| 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 | NOTE 12 - STOCKHOLDERS' DEFICIT Preferred Stock As of September 30, 2020, 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 September 30, 2020 and September 30, 2019,
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. (f/k/a BANTEK, 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 September 30, 2020 and September 30, 2019
there were 491,032,439, and 3,255,346, 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 September
30, 2020, 82,245 awards remain available for grant under the Plan. S-1 Offering 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 2, 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. Subscription Under S-1 Offering Between August 5, 2020 and September 30, 2020,
Trillium Partners LP was issued 151,221,142 shares of common stock at the offering price for a total of $264,637, in proceeds to the Company
under the S-1 offering by subscription. Common Stock Issued for Employee Compensation Under the terms of the January 4, 2019 compensation
agreement with the CFO, the Company was to issue 100 shares each month to the CFO. On March 13, 2019, the Company was obligated to, and
issued 200 shares valued at the grant date quoted stock price of $1.00, for total of $200, charged to compensation expenses. On June 10, 2019, 1,500 common shares were issued
to the CFO. The shares were valued at the issue date quoted stock price of $0.30. The shares issued covered shares owed in conjunction
with the compensation agreement (300 shares) and 1,200 shares issued as severance compensation. $450 was charged to compensation expenses. Shares Issued for non-employee Services On March 1, 2019, under the Company's March
1, 2019, agreement with its technology support provider the Company is to issue common shares equal to $1,500 every month. The Company
recognized the expense of $1,500, and authorized the issuance of 1,667, shares to the vendor as of March 31, 2019. On March 31, 2019, 10,000, common shares were
issued to Tysadco Partners for the Company's investor relations firm as per the agreement for monthly payments in common shares
of $4,000 per month totaling $16,000, which was fully recognized as expense as of March 31, 2019. The issuance settled the amounts due
for October 20, 2018 through February 20, 2019. On May 3, 2019, the Company issued 8,000, common
shares to its technology support provider, for services for April and May 2019. The shares were valued at $0.375, and $3,000, was charged
to expense. On June 10, 2019, the Company issued 1,192, common
shares to a consultant. The shares were valued at $0.30 per share, and $358, was charged to expense. On August 28, 2019, the Company issued 15,288,
common shares to an attorney for services. The shares were valued at the stock price on the date the shares were issued at $0.0447, and
$684, was charged to professional fees. On September 30, 2019, the Company approved the
issuance of 240,000, restricted common shares to Tysadco Partners for the prior six months investor relation services. The shares were
valued at $0.10 and $24,000, was charged to professional fees. On September 30, 2019, the Company approved the
issuance of 32,500, restricted common shares to an individual for the prior four months of technology support services. The shares were
valued at $0.1846 and $6,000, was charged to professional fees. On October 7, 2019, the Company entered into a
one year agreement for professional services for a one-time fee to be paid with 50,000 common shares of restricted stock. The services
relate mostly to technology and related internet media and website improvement. The shares were valued at $.05 per share based on the
value of the services to be received for total expense of $2,500, charged to professional fees. On October 7, 2019, the Company entered into a
one year agreement for professional services for a one-time fee to be paid with 25,000 common shares of restricted stock the services
relate mostly to investor relations through internet media. The shares were valued at $.10 per share based on the value of the services
to be received for total expense of $2,500, charged to professional fees. An additional 25,000 shares were authorized and issued to the
service provider during the three months ended June 30, 2020. The shares were valued at $108. On December 31, 2019, the Company approved the
issuance of 120,000 restricted common shares to Tysadco Partners for the prior three months investor relation services. The shares were
valued at $12,000, and charged to professional fees. On December 31, 2019, the Company approved the
issuance of 45,000 restricted common shares to an individual for the prior four months of technology support services. The shares were
valued at $4,500, and charged to professional fees. On February 21, 2020, the Company issued 23,948
shares of common stock to an attorney in settlement of amounts owed of $456. All shares issued to employees and non-employees are valued at the
quoted trading prices on the respective grant dates. Shares Issued Under 3(a)(10) The Company issued common shares to Livingston
