during the six months ended March 31, 2021 the principal balance was $0 at March 31, 2021 and $91,300 as of September 30, 2020. Accrued interest was $0 and $5,277 at March 31, 2021 and September 30, 2020, respectively. Put premiums of $91,300 were reclassified to additional paid in capital during the six months ended March 31, 2021. Under the terms of the June 1, 2018 consulting and services agreement with Livingston Asset Management, LLC, as amended on July 1, 2019, Livingston is to receive $20,000, per month including $3,000 cash and $17,000 in promissory notes. The notes bear interest of 10% per annum and mature in six month. The promissory notes issued after February 28, 2020 are convertible into shares of common stock at a discount of 50% of the lowest closing bid price during the 30 trading days prior to conversion. The notes having a conversion feature are treated as stock settled debt under ASC 480 and a debt premium of $17,000 is recognized as interest expense on note issuance date. During the six months ended March 31, 2021, Livingston agreed to forgive seven months of service including the cash payments due which were recorded as accounts payable. A gain on debt extinguishment was recognized of $296,938 related to the principal, premiums and accrued interest during the six months ended March 31, 2021. The specific notes forgiven are indicated below. Convertible notes were issued to Livingston as follows: January 1, 2020 - $17,000 non-convertible note amended to original conversion terms, fully convertedt; March 1, 2020 - $17,000 note and accrued interest forgiven; April 1, 2020 - $17,000 note and accrued interest forgiven; May 1, 2020, $17,000 note and accrued interest forgiven; June 1, 2020 - $17,000 note and accrued interest forgiven; July 1, 2020 - $17,000 note and accrued interest forgiven; and August 1, 2020 - $17,000, note and accrued interest forgiven. Livingston has given the Company forbearance on fees for six months beginning September 1, 2020 through February 1, 2021. The forbearance was extended through June 1, 2021. On August 29, 2018 the Company entered into an agreement with a legal firm to provide securities related and other legal services which has no stipulated term. Under the agreement the Company will issue convertible notes with varying principal amounts for services. The first note was issued on August 29, 2018, for $6,000, interest of 12%, and a maturity date of February 28, 2019. The conversion feature allows for conversion into common shares at the lesser of: a) 70% of the share price on the date of the note; or b) 50% of the lowest bid price during the 30 trading days preceding the date of the notice of conversion. In connection with the issuance of this Note, the Company determined that the terms of the Note contain a conversion formula that caused variations in the conversion price resulting in the treatment of the conversion option as a bifurcated derivative to be accounted for at fair value. Accordingly, under the provisions of FASB ASC Topic No. 815-40, “Derivatives and Hedging – Contracts in an Entity’s Own Stock”, the embedded conversion option contained in the convertible instruments were accounted for as derivative liabilities at the date of issuance and shall be adjusted to fair value through earnings at each reporting date. The fair values of the embedded conversion option derivatives were determined using the Binomial valuation model. $10,435 was recognized as derivative liability with $6,000 charged to debt discount and $4,035 charged to derivative expense on issuance. The debt discount of $6,000 will be amortized to interest expense to the maturity date of the note. At March 31, 2019 the derivative fair value was determined to have decreased to $8,881. As the note reached its maturity date no further fair value adjustments will be recorded. For the year ended September 30, 2019, the $5,000, balance of the debt discount was charged to interest expense and debt discount balances was $0. During the six months ended March 31, 2021 the note principal was fully repaid in cash and the derivative liability was recognized as gain on extinguishment of debt ($2,851) and balance was reclassified to put premium. The following notes have been issued to the law firm, each having six month term to maturity and 12% annual interest but a change in the conversion terms such that a fixed discount of 50% of the lowest bid price in the 30 trading days immediately preceding the notice of conversion. The notes have cross default provisions. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premiums equal to the face value of the notes with a charge to interest expense. The note principal amount was charged to professional fees during the month the note was issued. All notes issued prior to June 30, 2020, have reached their maturity and therefore are in technical default have a default interest rate of 18%. April 18, 2019, $6,000 – in default, sold and assigned to Trillium Partners LP on May 28, 2020 and fully converted as of March 31, 2021; May 18, 2019, $6,000 – in default, sold and assigned to Trillium Partners LP on May 28, 2020 and fully converted as of March 31, 2021; June 18, 2019, $6,000 – in default, sold and assigned to Trillium Partners LP on May 28, 2020 and fully converted as of March 31, 2021; July 18, 2019, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; August 18, 2019, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; September 18, 2019, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; October 18, 2019, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; November 18, 2019, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; December 18, 2019, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; January 18, 2020, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; March 18, 2020, $6,000 – assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; April 18, 2020, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; May 18, 2020, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; June 18, 2020, $6,000– assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; July 18, 2020, $6,000 - assigned to Trillium Partners LP on February 12, 2021 and fully converted as of March 31, 2021; August 18, 2020, $6,000 – principal fully repaid in cash; and September 18, 2020, $6,000– principal fully repaid in cash. It is the Company’s intention to pay the monthly fee in cash, therefore it expected that no new notes will be issued in conjunction with the monthly attorney service fees. The unconverted note’s principal above issued for legal services, have been converted as of March 31, 2021. Accrued interest due of $1,738 as of March 31, 2021, which is owed to the attorney. On November 13, 2018, the Company issued a convertible promissory note for $90,000 to a vendor in settlement of approximately $161,700 of past due amounts due for services. The note bears interest at 5%, matures on June 30, 2019 and is convertible into the Company’s common stock at 50% of the lowest closing bid price during the 20 trading days immediately preceding the notice of conversion. The note matured on June 30, 2019, there is no default penalty associated with the note, nor are there any cross-default provisions in the note. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $90,000 with a charge to interest expense for the notes. The unconverted principal, premium and accrued interest were $90,000, $90,000, and $14,993 as of September 30, 2020. At March 31, 2021 the principal, premium and accrued interest were $90,000, $90,000, and $20,340. On November 9, 2017, the Company received a first tranche payment of $75,500 under the terms of a Securities Purchase Agreement dated October 25, 2017, with Crown Bridge Partners, LLC (“Crown Bridge”) under which the Company issued to Crown Bridge a convertible note in the principal amount of $105,000 and a five-year warrant to purchase 100, shares of the Company’s common stock at an exercise price of $350, as a commitment fee which is equal to the product of one-third of the face value of each tranche divided by $350. Under the terms of the note Crown Bridge was to receive “right of first refusal” for any subsequent loans or notes to fund the Company. The Company violated this covenant when funding was received from other sources without offering Crown Bridge the opportunity to participate. On December 20, 2017 the Company cured this covenant violation by issuing 200 additional warrants which have the same exercise price and terms of the original warrants. The warrants have full ratchet price protection and cashless exercise rights. The convertible note (the “Note”) issued to Crown Bridge in the principal amount of $105,000, has an original issue discount of $10,500 and issue costs of $19,000 both of which are recorded as debt discount along with the warrant relative fair value of $12,507 for the original 100, warrants and $31,529 for the penalty warrants to be amortized over the twelve month term of this tranche, bears interest of 10% (12% default rate) per annum, and has a maturity date of 12 months from the date of each tranche of payments under the Note with future tranches being at the discretion of Crown Bridge. The conversion rate for any conversion of unpaid principal and interest under the Notes is at a 35% discount to the lowest market price of the shares of the Company’s common stock within a 20 day trading period prior to the date of conversion to which an additional 10% discount will be added if the conversion price of the Company’s common stock is less than $50, per share and no shares of the Company’s common stock can be issued to the extent Crown Bridge would own more than 4.99% of the outstanding shares of the Company’s common stock and the conversion shares contain piggy-back registration rights. The Note is subject to customary default provisions including an event of default if the bid price of the Company’s common stock is less than its par value of $.0001 per share. The Company is entitled to prepay the Note between 30 days after its issuance until 180 days from its issuance at amounts that increase from 112% of the prepayment amount to 137% of the prepayment amount depending on the length of time when prepayments are made. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $56,538 with a charge to interest expense. As of September 30, 2018 the note holder fully converted principal and accrued interest into common shares. The debt premium on stock settled debt was fully recognized as additional paid in capital. On March 1, 2019, the Company received a second tranche advance under the Crown Bridge Partners, LLC, master note dated October 25, 2017, for principal amount of $35,000, including covered fees and original issue discount totaling $5,000. Under the conversion terms of the above note, the holder is entitled to a 35% discount plus an additional 10% discount based on the conversion rights of certain other note holders. Therefore a discount of 45% is assumed for any conversions of this note tranche. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $28,636 with a charge to interest expense. The original issue discount and fees charged were treated as debt discount and will be amortized to financing expenses over the term of the note. Following conversions during the year ended September 30, 2020 the principal balance and debt premium balances were reduced and the unamortized debt discount was $0, at September 30, 2020. The principal was increased by charges of $17,500 for technical default effective during the year ended September 30, 2020 and an additional put premium was calculated to be $26,250. The cross-default provisions of the note include defaults on any notes issued to third parties including any issued subsequent to the issuance of this note. The default charge and the put premium were charged to interest expense of June 30, 2020. The conversion discount increased to 60% as a result of the default. The principal and accrued interest were $2,766 and $6,325, respectively at March 31, 2021 and $2,766 and $6,187 at September 30, 2020. On July 12, 2019, the Company issued a convertible promissory note to Trillium Partners LP for cash in the amount of $10,000. The note bears interest at 10%, matures on January 11, 2020, and was convertible into the Company’s common stock at 50% of the lowest closing bid price on the 20 trading days immediately preceding the notice of conversion. The Company accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $10,000 with a charge to interest expense for the notes. On November 1, 2019, Trillium Partners LP amended the terms of the notes issued July 12, 2019, such that the note is no longer convertible into common stock. The principal balance of $10,000 was reclassified to notes and loans payable and the related put premium totaling $10,000 was recognized as a gain on debt extinguishment on the date of the amendment. The note issued to Trillium Partners LP, on July 12, 2019 was sold and assigned to Alpha Capital Anstalt on February 20, 2020. The assigned note became convertible as of the date of the assignment by virtue of an agreement between the Company and the new note holder. The terms of the note provide for conversion of principal and accrued interest at a 50% discount to the lowest closing bid price over the 20 days prior to conversion. The note matured on January 11, 2020 and therefore the default interest rate is 24%. There are no cross-default provisions in the note. The note has been accounted for as stock settled debt under ASC 480, and put premium of $10,395 was recognized with a charge to interest expense. The note balance and premium were $10,745 and $10,395, at September 30, 2020. Accrued interest was $1,854 at September 30, 2020. The note and accrued interest were fully converted during the six months March 31, 2021. The balance of put premium was reclassified to additional paid in capital upon conversion. On April 20, 2020, the Company issued a convertible promissory note to Geneva Roth Remark Holdings for $60,000, for $57,000, cash and fees of $3,000 (treated as OID to be amortized over the life of the note) having a 10% annual interest rate, maturity of April 20, 2021, and conversion right to a 42% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock Settled Debt, and re |
Promissory Notes and Loans Paya
Promissory Notes and Loans Payable | 6 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
PROMISSORY NOTES AND LOANS PAYABLE | NOTE 10 - PROMISSORY NOTES AND LOANS PAYABLE The notes balance consisted of the following at March 31, 2021, and September 30, 2020: March 31, September 30, Principal loans and notes $ 1,008,498 $ 990,305 Discounts (131,724 ) (87,054 ) Total 876,774 903,251 Less Current portion (571,984 ) 903,251 Non-current $ 304,790 $ - On June 1, 2018 the Company entered into a consulting and services arrangement with Livingston Asset Management. The arrangement provides for financial management services including accounting and related periodic reporting among other advisory services. The agreement was amended on July 1, 2019 regard payment terms. Under the amended agreement the Company will issue to Livingston Asset Management Fee Notes having principal of $17,000, interest of 10% per annum, maturity of six or seven months. The Company will also pay $3,000 in cash due on the first of each month. Following the assignments during fiscal year 2020, to Alpha Capital Anstalt and TBV LLC, the principal and accrued interest of the promissory notes described below, held by Livingston totaled, $85,000 and $6,760, respectively at September 30, 2020. During the six months ended March 31, 2021, the conversion terms associated with the original October, November, December and January notes below were reinstated and the notes and accrued interest of $5,493, were converted into shares of common stock. The February note was forgiven by Livingston as of March 31, 2021. Following conversions, forgiveness and reclassification, the principal balance was $0, as of March 31, 2021. On October 1, 2019, the Company issued a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date. The note bears interest at 10% and matures in six months. At September 30, 2020, accrued interest was $1,637. Conversion terms of the original note were reinstated and the note and accrued interest of $1,924 were fully converted into common stock during the six months ended March 31, 2021. $17,000 was charged to loss on debt extinguishment due to reinstatement of conversion feature treated as stock settled debt in accordance with ASC 480. On November 1, 2019, the Company issued a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date. The note bears interest at 10% and matures in six months. At September 30, 2020, accrued interest was $1,495. Conversion terms were reinstated and the note and accrued interest of $1,799 were fully converted into common stock during the six months ended March 31, 2021. $17,000 was charged to loss on debt extinguishment due to reinstatement of conversion feature treated as stock settled debt in accordance with ASC 480. On December 1, 2019, the Company issued a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date. The note bears interest at 10% and matures in six months. At September 30, 2020, accrued interest was $1,353. Conversion terms were reinstated and the note and accrued interest of $1,770 were fully converted into common stock during the six months ended March 31, 2021. $17,000 was charged to loss on debt extinguishment due to reinstatement of conversion feature treated as stock settled debt in accordance with ASC 480. On January 1, 2020, the Company issued a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date. The note bears interest at 10% and matures in six months. The note principal balance was $17,000 at September 30, 2020 and accrued interest was $1,209. During the six months ended March 31, 2021, the principal and accrued interest were fully converted following an amendment to reinstate the original conversion terms. On February 1, 2020, the Company issued a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date. The note bears interest at 10% and matures in six months The note principal of $17,000 and accrued interest of $1,491 were forgiven at March 31, 2021 and a gain on debt extinguishment was recognized for $18,491. On January 28, 2020, the Company’s subsidiary Howco entered into a Payment Rights Purchase and Sale Agreement financing with EBF Partners, LLC, (merchant cash advance or “MCA”) with a principal amount of $208,500. Howco received $147,355, in cash, net of original issue discount of $58,500, and legal and other fees totaling $2,645, which will be amortized to interest expense over the term of the financing. The CEO is a personal guarantor for the MCA. Howco will make payments each business day by way of an ACH withdrawal of $1,489, for 140 payments. The loan is secured by receipts from future revenue transactions. The principal balance was fully repaid as of September 30, 2020. On April 7, 2020, the Company through Howco, entered into a bank loan which is guaranteed by the Small Business Administration under the Paycheck Protection Plan for $220,710. The loan has a maturity of 24 months and an interest