Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2022 | May 12, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 000-51638 | |
Entity Registrant Name | GULFSLOPE ENERGY, INC. | |
Entity Central Index Key | 0001341726 | |
Entity Tax Identification Number | 16-1689008 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1331 Lamar St. | |
Entity Address, Address Line Two | Suite 1665 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77010 | |
City Area Code | 281 | |
Local Phone Number | 918-4100 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | GSPE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,268,240,346 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Current Assets | ||
Cash | $ 541,193 | $ 1,517,522 |
Prepaid Expenses and Other Current Assets | 208,531 | 54,398 |
Total Current Assets | 749,724 | 1,571,920 |
Property and Equipment, net | 1,211 | 1,845 |
Oil and Natural Gas Properties, Full Cost Method of Accounting, Unproved Properties | 9,088,448 | 12,124,720 |
Total Non-Current Assets | 9,089,659 | 12,126,565 |
Total Assets | 9,839,383 | 13,698,485 |
Current Liabilities | ||
Accounts Payable | 61,035 | 52,814 |
Related Party Payable | 404,469 | 404,469 |
Related Party Accrued Interest Payable | 3,180,987 | 2,961,689 |
Loans from Related Parties | 8,725,500 | 8,725,500 |
Accrued Interest Payable | 126,940 | 115,860 |
Convertible Notes Payable, net of Debt Discount | 219,876 | 176,663 |
Derivative Financial Instruments | 1,385,887 | 1,201,656 |
Total Current Liabilities | 14,104,694 | 13,638,651 |
Total Liabilities | 14,104,694 | 13,638,651 |
Stockholders’ Equity (Deficit) | ||
Preferred Stock; par value ($0.001); Authorized 50,000,000 shares none issued or outstanding | ||
Common Stock; par value ($0.001); Authorized 1,500,000,000 shares; issued and outstanding 1,268,240,346 as of March 31, 2022 and September 30, 2021, respectively | 1,268,240 | 1,268,240 |
Additional Paid-in-Capital | 59,031,360 | 58,999,585 |
Accumulated Deficit | (64,564,911) | (60,207,991) |
Total Stockholders’ Equity (Deficit) | (4,265,311) | 59,834 |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 9,839,383 | $ 13,698,485 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, issued | 1,268,240,346 | 1,268,240,346 |
Common stock, outstanding | 1,268,240,346 | 1,268,240,346 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenues | ||||
Impairment of Oil and Natural Gas Properties | 3,093,693 | 3,093,693 | ||
General and Administrative Expenses | 358,445 | 373,937 | 805,406 | 756,053 |
Net Loss from Operations | (3,452,138) | (373,937) | (3,899,099) | (756,053) |
Other Income/(Expenses): | ||||
Interest Expense | (135,353) | (118,429) | (273,590) | (283,180) |
Gain on Debt Extinguishment | 136,640 | |||
Loss on Derivative Financial Instrument | (264,545) | (508,653) | (184,231) | (456,915) |
Net Loss Before Income Taxes | (3,852,036) | (1,001,019) | (4,356,920) | (1,359,508) |
Provision for Income Taxes | ||||
Net Loss | $ (3,852,036) | $ (1,001,019) | $ (4,356,920) | $ (1,359,508) |
Condensed Statements of Opera_2
Condensed Statements of Operations (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Earnings Per Share, Basic | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings Per Share, Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding, Basic | 1,268,240,346 | 1,268,240,346 | 1,268,240,346 | 1,267,374,961 |
Weighted Average Number of Shares Outstanding, Diluted | 1,268,240,346 | 1,268,240,346 | 1,268,240,346 | 1,267,374,961 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Deficit) (unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total | Additional Paid-In Capital Shares to Be Issued [Member] |