Asset Management, pursuant to its senior secured creditor's (TCA) Replacement Note A and the related 3(a)(10) settlement (see Note
10). Between March 14, 2018 and October 29, 2018, 101,624
common shares were issued by the Company and sold by Livingston, with 71,624 shares issued and sold through September 30, 2018, and the
remaining 30,000 issued as of September 30, 2018 and sold as of November 22, 2018. The shares of the Company's common stock
issued under section 3(a)(10) of the Securities Act, have been initially recorded at par value with an equal charge to additional paid-in
capital and proceeds of $308,100 and pro rata note premium of $204,989 totaling $513,089 have been recorded as equity relating to these
issued shares as of September 30, 2018. Between February 4, 2019 and September 30, 2019,
1,273,261 common shares were issued to Livingston of which 220,239 shares remained under Livingston's control as of September 30,
2019. The issuances totaling $127,328 were credited to common stock with the same amount charged to additional paid in capital until remitted
to TCA (see below). Common Stock Sold for Settlement Payment of
3(a)(10) On November 22, 2018 Livingston Asset Management
finalized sale of 30,000 shares of common stock and remitted a payment to TCA for $45,320 in partial settlement of TCA Note A under the
terms of the 3(a)(10) agreement. The liability was reduced by $45,320. The principal reduction of $45,320 and related debt premium of
$30,618 were recorded as additional paid in capital. Between February 4, 2019 and March 27, 2019, 645,728
shares were sold and settled. Livingston remitted payments of $225,000, in partial settlement of the TCA Note A, under the 3(a)(10) arrangement.
The liability was reduced by $225,000; the principal reduction of $225,000 and the related debt premium of $150,000 were recorded as additional
paid in capital. In total $270,320, was remitted to TCA reducing
the related note from $691,907 to $421,587 during the year ended September 30, 2019 and $180,618 was charged to debt premium reducing
the balance to $281,054 at September 30, 2019. Return and Cancellation of Unsold Shares of
Common Stock from 3(a)(10) Arrangement Livingston Asset Management returned 194,520 unsold
shares of common stock to the Company on November 7, 2019. The transfer agent cancelled the shares. Shares Issued for Warrant Exercise On October 17, 2018, Crown Bridge Partners was
issued 35,420, common shares at $7.20, in a cashless exchange for 39,991 warrants surrendered. $68,232, was recorded as equity and derivative
liabilities were reduced by the same amount. On January 4, 2019, Crown Bridge Partners was
issued 52,101, common shares at $0.2235, in a cashless exchange for 58,230 warrants surrendered. $28,892, was recorded as equity and derivative
liabilities were reduced by the same amount. On February 6, 2019, Crown Bridge Partners was
issued 60,612 common shares at $0.6815, in a cashless exchange for 69,375, warrants surrendered. $41,307, was recorded as equity and derivative
liabilities were reduced by the same amount. In total $138,430, was reclassified from derivative
liability to additional paid in capital. Shares Issued for Conversion of Convertible
Notes Between November 1, 2018, and December 5, 2018
Jefferson Street Capital was issued 128,620, common shares for conversion of principal related to the Porta Pellex note assignment and
restatement (See Note 11). The note was converted at contractual rates and the shares issued had aggregate fair values on the conversion
dates of $166,929. The note principal of $62,500, interest due of $7,500, and fees of $4,400, were fully liquidated as a result of the
conversions. Derivative liabilities of $78,471 were reclassified to additional paid in capital, debt discount of $62,500 was amortized
to interest expense and loss on debt extinguishment of $14,057 was recorded. Between November 6, 2018, and November 27, 2018
Trillium Partners LP was issued 115,669, common shares for conversion of $62,500, principal related to the Porta Pellex note assignment
and restatement (See Note 11). The note principal of $62,500, accrued interest or $7,500, and fees of $2,290 were fully liquidated as
a result of the conversions. The note was converted at contractual rates. Debt premiums of $62,500 were recorded as additional paid in
capital. On January 8, 2019, Livingston Asset Management,
LLC converted $9,500, of principal, $682, of accrued interest and $1,145, in fees for the fee note issued June 1, 2018, for 45,306, common
shares at the contractual price of $0.25. $9,500, was reclassified from debt premium to additional paid in capital at conversion. The
unliquidated balance of the fee note was $3,000, following the conversion. On January 18, 2019, Livingston Asset Management
converted $3,000, of the remaining principal balance, $24, of accrued interest and $1,145, in fees for the fee note issued June 1, 2018,
and $12,500, of principal, $678, of accrued interest and $1,145, in fees from the fee note issued July 1, 2018, for total of 73,968, shares
of common stock at the contracted price of $0.25. $15,500, was reclassified from debt premium to additional paid in capital at conversion.