rate of .98%, which starts accruing on April 7, 2020. The loan will be forgiven provided the terms of forgiveness upon submission of a valid application for loan forgiveness when approved by the agent bank. The terms call for Howco to use 75% of the funded amount for payroll costs. Howco has put in place controls designed to ensure compliance with the terms of forgiveness. The amount forgiven will be recognized as gain on debt extinguishment when approved. Any amount that is not forgiven is to be paid over the 18 months following the 6 month deferral period. On January 20, 2021 the Company was notified by its bank that the Small Business Administration authorized full forgiveness of its Paycheck Protection Program Loan in the amount of $220,710. The forgiveness of debt was recognized as a gain on debt extinguishment for the amount forgiven. On June 2, 2020, the Company entered into a financing arrangement through its subsidiary Howco with Fora Financial Business Loans, LLC. Howco received $150,000, net of discounts totaling $60,000 and less legal and underwriting fees of $3,750 and prior loan payoff amount of $40,975. A total of $210,000 will be paid by direct debit of Howco’s bank account of $854, for 245 daily installments payments. The Company will recognize a principal amount of $210,000 with debt discounts of $63,750, and liquidate the principal balance and related discounts from the 2019 financing. The Company’s CEO is a personal guarantor on financing facility. At September 30, 2020, the principal balance was $140,854, with unamortized debt discount of $28,944, having a net balance of $111,910. As of December 31, 2020, the principal balance was $87,927, with unamortized debt discount of $11,473, having a net balance of $76,454. The balance of $75,975 on January 26, 2021 was fully liquidated upon funding of the IOU note discussed below. On June 17, 2020, the Company through Howco, entered into a loan directly with the Small Business Administration for $150,000. The loan term is thirty years and begins amortization one year from the date of promissory note to be issued upon funding. Amortization payments are $731 per month and include interest and principal of 3.75% from the date of funding. The loan is secured by the assets of Howco. As of March 31, 2021 and September 30, 2020, the principal balance is $150,000. On August 25, 2020, the Company entered into a financing arrangement through its subsidiary Howco with IOU Central Inc. Howco received $199,405 less fees of $595 and Original Issue Discount of $22,000 and deferred finance charges of $47,606, for a total of $70,201 to be amortized over the term of the note. A total of $269,606 will be paid by direct debit of Howco’s bank account of $5,173, for 52 weekly payments and 1 payment of $620. The Company recognized a principal amount of $269,606 with debt discounts of $70,201. The Company’s CEO is a personal guarantor on financing facility. At September 30, 2020, the principal balance was $243,742, with unamortized debt discount of $58,110 having a net balance of $185,632. As of December 31, 2020 the principal balance was $176,495, with unamortized debt discount of $26,544 having a net balance of $149,951. The principal balance of $152,318 on January 26, 2021 was fully liquidated upon funding of the IOU note discussed below. On September 11, 2020, the Company issued a promissory note in the amount of $150,000 to Trillium Partners LP and received the full amount of the note in cash. The note includes cross-default provisions. The note matures on March 31, 2021 and bears interest of 2%. The principal balance was $150,000 at September 30, 2020. During the six months ended March 31, 2021 the Company repaid $70,000 of note principal, and Trillium forgave $50,000 bringing the balance to $30,000 with accrued interest of $827. Default was given forbearance on the maturity date. On January 26, 2021, the Company entered into a financing arrangement through its subsidiary Howco with IOU Central Inc. Howco received $121,707, net of discounts totaling $119,929 fees of $595 and prior loan payoff amounts of $75,975 (FORA) and $152,318 (IOU prior note). A total of $462,524 will be paid by direct debit of Howco’s bank account of $8,895, for 51 weekly payments and a final payment of $9,894. The Company will recognize a principal amount of $462,524 with debt discounts of $119,929, and liquidate the principal balance and related discounts from the FORA and IOU prior notes. The Company’s CEO is a personal guarantor on financing facility. As of March 31, 2021, the principal balance is $373,577, with unamortized debt discount of $98,870, having a net balance of $274,707. On January 29, 2021, the Company issued a promissory note in the amount of $95,000 to Trillium Partners LP and received cash amounting to $93,692, and OID of $1,308. The note includes cross-default provisions. The note matures on July 31, 2021 and bears interest of 2%. The principal balance was $95,000 at March 31, 2021 with accrued interest of $316. On February 3, 2021, the Company issued a promissory note in the amount of $75,000 to Trillium Partners LP and received cash amounting to $73,085, and OID of $1,915. The note includes cross-default provisions. The note matures on July 31, 2021 and bears interest of 2%. The principal balance was $75,000 at March 31, 2021 with accrued interest of $230. On March 30, 2021, the Company entered into a financing arrangement through its subsidiary Howco with ODK Capital, LLC. Howco received $83,000 less fees of $2,075 and Original Issue Discount of $29,631 to be amortized over the term of the note. A total of $112,631 will be paid by direct debit of Howco’s bank account of $2,166, for 52 weekly payments. The Company recognized a principal amount of $112,631, $2,075 charged to expense and debt discounts of $29,631. The Company’s CEO is a personal guarantor of the financing facility. As of March 31, 2021 the principal balance is $112,631, with unamortized debt discount of $29,631 having a net balance of $83,000. In March 2021, the Company through Howco, entered into a bank loan which is guaranteed by the Small Business Administration under the Paycheck Protection Plan for $154,790. The loan has a maturity of 24 months and an interest rate of .98%. The loan will be forgiven provided the terms of forgiveness upon submission of a valid application for loan forgiveness when approved by the agent bank. The terms call for Howco to use the funds for specified purposes. Howco has put in place controls designed to ensure compliance with the terms of forgiveness. The amount forgiven will be recognized as gain on debt extinguishment when approved. Any amount that is not forgiven is to be paid over the 18 months following the 6 month deferral period. During the six months ended March 31, 2021, the Company issued seven notes payable totaling $17,500. The notes were issued for monthly fees ($2,500) for a service vendor and are issued the first day of the month and each has one year maturity and does not bear interest. The service arrangement was terminated in April 2021. |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ DEFICIT | NOTE 11 - STOCKHOLDERS’ DEFICIT Preferred Stock As of March 31, 2021, the Company is authorized to issue 5,000,000 shares of $0.0001 par value preferred stock, with designations, voting, and other rights and preferences to be determined by the Board of Directors of which 4,999,750 remain available for designation and issuance. As of March 31, 2021, and September 30, 2020, the Company has designated 250 shares of $0.0001 par value Series A preferred stock, of which 250 shares are issued and outstanding. These preferred shares have voting rights per shareholder equal to the total number of issued and outstanding shares of common stock divided by 0.99. Common Stock On January 30, 2019 the Company’s shareholders approved an increase in authorized common stock to 6,000,000,000 from 1,500,000,000, which became effective February 24, 2019. On August 6, 2019, the Company filed amendments with the Secretary of the State of Delaware, amending its articles of incorporation to execute a reverse stock split of 1 share for every 1,000 shares outstanding, and changing its name to Bantec, Inc. The name change and the stock split became effective in February 2020, and the transfer agent adjusted the outstanding shares for the reverse split on February 10, 2020. All share and per share related amounts in the accompanying consolidated financial statements and footnotes have been retroactively adjusted for all periods presented to recognize the reverse split. As of March 31, 2021, and September 30, 2020 there were 1,553,882,154, and 491,032,439, shares outstanding, respectively. Stock Incentive Plan The Company established its 2016 Stock Incentive Plan (the “Plan”) that permits the granting of incentive stock options and other common stock awards. The maximum number of shares available under the Plan is 100,000 shares. The Plan is open to all employees, officers, directors, and non-employees of the Company. Options granted under the Plan will terminate and may no longer be exercised (i) immediately upon termination of an employee or consultant for cause or (ii) one year after termination of employment, but not later than the remaining term of the option. As of March 31, 2021, 82,327 awards remain available for grant under the Plan. S-1 Offerings and Issuances Under Subscription On July 20, 2020, the Company submitted an amendment to its registration statement filed on Form S-1 in response to comments on its original filing on June 8, 2020. The Company requested accelerated status and the registration statement became effective on July 23, 2020. The offering provides for the issuance of up to 1,500,000,000 shares of common stock at a price of $.00175, under subscriptions. The Company will use the proceeds for working capital and may seek to expand the business through investment. On March 5, 2021, the Company submitted a second registration statement filed on Form S-1. The Company requested accelerated status and the registration statement became effective on March 16, 2021. The offering provides for the issuance of up to 1,250,000,000 shares of common stock at a price of $.0175, under subscriptions. The Company will use the proceeds for working capital and may seek to expand the business through investment. Subscriptions Under Initial S-1 Offering Between October 7, 2020 and March 31, 2021, the Company issued 617,162,196 shares of common stock to Trillium Partners LP for $1,080,032 of cash under the terms of the S-1A offering statement. Subscriptions Under March 16, 2021 S-1 Offering On March 31, 2021, the Company issued 4,285,714 shares of common stock to Trillium Partners LP for $75,000 of cash under the terms of the March 16, 2021 S-1 offering statement. Common Stock Issued for Employee Compensation On October 22, 2020, the Company granted 1,000,000 shares of common stock to an employee, which were valued at $0.0034, based on the stock price on the date of the grant. The cost of $3,400 was charged to compensation expense. On October 22, 2020, the Company granted 5,000,000 shares of common stock to an employee, which were valued at $0.0034, based on the stock price on the date of the grant. The cost of $17,000 was charged to compensation expense. Shares Issued for non-employee Services On October 22, 2020, the Company issued 10,000,000 shares of common stock to a consultant for services rendered, which were valued at $0.0034, based on the stock price on the date of the grant. The cost of $34,000 was charged to consulting expense. Shares Issued in Conversion of Convertible Notes Between October 26 – 30, 2020, Geneva Roth Remark Holdings Inc. converted principal of $60,000 and accrued interest of $3,000 from its convertible note dated April 20, 2020 into 36,006,192 shares of common stock at contracted prices. Following the conversions, the balance of principal and accrued interest was $0. On November 24, 2020, Livingston Asset Management LLC converted principal of $17,000, accrued interest of $1,924 and fees of $1,025 into 16,623,800 shares of common stock at contracted prices. Following the conversion, the October 1, 2019 fee note principal and accrued interest were $0. On December 1, 2020, Livingston Asset Management LLC converted principal of $17,000, accrued interest of $1,799 and fees of $1,025 into 16,503,483 shares of common stock at contracted prices. Following the conversion, the November 1, 2019 fee note principal and accrued interest were $0. On December 11, 2020, Tri-Bridge Ventures LLC converted principal of $35,000 and accrued interest of $1,550 into 29,007,611 shares of common stock at contracted prices. Following the conversion, the May 14, 2020 note principal and accrued interest were $0. On December 15, 2020, Livingston Asset Management LLC converted principal of $17,000, accrued interest of $1,770 and fees of $1,025 into 19,794,860 shares of common stock at contracted prices. Following the conversion, the December 1, 2019 fee note principal and accrued interest were $0. Between December 15 – 16, 2020, Geneva Roth Remark Holdings Inc. converted principal of $53,000 and accrued interest of $2,650 from its convertible note dated June 9, 2020 into 46,375,000 shares of common stock at contracted prices. Following the conversions, the balance of principal and accrued interest was $0. On January 2, 2021 the Company issued 19,720,340 shares of common stock to Livingston Asset Management in conversion of $17,000 of principal, $1,695 of accrued interest and fees of $1,025, the contracted price per share of $0.001. The January 1, 2020 fee note and accrued interest were fully liquidated. On January 19, 2021 the Company issued 42,807,692 shares of common stock to Geneva Roth Remark in conversion of $53,000 of principal and $2,650 of accrued interest for their note issued on July 10, 2020 at the contracted price. The principal and accrued interest balances were $0 following the conversion. Between December 16, 2020 and February 12, 2021 Alpha Capital Anstalt converted principal of $91,300 and accrued interest of $8,038, into 81,972,474 shares of common stock at contracted prices. Following the conversion, the February 20, 2020 securities purchase agreement note (former LAM note) was fully converted. On February 12, 2021, Alpha Capital Anstalt converted principal of $10,745 and accrued interest of $967, into 6,330,449 shares of common stock at contracted prices. Following the conversion, the February 20, 2020 securities purchase agreement note (former Trillium note) was fully converted. On February 12, 2021, Trillium Partners LP converted principal of $90,000 and accrued interest of $16,200, into 95,301,000 shares of common stock at contracted prices. Fees of $2,710 were charged to expense and $90,000 of put premiums were reclassified to additional paid in capital. The principal and accrued interest on the fifteen fee notes originally held by an attorney and sold and assigned to Trillium were $0 and $0, respectively following the conversions (three). On March 2, 2021 the Company issued 14,958,904 shares of common stock to Geneva Roth Remark in conversion of $104,000 of principal and $5,200 of accrued interest for their note issued on August 28, 2020 at the contracted price. The principal and accrued interest balances were $0 following the conversion. Stock Options The Company recognizes compensation cost for unvested stock-based incentive awards on a straight-line basis over the requisite service period. There were no options granted under the 2016 Stock Incentive Plan for the six months ended March 31, 2021 and 2020. For the six months ended March 31, 2021 and 2020 the Company recorded $78,013 and $132,599 of compensation and consulting expense related to stock options, respectively. Total unrecognized compensation and consulting expense related to unvested stock options at March 31, 2021 amounted to $170,892. The weighted average period over which share-based compensation expense related to these options will be recognized is approximately 2 years. For the six months ended March 31, 2021, a summary of the Company’s stock options activity is as follows: Number of Weighted- Weighted- Weighted- Aggregate Outstanding at September 30, 2020 17,755 220.00 5.29 - - Outstanding at March 31, 2021 17,673 - - - - Exercisable at March 31, 2021 14,544 220.00 1.29 - - All options were issued at an options price equal to the market price of the shares on the date of the grant. Warrants On September 9, 2016, 500 5-year warrants exercisable at $10, per share were issued as part of the consideration for the Howco acquisition. These warrants were valued at aggregate of $180,000, and have no intrinsic value. On November 9, 2017, the Company received a first tranche payment of $75,500 under the terms of a Securities Purchase Agreement dated October 25, 2017, with Crown Bridge under which the Company issued to Crown Bridge a convertible note in the principal amount of $105,000 and a five-year warrant to purchase 100 shares of the Company’s common stock at an exercise price of $350 as a commitment fee which is equal to the product of one-third of the face value of each tranche divided by $0.35. On December 20, 2017 an additional 200 warrants were issued as a penalty and in order to entice Crown Bridge to waive its right of first refusal to provide additional financing under the terms of their convertible note. A debt discount of $44,036 was recorded for the relative fair market value of the total 300 warrants and amortized to interest expense as of September 30, 2018. The warrants have full ratchet price protection and cashless exercise rights (See Note 9). The warrant includes an anti-dilution clause that was triggered on June 4, 2018. On June 4, 2018 an unrelated convertible note holder became entitled to convert their note into common shares at a 60% discount to the stock’s market price. The anti-dilution provision trigger in the warrant agreement entitled Crown Bridge to exercise its warrants under a formula that increased the number of common shares to 31,250 at a price of $3.60 per share. Due to the fact that the number of shares and exercise price can change due to market changes in the price of the common stock the Company has concluded to treat the warrants as derivatives and to revalue that derivative at each reporting date. Therefore, a derivative liability of $261,484 with a charge to additional paid in capital was recorded on June 4, 2018. As of March 31, 2021, the warrant was revalued and the warrant holder is entitled to exercise its warrants for 11,859,116 common shares and the related derivative liability is $144,937. For the six months ended March 31, 2021, a summary of the Company’s warrant activity is as follows: Number of Weighted- Weighted- Weighted- Aggregate Outstanding and exercisable at September 30, 2020 25,484,484 $ .0019 2.11 $ - $ 71,866 Anti-dilution adjustment 13,624,868 Outstanding and exercisable at March 31, 2021 11,859,616 $ .00424 1.61 $ - $ 143,804 |
Defined Contribution Plan
Defined Contribution Plan | 6 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
