Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2022 | May 13, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | NovAccess Global Inc. | |
Trading Symbol | N/A | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 18,398,673 | |
Amendment Flag | false | |
Entity Central Index Key | 0001039466 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-29621 | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-1384159 | |
Entity Address, Address Line One | 8584 E. Washington Street #127 | |
Entity Address, City or Town | Chagrin Falls | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44023 | |
City Area Code | 213 | |
Local Phone Number | 642-9268 | |
Title of 12(b) Security | N/A | |
Security Exchange Name | NONE | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
CURRENT ASSETS | ||
Cash | $ 61,609 | $ 180,668 |
Employee Advances | 0 | 380 |
Prepaid expenses | 21,898 | 27,086 |
TOTAL ASSETS | 83,507 | 208,134 |
CURRENT LIABILITIES | ||
Accounts payable | 161,922 | 143,074 |
Other payable | 66,894 | 66,894 |
Accrued expenses and interest on notes payable | 105,783 | 356,683 |
Accrued payroll | 11,268 | 10,712 |
Deferred Compensation | 270,433 | 201,383 |
License Fees Payable | 36,912 | 40,402 |
Derivative liability | 2,400,203 | 2,553,979 |
Derivative liability warrants | 597,997 | 372,643 |
Due to related party | 86,073 | 82,922 |
Payable to TN3 | 200,000 | 0 |
Promissory notes payable net of debt discount and debt issuance costs of $188,247 and $395,027, respectively | 561,753 | 104,973 |
Bridge Loans Payable - related parties | 4,608 | 0 |
Convertible loan payable | 12,000 | 12,000 |
Convertible promissory notes net of debt discount and debt issuance costs of $0 and $69,567, respectively | 0 | 24,683 |
Total Current Liabilities | 4,515,846 | 3,970,348 |
LONG TERM LIABILITIES | ||
Convertible promissory notes | 165,880 | 165,880 |
Total Long Term Liabilities | 165,880 | 165,880 |
TOTAL LIABILITIES | 4,681,726 | 4,136,228 |
Preferred stock 50,000,000 shares authorized, shares issued and outstanding designated as follows: | ||
Preferred Stock Series B, $0.01 par value, 25,000 authorized 25,000 and 25,000 shares issued and outstanding, respectively | 6 | 250 |
Common stock, no par value; 2,000,000,000 authorized common shares 17,523,673 and 14,404,030 shares issued and outstanding, respectively | 42,921,963 | 41,882,535 |
Additional paid in capital | 5,356,398 | 5,351,398 |
Paid in capital, common stock warrants | 4,210,960 | 4,210,960 |
Paid in capital, preferred stock | 4,747,108 | 5,088,324 |
Accumulated deficit | (61,834,654) | (60,461,561) |
TOTAL SHAREHOLDERS' DEFICIT | (4,598,219) | (3,928,094) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $ 83,507 | $ 208,134 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Promissory notes payable, debt discount and debt issuance costs (in Dollars) | $ 188,247 | $ 395,027 |
Convertible promissory notes, debt discount and debt issuance costs (in Dollars) | $ 0 | $ 69,567 |
Preferred stock, shares issued | 25,000 | 25,000 |
Preferred stock, par (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 17,523,673 | 14,404,030 |
Common stock, shares outstanding | 17,523,673 | 14,404,030 |
Common stock, no par value (in Dollars per share) | $ 0 | $ 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares issued | 600 | |
Preferred stock, shares authorized | 25,000 | 25,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
OPERATING EXPENSES | ||||
Research and development expenses | $ 45,516 | $ 8,446 | $ 87,915 | $ 8,446 |
Selling, general and administrative expenses | 381,428 | 272,873 | 661,358 | 1,672,764 |
TOTAL OPERATING EXPENSES | 426,944 | 281,319 | 749,273 | 1,681,210 |
LOSS FROM OPERATIONS BEFORE OTHER INCOME/(EXPENSES) | (426,944) | (281,319) | (749,273) | (1,681,210) |
OTHER INCOME/(EXPENSES) | ||||
Gain (Loss) on change in derivative liability | (492,425) | (382,539) | (33,399) | 1,180,067 |
Extinguishment of derivatives | 0 | 0 | 96,205 | 0 |
Extinguishment of debt | (54,813) | 0 | (54,813) | 0 |
Interest expense | (255,603) | (5,348) | (631,813) | (12,949) |
TOTAL OTHER INCOME/(EXPENSES) | (802,841) | (387,887) | (623,820) | 1,167,118 |
NET INCOME (LOSS) | $ (1,229,785) | $ (669,206) | $ (1,373,093) | $ (514,092) |
BASIC INCOME (LOSS) PER SHARE (in Dollars per share) | $ (0.08) | $ (0.05) | $ (0.09) | $ (0.06) |
DILUTED INCOME (LOSS) PER SHARE (in Dollars per share) | $ (0.08) | $ (0.05) | $ (0.09) | $ (0.06) |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | ||||
BASIC (in Shares) | 15,379,289 | 12,455,164 | 14,914,920 | 9,099,121 |
DILUTED (in Shares) | 15,379,289 | 12,455,164 | 14,914,920 | 9,099,121 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Series B Preferred Stock [Member]Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Stock Issuable [Member]Additional Paid-in Capital [Member] | Common Stock Issuable [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid in Capital Stock Options / Warrants [Member] | Retained Earnings [Member] | Additional Paid in Capital Preferred Stock [Member] | Total |
Balance at Sep. 30, 2020 | $ 250 | $ 33,369,424 | $ 11,710,398 | $ 4,210,960 | $ 5,088,324 | $ (57,949,086) | $ (3,569,730) | |||
Balance (in Shares) at Sep. 30, 2020 | 25,000 | 1,603,492 | ||||||||
Common Stock issued for StemVax acquisition - from stock payable | $ 6,375,000 | (6,375,000) | 6,375,000 | |||||||
Common Stock issued for StemVax acquisition - from stock payable (in Shares) | 7,500,000 | |||||||||
Stock compensation cost | $ 936,000 | $ 936,000 | ||||||||
Stock compensation cost (in Shares) | 2,000,000 | 9,500,000 | ||||||||
Common Stock issued for services | $ 145,941 | $ 145,941 | ||||||||
Common Stock issued for services (in Shares) | 311,945 | 311,945 | ||||||||
Common Stock issued , subscriptions | $ 295,000 | $ 295,000 | ||||||||
Common Stock issued , subscriptions (in Shares) | 1,440,905 | 1,440,905 | ||||||||
Common Stock issued as commitment fee on promissory note payable (in Shares) | 11,252,850 | |||||||||
Net income (loss) | (514,092) | $ (514,092) | ||||||||
Balance at Mar. 31, 2021 | $ 250 | $ 41,121,365 | 5,335,398 | 4,210,960 | 5,088,324 | (58,463,178) | (2,706,881) | |||
Balance (in Shares) at Mar. 31, 2021 | 25,000 | 12,856,342 | ||||||||
Balance at Sep. 30, 2021 | $ 250 | $ 41,882,535 | 5,351,398 | 4,210,960 | 5,088,324 | (60,461,561) | (3,928,094) | |||
Balance (in Shares) at Sep. 30, 2021 | 25,000 | 14,404,030 | ||||||||
Preferred Stock Redemption | $ (244) | $ 525,935 | (341,216) | $ 184,475 | ||||||
Preferred Stock Redemption (in Shares) | (24,400) | 1,502,670 | 1,502,670 | |||||||
Common Stock issued for StemVax acquisition - from stock payable | $ 0 | |||||||||
Stock compensation cost | $ 8,000 | $ 8,000 | ||||||||
Stock compensation cost (in Shares) | 10,000 | 10,000 | ||||||||
Common Stock issued for services | $ 119,480 | $ 73,861 | ||||||||
Common Stock issued for services (in Shares) | 265,973 | 265,973 | ||||||||
Common Stock issued , subscriptions | $ 5,000 | $ 5,000 | $ 170,200 | $ 170,200 | ||||||
Common Stock issued , subscriptions (in Shares) | 600 | 791,000 | 791,000 | |||||||
Common Stock issued as repayment of loans | $ 104,813 | $ 50,000 | ||||||||
Common Stock issued as repayment of loans (in Shares) | 250,000 | 250,000 | ||||||||
Common Stock issued as commitment fee on promissory note payable | $ 111,000 | $ 111,000 | ||||||||
Common Stock issued as commitment fee on promissory note payable (in Shares) | 24,400 | 300,000 | 3,119,643 | |||||||
Net income (loss) | (1,373,093) | $ (1,373,093) | ||||||||
Balance at Mar. 31, 2022 | $ 6 | $ 42,921,963 | $ 5,356,398 | $ 4,210,960 | $ 4,747,108 | $ (61,834,654) | $ (4,598,219) | |||
Balance (in Shares) at Mar. 31, 2022 | 600 | 17,523,673 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Loss | $ (1,373,093) | $ (514,092) |
Adjustment to reconcile net loss to net cash provided by (used in) operating activities | ||
Amortization of debt discount and debt issuance costs recorded as interest expense | 479,689 | 0 |
(Gain)/Loss on change in derivative liability | 33,399 | (1,180,067) |
Extinguishment of derivatives | (96,205) | 0 |
Extinguishment of debt | 54,813 | 0 |
Stock compensation expense | 53,619 | 936,000 |
Stock issued and issuable for services | 73,861 | 145,941 |
Stock issued as commitment fee on promissory note payable | 79,043 | 0 |
Non-cash interest expense on bridge loan | 546 | |
Changes in Assets and Liabilities: | ||
Employee advances | 380 | 0 |
Prepaid expenses | 5,188 | 0 |
Accounts payable | 39,700 | 163,310 |
Other payable | 0 | 1,590 |
License fees payable | (3,490) | (10,000) |
Accrued expenses and interest on notes payable | 144,100 | 32,999 |
Accrued payroll | 556 | 23,290 |
Deferred Compensation | 69,050 | 120,508 |
NET CASH USED IN OPERATING ACTIVITIES | (438,844) | (280,521) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Stock subscriptions received | 175,200 | 295,000 |
Due to related party | 3,151 | 6,628 |
Proceeds from a note payable | 213,000 | 0 |