The notes were fully liquidated following the conversions. On February 11, 2019, Livingston Asset Management
converted $12,500, of principal, $654, of accrued interest and $1,145, in fees from the fee note issued August 1, 2018, for 47,664, common
shares at the contracted price of $0.30. $12,500, was reclassified from debt premium to additional paid in capital at conversion. On March 18, 2019, Livingston Asset Management
converted $12,500, of principal, $640, of accrued interest and $1,145, in fees from the fee note issued September 1, 2018, for 47,618,
common shares at the contracted price of $0.30. $12,500, was reclassified from debt premium to additional paid in capital at conversion. For the Livingston Asset Management LLC conversions
noted above from January 8, 2019 to March 18, 2019, total debt, interest and fees were $58,403, and related debt premium of $50,000, resulted
in credits to equity of $108,403. On April 3, 2019, Livingston Asset Management
converted $12,500, of principal, $627, of accrued interest and $1,250, in fees from the fee note issued October 1, 2018, for 71,884, common
shares at the contracted price of $0.20. $12,500, was reclassified from debt premium to additional paid in capital at conversion. On June 19, 2019, Livingston Asset Management
converted $12,500, of principal, $757, of accrued interest and $1,250, in fees from the fee note issued November 1, 2018, for 145,069,
common shares at the contracted price of $0.10. $12,500, was reclassified from debt premium to additional paid in capital at conversion. On June 25, 2019, Livingston Asset Management
converted $2,125, of principal, $658, of accrued interest and $1,250, in fees from the fee note issued November 1, 2018, for 80,651, common
shares at the contracted price of $0.10. The remaining principal balance was $10,375, as of September 30, 2019. $2,125, was reclassified
from debt premium to additional paid in capital at conversion. In total 336,461,204 shares of common stock were
issued upon conversion of convertible notes and accrued interest during the year ended September 30, 2020 as follows: On October 22, 2019, the Company issued 142,857,
shares of common stock to Redstart Holding Corporation, as it converted principal of $10,000, on its convertible note dated March 4, 2019,
at the contractual rate of $0.07 per share. The balance of principal following the conversion was $68,000. On October 29, 2019, the Company issued 155,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $5,700, and $500, in fees on its convertible note dated
March 1, 2019, at the contractual rate of $0.04 per share. The balance of principal following the conversion was $29,300. On November 19, 2019, the Company issued 71,429,
shares of common stock to Redstart Holding Corporation, as it converted principal of $5,000, on its convertible note dated March 4, 2019,
at the contractual rate of $0.07 per share. The balance of principal following the conversion was $63,000. On February 14, 2020, Redstart Holdings, converted
$1,600, of principal from their note issued on March 2, 2019, for 158,416, shares of common stock, at the contracted price of $.0101. On February 25, 2020, Trillium Partners LP, holder
through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 322,875, shares of common stock at
the contracted price of $.008 per share. Principal of $247, accrued interest of $1,331, and conversion fees of $1,005, were converted. On March 11, 2020, Trillium Partners LP, holder
through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 239,608, shares of common stock at
the contracted price of $.00625 per share. Principal of $450, accrued interest of $43, and conversion fees of $1,005, were converted. On April 3, 2020, Trillium Partners LP, the holder
through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 367,385, shares of common stock at