DEFINED CONTRIBUTION PLAN | NOTE 12 - DEFINED CONTRIBUTION PLAN In August 2016, Bantec established a qualified 401(k) plan with a discretionary employer matching provision. All employees who are at least twenty-one years of age and no minimum service requirement are eligible to participate in the plan. The plan allows participants to defer up to 90% of their annual compensation, up to statutory limits. Employer contributions charged to operations for the six months ended March 31, 2021 and 2020, was $0 and $0, respectively. The Company’s subsidiary, Howco, is the sponsor of a qualified 401(k) plan with a safe harbor provision. All employees are eligible to enter the plan within one year of the commencement of employment. Employer contributions charged to expense for the six months ended March 31, 2021 and 2020, was $4,882 and $4,575, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13 - RELATED PARTY TRANSACTIONS On October 1, 2016, the Company entered into employment agreements with two of its officers. The employment agreement with the company’s President and CEO provides for annual base compensation of $370,000 for a period of three years, which can, at the Company’s election, be paid in cash or Common Stock or deferred if insufficient cash is available, and provides for other benefits, including a discretionary bonus and equity provision for the equivalent of 12 months’ base salary, and an additional one-time severance payment of $2,500,000 upon termination under certain circumstances, as defined in the agreement. On September 16, 2019, Mr. Bannon’s employment agreement was modified to provide an annual salary of $624,000. The Company recognized expenses of $312,000 for the six months ended March 31, 2021 and 2020 for the CEO’s base compensation. On March 28, 2017, Bantec entered into an at-will employment agreement with Matthew Wiles as General Manager of Howco. Under the terms of the employment agreement, Mr. Wiles’ compensation is $140,000 per annum and he also will be eligible for a bonus of 10% of Howco’s gross profits over $1.25 million to be paid in cash after the annual financial statements have been completed and, if applicable, audited for filing with the SEC. Mr. Wiles will also receive options to acquire 250 shares of Bantec’s common stock, vesting over five years in equal amounts on the anniversary date of his Employment Agreement. On September 16, 2019, Mr. Wiles’ employment agreement was modified to provide salary of $275,000, and an annual bonus of 2% of net income. At the Company’s discretion, salary and bonus may be paid in cash or stock and payment may be deferred. The difference between the amended agreement and salary paid by Howco is recorded in the accounts of the parent company. $67,000 was recognized as expense in the parent company’s accounts for each of the six months ended March 31, 2021 and 2020. $207,428 and $140,178 were recorded as accrued salaries expense as of March 31, 2021 and September 30, 2020 respectively. The Company has certain convertible notes and other promissory notes payable to related parties (see Note 8). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14 - COMMITMENTS AND CONTINGENCIES Contingencies Legal Matters On February 6, 2018 the Company sent a letter to the previous owners of Howco Distributing Co. (“Howco”) alleging that they made certain financial misrepresentations under the terms of the Stock Purchase Agreement by which the Company acquired control of Howco during 2016. The Company claimed that the previous owners took excessive amounts of cash from the business prior to the close of the merger. On March 13, 2018 the Company filed a lawsuit against the previous owners by issuing a summons. On April 12, 2018, the Company received the Defendants’ answer. On July 22, 2019, the Company was granted a dismissal without prejudice of the lawsuit filed against the previous owners of Howco. The Company is currently in talks with the previous owners of Howco to settle an outstanding note. There is an oral agreement to pay the previous owners $3,000 a month until a written settlement can be reached. During the six months ended March 31, 2021 the Company has repaid $9,000. In connection with the merger in fiscal 2016, with Texas Wyoming Drilling, Inc., a vendor has a claim for unpaid bills of approximately $75,000 against the Company. The Company and its legal counsel believe the Company is not liable for the claim pursuant to its indemnification clause in the merger agreement. On February 11, 2019, the Supreme Court of the State of New York issued a summons to the former CFO of the Company, to appear before the court to answer the Company’s complaint seeking payment under a personal guarantee of the defendant to provide half of any compensation paid to the former Chief Strategy Officer. The Company is seeking $300,000 from the defendant relating to the November 27, 2018 settlement agreement with the former Chief Strategy Office for $600,000. The former CFO has responded to the suit and has filed a motion to dismiss the Company’s suit during August of 2019. The judge presiding ruled to dismiss the defendant’s motion. Currently, the Company is in discussion with the former CFO’s legal counsel to resolve the matter. On April 10, 2019, a former service provider filed a complaint with three charges with the Superior Court Judicial District of New Haven, CT seeking payment for professional services. The Company has previously recognized expenses of $218,637, which remain unpaid in accounts payable. The Company has retained an attorney who is currently working to address the complaint. On August 9, 2019 the Company filed a motion to dismiss the charge of unjust enrichment. The judge granted the Company’s motion to dismiss. The Company, through its attorney, is working to negotiate a settlement. During the year ended September 30, 2019, two vendors have asserted claims for past due amounts of approximately $59,000, arising from services provided. The Company has fully recognized in accounts payable the amounts associated with these claims and expects to resolve the matters to satisfaction of all parties. Settlements On January 29, 2018, the Company entered into a settlement agreement and mutual release with a vendor who had provided public relations and other consulting services whereby the Company shall pay to this vendor an aggregate amount of $60,000 of which $30,000 was paid on February 2, 2018. The Company was to have paid ten monthly payments of $3,000 per month beginning on February 29, 2018. The vendor is to return 400 common shares of the Company’s common stock which will be cancelled upon satisfaction of the liability. The liability is recorded at $21,000 as of March 31, 2021 and September 30, 2020. The Company is in default of the settlement. On November 13, 2018 the Company and a vendor agreed to settle $161,700 in past due professional fees for a convertible note in the amount of $90,000. The note bears interest at 5% and matures in July 2019, and has a fixed discount conversion feature. The note is now past due and remains unconverted at March 31, 2021; however there is no default interest of penalty associated with the default. The accrued balance as accounts payable of $71,700 was recognized as a gain on debt extinguishment upon receipt of the waiver and release from the vendor in fiscal 2019. On December 30, 2020, a Howco vendor filed a lawsuit seeking payment of past due invoices totaling $276,430 and finance charges of $40,212. The Company has recorded the liability for the invoices in the normal course of business. $40,212 has been recognized as expense for the finance charges and the accounts payable balance is $351,006 as of March 31, 2021. Management at Howco as well as a consultant are in negotiation with the vendor and their legal counsel and have arrived at a likely settlement to the matter. On January 13, 2021 Howco entered into a payment arrangement (promissory note) with Pacific Power LLC. The principal amount owed to this supplier is $279,323 with an accumulated interest of $60,437. Howco will pay Pacific Power LLC $5,000 a month starting on February 1, , On February 8, 2021 Howco entered into a settlement agreement with Cummins Inc. Howco has agreed to pay $43,358 plus interest to Cummins Inc. over the next two years. Howco will make six monthly installments of not less than $1,500 a month for the first six months and $2,000 a month thereafter until liquidated. Following payments during the six months ended March 31, 2021 the balance recorded in accounts payable is $36,548. As of March 31, 2021, the Company has received demand for payment of past due amounts for services by several consultants and service providers. The Impact of COVID-19 The Company is a wholesale vendor to the Department of Defense through its wholly owned subsidiary, Howco and is directly involved in distribution and integration of advanced low altitude UAV systems, services and products. Both the wholesale vendor and the integration/distribution aspects of the Company’s business have been affected due to the COVID-19 social distancing requirements mandated by the federal, state and local governments where the Company’s operations occur. For some businesses, like the Company’s, much of the integration and distribution of its core products and delivery of its core services cannot always be done through “virtual” means, and even when this is possible, it requires significant capital and time to achieve. During the six months ended March 31, 2021 sales and shipments at Howco have continued at a lower rate than during the six months ended March 31, 2020. Commitments Lease Obligations The Company entered into an agreement with a manufacturer in Pismo Beach, California. The agreement provides for certain services to be provided by the manufacturer as needed by the Company. The agreement has an initial term of three years with one year renewals. In connection with this agreement, the Company has agreed to sublease space based in San Luis Obispo, California from the manufacturer for the purposes of the development and manufacturing of unmanned aerial vehicles. The lease provides for base monthly rent of approximately $15,000 for the initial term to be increased to $16,500 per month upon extension. The lease term begins February 1, 2017 and expires January 31, 2019 with the option to extend the term an additional 24 months. However, the Company never took possession of the premises and in July 2017, the Company made a decision to not take possession of the premises. The Company is in default of the rent payments and had received oral demand for payments. As of March 31, 2021, the Company has not made any of the required monthly rent payments in connection with this agreement. During fiscal 2017, the Company had expensed and accrued into accounts payable the remaining amounts due under the term of the lease for a total accrual of $360,000 pursuant to ASC 420-10-30. This balance remains accrued as of March 31, 2021 and September 30, 2020. On April 16, 2020 the Company’s subsidiary Howco renewed its office and warehouse lease in Vancouver, WA for a term commencing on June 1, 2020 extending through June 1, 2023 at an initial monthly rent of approximately $5,154. The lease requires monthly payments including base rent plus CAM with annual increases. The Company recognized a right-of-use asset of and a lease liability of $156,554, which represents the fair value of the lease payments calculated as present value of the minimum lease payments using a discount rate of 10% on date of the lease renewal in accordance with ASC 842. The asset and liability will be amortized as monthly payments are made and lease expense will be recognized on a straight-line basis over the term of the lease. Right of use asset (ROU) is summarized below: March 31, Operating lease at inception - June 2, 2020 $ 156,554 Less accumulated reduction (44,477 ) Balance ROU asset as of March 31, 2021 $ 112,077 Operating lease liability related to the ROU asset is summarized below: Operating lease liabilities at inception - June 2, 2020 $ 156,554 Reduction of lease liabilities (43,491 ) Total lease liabilities - March 31, 2021 $ 113,063 Less: current portion (52,181 ) Lease liabilities, non-current $ 60,882 Non-cancellable operating lease total future payments at March 31, 2021 are summarized below: Total minimum operating lease payments $ 137,558 Less discount to fair value (24,495 ) Total lease liability at March 31, 2021 $ 113,063 Future minimum lease payments under non-cancellable operating leases at March 31, 2021 are as follows: Years ending September 30, Amount 2021 $ 46,722 2022 63,369 2023 42,929 Total minimum non-cancelable operating lease payments $ 153,020 For the six months ended March 31, 2021 and 2020, rent expense for all leases amounted to $30,924 and $30,552, respectively. In December 2019, the Company relocated its primary office to 195 Paterson Avenue, Little Falls, New Jersey, under a one-year lease with a renewal option having monthly payments of $500. The lease has not been renewed as of March 31, 2021; however, the property manager has agreed to month-to-month payments. Profit Sharing Plan (for Howco) On April 13, 2018, Howco announced to its employees a Company-wide profit-sharing program. The employee profit share is equal to their annual salary divided by the Company’s total annual payroll and multiplied by 10% of net income for the fiscal year. During the six months ended March 31, 2021 and 2020 the employees earned $0 and $0, under this plan. Notice of Default On September 6, 2019, the Company received a notice of default under its senior secured credit facility with TCA, for non-payment of amounts due among other matters. Left uncured the default remedies include seizure of operating assets such as the Company’s subsidiary. Additionally, the default may trigger cross default provisions under agreements with other creditors. During the year ended September 30, 2020, Crown Bridge Partners notified the Company of a default on their convertible note dated March 1, 2019. The principal was increased by charges of $17,500 for technical default effective June 30, 2020 and an additional put premium was calculated to be $26,250. Management believes that following conversions to common stock during fiscal year 2020, the principal and interest owed totaled approximately $9,100 as of March 31, 2021. Directors’ & Officers’ Insurance Policy Expiration On October 11, 2019, the Company’s insurance policy covering directors and officers expired and the carrier declined to renew the policy. The Company is working with its broker and other carriers to obtain coverage. This lapse of insurance coverage exposes the Company to the risk associated with its indemnification of its officers against legal actions by third parties as outlined in the officers’ employment agreements as amended on September 16, 2019. |
Concentrations
Concentrations | 6 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 15 - CONCENTRATIONS Concentration of Credit Risk The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits. At March 31, 2021, cash in bank did not exceed the federally insured limits of $250,000. The Company has not experienced any losses in such accounts through March 31, 2021. Economic Concentrations With respect to customer concentration, two customers accounted for approximately 45% and 38% of total sales for the six months ended March 31, 2021. One customer accounted for approximately 82% of sales for the six months ended March 31, 2020. With respect to accounts receivable concentration, two customers accounted for 71% and 21% of total accounts receivable at March 31, 2021. Two customers accounted for approximately 75% and 21% of accounts receivable at September 30, 2020. With respect to supplier concentration, three suppliers accounted for approximately 23%, 12%, and 11% of total purchases for the six months ended March 31, 2021. Two vendors accounted for 34.4% and 21% of total purchases, for the six months ended March 31, 2020. With respect to accounts payable concentration, three suppliers accounted for approximately 20%, 18% and 14% of total accounts payable at March 31, 2021. Three suppliers accounted for, 14%, and 13% and 10% of total accounts payable at September 30, 2020. Foreign sales were $0 for the six months ended March 31, 2021. Foreign sales totaled approximately $5,200 for the six months ended March 31, 2020. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16 - SUBSEQUENT EVENTS Shares Issued to Officer On April 13, 2021, the Company issued 5,000,000 shares of common stock to the COO, which were valued at $0.0012, based on the stock price on the date of the grant. The cost was charged to compensation expense. Shares Issued for Services On April 13, 2021, the Company issued 10,000,000 shares of common stock to a consultant for services, which were valued at $0.0012, based on the stock price on the date of the grant. The cost was charged to consulting expense. Shares Issued for Conversions of Convertible Notes Between May 6 and 7, 2021, the Company issued 8,916,667 shares of common stock to Geneva Roth Remark Holdings, Inc. in full conversion of their November 2, 2020 convertible note principal of $53,500 and accrued interest of $2,675. Shares were priced at the contract price of $0.0063. Put premiums of $35,666 will be reclassified to additional paid in capital. Convertible Notes Issued On May 3, 2021, the Company entered into a convertible promissory note with Geneva Roth Remark Holdings, Inc. (“Lender”) in the principal amount of $58,500, (the “May 3, 2021 Note”). The May 3, 2021 Note carries interest at the rate of 10%, matures on May 3, 2022, and is convertible into shares of the Company’s common stock, par value $0.0001, at the Lender’s election, after 180 days, at a 35% discount, provided that the Lender may not own greater than 4.99% of the Company’s common stock at any time. The note was funded for $55,000, with $3,500, disbursed for legal and execution fees. The Company will treat the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $31,500 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Bantec, Inc. and its wholly-owned subsidiaries, Drone USA, LLC (inactive), Bantec Construction LLC (inactive), and Howco. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly certain information and footnote disclosures normally included in financial statements in accordance with GAAP have been omitted. 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 six months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending September 30, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended September 30, 2020 and footnotes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on January 12, 2021. The consolidated balance sheet as of September 30, 2020 contained herein has been derived from the audited consolidated financial statements as of September 30, 2020, but does not include all disclosures required by GAAP. |