Payments to TN3 for redemption of preferred stock | (50,000) | 0 |
Payments on convertible notes payable | (94,250) | 0 |
Proceeds from bridge loans payable - related parties | 75,000 | 0 |
Payment on the bridge loans payable | (2,316) | |
Proceeds from a related party loan | 0 | 25,000 |
Payments on related party loan payable | 0 | (24,287) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 319,785 | 302,341 |
NET INCREASE (DECREASE) IN CASH | (119,059) | 21,820 |
CASH, BEGINNING OF PERIOD | 180,668 | 178 |
CASH, END OF PERIOD | 61,609 | 21,998 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest paid | 71,245 | 1,386 |
Taxes paid | 0 | 0 |
SUPPLEMENTAL DISCLOSURES OF NON CASH TRANSACTIONS | ||
Accrued interest capitalized into convertible note | 546 | 2,505 |
Shares issued for StemVax Acquisition – from stock payable | 0 | 6,375,000 |
Cash payable to TN3 for preferred stock | $ 200,000 | $ 0 |
ORGANIZATION AND LINE OF BUSINE
ORGANIZATION AND LINE OF BUSINESS | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. ORGANIZATION AND LINE OF BUSINESS Organization NovAccess Global Inc. (“NovAccess,” the “Company”) is a Colorado corporation formerly known as Sun River Mining Inc. and XsunX, Inc. The Company was originally incorporated in Colorado on February 25, 1997. Effective September 24, 2003, the Company completed a plan of reorganization and name change to XsunX, Inc. In June 2020, the Company was acquired and changed its name to NovAccess Global Inc. Line of Business NovAccess Global Inc. is a biopharmaceutical company that is developing novel immunotherapies to treat brain tumor patients in the United States with plans to expand globally. We specialize in cutting-edge research related to utilizing a patient’s own immune system to attack the cancer. We are filing an Investigational New Drug Application (IND) and working closely with the Food and Drug Administration (FDA) to obtain approval for human clinical trials to determine safety and efficacy of our drug product for brain cancer patients. Once we have successfully completed the clinical trials and proven that the new therapy is safe and efficacious, we plan to commercialize the product. We also have expertise in successfully executing clinical trials, bringing products to market and increasing the market size of products through our advisory board. Our scientists are well versed in immunology, stem cell biology, neuroscience, molecular biology, imaging, small molecules development, gene therapy and other technical assays needed for protein and genetic analysis of cancer cells. NovAccess operates as a research and development (R&D) company out of Ohio and California, and our executive management and scientific advisory board provide over 15 years of extensive experience in all aspects of biopharmaceutical R&D and commercialization of drug candidates. We guide our performance by striving to deliver consistently on the following core objectives: (1) Accountability — taking responsibility for providing safe and effective options for patients; (2) Integrity — doing what is ethically right for the patient; (3) Excellence — doing your best and working hard; and (4) Teamwork — bringing together a strong working team to deliver the best products for brain tumor patients. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included. Operating results for the six months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ended September 30, 2022. For further information refer to the financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended September 30, 2021. Going Concern The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. The Company does not generate revenue, and has negative cash flows from operations, which raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, additional cash infusion. The Company has obtained funds from its shareholders and lenders since its inception through the period ended March 31, 2022. Management believes the existing shareholders and the prospective new investors will provide the additional cash needed to meet the Company’s obligations as they become due and will allow the development of its business. This summary of significant accounting policies of NovAccess is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary StemVax, LLC. All significant inter-company accounts and transactions between these entities have been eliminated in these condensed consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Significant estimates made in preparing these consolidated financial statements include the estimate of derivative liabilities, the deferred tax valuation allowance, and the fair value of stock options. Actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statements of cash flows, cash and cash equivalents include cash in banks and money markets with an original maturity of three months or less. Property and Equipment Property and equipment are stated at cost, and are depreciated using the straight-line method over its estimated useful lives: Leasehold improvements Length of the lease Computer software and equipment 3 Years Furniture & fixtures 5 Years Machinery & equipment 5 Years The Company capitalizes property and equipment over $500. Property and equipment under $500 are expensed in the year purchased. Stock-Based Compensation Share-based Payment applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are to follow a fair value of those equity instruments. We are required to follow a fair value approach using an option-pricing model, such as the Binomial lattice valuation model, at the date of a stock option grant. The deferred compensation calculated under the fair value method would then be amortized over the respective vesting period of the stock option. This has not had a material impact on our results of operations. Net Earnings (Loss) per Share Calculations Net earnings (Loss) per share dictates the calculation of basic earnings (loss) per share and diluted earnings per share. Basic earnings (loss) per share are computed by dividing by the weighted average number of common shares outstanding during the period. Diluted net earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the effect of stock options and stock-based awards plus the assumed conversion of convertible debt (Notes 4 and 5). For the three months ended For the six months ended March 31, March 31, 2022 2021 2022 2021 Loss to common shareholders (Numerator) $ (1,229,785 ) $ (669,206 ) $ (1,373,093 ) $ (514,092 ) Basic weighted average number of common shares outstanding (Denominator) 15,379,289 12,455,164 14,914,920 9,099,121 Diluted weighted average number of common shares outstanding (Denominator) 15,379,289 12,455,164 14,914,920 9,099,121 Diluted weighted average number of shares for the three and six months ended March 31, 2022 and March 31, 2021 is the same as basic weighted average number of shares because the Company had net losses for these respective periods. Fair Value of Financial Instruments Fair Value of Financial Instruments requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of March 31, 2022, the balances reported for cash, prepaid expenses, accounts payable, accrued expenses approximate the fair value because of their short maturities. We adopted Accounting Standards Codification (“ASC”) Topic 820 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, an established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. We measure certain financial instruments at fair value on a recurring basis. The Company had no assets that are required to be valued on a recurring basis as of March 31, 2022 and September 30, 2021. The Company had liabilities that are required to be measured at fair value on a recurring basis as follows at March 31, 2022 and September 30, 2021: Total (Level 1) (Level 2) (Level 3) Assets: $ - $ - $ - $ - Liabilities: Derivative Liability at fair value as of September 30, 2021 $ 2,553,979 $ - $ - $ 2,553,979 Derivative Liability warrants at fair value as of September 30, 2021 $ 372,643 $ - $ - $ 372,643 Derivative Liability at fair value as of March 31, 2022 $ 2,400,203 $ - $ - $ 2,400,203 Derivative Liability warrants at fair value as of March 31, 2022 $ 597,997 $ - $ - $ 597,997 The following is a reconciliation of the derivative liability for which Level 3 inputs were used in determining the approximate fair value: Derivative Liability Derivative Liability Warrants Balance as of September 30, 2021 2,553,979 372,643 Extinguishment of derivatives (96,205 ) - Initial derivative liabilities 134,384 - Net (Gain)/Loss on change in fair value of derivative liability (191,955 ) 225,354 Ending balance as of March 31, 2022 $ 2,400,203 $ 597,997 Recent Accounting Pronouncements In May 2021, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) 2021-04—Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this ASU are effective for public and nonpublic entities for fiscal years beginning after December 15, 2021, and interim periods with fiscal years beginning after December 15, 2021. Early adoption is permitted, including