the contracted price of $0.005 per share. Principal of $370, accrued interest of $94, and conversion fees of $1,005, were converted. On April 15, 2020, Trillium Partners LP, the holder
through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 1,623,103, shares of common stock
at the contracted price of $0.00155 per share. Principal of $1,350, accrued interest of $61, and conversion fees of $1,105, were converted. On April 16, 2020, Redstart Holdings, converted
$5,300, of their note issued on March 2, 2019, for 963,636, shares of common stock, at the contracted price of $0.0055 On April 22, 2020, Redstart Holdings, converted
$5,300, of their note issued on March 2, 2019, for 963,636, shares of common stock, at the contracted price of $0.0055. On April 22, 2020, Tri-Bridge converted $10,010,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures, LLC on
April 9, 2020, into 2,008,093, shares of common stock, at $0.005, per share. On April 23, 2020, Alpha Capital Anstalt converted
$2,200, of the Livingston Asset Management LLC, notes purchased on November 9, 2019, for 400,000, shares of common stock at the contracted
price of $.0055. On April 29, 2020, Redstart Holdings, converted
a $5,800, of their note issued on March 2, 2019, for 1,054,545, shares of common stock, at the contracted price of $0.0055. On May 1, 2020, Trillium Partners LP, the holder
through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 860,377, shares of common stock at
the contracted price of $0.003 per share. Principal of $1,450, accrued interest of $26, and conversion fees of $1,105, were converted. On May 5, 2020, Trillium Partners LP, the holder
through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 643,232, shares of common stock at
the contracted price of $0.0023 per share. Principal of $500, accrued interest of $3, and conversion fees of $1,105, were converted. On May 5, 2020, Redstart Holdings, converted $3,600,
of their note issued on March 2, 2019, for 1,058,824, shares of common stock, at the contracted price of $0.0034. On May 7, 2020, Redstart Holdings, converted $3,100,
of their note issued on March 2, 2019, for 1,033,333, shares of common stock, at the contracted price of $0.003. On May 12, 2020, Redstart Holdings, converted
$3,800, of their note issued on March 2, 2019, for 1,055,556, shares of common stock, at the contracted price of $0.0036. On May 13, 2020, Trillium Partners LP, the holder
through assignment of the September 8 & 18, 2018, fee notes issued to an attorney for services was issued 2,959,973, shares of common
stock at the contracted price of $0.0025 per share. Principal of $4,958, accrued interest of $597, and conversion fees of $1,105, were
converted. On May 14, 2020, Redstart Holdings, converted
$4,300, of their note issued on March 2, 2019, for 1,482,759, shares of common stock, at the contracted price of $0.0029. On May 14, 2020, the Company issued 1,450,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $1,588, and $500, in fees on its convertible note dated
March 1, 2019, at the contractual rate of $.00144 per share. On May 18, 2020, Tri-Bridge converted $6,752,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures, LLC on
April 9, 2020, into 3,650,843, shares of common stock, at $0.00018, per share. On May 18, 2020, Trillium Partners LP, the holder
through assignment of the September 8 and 18, 2018, fee notes issued to an attorney for services was issued 2,966,527, shares of common
stock at the contracted price of $0.0015 per share. Principal of $1,170, accrued interest of $2,175, and conversion fees of $1,105, were
converted. On May 18, 2020, Redstart Holdings, converted
$3,800, of their note issued on March 2, 2019, for 1,461,538, shares of common stock, at the contracted price of $0.0026. On May 19, 2020, the Company issued 1,800,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $2,092, and $500, in fees on its convertible note dated