Going Concern | Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. For the six months ended March 31, 2021, the Company has a net loss of $189,440 and used cash in operations of $591,628. The working capital deficit, stockholders’ deficit and accumulated deficit was $15,499,099, $15,748,775 and $31,264,209, respectively, at March 31, 2021. Furthermore, on September 6, 2019 the Company received a default notice on its payment obligations under the senior secured credit facility agreement (see Note 9), defaulted on its Note Payable – Seller in September 2017 and has since defaulted on other promissory notes. As of March 31, 2021, the Company has received demands for payment of past due amounts from several consultants and service providers. It is management’s opinion that these matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issuance date of this report. The ability of the Company to continue as a going concern is dependent upon management’s ability to further implement its business plan and raise additional capital as needed from the sales of stock or debt. The Company has continued to implement cost-cutting measures and restructuring or setting up payment plans with vendors and service providers and plans to raise equity through a private placement, and restructure or repay its secured obligations. The accompanying consolidated financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the allowance for bad debt on accounts receivable, reserves on inventory, valuation of the lease liability and related right-of-use asset, valuation of stock-based compensation, the valuation of derivative liabilities and the valuation allowance on deferred tax assets. |
Fair Value Measurements | Fair Value Measurements The Company follows the FASB Fair Value Measurements Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The standard establishes a hierarchy in determining the fair value of an asset or liability. The fair value hierarchy has three levels of inputs, both observable and unobservable. Level 1 inputs include quoted market prices for identical assets or liabilities in an active market that the Company has the ability to access at the measurement date. Level 2 inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data. The standard requires the utilization of the lowest possible level of input to determine fair value and carrying amounts of current liabilities approximate fair value due to their short-term nature. The Company accounts for certain instruments at fair value using level 3 valuation. At March 31, 2021 At September 30, 2020 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative Liability - - $ 144,937 - - $ 128,628 A roll-forward of the level 3 valuation financial instruments is as follows: Derivative Balance at September 30, 2020 $ 128,628 Reclassification of derivative liability upon conversion (8,851 ) Changes in fair market value during the six months ended March 31, 2021 25,160 Balance at March 31, 2021 $ 144,937 The warrants were issued to a convertible note holder in November and December 2017 and initially determined to be equity instruments and recorded as note discount and as additional paid in capital. On June 4, 2018 the anti-dilutive provision of the warrants took effect and based on the new conversion formula management determined the warrant became a derivative liability and reclassified the Fair Value on June 4, 2018 from additional paid-in capital to derivative liability with fair market value changes recognized in operations for each reporting date. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of liquid investments with maturities of three months or less at the time of purchase. There are no cash equivalents at the balance sheet dates. |
Accounts Receivable | Accounts Receivable Trade receivables are recorded at net realizable value consisting of the carrying amount less the allowance for doubtful accounts, as needed. Factors used to establish an allowance include the credit quality of the customer and whether the balance is significant. The Company may also use the direct write-off method to account for uncollectible accounts that are not received. Using the direct write-off method, trade receivable balances are written off to bad debt expense when an account balance is deemed to be uncollectible. |
Inventory | Inventory Inventory consists of finished goods, which are purchased directly from manufacturers. The Company utilizes a just in time type of inventory system where products are ordered from the vendor only when the Company has received sales order from its customers. Inventory is stated at the lower of cost and net realizable value on a first-in, first-out basis. |
Property & Equipment | Property & Equipment Property and equipment are stated at cost and depreciated over their estimated useful lives. Maintenance and repairs are charged to expense as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of these assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The assets are fully operational drones used as demonstration units and each unit exceeds management’s threshold for capitalization of $2,000. The Company depreciates these demonstration units over a period of 3 years. Depreciation expense was $4,916 and $5,544 for the six months ended March 31, 2021 and 2020, respectively. |
Long-Lived Assets | Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment is determined by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from use of the assets and their ultimate disposition. In instances where impairment is determined to exist, the Company writes down the asset to its fair value based on the present value of estimated future cash flows. |
Deferred Financing Costs | Deferred Financing Costs All unamortized deferred financing costs related to the Company’s borrowings are presented in the consolidated balance sheets as a direct deduction from the related debt. Amortization of these costs is reported as interest and financing costs |
Revenue Recognition | Revenue Recognition Effective October 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers, which is effective for public business entities with annual reporting periods beginning after December 15, 2017. This new revenue recognition standard (new guidance) has a five-step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied. The Company’s initial application of ASC 606 did not have a material impact on its financial statements and disclosures and there was no cumulative effect of the adoption of ASC 606. The Company sells a variety of products and related services (packaging) to government and other entities. The purchase orders received specifies each item and its manufacturer; the Company only needs to fulfill the performance obligation by shipping the specified items. No other performance obligations exist under the terms of the contracts. The Company recognizes revenue for the agreed upon sales price when the product is shipped to the customer, which satisfies the performance obligation. The Company sells drones and related products manufactured by third parties to various parties. The Company also offers technical services related to drone utilization and performs other services. The Company began offering insulation jackets for commercial and government facilities to insulate and monitor heating and cooling equipment. Contracts for drone related products and services and insulating jacket related sales will be evaluated using the five-step process outline above. There have been no material sales for drone products or other services for which full compliance with performance obligations has not been met. Sales of insulation jackets have not yet commenced. Upon significant sales for drone products and services and insulation jackets, the Company will disaggregate sales by these lines of business and within the lines of business to the extent that the product or service has different revenue recognition characteristics. |
Stock-based compensation | Stock-based compensation Stock-based compensation is accounted for based on the requirements of ASC 718 – “Compensation –Stock Compensation ), Improvements to Employee Share-Based Payment Accounting As of October 1, 2018, the Company has early adopted ASU 2018-7 Compensation-Stock Compensation which conforms the accounting for non-employees to the accounting treatment for employees. The new standard replaces using a fair value as of each reporting date with use of the calculated fair value as of the grant date. The implementation of the standard provides for the use of the fair market value as of the adoption date, rather than using the value as of the original grant date. Therefore, the values calculated and reported at September 30, 2018 become a proxy for the grant date value. The Company utilizes the Black-Sholes option pricing model and uses the simplified method to determine expected term because of lack of sufficient exercise history. There was no cumulative effect on the adoption date. |
Shipping and Handling Costs | Shipping and Handling Costs The Company has included freight-out as a component of cost of sales, which amounted to $37,958 and $21,667 for the six months ended March 31, 2021 and 2020, respectively. The cost of goods related to this service includes shipping inbound and outbound. |
Convertible Notes with Fixed Rate Conversion Options | Convertible Notes with Fixed Rate Conversion Options The Company may enter into convertible notes, some of which contain, predominantly, fixed rate conversion features, whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible note liability at its fixed monetary amount by measuring and recording a premium, as applicable, on the Note date with a charge to interest expense in accordance with ASC 480 - “Distinguishing Liabilities from Equity”. |
Derivative Liabilities | Derivative Liabilities The Company has certain financial instruments that are derivatives or contain embedded derivatives. The Company evaluates all its financial instruments to determine if those contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 810-10-05-4 and 815-40. This accounting treatment requires that the carrying amount of any derivatives be recorded at fair value at issuance and marked-to-market at each balance sheet date. In the event that the fair value is recorded as a liability, as is the case with the Company, the change in the fair value during the period is recorded as either other income or expense. Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion, repayment or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on extinguishment. |
Lease Accounting | Lease Accounting In February 2016, the FASB issued a new accounting standard on leases. The new standard, among other changes, will require lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases. The lease liability will be measured at the present value of the lease payments over the lease term. The right-of-use asset will be measured at the lease liability amount, adjusted for lease prepayments, lease incentives received and the lessee’s initial direct costs (e.g. commissions). The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption will require a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest period presented. The Company’s subsidiary has renewed the lease for the warehouse and office facility in Vancouver, Washington in May 2020 effective June 1, 2020, which extends through May 30, 2023, and is accounted for under ASC 842. The corporate office is an annual arrangement which provides for a single office in a shared office environment and is exempt from ASC 842 treatment. During the year ended September 30, 2020 the Company recognized a lease liability of $156,554 and the related right-of-use asset for the same amount and will amortize both over the life of the lease. |
Income Taxes | Income Taxes The Company’s current provision for income taxes is based upon its estimated taxable income in each of the jurisdictions in which it operates, after considering the impact on taxable income of temporary differences resulting from different treatment of items for tax and financial reporting purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made. The Company follows the accounting for uncertainty in income taxes guidance, which clarifies the accounting and disclosures for uncertainty in income taxes recognized in the Company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition and measurement of a tax position taken or expected to be taken in a tax return. The Company currently has no federal or state tax examinations in progress. As of March 31, 2021, the Company’s tax returns for the tax years 2020, 2019 and 2018 remain subject to audit, primarily by the Internal Revenue Service. The Company did not have material unrecognized tax benefits as of March 31, 2021 and September 30, 2020 and does not expect this to change significantly over the next 12 months. The Company will recognize interest and penalties accrued on any unrecognized tax benefits as a component of provision for income taxes. |
Earningt /Loss Per Share | Earningt /Loss Per Share Basic loss per share is calculated by dividing the loss attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings (loss) of the Company. Diluted loss per share is computed by dividing the loss available to stockholders by the weighted average number of shares outstanding for the period and dilutive potential shares outstanding unless such dilutive potential shares would result in anti-dilution. As of March 31, 2021, 17,673 options were outstanding of which 14,544 were exercisable, 11,859,616 warrants were outstanding and exercisable, and related party convertible debt and accrued interest totaling $224,988 was convertible into 40,101,615 shares of common stock. Additionally, as of March 31, 2021, the outstanding principal balance, including accrued interest of the third-party convertible debt, totaled $7,583,010 and was convertible into 880,053,346 shares of common stock. It should be noted that contractually the limitations on the third-party notes (and the related warrant) limit the number of shares converted to either 4.99% or 9.99% of the then outstanding shares. As of March 31, 2021, and September 30, 2020, potentially dilutive securities consisted of the following: March 31, September 30, Stock options 17,673 17,755 Warrants 11,859,616 25,484,484 Related party convertible debt and accrued interest 40,101,615 526,400,307 Third party convertible debt (including senior debt) 880,053,346 2,068,874,206 Total 932,032,250 2,620,776,752 |
Segment Reporting | Segment Reporting The Company uses “the management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker is the chief executive officer of the Company, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. As of March 31, 2021, the Company did not report any segment information since the vast majority of Company sales were from its subsidiary, Howco. Sales of drones were not material during the six months ended March 31, 2021. |
Reclassifications | Reclassifications The company reclassified $370,710 from short term loans at September 30, 2020 to long term loans at March 31, 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On August 5, 2020, the Financial Accounting Standards Board (FASB) issued accounting standards update (ASU) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) The amendments in the ASU remove certain separation models for convertible debt instruments and convertible preferred stock that require the separation of a convertible debt instrument into a debt component and an equity or derivative component. The ASU also amends the derivative scope exception guidance for contracts in an entity’s own equity. The amendments remove three settlement conditions that are required for equity contracts to qualify for the derivative scope exception. In addition to the above, the ASU expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share calculations that are impacted by the amendments. The ASU is effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021. Early adoption is permitted. The FASB noted that an entity should adopt the guidance as of the beginning of its annual fiscal year. Entities may elect to adopt the amendments through either a modified retrospective method of transition or a fully retrospective method of transition. If an entity has convertible instruments that include a down round feature, early adoption of the ASU is permitted for fiscal years beginning after December 15, 2020. The Company does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Going Concern (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of instruments at fair value using level 3 valuation | At March 31, 2021 At September 30, 2020 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative Liability - - $ 144,937 - - $ 128,628 |
Schedule of roll forward of the level 3 valuation financial instruments | Derivative Balance at September 30, 2020 $ 128,628 Reclassification of derivative liability upon conversion (8,851 ) Changes in fair market value during the six months ended March 31, 2021 25,160 Balance at March 31, 2021 $ 144,937 |
Schedule of potentially dilutive securities | March 31, September 30, Stock options 17,673 17,755 Warrants 11,859,616 25,484,484 Related party convertible debt and accrued interest 40,101,615 526,400,307 Third party convertible debt (including senior debt) 880,053,346 2,068,874,206 Total 932,032,250 2,620,776,752 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of accounts receivable | March 31, September 30, Accounts receivable $ 207,542 $ 349,389 Reserve for doubtful accounts - - $ 207,542 $ 349,389 |
Convertible and Other Notes P_2
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Convertible Notes Payble For Related Parties [Abstract] | |
Schedule of related party officer and his affiliates convertible notes | March 31, September 30, 2021 2020 Principal $ - $ 945,227 Premiums - 846,085 Total - 1,791,312 Current portion, including premiums - - Long term $ - $ 1,791,312 |
Convertible Notes Payable and_2
Convertible Notes Payable and Advisory Fee Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Convertible Notes Payable And Advisory Fee Liabilities [Abstract] | |
Schedule of senior secured credit facility note balance and convertible debt balances | March 31, September 30, 2021 2020 Principal $ 6,114,157 $ 6,473,702 Premiums 1,472,666 1,846,471 Unamortized discounts (13,804 ) (9,223 ) $ 7,573,019 $ 8,310,950 |
Promissory Notes and Loans Pa_2
Promissory Notes and Loans Payable (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of loans and notes payable | March 31, September 30, Principal loans and notes $ 1,008,498 $ 990,305 Discounts (131,724 ) (87,054 ) Total 876,774 903,251 Less Current portion (571,984 ) 903,251 Non-current $ 304,790 $ - |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of the company's warrant activity | Number of Weighted- Weighted- Weighted- Aggregate Outstanding at September 30, 2020 17,755 220.00 5.29 - - Outstanding at March 31, 2021 17,673 - - - - Exercisable at March 31, 2021 14,544 220.00 1.29 - - |
Schedule of the company's warrant activity | Number of Weighted- Weighted- Weighted- Aggregate Outstanding and exercisable at September 30, 2020 25,484,484 $ .0019 2.11 $ - $ 71,866 Anti-dilution adjustment 13,624,868 Outstanding and exercisable at March 31, 2021 11,859,616 $ .00424 1.61 $ - $ 143,804 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of right of use asset | March 31, Operating lease at inception - June 2, 2020 $ 156,554 Less accumulated reduction (44,477 ) Balance ROU asset as of March 31, 2021 $ 112,077 Operating lease liabilities at inception - June 2, 2020 $ 156,554 Reduction of lease liabilities (43,491 ) Total lease liabilities - March 31, 2021 $ 113,063 Less: current portion (52,181 ) Lease liabilities, non-current $ 60,882 Total minimum operating lease payments $ 137,558 Less discount to fair value (24,495 ) Total lease liability at March 31, 2021 $ 113,063 |