adoption in an interim period. The Company has evaluated the impact of the adoption of ASU 2021-04, which had no effect on the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 3. CAPITAL STOCK At March 31, 2022, the Company’s authorized stock consisted of 2,000,000,000 shares of common stock, with no par value. Effective August 25, 2020, we filed articles of amendment to our articles of incorporation with the Colorado Secretary of State to effectuate a 1-for-1,000 reverse stock split of the Company’s outstanding shares of common stock. The Company is also authorized to issue 50,000,000 shares of preferred stock with a par value of $0.01 per share. The rights, preferences and privileges of the holders of the preferred stock are determined by the Board of Directors prior to issuance of such shares. Preferred Stock As of March 31, 2022 the Company had 600 shares of issued and outstanding Series B Preferred Stock following the conversion of 5,000 shares of Series A Preferred Stock and redemption of 24,400 shares of Series B Preferred Stock. The Series A shares were originally issued in consideration for the contribution of services by Tom Djokovich, the former President and Chief Executive Officer, to the Company valued at fifty dollars, which the Board deemed full and fair consideration. Because of such issuance, Mr. Djokovich had the ability to influence and determine stockholder votes. On March 18, 2020, the Company, Mr. Djokovich, and TN3, LLC, a Wyoming limited liability company owned by Daniel G. Martin (“TN3”), entered into a Stock Purchase Agreement (the “Agreement”). Pursuant to the Agreement, Mr. Djokovich agreed to sell his 5,000 shares of Series A Preferred Stock to TN3 in a private sale for cash. The holder of the Series A Preferred Stock could cast votes equal to not less than 60% of the total outstanding voting power of the Company on all matters voted on by the shareholders of the Company. On September 4, 2020, the Company issued 25,000 shares of unregistered Series B Convertible Preferred stock, $0.01 par value per share to TN3 in exchange for the redemption of 5,000 shares of Series A preferred stock. On March 14, 2022 the Novaccess redeemed 24,400 shares of the Company’s Series B Convertible Preferred Stock held by TN3. Irvin Consulting LLC, a company owned by Dwain Irvin, the CEO of NovAccess, purchased remaining 600 shares (please refer to Note 12 for more details). Each share of outstanding Series B Preferred Stock entitles the holder to cast 40,000 votes. Each share of Series B Preferred Stock is convertible at the option of the holder into 10,000 common shares. In the event of any voluntary or involuntary liquidation, dissolution, or winding-up of the Corporation, the holders of shares of Series B Preferred Stock shall be paid out based on an as converted basis. Dividend for Series B Preferred Stock shall be declared on an as converted basis. Common Stock Effective August 25, 2020, we filed articles of amendment to our articles of incorporation with the Colorado Secretary of State to effectuate a 1-for-1,000 reverse stock split of the Company’s outstanding shares of common stock. During the six months ended March 31, 2022, the Company issued 3,119,643 shares of common stock. 1,502,670 shares were issued to TN3 as part of the transaction to redeem 24,400 shares of Series B Preferred Stock, 265,973 shares were issued to various vendors for services provided; 791,000 shares were issued in relation to stock subscriptions; 300,000 shares were issued as a commitment fee on a promissory note payable; 250,000 shares were issued as repayment of bridge loans (please refer to Note 4 for more details); and 10,000 shares were issued to related parties (please refer to Note 12 for more details). During the six months ended March 31, 2021, the Company issued 11,252,850 shares of common stock. For an expense of $145,941 based on the closing market value on grant date 311,945 shares were issued to various vendors for services provided; 1,440,905 shares were issued in relation to stock subscriptions for net proceeds of $295,000; and 9,500,000 shares were issued to related parties for services and expense at $936,000 based upon the closing market value on grant date. |
CONVERTIBLE PROMISSORY NOTES
CONVERTIBLE PROMISSORY NOTES | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 4. CONVERTIBLE PROMISSORY NOTES As of March 31, 2022, the outstanding convertible promissory notes are summarized as follows: Convertible Promissory Notes $ 165,880 Less current portion - Total long-term liabilities $ 165,880 Maturities of long-term debt for the next four years are as follows: Year Ending September 30, 2023 165,880 $ 165,880 On November 20, 2014, the Company issued a 10% unsecured convertible promissory note (the “2014 Note”) for the principal sum of up to $400,000 plus accrued interest on any advanced principal funds. The 2014 Note matures eighteen months from each advance. The 2014 Note may be converted by the lender into shares of common stock of the Company at the lesser of $12.50 per share or (b) fifty percent (50%) of the lowest trade prices following issuance of the 2014 Note or (c) the lowest effective price per share granted to any person or entity. On November 20, 2014, the lender advanced $50,000 to the Company under the 2014 Note at inception. On various dates from February 18, 2015 through September 30, 2016, the lender advanced an additional $350,000 under the 2014 Note. During the period ended September 30, 2021, the Company and lender agreed to extend the maturity date for the outstanding balance to June 30, 2023. As of March 31, 2022, there remains an aggregate outstanding principal balance of $50,880. On May 10, 2017, the Company issued a 10% unsecured convertible promissory note (the “2017 Note”) for the principal sum of up to $150,000 plus accrued interest on any advanced principal funds. The lender may pay additional consideration at the lender’s discretion. The Company received a tranche in the amount of $25,000 upon execution of the 2017 Note. On various dates, the Company received additional tranches in the aggregate sum of $90,000. The 2017 Note matured twelve months from each tranche. Within thirty (30) days prior to the maturity date, the lender may extend the maturity date to sixty (60) months. During the period ended September 30, 2021, the Company and lender agreed to extend the maturity date for the outstanding balance to June 30, 2023. The 2017 Note may be converted by the lender into shares of common stock of the Company at the lesser of $10 per share or (b) fifty percent (50%) of the lowest trade price of common stock recorded on any trade day after the effective date, or (c) the lowest effective price per share granted to any person or entity. As of March 31, 2022, the balance remaining on the May Note was $115,000. On June 2, 2021, the Company issued a 12% unsecured convertible promissory note (the “June Note”) for the principal sum of $55,500 plus accrued interest. The June Note was to mature on June 2, 2022. The June Note could be converted by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest trade price of common stock recorded during the fifteen (15) trading days prior to conversion. On October 5, 2021 the Company paid the balance of this note to the lender including accrued interest and prepayment settlement fee of $17,520. The Company recorded amortization of debt discount of $36,493 and amortization of debt issuance costs of $1,458, both of which were recognized as interest expense during the six months ended March 31, 2022. The Company also recognized a gain of $59,915 on the extinguishment of this convertible note during the six months ended March 31, 2022. As of March 31, 2022, the balance of the June Note was $0. On July 6, 2021, the Company issued a 12% unsecured convertible promissory note (the “July Note”) for the principal sum of $38,750 plus accrued interest. The July Note was to mature on July 6, 2022. The July Note could be converted by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest trade price of common stock recorded during the fifteen (15) trading days prior to conversion. On December 30, 2021 the Company paid the balance of this note to the lender including accrued interest and prepayment settlement fee of $16,936. The Company recorded amortization of debt discount of $29,620 and amortization of debt issuance costs of $1,996, both of which were recognized as interest expense during the six months ended March 31, 2022. The Company also recognized a gain of $36,289 on the extinguishment of this convertible note during the six months ended March 31, 2022. As of March 31, 2022, the balance of the June Note was $0. On August 20, 2021, the Company issued a 10% unsecured promissory note (the “August Note”) for the principal sum of $500,000 plus accrued interest. The August Note was to mature on February 20, 2022, unless extended for up to an additional six months. The August Note may be converted, only following an event of