| 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 June 30, 2023 and September 30, 2022:
June 30, September 30,
2023 2022
Principal $ 297,019 $ 5,978,891
Premiums 288,448 1,443,435
$ 585,467 $ 7,442,326 For the nine months ended June 30, 2023 and 2022,
amortization of debt discount on the above convertible notes amounted to $0 and $19,937 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 shares of common stock related to this transaction. The reserved shares
will be released upon the satisfaction of the loan. As of June 30, 2023, and September 30, 2022,
the Company issued 1 share 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 1 share 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 June 30, 2023
and September 30, 2022, 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 (see below). 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 the 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 the Company’s 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 nine months ended June 30, 2023, there
were no 3(a)(10) issuances. As of June 30, 2023, there have been seventeen issuances under Section 3(a) (10) of the Securities Act totaling
1,375 shares; 1,273, in 2019, and 102, in 2018, which have been recorded at par value with an equal charge to additional paid-in capital.
On November 17, 2019, 195 of the shares issued under Section 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 years ended September 30, 2018 and September 30, 2019, proceeds of $308,100 and $270,320, respectively 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 June 30, 2023 and September 30, 2022, the balance,
of $421,587 along with related debt premium of $281,054 are included in convertible notes payable on the balance sheet. At June 30, 2023 and September 30, 2022, the
principal of the Note B portion was $5,326,285 and accrued interest was $2,958,251 and $2,377,557 respectively and the Note A principal
subject to the 3(a) (10) court order was $421,587 as noted above. During the nine months ended June 30, 2023, 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. (see Note 17) On April 12, 2023, Ekimnel Strategies LLC, 100%
owned by Michael Bannon, Bantec’s Chairman, CEO and CFO, purchased and assumed, all of TCA’s rights and obligations as a
lender under the Senior Secured Credit Facility Agreement dated May 31, 2016 and effective September 13, 2016 and all subsequent documents
from the Receiver for TCA Global Credit Master Fund, LP. The value of the note at the time of agreement was valued at $8,546,334 including
principal and accrued interest (also see Note 8 and 17). Other Convertible Notes 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 accrues 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 June 30, 2023 and September 30, 2022 with $8,899, and $7,777, of accrued interest,
respectively. As the note has matured it is in default. Under the terms of the note no default interest or penalties accrue. On December 1, 2021, the Company terminated its
agreement with Livingston Asset Management and entered into a consulting and services arrangement with Frondeur Partners LLC 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 is obligated to issue to Frondeur Partners LLC convertible notes having principal
of $15,000, interest of 10% per annum, maturity of seven months. The notes are convertible into shares of common stock at a discount
of 50% to the lowest bid price in the twenty trading days immediately preceding the notice of conversion. Between March 1, 2022 and August 1, 2022, the
Company issued convertible promissory notes to Frondeur Partners LLC for an aggregate principal amount of $90,000 for services (service
agreement replacing agreement with Livingston Asset Management LLC). The convertible notes bear interest of 10% per annum and matures
in nine months. The notes issued were convertible into shares of common stock at a discount of 50% of the lowest closing bid price during
the thirty trading days prior to conversion. The notes have conversion feature and are treated as stock settled debt under ASC 480 and
a total debt premium of $90,000 were recognized as interest expense on note issuance dates. At September 30, 2022 the accrued interest
was $3,203. Between October 3, 2022 and March 2023, the Company issued an aggregate of 2,090,007 shares of common stock in conversion
of Frondeur Partners LLC, convertible note payables dated from March 1, 2022 to August 1, 2022, all principal of $90,000 and accrued
interest of $5,388 were converted. Premium of $90,000 was reclassified to additional paid in capital. Between September 1, 2022 to May 1, 2023, the
Company issued convertible promissory notes to Frondeur Partners LLC for an aggregate amount of $135,000 in principal for services (service
agreement replacing agreement with Livingston Asset Management LLC). The convertible notes bear interest ranging from 10% to 12% per
annum and matures in nine months. The notes issued are convertible into shares of common stock at a discount of 50% of the lowest closing
bid price during the thirty trading days prior to conversion. The notes have conversion features and are treated as stock settled debt
under ASC 480 and a total debt premium of $135,000 is recognized as interest expense on the note issuance dates. The principal balance for the Frondeur notes
was $135,000 and $105,000 at June 30, 2023 and September 30, 2022, respectively, as detailed above. Accrued interest for these notes
totaled $6,725 and $3,631 at June 30, 2023 and September 30, 2022, respectively also detailed above. From May 1, 2022 until June 1, 2023, the Company