Schedule of future minimum lease payments | Years ending September 30, Amount 2021 $ 46,722 2022 63,369 2023 42,929 Total minimum non-cancelable operating lease payments $ 153,020 |
Nature of Operations (Details)
Nature of Operations (Details) | Aug. 06, 2019 |
Accounting Policies [Abstract] | |
Reverse stock split | 1 for 1,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Going Concern (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Summary of Significant Accounting Policies and Going Concern (Details) [Line Items] | |||||
Net loss | $ (209,986) | $ (854,220) | $ (189,440) | $ (1,521,063) | |
Cash in operations | (591,628) | 222,279 | |||
Working capital deficit | 15,499,099 | ||||
Stockholders' deficit | 15,748,775 | 15,748,775 | |||
Accumulated deficit | (31,264,209) | (31,264,209) | $ (31,074,769) | ||
Derivative liability | 144,937 | $ 144,937 | |||
Liquid investment maturity | 3 months | ||||
Cash equivalents | 0 | $ 0 | |||
Capitalization cost for single unit | $ 2,000 | ||||
Property and equipment, depreciates | 3 years | ||||
Depreciation | 2,458 | 2,772 | $ 4,916 | 5,544 | |
Cost of sales of Freight | 37,958 | 21,667 | |||
Lease liability | $ 156,554 | $ 156,554 | 156,554 | ||
Options outstanding (in Shares) | 17,673 | 17,673 | |||
Warrants exercisable (in Shares) | 14,544 | ||||
Warrants outstanding and exercisable (in Shares) | 11,859,616 | 11,859,616 | |||
Convertible debt and accrued interest | $ 224,988 | ||||
Convertible of common shares (in Shares) | 880,053,346 | ||||
Convertible debt, amount | $ 7,583,010 | ||||
Shares converted percentage | 4.99% | ||||
Outstanding shares percentage | 9.99% | ||||
Short term loans from reclassifications | $ 370,710 | ||||
Long term loans from reclassifications | $ 370,710 | $ 370,710 | |||
Common Stock [Member] | |||||
Summary of Significant Accounting Policies and Going Concern (Details) [Line Items] | |||||
Net loss | |||||
Convertible of common shares (in Shares) | 40,101,615 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Going Concern (Details) - Schedule of instruments at fair value using level 3 valuation - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 144,937 | $ 128,628 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Going Concern (Details) - Schedule of roll forward of the level 3 valuation financial instruments - Level 3 [Member] | 6 Months Ended |
Mar. 31, 2021USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning Balance | $ 128,628 |
Reclassification of derivative liability upon conversion | (8,851) |
Changes in fair market value during the six months ended March 31, 2021 | 25,160 |
Ending Balance | $ 144,937 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Going Concern (Details) - Schedule of potentially dilutive securities - shares | 6 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Sep. 30, 2020 | |
Schedule of potentially dilutive securities [Abstract] | ||
Stock options | 17,673 | 17,755 |
Warrants | 11,859,616 | 25,484,484 |
Related party convertible debt and accrued interest | 40,101,615 | 526,400,307 |
Third party convertible debt (including senior debt) | 880,053,346 | 2,068,874,206 |
Total | 932,032,250 | 2,620,776,752 |
Accounts Receivable (Details)
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable | $ 207,542 | $ 349,389 |
Reserve for doubtful accounts | ||
Total accounts receivable | $ 207,542 | $ 349,389 |
Inventory (Details)
Inventory (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods value | $ 112,506 | $ 44,599 |
Line of Credit - Bank (Details)
Line of Credit - Bank (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2020 | |
Line of Credit - Bank (Details) [Line Items] | ||
Balance of the line of credit | $ 38,048 | $ 41,609 |
Line of credit available | 11,952 | |
Revolving Line of Credit [Member] | ||
Line of Credit - Bank (Details) [Line Items] | ||
Revolving line of credit | $ 50,000 | |
Line bears interest, description | The line bears interest at a fluctuating rate equal to the prime rate plus 4.25% | |
Debt interest rate | 7.50% | 7.50% |
Settlements Payable (Details)
Settlements Payable (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 20, 2018 | Mar. 31, 2021 | Sep. 30, 2020 | |
Disclosure Of Settlement Liabilities [Abstract] | |||
Settlement agreement | $ 127,056 | ||
Initial payment | 12,706 | ||
Debt Instrument | 6,500 | ||
Final payment | $ 3,850 | ||
Payment legal settlement | $ 42,850 | $ 42,850 |
Note Payable - Seller (Details)
Note Payable - Seller (Details) - USD ($) | Apr. 15, 2020 | Nov. 13, 2018 | Aug. 29, 2018 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2016 |
Note Payable - Seller (Details) [Line Items] | ||||||
Maturity date of note | Feb. 28, 2019 | Sep. 9, 2017 | ||||
Notes bears interest rate | 10.00% | 5.00% | 5.50% | |||
Default interest rate | 8.00% | |||||
Repayments | $ 9,000 | |||||
Principal of note payable | 891,000 | $ 900,000 | ||||
HowCo [Member] | ||||||
Note Payable - Seller (Details) [Line Items] | ||||||
Issuance of note payable | $ 900,000 | |||||
Principal of note payable | 891,000 | 900,000 | ||||
Accrued interest | $ 305,495 | $ 269,682 |
Convertible and Other Notes P_3
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) - USD ($) | Jan. 07, 2024 | Feb. 08, 2021 | Sep. 13, 2020 | Apr. 15, 2020 | Apr. 14, 2020 | Jul. 02, 2019 | Nov. 13, 2018 | Jun. 01, 2018 | Dec. 31, 2020 | Dec. 22, 2020 | Apr. 20, 2020 | Apr. 15, 2020 | Jan. 19, 2019 | Dec. 30, 2018 | Jul. 20, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 |
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) [Line Items] | ||||||||||||||||||||
Convertible note payable | $ 840,000 | $ 840,000 | $ 50,000 | $ 50,000 | ||||||||||||||||
Fixed amount of interest | 14,500 | |||||||||||||||||||
Payments of interest | $ 43,358 | 2,580 | $ 9,100 | |||||||||||||||||
Principal value | 21,571 | $ 21,571 | $ 377,194 | |||||||||||||||||
Interest annual rate | 7.00% | |||||||||||||||||||
Accrued interest balance | $ 688,444 | $ 81,597 | ||||||||||||||||||
Accrued interest | $ 210,409 | 221,232 | ||||||||||||||||||
Common stock, percentage | 50.00% | |||||||||||||||||||
Note bears interest | 10.00% | 5.00% | 5.50% | |||||||||||||||||
Loss on debt extinguishment | $ 688,444 | |||||||||||||||||||
Converted or paid in cash long with accrued interest | $ 142,773 | |||||||||||||||||||
Gain on extinguishment of debt | 377,194 | |||||||||||||||||||
Gain on extinguishment of debt | 572,465 | 1,365,988 | $ 146,375 | |||||||||||||||||
Payment of monthly principal and interest | $ 6,500 | |||||||||||||||||||
Note maturity date | Apr. 15, 2026 | |||||||||||||||||||
Convertible note payable, description | The notes are convertible into common shares at a discount of 50% to the lowest bid price in the 30 trading days immediately preceding the notice of conversion. The notes were charged to professional fees for each corresponding service month. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $12,500 with a charge to interest expense for each note. | |||||||||||||||||||
Converted to common stock | $ 90,000 | $ 180,750 | $ 35,000 | |||||||||||||||||
Convertible Notes Payable [Member] | ||||||||||||||||||||
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) [Line Items] | ||||||||||||||||||||
Convertible note payable | 840,000 | 840,000 | ||||||||||||||||||
Non-Convertible Promissory Note [Member] | ||||||||||||||||||||
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) [Line Items] | ||||||||||||||||||||
Convertible note payable, description | On December 22, 2020 a non-convertible promissory note was issued to the CEO by Howco for $50,000 having weekly payments of $2,580 for twenty-five weeks, which include a total of $14,500 of interest. During the six months ended March 31, 2021, repayments of principal and interest of $36,200 were made reducing the principal balance to $21,571. | |||||||||||||||||||
Chief Executive Officer [Member] | ||||||||||||||||||||
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) [Line Items] | ||||||||||||||||||||
Convertible note payable | $ 14,250 | |||||||||||||||||||
Payments of interest | $ 367,500 | 76,619 | ||||||||||||||||||
Principal value | $ 200,000 | $ 2,500 | $ 400,000 | 195,000 | 195,000 | |||||||||||||||
Accrued interest balance | 83,113 | 76,619 | ||||||||||||||||||
Accrued interest | 20,855 | $ 1,799 | ||||||||||||||||||
Common stock, percentage | 50.00% | 50.00% | ||||||||||||||||||
Note bears interest | 10.00% | 12.00% | ||||||||||||||||||
Loss on debt extinguishment | $ 195,000 | |||||||||||||||||||
Cash loan | $ 200,000 | $ 400,000 | ||||||||||||||||||
Interest rate percentage | 10.00% | |||||||||||||||||||
Debt premium | $ 367,500 | |||||||||||||||||||
Note maturity date | Sep. 23, 2021 | |||||||||||||||||||
Convertible note payable, description | the Company issued a convertible note payable to Michael Bannon (the Company’s CEO) in the principal amount of $69,391, in replacement for the amounts owed to an entity controlled by Mr. Bannon (above) The new note interest rate is 10%, and it matures on January 31, 2022. The new note principal and interest may be converted into the Company’s common stock at 50% of the lowest closing bid price in the thirty days preceding the conversion notice. This issuance is treated as a debt extinguishment of the old note and the new note conversion terms have been treated as stock settled debt under ASC 480, and put premium of $69,391 has been recognized with a charge to interest expense. The principal and accrued interest were $69,391 and $5,332 respectively as of September 30, 2020. At March 31, 2021 the principal was fully paid in cash and $69,391 was recognized as gain on extinguishment of debt. Accrued interest was $6,206 at March 31, 2021. | On April 14, 2020, the Company amended the note first issued to Michael Bannon (the Company’s CEO) on January 19, 2019, in amount of $200,000, with a principal and interest balance of $195,000, and $17,947. | ||||||||||||||||||
Face value percentage | 100.00% | |||||||||||||||||||
Purchase price percentage | 4.00% | |||||||||||||||||||
Unpaid balance percentage | 86.00% | |||||||||||||||||||
Chief Executive Officer [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) [Line Items] | ||||||||||||||||||||
Note bears interest | 12.00% | |||||||||||||||||||
Payment of monthly principal and interest | $ 5,000 | |||||||||||||||||||
Chief Executive Officer [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) [Line Items] | ||||||||||||||||||||
Accrued interest | 2,152 | |||||||||||||||||||
Common stock, percentage | 50.00% | |||||||||||||||||||
Note bears interest | 10.00% | |||||||||||||||||||
Cash loan | $ 17,000 | |||||||||||||||||||
Debt premium | 17,000 | |||||||||||||||||||
Gain on extinguishment of debt | $ 17,000 | |||||||||||||||||||
Chief Executive Officer [Member] | Line of Credit [Member] | ||||||||||||||||||||
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) [Line Items] | ||||||||||||||||||||
Convertible note payable | $ 132,803 | |||||||||||||||||||
Principal value | 99,142 | |||||||||||||||||||
Accrued interest | $ 32,900 | 31,260 | ||||||||||||||||||
Note bears interest | 7.00% | |||||||||||||||||||
Chief Executive Officer [Member] | Letter of Credit [Member] | ||||||||||||||||||||
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) [Line Items] | ||||||||||||||||||||
Advance amount | 64,940 | |||||||||||||||||||
Chief Executive Officer [Member] | Note 2 [Member] | ||||||||||||||||||||
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) [Line Items] | ||||||||||||||||||||
Accrued interest | $ 2,155 | $ 1,843 | ||||||||||||||||||
Common stock, percentage | 50.00% | |||||||||||||||||||
Note bears interest | 10.00% | |||||||||||||||||||
Cash loan | $ 15,000 | |||||||||||||||||||
Debt premium | $ 15,000 | $ 15,000 | $ 15,000 |
Convertible and Other Notes P_4
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) - Schedule of related party officer and his affiliates convertible notes - Convertible Notes Payable [Member] - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Convertible and Other Notes Payable – Related Party Officer and his Affiliates (Details) - Schedule of related party officer and his affiliates convertible notes [Line Items] | ||
Principal | $ 945,227 | |
Premiums | 846,085 | |
Total | 1,791,312 | |
Current portion, including premiums | ||
Long term | $ 1,791,312 |
Convertible Notes Payable and_3
Convertible Notes Payable and Advisory Fee Liabilities (Details) - USD ($) | Mar. 15, 2021 | Feb. 08, 2021 | Jan. 12, 2021 | Dec. 15, 2020 | Jul. 10, 2020 | Jun. 09, 2020 | May 14, 2020 | Nov. 02, 2019 | Jul. 12, 2019 | Jul. 12, 2019 | Mar. 01, 2019 | Nov. 13, 2018 | Jun. 01, 2018 | Jun. 01, 2018 | Mar. 07, 2018 | Jan. 03, 2018 | Nov. 09, 2017 | Mar. 13, 2017 | Sep. 13, 2016 | Feb. 15, 2021 | Dec. 31, 2020 | Aug. 28, 2020 | Apr. 20, 2020 | Oct. 30, 2018 | Aug. 29, 2018 | Jan. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 18, 2020 | Aug. 18, 2020 | Aug. 01, 2020 | Jul. 18, 2020 | Jul. 01, 2020 | Jun. 18, 2020 | Jun. 01, 2020 | May 18, 2020 | May 01, 2020 | Apr. 18, 2020 | Apr. 01, 2020 | Mar. 18, 2020 | Mar. 01, 2020 | Jan. 18, 2020 | Dec. 18, 2019 | Nov. 18, 2019 | Nov. 17, 2019 | Oct. 18, 2019 | Sep. 18, 2019 | Aug. 18, 2019 | Jul. 18, 2019 | Jun. 18, 2019 | Jun. 01, 2019 | May 18, 2019 | May 01, 2019 | Apr. 18, 2019 | Apr. 01, 2019 | Feb. 01, 2019 | Jan. 01, 2019 | Dec. 01, 2018 | Sep. 30, 2018 | Mar. 28, 2017 |
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of debt discounts | $ 12,919 | $ 2,981 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 12,500 | $ 12,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible note, description | The notes are convertible into common shares at a discount of 50% to the lowest bid price in the 30 trading days immediately preceding the notice of conversion. The notes were charged to professional fees for each corresponding service month. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $12,500 with a charge to interest expense for each note. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve shares of common stock (in Shares) | 7,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales proceeds | $ 270,320 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of monthly principal and interest | $ 43,358 | $ 2,580 | 9,100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Embedded conversion option as stock settled debt | $ 617,647 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in interest rate, percentage | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities shares issued (in Shares) | 1,273,261 | 101,624 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued (in Shares) | 250 | 250 | 194,520 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid in capital | $ 15,360,046 | $ 15,360,046 | $ 13,080,692 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion rate, description | a) 70% of the share price on the date of the note; or b) 50% of the lowest bid price during the 30 trading days preceding the date of the notice of conversion. In connection with the issuance of this Note, the Company determined that the terms of the Note contain a conversion formula that caused variations in the conversion price resulting in the treatment of the conversion option as a bifurcated derivative to be accounted for at fair value. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, description | The note bears interest at 5%, matures on June 30, 2019 and is convertible into the Company’s common stock at 50% of the lowest closing bid price during the 20 trading days immediately preceding the notice of conversion. | $17,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss on debt extinguishment | $ 572,465 | $ 1,365,988 | 146,375 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Feb. 28, 2019 | Sep. 9, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt issuance | $ 6,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument fixed interest rate, percentage | 12.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 6,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense on issuance | 4,035 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of debt discounts | 6,000 | $ 82,827 | $ 88,956 | $ 5,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative fair value | $ 8,881 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense and debt discount balances | $ 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extinguishment of debt, description | During the six months ended March 31, 2021 the note principal was fully repaid in cash and the derivative liability was recognized as gain on extinguishment of debt ($2,851) and balance was reclassified to put premium. The following notes have been issued to the law firm, each having six month term to maturity and 12% annual interest but a change in the conversion terms such that a fixed discount of 50% of the lowest bid price in the 30 trading days immediately preceding the notice of conversion. The notes have cross default provisions. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premiums equal to the face value of the notes with a charge to interest expense. The note principal amount was charged to professional fees during the month the note was issued. All notes issued prior to June 30, 2020, have reached their maturity and therefore are in technical default have a default interest rate of 18%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible notes | $ 90,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest description | The unconverted note’s principal above issued for legal services, have been converted as of March 31, 2021. Accrued interest due of $1,738 as of March 31, 2021, which is owed to the attorney. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vendor settlement | 161,700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt premium charge to interest expense | 90,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of warrants (in Shares) | 11,859,616 | 11,859,616 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Stock, Amount Issued | $ 90,000 | $ 180,750 | $ 35,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advisory fee | $ 2,050,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Embedded conversion option as stock settled debt | 3,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments received | 5,788,642 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 238,642 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities purchase agreement term, description | On the effective date of the Settlement Agreement, the amount due of $5,788,642 was split and apportioned into two separate replacement notes (“Replacement Note A” and Note B”). Replacement Note A had a principal amount of $1,000,000 and Replacement Note B had a principal balance of $4,788,642, both of which remained secured by the original security, pledge and guarantee agreements; and other applicable loan documents, and bear interest at 18% per annum. The default was not waived by this settlement agreement. The Company originally recorded a premium on stock settled debt of $617,647 on the $3,500,000, and subsequent to the settlement agreement recorded an additional premium on stock settled debt of $403,878 on the additional $2,288,642 for accrued interest and advisory fees payable that were capitalized as note principal. The interest rate was amended to 12% effective June 12, 2018. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity date, description | The Credit Agreement was amended such that the maturity date was extended to January 13, 2019 (the “Extended Maturity Date”) for replacement Note B, while the Note A maturity date remained at March 13, 2018 but was due as of March 2017 due to the principal and interest payment default discussed above. Notwithstanding anything contained in this Agreement to the contrary, all obligations owing by the Company and all other Credit Parties under the Credit Agreement, First Replacement Note B, and all other Loan Documents shall be paid in full by the Extended Maturity Date as follows: $52,500 per month from January 13, 2018 to December 13, 2018 and the remaining principal and accrued interest on January 13, 2019. Interest payments made since the amendment have totaled $323,440 and are therefore not in accord with that amendment. However, TCA has received payments under the 3(a) (10) settlement (below) totaling $308,100 during the year ended September 30, 2018, and another $270,320, during the year ended September 30, 2019. The principal balance was $4,788,642 at September 30, 2018. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable [Member] | Common Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible note, description | The Note is only convertible upon default or mutual agreement by both parties at a conversion rate of 85% of the lowest of the daily volume weighted average price of the Company’s common stock during the 5 business days immediately prior to the conversion date. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debt [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 90,000 | $ 90,000 | 90,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 20,340 | 20,340 | 14,993 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt premium charge to interest expense | $ 90,000 | $ 90,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Credit Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum borrowing amount | $ 6,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 3,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible note, description | The Note bears interest at a rate of 18% per annum, required monthly payments of $52,500, which is interest only, starting on October 13, 2016 through February 13, 2017, and monthly payments, including interest and principal, of $298,341 starting on March 13, 2017 through maturity on March 13, 2018. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate at period end | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional advisory fees | $ 850,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 539 | 539 | 539 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advisory fee | $ 850,000 | $ 850,000 | $ 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of shares (in Shares) | 539 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advisory fee due | $ 850,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales proceeds | 850,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current liability | $ 850,000 | 850,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advisory fee payable | $ 850,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of monthly principal and interest | $ 298,341 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 537,643 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Debt Premium | $ 94,878 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 12.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities shares issued (in Shares) | 1,374,885 | 1,374,885 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid in capital | $ 180,618 | $ 180,618 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debt balance amount | 421,587 | 421,587 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt premium | 281,054 | 281,054 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 17,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Livingston Asset Management LLC [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion rate, description | The note has not been converted and the principal balance is $15,000, at March 31, 2021 and September 30, 2020 with $5,279, and $4,293, of accrued interest, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 17,000 | $ 17,000 | $ 17,000 | $ 17,000 | $ 17,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note A [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 1,000,000 | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note A [Member] | Senior Secured Credit Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | 691,907 | 421,587 | 421,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | 1,418,826 | $ 1,099,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note B [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | 4,788,642 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note B [Member] | Senior Secured Credit Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | 5,326,285 | 5,326,285 | $ 5,326,285 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Credit Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 6,018,192 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Livingston Asset Management LLC [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, description | The $85,375 of principal from the Livingston Asset Management LLC notes issued December 1, 2018 through June 1, 2019, along with $8,475 of accrued interest were sold and assigned to Alpha Capital Anstalt, on February 20, 2020. The assigned notes became convertible as of the date of the assignment by virtue of an agreement between the Company and the new note holder. The terms of the notes provide for conversion of principal and accrued interest at a 50% discount to the lowest closing bid price over the 20 days prior to conversion. The notes have been accounted for as stock settled debt under ASC 480, and put premium of $93,850 has been recognized with a charge to interest expense. During the year ended September 30, 2020, $2,200 of the principal was converted into common stock. The total accrued unpaid interest (also not converted) is $5,277 at September 30, 2020. The assigned notes are in default and there are cross-default terms in the original notes or the assignment documentation. Following conversions during the six months ended March 31, 2021 the principal balance was $0 at March 31, 2021 and $91,300 as of September 30, 2020. Accrued interest was $0 and $5,277 at March 31, 2021 and September 30, 2020, respectively. Put premiums of $91,300 were reclassified to additional paid in capital during the six months ended March 31, 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Livingston Asset Management LLC [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible note, description | The placement agent services fee amounted to $15,000 payable to Scottsdale Capital Advisors in the form of a convertible note. The note matures six months from the date of issuance and shall accrue interest at the rate of 10% per annum. The $15,000 note is convertible into shares of the Company’s common stock at a discount of 30% of the low closing bid price for the twenty trading days prior to the conversion and is not subject to any registration rights. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $6,429 with a charge to interest expense. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement agreement, description | The Company will issue free trading shares of its common stock under section 3(a) (10) of the Securities Act to Livingston in the amount of such judgment in a series of tranches so that Livingston will not own more than 9.99% of our outstanding shares per tranche. The parties reasonably estimate that the fair market value of the Settlement Shares to be received by Livingston is equal to approximately $1,666,667 which is based on a discount of 40%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, description | Livingston is to receive $20,000, per month including $3,000 cash and $17,000 in promissory notes. The notes bear interest of 10% per annum and mature in six month. The promissory notes issued after February 28, 2020 are convertible into shares of common stock at a discount of 50% of the lowest closing bid price during the 30 trading days prior to conversion. The notes having a conversion feature are treated as stock settled debt under ASC 480 and a debt premium of $17,000 is recognized as interest expense on note issuance date. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss on debt extinguishment | $ 296,938 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Alpha Capital Anstalt [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 12,500 | $ 10,375 | $ 12,500 | $ 12,500 | $ 12,500 | $ 12,500 | $ 12,500 | $ 12,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Crown Bridge Partners, LLc [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 105,000 | 2,766 | $ 2,766 | 6,325 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments received | $ 75,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, description | the Company received a second tranche advance under the Crown Bridge Partners, LLC, master note dated October 25, 2017, for principal amount of $35,000, including covered fees and original issue discount totaling $5,000. Under the conversion terms of the above note, the holder is entitled to a 35% discount plus an additional 10% discount based on the conversion rights of certain other note holders. Therefore a discount of 45% is assumed for any conversions of this note tranche. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $28,636 with a charge to interest expense. The original issue discount and fees charged were treated as debt discount and will be amortized to financing expenses over the term of the note. Following conversions during the year ended September 30, 2020 the principal balance and debt premium balances were reduced and the unamortized debt discount was $0, at September 30, 2020. The principal was increased by charges of $17,500 for technical default effective during the year ended September 30, 2020 and an additional put premium was calculated to be $26,250. The cross-default provisions of the note include defaults on any notes issued to third parties including any issued subsequent to the issuance of this note. The default charge and the put premium were charged to interest expense of June 30, 2020. The conversion discount increased to 60% as a result of the default. | The convertible note (the “Note”) issued to Crown Bridge in the principal amount of $105,000, has an original issue discount of $10,500 and issue costs of $19,000 both of which are recorded as debt discount along with the warrant relative fair value of $12,507 for the original 100, warrants and $31,529 for the penalty warrants to be amortized over the twelve month term of this tranche, bears interest of 10% (12% default rate) per annum, and has a maturity date of 12 months from the date of each tranche of payments under the Note with future tranches being at the discretion of Crown Bridge. The conversion rate for any conversion of unpaid principal and interest under the Notes is at a 35% discount to the lowest market price of the shares of the Company’s common stock within a 20 day trading period prior to the date of conversion to which an additional 10% discount will be added if the conversion price of the Company’s common stock is less than $50, per share and no shares of the Company’s common stock can be issued to the extent Crown Bridge would own more than 4.99% of the outstanding shares of the Company’s common stock and the conversion shares contain piggy-back registration rights. The Note is subject to customary default provisions including an event of default if the bid price of the Company’s common stock is less than its par value of $.0001 per share. The Company is entitled to prepay the Note between 30 days after its issuance until 180 days from its issuance at amounts that increase from 112% of the prepayment amount to 137% of the prepayment amount depending on the length of time when prepayments are made. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $56,538 with a charge to interest expense. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 2,766 | $ 2,766 | 6,187 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of warrants (in Shares) | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitment fee | $ 350 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche value | $ 350 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional warrant (in Shares) | 200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trillium Partners LP [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 24.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt premium | $ 10,395 | $ 10,395 | 10,395 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, description | The principal balance of $10,000 was reclassified to notes and loans payable and the related put premium totaling $10,000 was recognized as a gain on debt extinguishment on the date of the amendment. | the Company issued a convertible promissory note to Trillium Partners LP for cash in the amount of $10,000. The note bears interest at 10%, matures on January 11, 2020, and was convertible into the Company’s common stock at 50% of the lowest closing bid price on the 20 trading days immediately preceding the notice of conversion. The Company accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $10,000 with a charge to interest expense for the notes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | 1,854 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible note | $ 10,745 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geneva Roth Remark Holdings [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, description | the Company executed a convertible promissory note issued to Geneva Roth Remark Holdings for $53,500, having a 10% annual interest rate, with a 22% default interest rate, maturity of March 15, 2022, and conversion right to a 35% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The note was funded for $50,000, with $3,500, disbursed for legal and execution fees. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company will treat the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $28,807 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal, premium and accrued interest were $53,500, $28,807 and $227 respectively at March 31, 2021. | the Company executed a convertible promissory note issued to Geneva Roth Remark Holdings for $53,500, having a 10% annual interest rate, with a 22% default interest rate, maturity of January 12, 2022, and conversion right to a 35% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The note was funded for $50,000, with $3,500, disbursed for legal and execution fees. The Company will treat the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $28,807 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal, premium and accrued interest were $53,500, $28,807 and $1,092 respectively at March 31, 2021. | the Company executed a convertible promissory note issued to Geneva Roth Remark Holdings for $43,500, having a 10% annual interest rate, with a 22% default interest rate, maturity of December 15, 2021, and conversion right to a 40% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The note was funded for $40,000, with $3,500, disbursed for legal and execution fees. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $29,000 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal, premium and accrued interest were $43,500, $29,000 and $1,621 respectively at March 31, 2021. | the Company executed a convertible promissory note issued to Geneva Roth Remark Holdings for $53,500, having a 10% annual interest rate, with a 22% default interest rate, maturity of February 15, 2022, and conversion right to a 35% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The note was funded for $50,000, with $3,500, disbursed for legal and execution fees. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company will treat the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $28,807 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal, premium and accrued interest were $53,500, $28,807 and $660 respectively at March 31, 2021. | the Company issued a convertible promissory note to Geneva Roth Remark Holdings for $60,000, for $57,000, cash and fees of $3,000 (treated as OID to be amortized over the life of the note) having a 10% annual interest rate, maturity of April 20, 2021, and conversion right to a 42% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock Settled Debt, and recognized the put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. Principal, put premium and accrued interest were $60,000, $43,448 and $2,630, respectively at September 30, 2020. The note and accrued interest were fully converted during the six months March 31, 2021. $43,448 of put premium was reclassified to additional paid in capital upon conversion. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tri-Bridge Ventures, LLC [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, description | the Company issued a convertible promissory note for $35,000 issued to Tri-Bridge Ventures LLC for a cash loan of $35,000. The note has a one year maturity, 8% annual interest and can be converted to common stock at the contracted price of 60% of the lowest daily traded price during the 10 days prior to delivery of a conversion notice. There are no cross-default provisions in the note. The Company has treated the convertible note in accordance with ASC 480 Stock Settled Debt, and recognized the put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal and accrued interest was fully converted and balances were $0, and $0 respectively at March 31, 2021. $23,333 of put premium was reclassified to additional paid in capital upon conversion. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geneva Roth Remark Holdings Inc. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable and Advisory Fee Liabilities (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, description | the Company entered into an agreement with Geneva Roth Remark Holdings Inc. to issue a convertible promissory note in the amount of $53,000. The Company received $50,000, in cash on July 15, 2020 with $3,000, being retained for legal and underwriting fees which will be treated as debt discount and be amortized to interest expense over the term of the note. The note matures on July 10, 2021, bears interest at 10%, with a 22% default interest rate and may be converted at 58% of the lowest closing bid price in the 20 days preceding a conversion. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $38,379 as put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal and accrued interest was fully converted and balances were $0, and $0 respectively at March 31, 2021. $38,379 of put premium was reclassified to additional paid in capital upon conversion. | the Company issued a convertible promissory note in the amount of $53,000 to Geneva Roth Remark Holdings Inc. The Company received $50,000, in cash on June 10, 2020 with $3,000, being retained for legal and underwriting fees which will be treated as OID and be amortized to interest expense over the term of the note. The note matures on June 10, 2021, bears interest at 10%, with a 22% default interest rate and may be converted at 58% of the lowest closing bid price in the 20 days preceding a conversion. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $38,379 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal and accrued interest balances were, $53,000 and $1,597 at September 30, 2020, respectively. The principal and accrued interest was fully converted and balances were $0, and $0 respectively at March 31, 2021. $38,379 of put premium was reclassified to additional paid in capital upon conversion. | the Company issued a convertible promissory note in the amount of $104,000 to Geneva Roth Remark Holdings Inc. The Company received $100,500, in cash on August 28, 2020 with $3,500, being retained for legal and underwriting fees which will be treated as OID and be amortized to interest expense over the term of the note. The note matures on August 28, 2021, bears interest at 10%, with a 22% default interest rate and may be converted at 58% of the lowest closing bid price in the 20 days preceding a conversion. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $75,310 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal and accrued interest was fully converted and balances were $0, and $0 respectively at March 31, 2021. $75,310 of put premium was reclassified to additional paid in capital upon conversion. | On November 2, 2020, the Company executed a convertible promissory note issued to Geneva Roth Remark Holdings for $53,500, having a 10% annual interest rate, with a 22% default interest rate, maturity of November 2, 2021, and conversion right to a 40% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The note was funded for $50,000, with $3,500, disbursed for legal and execution fees. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $35,666 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal, premium and accrued interest were $53,500, $35,666 and $1,774 respectively at March 31, 2021. |