default, and therefore not included in summary of convertibles note, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period. In February 2022 the Company extended the term of the August note for an additional six months. The extended maturity date is February 20, 2023. The Company recorded amortization of debt discount of $391,319 related to derivative portion of the August Note, amortization of debt issuance costs of $75,000, and $34,181 amortization of debt discount representing commitment fee all of which were recognized as interest expense during the six months ended March 31, 2022 in the consolidated statement of operations for the six months ended March 31, 2022. As of March 31, 2022, the balance of the August Note was $500,000. On February 16, 2022, the Company issued a 10% unsecured promissory note (the “February note”) for the principal sum of $250,000 plus accrued interest. The February Note matures on August 15, 2022, unless extended for up to an additional six months. The February Note may be converted, only following an event of default, and therefore is not included in summary of convertibles note, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period. The Company recorded amortization of debt discount of $32,849 related to derivative portion of the February Note and amortization of debt issuance costs of $9,250, and $19,654 amortization of debt discount representing commitment fee, all of which were recognized as interest expense during the three months ended March 31, 2022, in the consolidated statement of operations for the three months ended March 31, 2022. As of March 31, 2022, the balance of the August Note was $250,000, which is the total of initial debt discount of $134,384, initial debt issuance costs of $37,000 and initial debt discount representing a commitment fee of $78,616. We evaluated the financing transactions in accordance with ASC Topic 815, Derivatives and Hedging, and determined that the conversion feature of the convertible promissory notes was not afforded the exemption for conventional convertible instruments due to its variable conversion rate. The notes have no explicit limit on the number of shares issuable so they did not meet the conditions set forth in current accounting standards for equity classification. The Company elected to recognize the notes under paragraph 815-15-25-4, whereby there would be a separation into a host contract and derivative instrument. The Company elected to initially and subsequently measure the notes in their entirety at fair value, with changes in fair value recognized in earnings. The Company recorded a derivative liability representing the imputed interest associated with the embedded derivative. The derivative liability is adjusted periodically according to the stock price fluctuations based upon the Binomial lattice model calculation. The convertible notes issued and described in this Note 4 above, do not have fixed settlement provisions because their conversion prices are not fixed. The conversion feature has been characterized as a derivative liability to be re-measured at the end of every reporting period with the change in value reported in the statement of operations. We record the full value of the derivative as a liability at issuance with an offset to valuation discount, which will be amortized over the life of the notes. At March 31, 2022, the fair value of the derivative liability was $2,400,203. For purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows: Risk free interest rate Between 0.73%and 2.28% Stock volatility factor Between 144.0% and 336.0% Months to Maturity 0 - 5 years Expected dividend yield None |
CONVERTIBLE LOAN PAYABLE
CONVERTIBLE LOAN PAYABLE | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Short-Term Debt [Text Block] | 5. CONVERTIBLE LOAN PAYABLE As of March 31, 2016, Company issued an unsecured Convertible Promissory Note (the “Note”) in the amount of $12,000 to a former Board member (the “Holder”) in exchange for retention as a director during the fiscal year ending September 30, 2014. The Note can be converted into shares of common stock by the Holder for $4.50 per share. The Note matured on October 1, 2015, and bore a one-time interest charge of $1,200 which was applied to the principal on October 1, 2014. So long as any shares issuable under a conversion are subject to transfer and sale restrictions imposed pursuant to SEC Rule 144 of the Rules promulgated under the Securities Act of 1933, the Company shall, upon written request by Holder, file Form S-8, if applicable, with the U.S. Securities and Exchange commission to register the issued. |
WARRANTS
WARRANTS | 6 Months Ended |
Mar. 31, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Shareholders' Equity and Share-Based Payments [Text Block] | 6. WARRANTS On August 20, 2021, for value received in connection with the issuance of the August Note (see note 4 for more details), the Company issued 1,000,000 warrants to the lender with an exercise price of $1.50 per share with a five-year exercise period. On February 16, 2022, for value received in connection with the issuance of the February Note (see note 4 for more details), the Company issued 500,000 warrants to the lender with an exercise price of $1.50 per share with a five-year exercise period. At March 31, 2022, and September 30, 2021, the fair value of the derivative liability warrants was $597,997 and $372,643, respectively. For the purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used the Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows: Risk free interest rate 2.42% Stock volatility factor Between 140% and 145% Months to Maturity 5 years Expected dividend yield None |
OPTIONS
OPTIONS | 6 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement [Text Block] | 7. OPTIONS On June 2, 2020, the Company issued 2,000,000 options to purchase common stock at an exercise price of $0.01 per share (adjusted for the August 2020 stock split). These options will be exercisable on a cashless basis for a period of ten years from August 25, 2020. The purpose of the options is to compensate our directors for serving on the board without compensation in fiscal 2019. It is difficult to assess the value of the options given the highly limited trading in our common stock, the fact that the options shares have not been and are not expected to be registered for resale and will be restricted, and the speculative nature of the Company’s future business plans. However, we estimated the value of the services provided by each of our directors during 2019 and believe that the value of the options to be issued to each of our resigning directors approximates that amount. At March 31, 2022, the weighted average remaining contractual life of options outstanding: March 31, 2022 Weighted Average Remaining Exercisable Options Options Contractual Prices Outstanding Exercisable Life (years) $ 0.01 2,000,000 2,000,000 8.41 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 6 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consisted of the following at March 31, 2022 and September 30, 2021: 03/31/2022 9/30/2021 Trade accounts payable $ 161,922 $ 143,074 Credit cards payable 66,894 66,894 Accrued liabilities and interest on notes payable 105,783 356,683 Accrued payroll 11,268 10,712 Deferred compensation 270,433 201,383 License fees payable 36,912 40,402 653,212 819,148 |
BRIDGE LOANS PAYABLE - RELATED
BRIDGE LOANS PAYABLE - RELATED PARTIES | 6 Months Ended |
Mar. 31, 2022 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities Disclosure [Text Block] | 9. BRIDGE LOANS PAYABLE Related Parties In December 2021, the Company’s CEO and CFO each advanced funds to the Company for operating expenses in the total amount of $50,000. The notes were payable on demand with a five business day written notice and bear interest at a rate of 10% per annum. The Company could prepay all or any part of the balance owed without penalty. In the event of the default, the notes were to bear additional interest at a rate of 12% per annum. On January 25, 2022 the Company issued 125,000 shares of its common stock in settlement of a bridge loan to the Company’s CFO and recognized a loss on extinguishment of debt in the amount of $17,313. Any potential gain would not have been recognized on extinguishment of this loan due to the nature of the relationship between the parties. The company recognized and paid interest expense in the amount of $237 to our CFO during the period ended March 31, 2022. During the period ended March 31, 2022 the Company made payments to our CEO in the total amount of $20,938, of which $18,616 were used to purchase 600 shares of Serie B Preferred stock, and $2,316 were related to reimbursement of expenses. The company recognized and capitalized into the principle of the loan interest expense of $546. As of March 31, 2022, the balance on the bridge loan payable to our CEO was $4,068. No balance was outstanding on the notes payable to our CFO. Service Provider In December 2021, one of the Company’s service providers advanced funds to the Company for operating expenses in the total amount of $25,000. On February 14, 2022 the Company issued 125,000 shares of its common stock to the service provider in settlement of the note payable. The Company recognized a loss on extinguishment of debt in the amount of $37,500. During the period ended March 31, 2022 the Company recognized and paid interest expense of $226 in relation to this loan. No balance was outstanding on the note payable to our service provider as of March 31, 2022. |