March 1, 2019, at the contractual rate of $.00144 per share. On May 20, 2020, Redstart Holdings, converted
$3,800, of their note issued on March 2, 2019, for 1,461,538, shares of common stock, at the contracted price of $0.0026. On May 21, 2020, Tri-Bridge converted $7,595,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures, LLC on
April 9, 2020, into 4,340,119, shares of common stock, at $0.000175, per share. On May 22, 2020, the Company issued 2,100,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $2,440, and $500, in fees on its convertible note dated
March 1, 2019, at the contractual rate of $.00144 per share. On May 25, 2020, Redstart Holdings, converted
$3,800, of their note issued on March 2, 2019, for 1,461,333, shares of common stock, at the contracted price of $0.0024. On May 26, 2020, Redstart Holdings, converted
$3,500, of their note issued on March 2, 2019, for 1,458,333, shares of common stock, at the contracted price of $0.0024. On May 26, 2020, Trillium Partners LP, the holder
through assignment of the September 8 & 18, 2018, fee notes issued to an attorney for services was issued 2,961,147, shares of common
stock at the contracted price of $0.0015 per share. Principal of $3,315, accrued interest of $22, and conversion fees of $1,105, were
converted. On May 27, 2020, Redstart Holdings, converted
a $6,600, of their note issued on March 2, 2019, for 2,869,565, shares of common stock, at the contracted price of $0.0023. On May 29, 2020, Redstart Holdings, converted
$6,600, of their note issued on March 2, 2019, for 2,869,565, shares of common stock, at the contracted price of $0.0023. On May 29, 2020, Tri-Bridge converted $9,413,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures, LLC on
April 9, 2020, into 5,705,136, shares of common stock, at $0.00165, per share. On June 1, 2020, Redstart Holdings, converted
$6,600, of their note issued on March 2, 2019, for 2,869,565, shares of common stock, at the contracted price of $0.0023. On June 3, 2020, Redstart Holdings, converted
$6,600, of their note issued on March 2, 2019, for 2,869,565, shares of common stock, at the contracted price of $0.0023. On June 3, 2020, Tri-Bridge converted $12,235,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures, LLC on
April 9, 2020, into 7,415,359, shares of common stock, at $0.00165, per share. On June 5, 2020, Redstart Holdings, converted
$6,300, of their note issued on March 2, 2019, for 2,863,636, shares of common stock, at the contracted price of $0.0022. On June 8, 2020, Redstart Holdings, converted
$8,800, of their note issued on March 2, 2019, for 4,000,000, shares of common stock, at the contracted price of $0.0022. On June 10, 2020, Redstart Holdings, converted
$5,300, of their note issued on March 2, 2019, along with accrued interest of $2,500, for 3,545,455, shares of common stock, at the contracted
price of $0.0022. On June 10, 2020, the Company issued 3,800,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $4,136, and $500, in fees on its convertible note dated
March 1, 2019, at the contractual rate of $.00122 per share. On June 11, 2020, Redstart Holdings, converted
$1,400, of accrued interest from their note issued on March 2, 2019, for 636,364, shares of common stock, at the contracted price of $0.0022.
The note principal and all accrued interest has now been fully liquidated. On June 11, 2020, Trillium Partners LP, the holder
through assignment of the September 8 and 18, 2018, fee notes issued to an attorney for services was issued 2,202,427, shares of common
stock at the contracted price of $0.0015 per share. Principal of $2,190, accrued interest of $9, and conversion fees of $1,105, were converted.