Convertible Notes Payable and_4
Convertible Notes Payable and Advisory Fee Liabilities (Details) - Schedule of senior secured credit facility note balance and convertible debt balances - Senior Secured Credit Facility Note [Member] - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Convertible Notes Payable and Advisory Fee Liabilities (Details) - Schedule of senior secured credit facility note balance and convertible debt balances [Line Items] | ||
Principal | $ 6,114,157 | $ 6,473,702 |
Premiums | 1,472,666 | 1,846,471 |
Unamortized discounts | (13,804) | (9,223) |
Convertible note payable | $ 7,573,019 | $ 8,310,950 |
Promissory Notes and Loans Pa_3
Promissory Notes and Loans Payable (Details) - USD ($) | Sep. 11, 2020 | Jun. 02, 2020 | Apr. 15, 2020 | Apr. 07, 2020 | Feb. 02, 2020 | Jan. 02, 2020 | Dec. 02, 2019 | Nov. 02, 2019 | Oct. 02, 2019 | Nov. 13, 2018 | Jun. 01, 2018 | Mar. 30, 2021 | Feb. 03, 2021 | Jan. 29, 2021 | Jan. 26, 2021 | Oct. 22, 2020 | Aug. 25, 2020 | Jun. 17, 2020 | Jan. 28, 2020 | Aug. 29, 2018 | Mar. 31, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Bears interest rate | 10.00% | 5.00% | 5.50% | ||||||||||||||||||||
Maturity term | 6 months | 1 year | |||||||||||||||||||||
Agreement, description | the Company issued 10,000,000 shares of common stock to a consultant for services rendered, which were valued at $0.0034, based on the stock price on the date of the grant. The cost of $34,000 was charged to consulting expense. | ||||||||||||||||||||||
Note and accrued interest | $ 1,770 | ||||||||||||||||||||||
Note principal and accrued interest related description | $827 | ||||||||||||||||||||||
Issuance of discount amortization amount | $ 152,318 | ||||||||||||||||||||||
Unamortized debt discount | $ 29,631 | ||||||||||||||||||||||
Maturity Term | Feb. 28, 2019 | Sep. 9, 2017 | |||||||||||||||||||||
Charged expenses | $ 1,008,498 | $ 990,305 | |||||||||||||||||||||
Number of notes payable | seven | ||||||||||||||||||||||
Notes payable | $ 17,500 | ||||||||||||||||||||||
Service vendor fee | 2,500 | ||||||||||||||||||||||
Livingston Asset Management [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Principal amount | $ 17,000 | 0 | 85,000 | ||||||||||||||||||||
Bears interest rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |||||||||||||||||
Maturity term | 6 months | 6 months | 6 years | 6 months | |||||||||||||||||||
Agreement, description | The Company will also pay $3,000 in cash due on the first of each month. | ||||||||||||||||||||||
Accrued interest | $ 1,353 | $ 1,495 | $ 1,637 | 6,760 | |||||||||||||||||||
Note and accrued interest | 5,493 | ||||||||||||||||||||||
Promissory note issued | $ 17,000 | $ 17,000 | $ 17,000 | $ 17,000 | $ 17,000 | ||||||||||||||||||
Note principal and accrued interest related description | The note bears interest at 10% and matures in six months The note principal of $17,000 and accrued interest of $1,491 were forgiven at March 31, 2021 and a gain on debt extinguishment was recognized for $18,491. | The note principal balance was $17,000 at September 30, 2020 and accrued interest was $1,209. | Conversion terms were reinstated and the note and accrued interest of $1,770 were fully converted into common stock during the six months ended March 31, 2021. $17,000 was charged to loss on debt extinguishment due to reinstatement of conversion feature treated as stock settled debt in accordance with ASC 480. | Conversion terms were reinstated and the note and accrued interest of $1,799 were fully converted into common stock during the six months ended March 31, 2021. $17,000 was charged to loss on debt extinguishment due to reinstatement of conversion feature treated as stock settled debt in accordance with ASC 480. | Conversion terms of the original note were reinstated and the note and accrued interest of $1,924 were fully converted into common stock during the six months ended March 31, 2021. $17,000 was charged to loss on debt extinguishment due to reinstatement of conversion feature treated as stock settled debt in accordance with ASC 480. | ||||||||||||||||||
Livingston Asset Management [Member] | Minimum [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Maturity term | 6 months | ||||||||||||||||||||||
Livingston Asset Management [Member] | Maximum [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Maturity term | 7 months | ||||||||||||||||||||||
EBF Partners LLC [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Principal amount | $ 208,500 | ||||||||||||||||||||||
HowCo [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Bears interest rate | 98.00% | ||||||||||||||||||||||
Maturity term | 24 months | ||||||||||||||||||||||
Agreement, description | The terms call for Howco to use 75% of the funded amount for payroll costs. Howco has put in place controls designed to ensure compliance with the terms of forgiveness. The amount forgiven will be recognized as gain on debt extinguishment when approved. Any amount that is not forgiven is to be paid over the 18 months following the 6 month deferral period. On January 20, 2021 the Company was notified by its bank that the Small Business Administration authorized full forgiveness of its Paycheck Protection Program Loan in the amount of $220,710. The forgiveness of debt was recognized as a gain on debt extinguishment for the amount forgiven. | The CEO is a personal guarantor for the MCA. Howco will make payments each business day by way of an ACH withdrawal of $1,489, for 140 payments. | |||||||||||||||||||||
Cash received | $ 147,355 | ||||||||||||||||||||||
Issuance of discount amortization amount | 58,500 | ||||||||||||||||||||||
Legal and other fees | $ 2,645 | ||||||||||||||||||||||
Principal amount outstanding | $ 220,710 | ||||||||||||||||||||||
Paycheck protection plan loan amount | $ 154,790 | ||||||||||||||||||||||
Rate of interest of paycheck protection plan loan | 98.00% | ||||||||||||||||||||||
The Small Business Administration [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Principal amount | $ 150,000 | $ 150,000 | 150,000 | ||||||||||||||||||||
Bears interest rate | 3.75% | ||||||||||||||||||||||
Debt instrument amortization payments | $ 731 | ||||||||||||||||||||||
Trillium Partners LP [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Principal amount | $ 150,000 | $ 75,000 | $ 95,000 | 150,000 | |||||||||||||||||||
Bears interest rate | 2.00% | 2.00% | 2.00% | ||||||||||||||||||||
Accrued interest | $ 230 | $ 316 | 30,000 | ||||||||||||||||||||
Promissory note issued | 75,000 | 95,000 | |||||||||||||||||||||
Cash received | 73,085 | 93,692 | |||||||||||||||||||||
Repaid note principal | 70,000 | ||||||||||||||||||||||
Forgave amount | 50,000 | ||||||||||||||||||||||
Original issue discount | $ 1,915 | $ 1,308 | |||||||||||||||||||||
Maturity Term | Jul. 31, 2021 | Jul. 31, 2021 | |||||||||||||||||||||
Howco with IOU Central Inc [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Principal amount | 373,577 | ||||||||||||||||||||||
Agreement, description | A total of $462,524 will be paid by direct debit of Howco’s bank account of $8,895, for 51 weekly payments and a final payment of $9,894. The Company will recognize a principal amount of $462,524 with debt discounts of $119,929, and liquidate the principal balance and related discounts from the FORA and IOU prior notes. | ||||||||||||||||||||||
Legal and other fees | $ 119,929 | ||||||||||||||||||||||
Unamortized debt discount | 98,870 | ||||||||||||||||||||||
Net of discounts | 121,707 | 274,707 | |||||||||||||||||||||
Howco with IOU Central Inc [Member] | FORA [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Prior loan payoff amounts | 595 | ||||||||||||||||||||||
Howco with IOU Central Inc [Member] | IOU prior note [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Prior loan payoff amounts | 75,975 | ||||||||||||||||||||||
Howco with ODK Capital, LLC [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Principal amount | $ 112,631 | 112,631 | |||||||||||||||||||||
Issuance of discount amortization amount | 29,631 | ||||||||||||||||||||||
Legal and other fees | 83,000 | ||||||||||||||||||||||
Net balance | $ 83,000 | ||||||||||||||||||||||
Original issue discount | 2,075 | ||||||||||||||||||||||
Direct debit | 112,631 | ||||||||||||||||||||||
Direct debt bank account | 2,166 | ||||||||||||||||||||||
Weekly payments | 52 | ||||||||||||||||||||||
Charged expenses | 2,075 | ||||||||||||||||||||||
Debt discounts | $ 29,631 | ||||||||||||||||||||||
Financing Arrangement [Member] | HowCo [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Principal amount | 152,318 | 243,742 | $ 176,495 | ||||||||||||||||||||
Agreement, description | the Company entered into a financing arrangement through its subsidiary Howco with IOU Central Inc. Howco received $199,405 less fees of $595 and Original Issue Discount of $22,000 and deferred finance charges of $47,606, for a total of $70,201 to be amortized over the term of the note. A total of $269,606 will be paid by direct debit of Howco’s bank account of $5,173, for 52 weekly payments and 1 payment of $620. The Company recognized a principal amount of $269,606 with debt discounts of $70,201. The Company’s CEO is a personal guarantor on financing facility. At September 30, 2020, the principal balance was $243,742, with unamortized debt discount of $58,110 having a net balance of $185,632. As of December 31, 2020 the principal balance was $176,495, with unamortized debt discount of $26,544 having a net balance of $149,951. The principal balance of $152,318 on January 26, 2021 was fully liquidated upon funding of the IOU note discussed below. | ||||||||||||||||||||||
Unamortized debt discount | 58,110 | 26,544 | |||||||||||||||||||||
Net balance | 185,632 | 149,951 | |||||||||||||||||||||
Financing Arrangement [Member] | ForaBusinessLoansLLC [Member] | |||||||||||||||||||||||
Promissory Notes and Loans Payable (Details) [Line Items] | |||||||||||||||||||||||
Principal amount | $ 75,975 | 140,854 | 87,927 | ||||||||||||||||||||
Agreement, description | the Company entered into a financing arrangement through its subsidiary Howco with Fora Financial Business Loans, LLC. Howco received $150,000, net of discounts totaling $60,000 and less legal and underwriting fees of $3,750 and prior loan payoff amount of $40,975. A total of $210,000 will be paid by direct debit of Howco’s bank account of $854, for 245 daily installments payments. The Company will recognize a principal amount of $210,000 with debt discounts of $63,750, and liquidate the principal balance and related discounts from the 2019 financing. The Company’s CEO is a personal guarantor on financing facility. | ||||||||||||||||||||||
Unamortized debt discount | 28,944 | 11,473 | |||||||||||||||||||||
Net balance | $ 111,910 | $ 76,454 |
Promissory Notes and Loans Pa_4
Promissory Notes and Loans Payable (Details) - Schedule of loans and notes payable - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Schedule of loans and notes payable [Abstract] | ||
Principal loans and notes | $ 1,008,498 | $ 990,305 |
Discounts | (131,724) | (87,054) |
Total | 876,774 | 903,251 |
Less Current portion | (571,984) | 903,251 |
Non-current | $ 304,790 |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) - USD ($) | Mar. 05, 2021 | Mar. 02, 2021 | Feb. 12, 2021 | Dec. 15, 2020 | Dec. 11, 2020 | Dec. 02, 2020 | Oct. 30, 2020 | Jun. 09, 2020 | May 14, 2020 | Apr. 15, 2020 | Dec. 02, 2019 | Nov. 02, 2019 | Oct. 02, 2019 | Aug. 06, 2019 | Jun. 01, 2018 | Nov. 09, 2017 | Jan. 19, 2021 | Jan. 02, 2021 | Dec. 16, 2020 | Nov. 24, 2020 | Oct. 22, 2020 | Jul. 20, 2020 | Apr. 20, 2020 | Dec. 20, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | Jan. 30, 2019 | Sep. 09, 2016 |
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Preferred stock, shares authorized (in Shares) | 5,000,000 | 5,000,000 | |||||||||||||||||||||||||||
Preferred stock, par or stated value per share (in Dollars per share) | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||||||
Preferred stock designations amount (in Shares) | 4,999,750 | ||||||||||||||||||||||||||||
Common stock dividend (in Dollars per share) | $ 0.99 | ||||||||||||||||||||||||||||
Common stock, shares authorized (in Shares) | 6,000,000,000 | 6,000,000,000 | |||||||||||||||||||||||||||
Reverse stock split, description | 1 for 1,000 | ||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 1,553,882,154 | 491,032,439 | |||||||||||||||||||||||||||
Common stock, shares outstanding (in Shares) | 1,553,882,154 | 491,032,439 | |||||||||||||||||||||||||||
Issuance settled amount due, description | the Company submitted a second registration statement filed on Form S-1. The Company requested accelerated status and the registration statement became effective on March 16, 2021. The offering provides for the issuance of up to 1,250,000,000 shares of common stock at a price of $.0175, under subscriptions. | the Company submitted an amendment to its registration statement filed on Form S-1 in response to comments on its original filing on June 8, 2020. The Company requested accelerated status and the registration statement became effective on July 23, 2020. The offering provides for the issuance of up to 1,500,000,000 shares of common stock at a price of $.00175, under subscriptions. | |||||||||||||||||||||||||||
Agreement, description | the Company issued 10,000,000 shares of common stock to a consultant for services rendered, which were valued at $0.0034, based on the stock price on the date of the grant. The cost of $34,000 was charged to consulting expense. | ||||||||||||||||||||||||||||
Additional paid in capital | $ 15,360,046 | $ 13,080,692 | |||||||||||||||||||||||||||
Principal and accrued interest balances | $ 210,409 | 221,232 | |||||||||||||||||||||||||||
Total unrecognized compensation and consulting expense related to unvested stock options | 170,892 | ||||||||||||||||||||||||||||
Aggregate value of warrants | $ 143,804 | $ 71,866 | |||||||||||||||||||||||||||
Convertible note, description | The notes are convertible into common shares at a discount of 50% to the lowest bid price in the 30 trading days immediately preceding the notice of conversion. The notes were charged to professional fees for each corresponding service month. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $12,500 with a charge to interest expense for each note. | ||||||||||||||||||||||||||||
Security Purchase Agreement [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Security purchase agreement, description | an additional 200 warrants were issued as a penalty and in order to entice Crown Bridge to waive its right of first refusal to provide additional financing under the terms of their convertible note. A debt discount of $44,036 was recorded for the relative fair market value of the total 300 warrants and amortized to interest expense as of September 30, 2018. The warrants have full ratchet price protection and cashless exercise rights (See Note 9). The warrant includes an anti-dilution clause that was triggered on June 4, 2018. On June 4, 2018 an unrelated convertible note holder became entitled to convert their note into common shares at a 60% discount to the stock’s market price. The anti-dilution provision trigger in the warrant agreement entitled Crown Bridge to exercise its warrants under a formula that increased the number of common shares to 31,250 at a price of $3.60 per share. Due to the fact that the number of shares and exercise price can change due to market changes in the price of the common stock the Company has concluded to treat the warrants as derivatives and to revalue that derivative at each reporting date. Therefore, a derivative liability of $261,484 with a charge to additional paid in capital was recorded on June 4, 2018. As of March 31, 2021, the warrant was revalued and the warrant holder is entitled to exercise its warrants for 11,859,116 common shares and the related derivative liability is $144,937. | ||||||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Reverse stock split, description | the Company filed amendments with the Secretary of the State of Delaware, amending its articles of incorporation to execute a reverse stock split of 1 share for every 1,000 shares outstanding, and changing its name to Bantec, Inc. The name change and the stock split became effective in February 2020, and the transfer agent adjusted the outstanding shares for the reverse split on February 10, 2020. | ||||||||||||||||||||||||||||
Common Stock [Member] | Minimum [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares authorized (in Shares) | 6,000,000,000 | ||||||||||||||||||||||||||||