issued a $4,000 convertible notes every month to the law firm for fees incurred, each note having six-month term to maturity and 10%
annual interest. The notes are convertible into shares of common stock at a fixed discount of 50% of the lowest bid price in the 30 trading
days immediately preceding the notice of conversion from the lender. The notes have cross default provisions. The Company has accounted
for the convertible promissory notes 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. The principal balances owed to the law firm under
the agreement as of June 30, 2023 and September 30, 2022 were $56,000, and $20,000 respectively and accrued interest was $3,455 and $563
as of June 30, 2023, and September 30, 2022, respectively. 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
or interest rate increase 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. At June 30,2023 and September 30, 2022 the principal, and premium were both $90,000. At June 30, 2023 and September 30,
2022 accrued interest was $44,692 and $36,614, respectively (see Note 15). | NOTE 10 - CONVERTIBLE NOTES PAYABLE
AND ADVISORY FEE LIABILITIES The senior secured credit facility note balance
and convertible debt balances consisted of the following at September 30, 2022 and 2021:
September 30, September 30,
2022 2021
Principal $ 5,978,891 $ 6,167,407
Premiums 1,443,435 1,509,673
Unamortized discounts - (14,440 )
$ 7,422,326 $ 7,662,640 For the years ended September 30, 2022 and 2021,
amortization of debt discount on the above convertible notes amounted to $21,940 and $30,533, 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 shares of common stock related to this transaction. The reserved shares
will be released upon the satisfaction of the loan. As of September 30, 2022, and September 30, 2021,
the Company had issued 1 share 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 1 share 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,
2022 and September 30, 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. 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 the 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 the Company’s 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 year ended September 30, 2022, there were
no 3(a) (10) issuances. As of September 30, 2022, there have been seventeen issuances under section 3(a) (10) of the Securities Act totaling
1,375 shares; 1,273, in 2019, and 102, in 2018, which have been recorded at par value with an equal charge to additional paid-in capital.
On November 17, 2019, 195 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 years ended September 30, 2018 and September 30, 2019, proceeds of $308,100 and $270,320, respectively 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 September 30, 2022 and September 30, 2021, the
balance, of $421,587 along with related debt premium of $281,054 are included in convertible notes payable on the balance sheet. At September 30, 2022 and September 30, 2021,
the principal of the Note B portion was $5,326,285 and accrued interest was $2,377,557 and $1,738,403 respectively and the Note A principal
subject to the 3(a) (10) court order was $421,587 as noted above. During the year ended September 30, 2022, 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 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 September 30, 2022 and September 30, 2021 with $7,777, and $6,273, 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 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 year ended September 30, 2021 the principal balance was $0 at September 30, 2021 and $91,300 as of September
30, 2020. Accrued interest was $0 and $5,277 at September 30, 2021 and September 30, 2020, respectively. Put premiums of $91,300 were
reclassified to additional paid in capital during the year ended September 30, 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 months. The promissory
notes 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 year ended September 30, 2021, the October 1, 2020, November 1, 2020,
December 1, 2020 and January 1, 2020 notes were fully converted and Livingston agreed to forgive seven months (“February 1, 2020
through August 1, 2020”) of service including the cash payments due which were recorded as accounts payable. A gain on debt extinguishment
was recognized of $263,938 related to the principal, premiums and accrued interest during the year ended September 30, 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 converted; February 1, 2020 - $17,000 note and accrued interest
forgiven; 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 beginning September 1, 2020 through June 1, 2021. Effective July 1, 2021 the agreement was amended changing the advisory fees
to $15,000 due on the first day of each month. Fees are to be paid in the form of a convertible note having a nine-month maturity and
conversion discount of 50% of the lowest closing bid price during the 30 trading days prior to conversion. The principal balance for
the Livingston notes was $45,000 and accrued interest totaled $752 at September 30, 2021, as detailed below. Under the terms of the July 1, 2021 amendment
to the consulting and services agreement with Livingston Asset Management, LLC, Livingston is to receive $15,000, per month in convertible
promissory notes. On July 1, 2021 the Company issued a $15,000 convertible note bearing interest of 10% per annum which matures in nine
months. The notes issued are convertible into shares of common stock at a discount of 50% of the lowest closing bid price during the
twenty 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 $15,000 is recognized as interest expense on note issuance date. At September 30, 2021, the accrued interest was $378.