DUE TO RELATED PARTY
DUE TO RELATED PARTY | 6 Months Ended |
Mar. 31, 2022 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities [Table Text Block] | 10. DUE TO RELATED PARTY During the periods prior to the period ended March 31, 2022, Innovest Global, Inc. (Innovest) advanced funds to the Company for operating expenses in the amount of $86,073. As of March 31, 2022, the amount has not been reimbursed to Innovest. Our former Chairman Daniel Martin was the CEO of Innovest when the funds were advanced. Imputed interest is calculated on an annual basis at the market rate and is estimated to equal $516 as of March 31, 2022. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 11. COMMITMENTS AND CONTINGENCIES There are no material pending legal proceedings to which we are a party to, nor are there any such proceedings known to be contemplated by governmental authorities. None of our directors, officers, or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 12. RELATED PARTY TRANSACTIONS On September 4, 2020, the Company entered into a management services agreement (the “Agreement”) with TN3, LLC. Pursuant to the Agreement, TN3 was to provide NovAccess with office space in Chesterland, Ohio and management, administrative, marketing, bookkeeping and IT services for a fee of $30,000 a month. The initial term of the Agreement was three years, with subsequent one-year renewals. During the three months ended March 31, 2022, the Company entered into a transaction with TN3 to redeem its shares of the Company’s Series B Convertible preferred stock (please refer to more details below). This transaction terminated the Agreement, including satisfaction for all services provided and any amounts outstanding. As of March 31, 2022 there was zero balance reported as the outstanding payable amount in relation to the Agreement. On October 4, 2021, the Company issued 10,000 shares of common stock to Neil J. Laird to compensate him for serving as our chief financial officer. The stock-based compensation expense in the amount of $8,000 was reported on the Company’s financial statements for the six months ended March 31, 2022. On January 31, 2022, the Company entered into a preferred stock redemption agreement (the “redemption agreement”) with Daniel G. Martin, at the time our sole board member and chairman, TN3, LLC, a company owned by Mr. Martin, Dwain K. Morris-Irvin, our chief executive officer, and Irvin Consulting, LLC, a company owned by Dr. Irvin. TN3 owned 25,000 shares of our Series B convertible preferred stock. Pursuant to the redemption agreement, on March 14, 2022, NovAccess redeemed 24,400 of the preferred shares and Irvin Consulting purchased 600 of the preferred shares from TN3. In connection with the redemption, we issued to TN3 1,502,670 shares of unregistered common stock. To redeem the preferred shares, the Company is to pay TN3 a total of $250,000 over a period of ten months, with payment accelerated if the company raises significant capital. The company paid $50,000 to TN3 in relation to this transaction during the three months ended March 31, 2022. As of March 31, 2022 the balance owed to TN3 on this transaction is $200,000. Upon completion of the redemption, Mr. Martin resigned from the NovAccess board of directors and was replaced by Dr. Irvin and John Cassarini. On March 18, 2022, the board of directors of NovAccess voted to expand the size of the company’s board to three members and appointed Jason M. Anderson to the board to fill the resulting vacancy. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 13. SUBSEQUENT EVENTS Management has evaluated subsequent events as of May 13, 2022, the date the consolidated financial statements were available to be issued according to the requirements of ASC topic 855. On May 5, 2022, NovAccess entered into a securities purchase agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”) and issued a promissory note in the principal amount of $1.0 million (the “note”) to AJB pursuant to the SPA. The loan closed and was funded on May 9, 2022. NovAccess used $500,000 of the proceeds of the loan to repay AJB’s August 20, 2021 loan and will use the remaining loan proceeds for general working capital purposes. The note has an original issuance discount of 10% of the principal and bears interest at 12% a year. The note is due on November 5, 2022, but may be extended for six months by NovAccess, at which time the rate will increase to 15%. NovAccess must repay the note with the proceeds of any loan or capital raise exceeding $5.0 million and may otherwise prepay the note at any time without penalty. Under the terms of the note, NovAccess may not sell a significant portion of its assets without the approval of AJB, may not issue additional debt that is not subordinate to AJB, must comply with the company’s reporting requirements under the Securities Exchange Act of 1934, and must maintain the listing of the company’s common stock on the OTC Market or other exchange, among other restrictions and requirements. NovAccess’ failure to make required payments under the note or to comply with any of these covenants, among other matters, would constitute an event of default. Upon an event of default under the SPA or note, the note will bear interest at 18%, AJB may immediately accelerate the note due date, AJB may convert the amount outstanding under the note into shares of NovAccess common stock at a discount to the market price of the stock, and AJB will be entitled to its costs of collection, among other penalties and remedies. NovAccess provided customary representations and covenants to AJB in the SPA. NovAccess’ breach of any representation or failure to comply with the covenants would constitute an event of default. Also pursuant to the SPA, NovAccess paid AJB a commitment fee of 875,000 unregistered shares of the company’s common stock (the “commitment fee shares”). If, after May 5, 2023 and before May 5, 2025, AJB is unable to sell the commitment fee shares for $700,000, then AJB may require NovAccess to issue additional shares or pay cash in the amount of the shortfall. However, if NovAccess pays the note off before November 5, 2022, then the company may redeem 437,500 of the commitment shares for one dollar. Pursuant to the SPA, NovAccess also issued to AJB a common stock purchase warrant (the “warrant”) to purchase 1.0 million shares of the company’s common stock for $0.01 a share. The warrant expires on May 5, 2027. NovAccess also entered into a security agreement with AJB (the “security agreement”) pursuant to which NovAccess granted to AJB a security interest in all of the company’s assets, including the equity of StemVax, LLC, securing NovAccess’ obligations under the SPA, note and warrant. In addition, NovAccess entered into a registration rights agreement with AJB (the “registration agreement”) pursuant to which NovAccess agreed to file with the Securities and Exchange Commission a Form S-1 by August 3, 2022 to register for resale the commitment fee shares and the shares issuable upon exercise of the warrant. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary StemVax, LLC. All significant inter-company accounts and transactions between these entities have been eliminated in these condensed consolidated financial statements. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Significant estimates made in preparing these consolidated financial statements include the estimate of derivative liabilities, the deferred tax valuation allowance, and the fair value of stock options. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents For purposes of the statements of cash flows, cash and cash equivalents include cash in banks and money markets with an original maturity of three months or less. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, and are depreciated using the straight-line method over its estimated useful lives: Leasehold improvements Length of the lease Computer software and equipment 3 Years Furniture & fixtures 5 Years Machinery & equipment 5 Years The Company capitalizes property and equipment over $500. Property and equipment under $500 are expensed in the year purchased. |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation |
Earnings Per Share, Policy [Policy Text Block] | Net Earnings (Loss) per Share Calculations Net earnings (Loss) per share dictates the calculation of basic earnings (loss) per share and diluted earnings per share. Basic earnings (loss) per share are computed by dividing by the weighted average number of common shares outstanding during the period. Diluted net earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the effect of stock options and stock-based awards plus the assumed conversion of convertible debt (Notes 4 and 5). For the three months ended For the six months ended March 31, March 31, 2022 2021 2022 2021 Loss to common shareholders (Numerator) $ (1,229,785 ) $ (669,206 ) $ (1,373,093 ) $ (514,092 ) Basic weighted average number of common shares outstanding (Denominator) 15,379,289 12,455,164 14,914,920 9,099,121 Diluted weighted average number of common shares outstanding (Denominator) 15,379,289 12,455,164 14,914,920 9,099,121 Diluted weighted average number of shares for the three and six months ended March 31, 2022 and March 31, 2021 is the same as basic weighted average number of shares because the Company had net losses for these respective periods. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Fair Value of Financial Instruments requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of March 31, 2022, the balances reported for cash, prepaid expenses, accounts payable, accrued expenses approximate the fair value because of their short maturities. We adopted Accounting Standards Codification (“ASC”) Topic 820 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, an established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. We measure certain financial instruments at fair value on a recurring basis. The Company had no assets that are required to be valued on a recurring basis as of March 31, 2022 and September 30, 2021. The Company had liabilities that are required to be measured at fair value on a recurring basis as follows at March 31, 2022 and September 30, 2021: Total (Level 1) (Level 2) (Level 3) Assets: $ - $ - $ - $ - Liabilities: Derivative Liability at fair value as of September 30, 2021 $ 2,553,979 $ - $ - $ 2,553,979 Derivative Liability warrants at fair value as of September 30, 2021 $ 372,643 $ - $ - $ 372,643 Derivative Liability at fair value as of March 31, 2022 $ 2,400,203 $ - $ - $ 2,400,203 Derivative Liability warrants at fair value as of March 31, 2022 $ 597,997 $ - $ - $ 597,997 The following is a reconciliation of the derivative liability for which Level 3 inputs were used in determining the approximate fair value: Derivative Liability Derivative Liability Warrants Balance as of September 30, 2021 2,553,979 372,643 Extinguishment of derivatives (96,205 ) - Initial derivative liabilities 134,384 - Net (Gain)/Loss on change in fair value of derivative liability (191,955 ) 225,354 Ending balance as of March 31, 2022 $ 2,400,203 $ 597,997 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2021, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) 2021-04—Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this ASU are effective for public and nonpublic entities for fiscal years beginning after December 15, 2021, and interim periods with fiscal years beginning after December 15, 2021. Early adoption is permitted, including adoption in an interim period. The Company has evaluated the impact of the adoption of ASU 2021-04, which had no effect on the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost, and are depreciated using the straight-line method over its estimated useful lives: Leasehold improvements Length of the lease Computer software and equipment 3 Years Furniture & fixtures 5 Years Machinery & equipment 5 Years |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the three months ended For the six months ended March 31, March 31, 2022 2021 2022 2021 Loss to common shareholders (Numerator) $ (1,229,785 ) $ (669,206 ) $ (1,373,093 ) $ (514,092 ) Basic weighted average number of common shares outstanding (Denominator) 15,379,289 12,455,164 14,914,920 9,099,121 Diluted weighted average number of common shares outstanding (Denominator) 15,379,289 12,455,164 14,914,920 9,099,121 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | We measure certain financial instruments at fair value on a recurring basis. The Company had no assets that are required to be valued on a recurring basis as of March 31, 2022 and September 30, 2021. The Company had liabilities that are required to be measured at fair value on a recurring basis as follows at March 31, 2022 and September 30, 2021: Total (Level 1) (Level 2) (Level 3) Assets: $ - $ - $ - $ - Liabilities: Derivative Liability at fair value as of September 30, 2021 $ 2,553,979 $ - $ - $ 2,553,979 Derivative Liability warrants at fair value as of September 30, 2021 $ 372,643 $ - $ - $ 372,643 Derivative Liability at fair value as of March 31, 2022 $ 2,400,203 $ - $ - $ 2,400,203 Derivative Liability warrants at fair value as of March 31, 2022 $ 597,997 $ - $ - $ 597,997 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following is a reconciliation of the derivative liability for which Level 3 inputs were used in determining the approximate fair value: Derivative Liability Derivative Liability Warrants Balance as of September 30, 2021 2,553,979 372,643 Extinguishment of derivatives (96,205 ) - Initial derivative liabilities 134,384 - Net (Gain)/Loss on change in fair value of derivative liability (191,955 ) 225,354 Ending balance as of March 31, 2022 $ 2,400,203 $ 597,997 |
CONVERTIBLE PROMISSORY NOTES (T
CONVERTIBLE PROMISSORY NOTES (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
CONVERTIBLE PROMISSORY NOTES (Tables) [Line Items] | |
Schedule of Debt [Table Text Block] | As of March 31, 2022, the outstanding convertible promissory notes are summarized as follows: Convertible Promissory Notes $ 165,880 Less current portion - Total long-term liabilities $ 165,880 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | Maturities of long-term debt for the next four years are as follows: Year Ending September 30, 2023 165,880 $ 165,880 |
Convertible Debt [Member] | |
CONVERTIBLE PROMISSORY NOTES (Tables) [Line Items] | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | For purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows: Risk free interest rate Between 0.73%and 2.28% Stock volatility factor Between 144.0% and 336.0% Months to Maturity 0 - 5 years Expected dividend yield None |
WARRANTS (Tables)
WARRANTS (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Warrant [Member] | |
WARRANTS (Tables) [Line Items] | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | For the purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used the Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows: Risk free interest rate 2.42% Stock volatility factor Between 140% and 145% Months to Maturity 5 years Expected dividend yield None |
OPTIONS (Tables)
OPTIONS (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | At March 31, 2022, the weighted average remaining contractual life of options outstanding: March 31, 2022 Weighted Average Remaining Exercisable Options Options Contractual Prices Outstanding Exercisable Life (years) $ 0.01 2,000,000 2,000,000 8.41 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable and accrued liabilities consisted of the following at March 31, 2022 and September 30, 2021: 03/31/2022 9/30/2021 Trade accounts payable $ 161,922 $ 143,074 Credit cards payable 66,894 66,894 Accrued liabilities and interest on notes payable 105,783 356,683 Accrued payroll 11,268 10,712 Deferred compensation 270,433 201,383 License fees payable 36,912 40,402 653,212 819,148 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, Plant and Equipment | 6 Months Ended |
Mar. 31, 2022 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | Length of the lease |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 3 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 5 years |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||||
Loss to common shareholders (Numerator) (in Dollars) | $ (1,229,785) | $ (669,206) | $ (1,373,093) | $ (514,092) |
Basic weighted average number of common shares outstanding (Denominator) | 15,379,289 | 12,455,164 | 14,914,920 | 9,099,121 |
Diluted weighted average number of common shares outstanding (Denominator) | 15,379,289 | 12,455,164 | 14,914,920 | 9,099,121 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets: | $ 0 | |
Liabilities: | ||
Derivative Liability at fair value | $ 2,400,203 | 2,553,979 |
Derivative Liability warrants at fair value | 597,997 | 372,643 |
Fair Value, Inputs, Level 1 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets: | 0 | |
Liabilities: | ||
Derivative Liability at fair value | 0 | 0 |
Derivative Liability warrants at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets: | 0 | |
Liabilities: | ||
Derivative Liability at fair value | 0 | 0 |
Derivative Liability warrants at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets: | 0 | |
Liabilities: | ||
Derivative Liability at fair value | 2,400,203 | 2,553,979 |
Derivative Liability warrants at fair value | $ 597,997 | $ 372,643 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation - Fair Value, Inputs, Level 3 [Member] | 6 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance | $ 2,553,979 |