The assigned notes dated September 8 and 18, 2018 were fully converted following the issuance. On June 16, 2020, Tri-Bridge converted $7,679,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures, LLC on
April 9, 2020, into 5,882,100, shares of common stock, at $0.0013 per share. The assigned note was fully converted following the issuance. On June 18, 2020, Trillium Partners LP, the holder
through assignment of the October 18, November 18 and December 18, 2018, fee notes issued to an attorney for services was issued 5,055,829,
shares of common stock at the contracted price of $0.0017 per share. Principal of $6,000, accrued interest of $1,590, and conversion fees
of $1,005, were converted. On June 26, 2020, Trillium Partners LP, the holder
through assignment of the October 18, November 18 and December 18, 2018, fee notes issued to an attorney for services was issued 5,072,843,
shares of common stock at the contracted price of $0.00115 per share. Principal of $3,300, accrued interest of $1,528, and conversion
fees of $1,005, were converted. On June 26, 2020, Trillium Partners LP, the holder
through assignment of the October 18, November 18 and December 18, 2018, fee notes issued to an attorney for services was issued 6,140,157,
shares of common stock at the contracted price of $0.00115 per share. Principal of $4,600, accrued interest of $1,456, and conversion
fees of $1,005, were converted. On July 14, 2020, Trillium Partners LP, the holder
through assignment of the October 18, November 18 and December 18, 2018, fee notes issued to an attorney for services was issued 4,447,722,
shares of common stock at the contracted price of $0.00115 per share. Principal of $4,100, accrued interest of $44, and conversion fees
of $1,005, were converted. Following this conversion the balance of the three assigned notes was $0. On July 14, 2020, Trillium Partners LP, the holder
through assignment of the January 18, February 18 and March 18, 2019, fee notes issued to an attorney for services was issued 7,312,600,
shares of common stock at the contracted price of $0.00115 per share. Principal of $6,000, accrued interest of $1,404, and conversion
fees of $1,005, were converted. On July 22, 2020, the Company issued 6,700,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $5,128, and $500, in fees on its convertible note dated
March 1, 2019, at the contractual rate of $.00084 per share. On July 23, 2020, Trillium Partners LP, the holder
through assignment of the January 18, February 18 and March 18, 2019, fee notes issued to an attorney for services was issued 12,997,096,
shares of common stock at the contracted price of $0.00115 per share. Principal of $12,000, accrued interest of $2,617, and conversion
fees of $1,005, were converted. The principal and accrued interest balances on the three assigned notes was fully converted following
this conversion. On August 28, 2020, the Company issued 10,000,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $8,500, and $500, in fees on its convertible note dated
March 1, 2019, at the contractual rate of $.0009 per share. On August 31, 2020, the Company issued 6,500,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $5,350, and $500, in fees on its convertible note dated
March 1, 2019, at the contractual rate of $.0009 per share. On August 31, 2020, the Company issued 17,000,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $14,800, and $500, in fees on its convertible note dated
March 1, 2019, at the contractual rate of $.0009 per share. Related Party Conversions On April 14, 2020, the Company's CEO was
issued 15,000,000 shares of restricted common stock upon conversion of $23,250 in principal on the note issued January 19, 2019 as amended
on April 14, 2020 at the contractual price of $0.0016. On July 24, 2020, the CEO, was issued 150,000,000,
restricted shares of common stock upon conversion of $157,500 of principal on his January 19, 2019, note having an original principal
amount of $200,000. The shares were priced at $.00105, in accordance with the conversion terms within the amendment on April 14, 2020.
Following the conversion the principal was fully liquidated. 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 years ended September 30, 2020 and 2019. For the year ended September 30, 2020 and 2019,
the Company recorded $103,793 and $265,113 of compensation and consulting expense related to stock options, respectively. Total unrecognized
compensation and consulting expense related to unvested stock options at September 30, 2020 amounted to $249,694. The weighted average
period over which share-based compensation expense related to these options will be recognized is approximately 2 years. For the years ended September, 2020 and 2019,
a summary of the Company's stock options activity is as follows:
Number of Weighted- Weighted- Weighted- Aggregate
Outstanding at September 30, 2018 18,505 220.00 8.46 - -
Forfeited (750 ) - - - -
Outstanding at September 30, 2019 17,755 220.00 7.18 - -
Outstanding at September 30, 2020 17,755 220.00 5.29 - -
Exercisable at September 30, 2020 14,427 220.00 1.86 - - 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 200,000 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 300,000 warrants and amortized to interest expense as of September
30, 2018. The warrants have full ratchet price protection and cashless exercise rights (See Note10). 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 September 30, 2020, the warrant was revalued
and the warrant holder is entitled to exercise its warrants for 25,484,484 common shares and the related derivative liability is $119,777. For the years ended September 30, 2020 and 2019,
a summary of the Company's warrant activity is as follows:
Number of Weighted- Weighted- Weighted- Aggregate
Outstanding and exercisable at Septe |