At September 30, 2022 the accrued interest was $0. See below (March 7, 2022, redemption). August 1, 2021, the Company issued a $15,000
convertible promissory note to Livingston. The convertible note bears interest of 10% per annum which matures in nine months. The notes
issued are convertible into shares of common stock at a discount of 50% of the lowest closing bid price during the twenty 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 $15,000
is recognized as interest expense on note issuance date. At September 30, 2021, the accrued interest was $251. At September 30, 2022
the accrued interest was $0. See below (March 7, 2022, redemption). September 1, 2021, the Company issued a $15,000
convertible promissory note to Livingston. The convertible note bears interest of 10% per annum and matures in nine months. The notes
issued are convertible into shares of common stock at a discount of 50% of the lowest closing bid price during the twenty 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 $15,000
is recognized as interest expense on note issuance date. At September 30, 2021, the accrued interest was $123. At September 30, 2022
the accrued interest was $0. See below (March 7, 2022, redemption). On October 1, 2021, the Company issued a convertible
promissory note to Livingston Asset Management LLC for $15,000 in principal for services. The convertible note bears interest of 10%
per annum and matures in nine months. The note issued is convertible into shares of common stock at a discount of 50% of the lowest closing
bid price during the twenty trading days prior to conversion. The note has a conversion feature and is treated as stock settled debt
under ASC 480 and a debt premium of $15,000 is recognized as interest expense on note issuance date. At September 30, 2022 the accrued
interest was $0. See below (March 7, 2022, redemption). On November 1, 2021, the Company issued a convertible
promissory note to Livingston Asset Management LLC for $15,000 in principal for services. The convertible note bears interest of 10%
per annum and matures in nine months. The note issued is convertible into shares of common stock at a discount of 50% of the lowest closing
bid price during the twenty trading days prior to conversion. The note has a conversion feature and is treated as stock settled debt
under ASC 480 and a debt premium of $15,000 is recognized as interest expense on note issuance date. At September 30, 2022 the accrued
interest was $0. See below (March 7, 2022, redemption). On March 7, 2022, the Company redeemed five fee
notes issued to Livingston Asset Management LLC (July 1, through November 1, 2021 notes above) for $85,000 cash. Principal, penalty and
accrued interest of $75,000, $7,612 and $2,388 was recognized along with gain on debt extinguishment of $67,388 during the year ended
September 30, 2022. The penalty was recorded against the gain. On December 1, 2021, the Company terminated its
agreement with Livingston Asset Management and entered into a consulting and services arrangement with Frondeur Partners LLC 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 Frondeur Partners LLC convertible fee notes having principal of
$15,000, interest of 10% per annum, maturity of seven months. The notes are convertible into common shares at a discount of 50% to the
lowest bid price in the twenty trading days immediately preceding the notice of conversion. The notes are charged to professional fees
for each corresponding service month. The principal balance for the Frondeur notes was $105,000 and accrued interest for the notes totaled
$3,631 at September 30, 2022, as detailed below. On December 1, 2021, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. During the year ended September 30, 2022 the principal and accrued interest of $748, were converted to
common stock. Premium of $15,000 was reclassified to additional paid in capital. On January 1, 2022, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. During the year ended September 30, 2022 the principal and accrued interest of $744, were converted to
common stock. Premium of $15,000 was reclassified to additional paid in capital. On February 1, 2022, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. During the year ended September 30, 2022 the principal and accrued interest of $777, were converted to
common stock. Premium of $15,000 was reclassified to additional paid in capital. On March 1, 2022, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. At September 30, 2022 the accrued interest was $820. On April 1, 2022, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. At September 30, 2022 the accrued interest was $752. On May 1, 2022, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. At September 30, 2022 the accrued interest was $629. On June 1, 2022, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. At September 30, 2022 the accrued interest was $501. On July 1, 2022, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. At September 30, 2022 the accrued interest was $314. On August 1, 2022, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. At September 30, 2022 the accrued interest was $187. On September 1, 2022, the Company issued a convertible
promissory note to Frondeur Partners LLC for $15,000 in principal for services (service agreement replacing agreement with Livingston
Asset Management LLC). The convertible note bears interest of 10% per annum and matures in nine months. The note issued is convertible
into shares of common stock at a discount of 50% of the lowest closing bid price during the thirty trading days prior to conversion.
The note has a conversion feature and is treated as stock settled debt under ASC 480 and a debt premium of $15,000 is recognized as interest
expense on note issuance date. At September 30, 2022 the accrued interest was $62. The principal balance for the Frondeur notes
was $105,000 and Livingston notes was $45,000 at September 30, 2022 and 2021, respectively, as detailed above. Accrued interest for these
notes totaled $3,631 and $752 at September 30, 2022 and 2021, respectively also detailed above. 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 was 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 year ended September 30, 2021 the note principal was fully repaid in cash and the derivative liability was recognized as gain on
extinguishment of debt. 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 promis |