Extinguishment of derivatives | (96,205) |
Initial derivative liabilities | 134,384 |
Net (Gain)/Loss on change in fair value of derivative liability | (191,955) |
Balance | 2,400,203 |
Embedded Derivative Financial Instruments [Member] | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance | 372,643 |
Extinguishment of derivatives | 0 |
Initial derivative liabilities | 0 |
Net (Gain)/Loss on change in fair value of derivative liability | 225,354 |
Balance | $ 597,997 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) - USD ($) | Mar. 14, 2022 | Jan. 31, 2022 | Sep. 04, 2020 | Aug. 25, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 |
CAPITAL STOCK (Details) [Line Items] | |||||||
Common Stock, Shares Authorized | 2,000,000,000 | 2,000,000,000 | |||||
Preferred Stock, Shares Authorized | 50,000,000 | ||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.01 | $ 0.01 | |||||
Conversion of Stock, Shares Converted | 24,400 | ||||||
Stock Issued During Period, Shares, Other | 3,119,643 | 11,252,850 | |||||
Stock Issued During Period, Value, Issued for Services (in Dollars) | $ 73,861 | $ 145,941 | |||||
Conversion of Stock, Shares Issued | 1,502,670 | 1,502,670 | |||||
Stockholders' Equity, Reverse Stock Split | 1-for-1,000 | ||||||
Stock Issued During Period, Shares, Issued for Services | 265,973 | 311,945 | |||||
Stock Issued During Period, Shares, New Issues | 791,000 | 1,440,905 | |||||
Stockholders' Equity, Other Shares | 300,000 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 250,000 | ||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 10,000 | 9,500,000 | |||||
Proceeds from Issuance of Common Stock (in Dollars) | $ 175,200 | $ 295,000 | |||||
Related Party Transaction, Amounts of Transaction (in Dollars) | $ 936,000 | ||||||
Preferred Stock, Shares Issued | 25,000 | 25,000 | |||||
Series B Preferred Stock [Member] | |||||||
CAPITAL STOCK (Details) [Line Items] | |||||||
Preferred Stock, Shares Authorized | 25,000 | 25,000 | |||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.01 | ||||||
Preferred Stock, Shares Outstanding | 600 | ||||||
Conversion of Stock, Shares Converted | 5,000 | ||||||
Stock Issued During Period, Shares, Other | 24,400 | ||||||
Conversion of Stock, Shares Issued | 25,000 | ||||||
Preferred Stock, Voting Rights | Each share of outstanding Series B Preferred Stock entitles the holder to cast 40,000 votes. | ||||||
Preferred Stock, Conversion Basis | Each share of Series B Preferred Stock is convertible at the option of the holder into 10,000 common shares | ||||||
Stock Issued During Period, Shares, New Issues | 600 | ||||||
Preferred Stock, Shares Issued | 600 | ||||||
Series B Preferred Stock [Member] | TN3, LLC [Member] | |||||||
CAPITAL STOCK (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Other | 24,400 | ||||||
Series A Preferred Stock [Member] | |||||||
CAPITAL STOCK (Details) [Line Items] | |||||||
Stock Issued During Period, Value, Issued for Services (in Dollars) | $ 50 | ||||||
Series A Preferred Stock [Member] | TN3, LLC [Member] | |||||||
CAPITAL STOCK (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Other | 5,000 | ||||||
Irvin Consulting, LLC ("IC") [Member] | Series B Preferred Stock [Member] | TN3, LLC [Member] | |||||||
CAPITAL STOCK (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Other | 600 |
CONVERTIBLE PROMISSORY NOTES (D
CONVERTIBLE PROMISSORY NOTES (Details) - USD ($) | Feb. 16, 2022 | Jul. 06, 2021 | Jun. 02, 2021 | May 10, 2017 | Oct. 20, 2015 | Nov. 20, 2014 | Dec. 31, 2021 | Sep. 18, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2016 | Dec. 30, 2021 | Oct. 05, 2021 | Sep. 30, 2021 | Aug. 20, 2021 | Mar. 31, 2016 |
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 12,000 | |||||||||||||||||
Proceeds from Convertible Debt | $ (94,250) | $ 0 | ||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ (37,500) | $ (54,813) | $ 0 | (54,813) | $ 0 | |||||||||||||
Derivative Liability, Current | 2,400,203 | 2,400,203 | $ 2,553,979 | |||||||||||||||
June Note [Member] | ||||||||||||||||||
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 55,500 | |||||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The June Note could be converted by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest trade price of common stock recorded during the fifteen (15) trading days prior to conversion. | |||||||||||||||||
Convertible Debt | 0 | 0 | ||||||||||||||||
Debt Instrument, Fee Amount | $ 17,520 | |||||||||||||||||
Amortization of Debt Discount (Premium) | 36,493 | |||||||||||||||||
Amortization of Debt Issuance Costs | 1,458 | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt | 59,915 | |||||||||||||||||
July Note [Member] | ||||||||||||||||||
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 38,750 | |||||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The July Note could be converted by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest trade price of common stock recorded during the fifteen (15) trading days prior to conversion. | |||||||||||||||||
Convertible Debt | 0 | 0 | ||||||||||||||||
Debt Instrument, Fee Amount | $ 16,936 | |||||||||||||||||
Amortization of Debt Discount (Premium) | 29,620 | |||||||||||||||||
Amortization of Debt Issuance Costs | 1,996 | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt | 36,289 | |||||||||||||||||
August Note [Member] | ||||||||||||||||||
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 500,000 | |||||||||||||||||
Convertible Debt | 500,000 | 500,000 | ||||||||||||||||
Amortization of Debt Discount (Premium) | 391,319 | |||||||||||||||||
Amortization of Debt Issuance Costs | 75,000 | |||||||||||||||||
Amortization of Deferred Loan Origination Fees, Net | 34,181 | |||||||||||||||||
February Note [Member] | ||||||||||||||||||
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 250,000 | |||||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | converted, only following an event of default, and therefore is not included in summary of convertibles note, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period | |||||||||||||||||
Convertible Debt | 250,000 | 250,000 | ||||||||||||||||
Amortization of Debt Discount (Premium) | 32,849 | |||||||||||||||||
Amortization of Debt Issuance Costs | 9,250 | |||||||||||||||||
Amortization of Deferred Loan Origination Fees, Net | 19,654 | |||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 134,384 | 134,384 | ||||||||||||||||
Debt Issuance Costs, Net | 37,000 | 37,000 | ||||||||||||||||
Debt Issuance Costs, Gross | 78,616 | 78,616 | ||||||||||||||||
Convertible Debt [Member] | ||||||||||||||||||
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 150,000 | |||||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The 2017 Note may be converted by the lender into shares of common stock of the Company at the lesser of $10 per share or (b) fifty percent (50%) of the lowest trade price of common stock recorded on any trade day after the effective date, or (c) the lowest effective price per share granted to any person or entity | |||||||||||||||||
Proceeds from Convertible Debt | $ 25,000 | $ 90,000 | ||||||||||||||||
Convertible Debt | 115,000 | 115,000 | ||||||||||||||||
Debt Instrument, Maturity Date, Description | The 2017 Note matured twelve months from each tranche. Within thirty (30) days prior to the maturity date, the lender may extend the maturity date to sixty (60) months | |||||||||||||||||
Convertible Debt [Member] | Convertible Note Payable Two [Member] | ||||||||||||||||||
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 400,000 | |||||||||||||||||
Debt Instrument, Term | 18 months | |||||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The 2014 Note may be converted by the lender into shares of common stock of the Company at the lesser of $12.50 per share or (b) fifty percent (50%) of the lowest trade prices following issuance of the 2014 Note or (c) the lowest effective price per share granted to any person or entity | |||||||||||||||||
Proceeds from Convertible Debt | $ 50,000 | $ 350,000 | ||||||||||||||||
Convertible Debt | $ 50,880 | $ 50,880 | ||||||||||||||||
Convertible Debt [Member] | Convertible Note Payable One [Member] | ||||||||||||||||||
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items] | ||||||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | converted, only following an event of default, and therefore not included in summary of convertibles note, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period |
CONVERTIBLE PROMISSORY NOTES (
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt | Mar. 31, 2022USD ($) |
Schedule of Debt [Abstract] | |
Convertible Promissory Notes | $ 165,880 |
Less current portion | 0 |
Total long-term liabilities | $ 165,880 |
CONVERTIBLE PROMISSORY NOTES _2
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Maturities of Long-term Debt | Mar. 31, 2022USD ($) |
Schedule of Maturities of Long-term Debt [Abstract] | |