Common Stock [Member] | Maximum [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares authorized (in Shares) | 1,500,000,000 | ||||||||||||||||||||||||||||
Warrant [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Number of warrants exercisable | $ 500 | ||||||||||||||||||||||||||||
Term of warrants | 5 years | ||||||||||||||||||||||||||||
Warrants exercise price (in Dollars per share) | $ 10 | ||||||||||||||||||||||||||||
Aggregate value of warrants | $ 180,000 | ||||||||||||||||||||||||||||
Warrant [Member] | Security Purchase Agreement [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Convertible note, description | the Company received a first tranche payment of $75,500 under the terms of a Securities Purchase Agreement dated October 25, 2017, with Crown Bridge under which the Company issued to Crown Bridge a convertible note in the principal amount of $105,000 and a five-year warrant to purchase 100 shares of the Company’s common stock at an exercise price of $350 as a commitment fee which is equal to the product of one-third of the face value of each tranche divided by $0.35. | ||||||||||||||||||||||||||||
Trillium Partners LP [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 95,301,000 | 4,285,714 | |||||||||||||||||||||||||||
Common stock, shares issued, value | $ 75,000 | ||||||||||||||||||||||||||||
Principal amount | $ 90,000 | ||||||||||||||||||||||||||||
Accrued interest | 16,200 | 0 | |||||||||||||||||||||||||||
Conversion fees | 2,710 | 0 | |||||||||||||||||||||||||||
Additional paid in capital | $ 90,000 | ||||||||||||||||||||||||||||
Geneva Roth Remark Holdings Inc. [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 46,375,000 | ||||||||||||||||||||||||||||
Principal amount | $ 5,200 | $ 2,650 | $ 53,000 | ||||||||||||||||||||||||||
Accrued interest | 14,958,904 | $ 0 | 42,807,692 | $ 2,650 | 0 | ||||||||||||||||||||||||
Conversion fees | $ 104,000 | $ 53,000 | |||||||||||||||||||||||||||
Principal and accrued interest balances | $ 0 | ||||||||||||||||||||||||||||
Livingston Asset Management LLC [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 19,794,860 | 16,503,483 | 19,720,340 | 16,623,800 | |||||||||||||||||||||||||
Principal amount | $ 17,000 | $ 17,000 | $ 1,695 | $ 17,000 | |||||||||||||||||||||||||
Accrued interest | 1,770 | 1,799 | $ 0 | $ 0 | $ 0 | 1,025 | 1,924 | ||||||||||||||||||||||
Conversion fees | $ 1,025 | $ 1,025 | $ 17,000 | $ 1,025 | |||||||||||||||||||||||||
Contracted price per share (in Dollars per share) | $ 0.001 | ||||||||||||||||||||||||||||
Tri-Bridge Ventures, LLC [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 29,007,611 | ||||||||||||||||||||||||||||
Principal amount | $ 35,000 | ||||||||||||||||||||||||||||
Accrued interest | $ 1,550 | $ 0 | |||||||||||||||||||||||||||
Alpha Capital Anstalt [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 81,972,474 | ||||||||||||||||||||||||||||
Principal amount | $ 91,300 | ||||||||||||||||||||||||||||
Accrued interest | $ 8,038 | ||||||||||||||||||||||||||||
Alpha Capital Anstalt [Member] | Fixed-price Contract [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 6,330,449 | ||||||||||||||||||||||||||||
Principal amount | $ 10,745 | ||||||||||||||||||||||||||||
Accrued interest | $ 967 | ||||||||||||||||||||||||||||
Stock Incentive Plan [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Stock incentive plan, description | The Company established its 2016 Stock Incentive Plan (the “Plan”) that permits the granting of incentive stock options and other common stock awards. The maximum number of shares available under the Plan is 100,000 shares. The Plan is open to all employees, officers, directors, and non-employees of the Company. Options granted under the Plan will terminate and may no longer be exercised (i) immediately upon termination of an employee or consultant for cause or (ii) one year after termination of employment, but not later than the remaining term of the option. As of March 31, 2021, 82,327 awards remain available for grant under the Plan. | ||||||||||||||||||||||||||||
Initial S-1 Offering [Member] | Trillium Partners LP [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 617,162,196 | ||||||||||||||||||||||||||||
Common stock, shares issued, value | $ 1,080,032 | ||||||||||||||||||||||||||||
Employee [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Agreement, description | the Company granted 1,000,000 shares of common stock to an employee, which were valued at $0.0034, based on the stock price on the date of the grant. The cost of $3,400 was charged to compensation expense. | ||||||||||||||||||||||||||||
Non-employee Services [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Agreement, description | the Company granted 5,000,000 shares of common stock to an employee, which were valued at $0.0034, based on the stock price on the date of the grant. The cost of $17,000 was charged to compensation expense. | ||||||||||||||||||||||||||||
Non-employee Services [Member] | Geneva Roth Remark Holdings Inc. [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Common stock, shares issued (in Shares) | 36,006,192 | ||||||||||||||||||||||||||||
Principal amount | $ 60,000 | ||||||||||||||||||||||||||||
Accrued interest | $ 3,000 | $ 0 | |||||||||||||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Preferred stock, shares authorized (in Shares) | 250 | 250 | |||||||||||||||||||||||||||
Preferred stock, par or stated value per share (in Dollars per share) | $ 0 | $ 0 | |||||||||||||||||||||||||||
Preferred stock, shares issued (in Shares) | 250 | 250 | |||||||||||||||||||||||||||
Preferred stock, shares outstanding (in Shares) | 250 | 250 | |||||||||||||||||||||||||||
Employee Stock Option [Member] | |||||||||||||||||||||||||||||
Stockholders' Deficit (Details) [Line Items] | |||||||||||||||||||||||||||||
Compensation and consulting expense related to stock options | $ 78,013 | $ 132,599 | |||||||||||||||||||||||||||
Weighted average period share-based compensation expense | 2 years |
Stockholders' Deficit (Detail_2
Stockholders' Deficit (Details) - Schedule of the company's stock options activity | 6 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Schedule of the company's stock options activity [Abstract] | |
Number of Options, Outstanding, Beginning (in Shares) | shares | 17,755 |
Weighted-Average Exercise Price, Outstanding, Beginning | $ 220 |
Weighted-Average Remaining Contractual Term (Years), Outstanding, Begining | 5 years 105 days |
Weighted-Average Grant-Date Fair Value, Outstanding, Beginning (in Dollars) | $ | |
Aggregate Intrinsic Value, Outstanding, Beginning | |
Number of Options, Outstanding, Ending (in Shares) | shares | 17,673 |
Weighted-Average Exercise Price, Outstanding, Ending | |
Weighted-Average Remaining Contractual Term (Years), Outstanding, Ending | |
Weighted-Average Grant-Date Fair Value, Outstanding, Ending (in Dollars) | $ | |
Aggregate Intrinsic Value, Outstanding, Ending | |
Number of Options, Exercisable (in Shares) | shares | 14,544 |
Weighted-Average Exercise Price, Exercisable | $ 220 |
Weighted-Average Remaining Contractual Term (Years), Exercisable | 1 year 105 days |
Weighted-Average Grant-Date Fair Value, Exercisable (in Dollars) | $ | |
Aggregate Intrinsic Value, Exercisable (in Dollars) | $ |
Stockholders' Deficit (Detail_3
Stockholders' Deficit (Details) - Schedule of the company's warrant activity | 6 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Schedule of the company's warrant activity [Abstract] | |
Number of Warrants, Outstanding and exercisable, Beginning (in Shares) | shares | 25,484,484 |
Weighted-Average Exercise Price, Outstanding and exercisable, Beginning | $ 0.0019 |
Weighted-Average Remaining Contractual Term (Years), Outstanding and exercisable, Beginning | 2 years 40 days |
Weighted-Average Grant-Date Fair Value, Outstanding and exercisable, Beginning | |
Aggregate Intrinsic Value, Outstanding and exercisable, Beginning (in Dollars) | $ | $ 71,866 |
Number of Warrants, Anti-Dilution adjustment (in Shares) | shares | 13,624,868 |
Number of Warrants, Outstanding and exercisable, Ending (in Shares) | shares | 11,859,616 |
Weighted-Average Exercise Price, Outstanding and exercisable Ending | $ 0.00424 |
Weighted-Average Remaining Contractual Term (Years), Outstanding and exercisable, Ending | 1 year 222 days |
Weighted-Average Grant-Date Fair Value, Outstanding and exercisable, Ending | |
Aggregate Intrinsic Value, Outstanding and exercisable, Ending (in Dollars) | $ | $ 143,804 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Aug. 31, 2016 | Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Percentage of annual compensation | 90.00% | ||
Employer contributions charged to operations | $ 0 | $ 0 | |
Employer contributions charged to expense | $ 4,882 | $ 4,575 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||
Dec. 30, 2020 | Sep. 16, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Nov. 17, 2019 | Nov. 13, 2018 | Mar. 28, 2017 | |
Related Party Transactions (Details) [Line Items] | |||||||
Annual base compensation | $ 370,000 | ||||||
Severance payment | 2,500,000 | ||||||
Annual salary | $ 624,000 | ||||||
Company recognized expense | $ 40,212 | $ 312,000 | |||||
Employment agreement compensation | $ 140,000 | ||||||
Bonus Rate | 10.00% | ||||||
Commom stock, shares issued (in Shares) | 250 | 194,520 | |||||
Vesting period | 5 years | ||||||
Modified salary | $ 275,000 | ||||||
Annual bonus of net income | 2.00% | ||||||
Recognized expenses | $ 67,000 | ||||||
Accrued salaries expense | 207,428 | $ 140,178 | $ 71,700 | ||||
Mr. Wiles [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Gross profit | $ 1,250,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Feb. 08, 2021 | Jan. 13, 2021 | Apr. 15, 2020 | Apr. 07, 2020 | Nov. 13, 2018 | Apr. 13, 2018 | Feb. 11, 2011 | Dec. 31, 2020 | Dec. 30, 2020 | Sep. 30, 2020 | Apr. 20, 2020 | Apr. 16, 2020 | Dec. 31, 2019 | Jul. 22, 2019 | Jan. 29, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2016 | Sep. 30, 2019 | Apr. 10, 2019 |
Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||||||
Monthly settlement | $3,000 | |||||||||||||||||||
Repaid amount | $ 9,000 | |||||||||||||||||||
Commitments and contingencies, description | the Supreme Court of the State of New York issued a summons to the former CFO of the Company, to appear before the court to answer the Company’s complaint seeking payment under a personal guarantee of the defendant to provide half of any compensation paid to the former Chief Strategy Officer. The Company is seeking $300,000 from the defendant relating to the November 27, 2018 settlement agreement with the former Chief Strategy Office for $600,000. The former CFO has responded to the suit and has filed a motion to dismiss the Company’s suit during August of 2019. | The agreement has an initial term of three years with one year renewals. | ||||||||||||||||||
Accounts payable | $ 2,832,790 | $ 2,690,652 | $ 218,637 | |||||||||||||||||
Past due amounts | $ 59,000 | |||||||||||||||||||
Professional fees | $ 161,700 | |||||||||||||||||||
Convertible note amount | $ 90,000 | $ 180,750 | $ 35,000 | |||||||||||||||||
Note bears interest | 10.00% | 5.00% | 5.50% | |||||||||||||||||
Accrued accounts payable | $ 71,700 | $ 207,428 | $ 140,178 | |||||||||||||||||
Due invoices | $ 276,430 | |||||||||||||||||||
Finance charges | 40,212 | |||||||||||||||||||
Interest expenses | $ 40,212 | 312,000 | ||||||||||||||||||
Accumulated interest | $ 60,437 | |||||||||||||||||||
Description of Lease | Howco will make six monthly installments of not less than $1,500 a month for the first six months and $2,000 a month thereafter until liquidated. | Howco will pay Pacific Power LLC $5,000 a month starting on February 1,, 2021. Interest will accrue at 12% per annum on the outstanding balance. The unpaid balance of principal and accrued interest is due on December 31, 2022. | the Company’s subsidiary Howco renewed its office and warehouse lease in Vancouver, WA for a term commencing on June 1, 2020 extending through June 1, 2023 at an initial monthly rent of approximately $5,154. | the Company relocated its primary office to 195 Paterson Avenue, Little Falls, New Jersey, under a one-year lease with a renewal option having monthly payments of $500. | ||||||||||||||||
Interest expense | $ 43,358 | 2,580 | 9,100 | |||||||||||||||||
Balance recorded in accounts payable | 36,548 | |||||||||||||||||||
Total accrual under the lease term | 360,000 | |||||||||||||||||||
Lease liability | $ 156,554 | $ 156,554 | ||||||||||||||||||
Minimum lease payments discount rate | 10.00% | |||||||||||||||||||
Leases rent expense | $ 30,924 | 30,552 | ||||||||||||||||||
Employees earned value | 0 | $ 0 | ||||||||||||||||||
Notice of default, description | The principal was increased by charges of $17,500 for technical default effective June 30, 2020 and an additional put premium was calculated to be $26,250. | |||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||||||
Monthly lease rent obligation | 15,000 | |||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||||||
Monthly lease rent obligation | $ 16,500 | |||||||||||||||||||
HowCo [Member] | ||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||||||
Note bears interest | 98.00% | |||||||||||||||||||
Accrued accounts payable | $ 351,006 | |||||||||||||||||||
Principal amount | $ 279,323 | |||||||||||||||||||
Payroll percentage | 10.00% | |||||||||||||||||||
Texas Wyoming Drilling, Inc. [Member] | ||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||||||
Amount of claim for unpaid bills | $ 75,000 | |||||||||||||||||||
Settlement Agreement [Member] | ||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||||||
Commitments and contingencies, description | the Company entered into a settlement agreement and mutual release with a vendor who had provided public relations and other consulting services whereby the Company shall pay to this vendor an aggregate amount of $60,000 of which $30,000 was paid on February 2, 2018. The Company was to have paid ten monthly payments of $3,000 per month beginning on February 29, 2018. The vendor is to return 400 common shares of the Company’s common stock which will be cancelled upon satisfaction of the liability. The liability is recorded at $21,000 as of March 31, 2021 and September 30, 2020. The Company is in default of the settlement. |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of right of use asset | Mar. 31, 2021USD ($) |
Schedule of right of use asset [Abstract] | |
Operating lease at inception - June 2, 2020 | $ 156,554 |
Less accumulated reduction | (44,477) |
Balance ROU asset as of March 31, 2021 | 112,077 |
Operating lease liabilities at inception - June 2, 2020 | 156,554 |
Reduction of lease liabilities | (43,491) |
Total lease liabilities - March 31, 2021 | 113,063 |
Less: current portion | (52,181) |
Lease liabilities, non-current | 60,882 |
Total minimum operating lease payments | 137,558 |
Less discount to fair value | (24,495) |
Total lease liability at March 31, 2021 | $ 113,063 |
Commitments and Contingencies_4
Commitments and Contingencies (Details) - Schedule of future minimum lease payments | Mar. 31, 2021USD ($) |
Schedule of future minimum lease payments [Abstract] | |
2021 | $ 46,722 |
2022 | 63,369 |
2023 | 42,929 |
Total minimum non-cancelable operating lease payments | $ 153,020 |
Concentrations (Details)
Concentrations (Details) | 1 Months Ended | 6 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Concentrations (Details) [Line Items] | |||
Cash not exceed the federally insured limits (in Dollars) | $ 250,000 | ||
Concentrations of foreign sales (in Dollars) | $ 0 | $ 5,200 | |
Sales Revenue, Net [Member] | |||
Concentrations (Details) [Line Items] | |||
Number of customers | 2 | 1 | |
Accounts Receivable [Member] | |||
Concentrations (Details) [Line Items] | |||
Number of customers | 2 | 2 | |
Purchase [Member] | |||
Concentrations (Details) [Line Items] | |||
Number of suppliers | 3 | ||
Number of vendors | 2 | ||
Accounts Payable [Member] | |||
Concentrations (Details) [Line Items] | |||
Number of suppliers | 3 | 3 | |
Supplier One [Member] | Purchase [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 23.00% | ||
Supplier One [Member] | Accounts Payable [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 14.00% | 20.00% | |
Supplier Three [Member] | Purchase [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 12.00% | ||
Supplier Three [Member] | Accounts Payable [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 10.00% | 14.00% | |
Supplier Two [Member] | Purchase [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Supplier Two [Member] | Accounts Payable [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 13.00% | 18.00% | |
Vendor Two [Member] | Purchase [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 21.00% | ||
Vendor One [Member] | Purchase [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 34.40% | ||
Customer One [Member] | Sales Revenue, Net [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 45.00% | 82.00% | |
Customer One [Member] | Accounts Receivable [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 71.00% | 75.00% | |
Customer Two [Member] | Sales Revenue, Net [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 38.00% | ||
Customer Two [Member] | Accounts Receivable [Member] | |||
Concentrations (Details) [Line Items] | |||
Concentration risk, percentage | 21.00% | 21.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jun. 07, 2021 | May 03, 2021 | Apr. 13, 2021 | Mar. 31, 2021 | Sep. 30, 2020 |
Subsequent Events (Details) [Line Items] | |||||
Common stock, shares issued | 1,553,882,154 | 491,032,439 | |||
Subsequent Event [Member] | | |||||
Subsequent Events (Details) [Line Items] | |||||
Common stock, shares issued | 10,000,000 | ||||
Share par value | $ 0.0012 | ||||
Convertible Notes [Member] | Subsequent Event [Member] | | |||||
Subsequent Events (Details) [Line Items] | |||||
Convertible notes, description | the Company entered into a convertible promissory note with Geneva Roth Remark Holdings, Inc. (“Lender”) in the principal amount of $58,500, (the “May 3, 2021 Note”). The May 3, 2021 Note carries interest at the rate of 10%, matures on May 3, 2022, and is convertible into shares of the Company’s common stock, par value $0.0001, at the Lender’s election, after 180 days, at a 35% discount, provided that the Lender may not own greater than 4.99% of the Company’s common stock at any time. The note was funded for $55,000, with $3,500, disbursed for legal and execution fees. The Company will treat the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $31,500 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. | ||||
Geneva Roth Remark Holdings Inc (Member) | Convertible Notes [Member] | Subsequent Event [Member] | | |||||
Subsequent Events (Details) [Line Items] | |||||
Common stock, shares issued | 8,916,667 | ||||
Share par value | $ 0.0063 | ||||
Convertible promissory note | $ 53,500 | ||||
Accrued interest | 2,675 | ||||
Additional paid in capital. | $ 35,666 | ||||
COO [Member] | |||||
Subsequent Events (Details) [Line Items] | |||||
Common stock, shares issued | 5,000,000 | ||||
Share par value | $ 0.0012 |