2023 | $ 165,880 |
$ | $ 165,880 |
CONVERTIBLE PROMISSORY NOTES _3
CONVERTIBLE PROMISSORY NOTES (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques - Embedded Derivative Financial Instruments [Member] | Mar. 31, 2022 |
Measurement Input, Expected Dividend Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Measurement Input | 0 |
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Measurement Input | 0.0073 |
Minimum [Member] | Measurement Input, Price Volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Measurement Input | 1.44 |
Minimum [Member] | Measurement Input, Expected Term [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Measurement Input | 0 |
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Measurement Input | 0.0228 |
Maximum [Member] | Measurement Input, Price Volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Measurement Input | 3.36 |
Maximum [Member] | Measurement Input, Expected Term [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Measurement Input | 5 |
CONVERTIBLE LOAN PAYABLE (Detai
CONVERTIBLE LOAN PAYABLE (Details) - USD ($) | Oct. 01, 2014 | Mar. 31, 2022 | Mar. 31, 2016 |
Debt Disclosure [Abstract] | |||
Debt Instrument, Face Amount | $ 12,000 | ||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ 4.5 | ||
Interest Expense, Debt | $ 1,200 | $ 226 |
WARRANTS (Details)
WARRANTS (Details) - USD ($) | Feb. 16, 2022 | Aug. 20, 2021 | Mar. 31, 2022 | Sep. 30, 2021 |
Disclosure Text Block Supplement [Abstract] | ||||
Class of Warrant or Rights, Granted | 500,000 | 1,000,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.5 | $ 1.5 | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 597,997 | $ 372,643 |
WARRANTS (Details) - Fair Value
WARRANTS (Details) - Fair Value Measurement Inputs and Valuation Techniques | Mar. 31, 2022 |
Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Embedded Derivative Liability, Measurement Input | 0.0242 |
Measurement Input, Price Volatility [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Embedded Derivative Liability, Measurement Input | 1.40 |
Measurement Input, Price Volatility [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Embedded Derivative Liability, Measurement Input | 1.45 |
Measurement Input, Expected Term [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Embedded Derivative Liability, Measurement Input | 5 |
Measurement Input, Expected Dividend Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Embedded Derivative Liability, Measurement Input | 0 |
OPTIONS (Details)
OPTIONS (Details) | Jun. 02, 2020$ / sharesshares |
OPTIONS (Details) [Line Items] | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | shares | 2,000,000 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years |
Option Post Stock Split [Member] | |
OPTIONS (Details) [Line Items] | |
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0.01 |
OPTIONS (Details) - Share-based
OPTIONS (Details) - Share-based Payment Arrangement, Option, Exercise Price Range | 6 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Abstract] | |
Exercisable Prices (in Dollars per share) | $ / shares | $ 0.01 |
Options Outstanding | 2,000,000 |
Options Exercisable | 2,000,000 |
Weighted Average Remaining Contractual Life | 8 years 4 months 28 days |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - Schedule of Accounts Payable and Accrued Liabilities - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Schedule of Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable | $ 161,922 | $ 143,074 |
Credit cards payable | 66,894 | 66,894 |
Accrued liabilities | 105,783 | 356,683 |
Accrued payroll | 11,268 | 10,712 |
Deferred compensation | 270,433 | 201,383 |
License fees payable | 36,912 | 40,402 |
$ 653,212 | $ 819,148 |
BRIDGE LOANS PAYABLE - RELATE_2
BRIDGE LOANS PAYABLE - RELATED PARTIES (Details) - USD ($) | Jan. 25, 2022 | Oct. 01, 2014 | Dec. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
BRIDGE LOANS PAYABLE - RELATED PARTIES (Details) [Line Items] | ||||||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 125,000 | |||||||
Gain (Loss) on Extinguishment of Debt | $ (37,500) | $ (54,813) | $ 0 | $ (54,813) | $ 0 | |||
Repayments of Related Party Debt | $ 2,316 | |||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 791,000 | 1,440,905 | ||||||
Interest Costs Capitalized | $ 546 | |||||||
Proceeds from Other Debt | $ 25,000 | |||||||
Interest Expense, Debt | $ 1,200 | 226 | ||||||
Series B Preferred Stock [Member] | ||||||||
BRIDGE LOANS PAYABLE - RELATED PARTIES (Details) [Line Items] | ||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 18,616 | |||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 600 | |||||||
CEO and CFO [Member] | ||||||||
BRIDGE LOANS PAYABLE - RELATED PARTIES (Details) [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | ||||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 125,000 | |||||||
Gain (Loss) on Extinguishment of Debt | $ (17,313) | |||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 237 | |||||||
Interest Costs Capitalized | $ 546 | |||||||
Notes Payable, Related Parties | $ 4,068 | $ 4,068 | ||||||
CEO and CFO [Member] | Maximum [Member] | ||||||||
BRIDGE LOANS PAYABLE - RELATED PARTIES (Details) [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | ||||||
Chief Executive Officer [Member] | ||||||||
BRIDGE LOANS PAYABLE - RELATED PARTIES (Details) [Line Items] | ||||||||
Repayments of Related Party Debt | $ 20,938 |
DUE TO RELATED PARTY (Details)
DUE TO RELATED PARTY (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
DUE TO RELATED PARTY (Details) [Line Items] | ||
Proceeds from Related Party Debt | $ 0 | $ 25,000 |
Imputed Interest | 516 | |
Affiliated Entity [Member] | ||
DUE TO RELATED PARTY (Details) [Line Items] | ||
Proceeds from Related Party Debt | $ 86,073 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Jan. 31, 2022 | Oct. 04, 2021 | Sep. 04, 2020 | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 10,000 | 9,500,000 | ||||
Investment Owned, Balance, Shares | 24,400 | |||||
Conversion of Stock, Shares Issued | 1,502,670 | 1,502,670 | ||||
Payments to Acquire Investments | $ 250,000 | |||||
TN3, LLC [Member] | ||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||
Investment Owned, Balance, Shares | 25,000 | |||||
Payments to Acquire Investments | $ 50,000 | |||||
Due to Related Parties | $ 200,000 | $ 200,000 | ||||
Irvin Consulting, LLC ("IC") [Member] | ||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||
Investment Owned, Balance, Shares | 600 | |||||
TN3, LLC [Member] | ||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||
Agreement, Monthly Amount | $ 30,000 | |||||
Agreement, Term | 3 years | |||||
Chief Financial Officer [Member] | ||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 10,000 | |||||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | $ 8,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | May 05, 2022USD ($) |
SUBSEQUENT EVENTS (Details) [Line Items] | |
Debt Instrument, Face Amount (in Dollars) | $ 1 |
Repayments of Debt (in Dollars) | $ 500,000 |
Debt, Original Issue Discount Rate | 10.00% |
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |
Debt Instrument, Maturity Date, Description | The note is due on November 5, 2022, but may be extended for six months by NovAccess |
Debt Instrument, Description | NovAccess must repay the note with the proceeds of any loan or capital raise exceeding $5.0 million and may otherwise prepay the note at any time without penalty |
Debt, Default Interest Rate | 18.00% |
Debt Instrument, Fee | Also pursuant to the SPA, NovAccess paid AJB a commitment fee of 875,000 unregistered shares of the company’s common stock (the “commitment fee shares”). If, after May 5, 2023 and before May 5, 2025, AJB is unable to sell the commitment fee shares for $700,000, then AJB may require NovAccess to issue additional shares or pay cash in the amount of the shortfall. However, if NovAccess pays the note off before November 5, 2022, then the company may redeem 437,500 of the commitment shares for one dollar. Pursuant to the SPA, NovAccess also issued to AJB a common stock purchase warrant (the “warrant”) to purchase 1.0 million shares of the company’s common stock for $0.01 a share. The warrant expires on May 5, 2027. NovAccess also entered into a security agreement with AJB (the “security agreement”) pursuant to which NovAccess granted to AJB a security interest in all of the company’s assets, including the equity of StemVax, LLC, securing NovAccess’ obligations under the SPA, note and warrant. In addition, NovAccess entered into a registration rights agreement with AJB (the “registration agreement”) pursuant to which NovAccess agreed to file with the Securities and Exchange Commission a Form S-1 by August 3, 2022 to register for resale the commitment fee shares and the shares issuable upon exercise of the warrant. |
Maximum [Member] | |
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Debt Instrument, Interest Rate, Stated Percentage | 15.00% |