Beginning balance, value at Sep. 30, 2020 | $ 1,250,740 | $ 58,728,308 | $ (57,981,672) | $ 2,102,376 | $ 105,000 |
Balance at beginning (in shares) at Sep. 30, 2020 | 1,250,740,346 | ||||
Net Loss | (1,359,508) | (1,359,508) | |||
Stock based compensation | 32,550 | 32,550 | |||
Common Stock issued in settlement of debt interest | $ 17,500 | 87,500 | (105,000) | ||
Common Stock issued in settlement of debt interest (in shares) | 17,500,000 | ||||
Ending balance, value at Mar. 31, 2021 | $ 1,268,240 | 58,848,358 | (59,341,180) | 775,418 | |
Balance at Ending (in shares) at Mar. 31, 2021 | 1,268,240,346 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 1,268,240 | 58,815,808 | (58,340,161) | 1,743,887 | |
Balance at beginning (in shares) at Dec. 31, 2020 | 1,268,240,346 | ||||
Net Loss | (1,001,019) | (1,001,019) | |||
Stock based compensation | 32,550 | 32,550 | |||
Ending balance, value at Mar. 31, 2021 | $ 1,268,240 | 58,848,358 | (59,341,180) | 775,418 | |
Balance at Ending (in shares) at Mar. 31, 2021 | 1,268,240,346 | ||||
Beginning balance, value at Sep. 30, 2021 | $ 1,268,240 | 58,999,585 | (60,207,991) | $ 59,834 | |
Balance at beginning (in shares) at Sep. 30, 2021 | 1,268,240,346 | 1,268,240,346 | |||
Net Loss | (4,356,920) | $ (4,356,920) | |||
Stock based compensation | 31,775 | 31,775 | |||
Ending balance, value at Mar. 31, 2022 | $ 1,268,240 | 59,031,360 | (64,564,911) | $ (4,265,311) | |
Balance at Ending (in shares) at Mar. 31, 2022 | 1,268,240,346 | 1,268,240,346 | |||
Beginning balance, value at Dec. 31, 2021 | $ 1,268,240 | 59,031,360 | (60,712,875) | $ 413 | |
Balance at beginning (in shares) at Dec. 31, 2021 | 1,268,240,346 | ||||
Net Loss | (3,852,036) | (3,852,036) | |||
Ending balance, value at Mar. 31, 2022 | $ 1,268,240 | $ 59,031,360 | $ (64,564,911) | $ (4,265,311) | |
Balance at Ending (in shares) at Mar. 31, 2022 | 1,268,240,346 | 1,268,240,346 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (4,356,920) | $ (1,359,508) |
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities: | ||
Impairment of Oil and Natural Gas Properties | 3,093,693 | |
Capitalization of Interest Expense | ||
Depreciation | 633 | 3,667 |
Stock Based Compensation | 31,775 | 32,550 |
Loss on Derivative Financial Instruments | 184,231 | 456,915 |
Debt Discount Amortization | 43,213 | 53,219 |
Gain on Debt Extinguishment | (136,640) | |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | 41,364 | |
Prepaid Expenses and Other Current Assets | (154,134) | (111,816) |
Accounts Payable | (23,737) | (189,205) |
Accrued Interest Payable | 230,378 | 230,621 |
Operating Lease Liabilities | 12,503 | |
Net Cash Used In Operating Activities | (950,868) | (966,330) |
INVESTING ACTIVITIES | ||
Insurance Proceeds Received | 223,650 | |
Equipment Purchases | (2,165) | |
Proceeds from Sale of Pipe | 133,108 | |
Investments in Oil and Gas Properties | (25,461) | (92,976) |
Net Cash Provided By (Used In) Investing Activities | (25,461) | 261,617 |
FINANCING ACTIVITIES | ||
Proceeds from Issuance of Convertible Notes Payable | ||
Payments on Notes Payable | (320,527) | |
Net Cash Used In Financing Activities | (320,527) | |
Net Decrease in Cash | (976,329) | (1,025,240) |
Beginning Cash Balance | 1,517,522 | 3,190,418 |
Ending Cash Balance | 541,193 | 2,165,178 |
Supplemental Schedule of Cash Flow Activities: | ||
Cash Paid for Interest, Net of Amounts Capitalized | 96 | |
Non-Cash Financing and Investing Activities: | ||
Capital Expenditures in Accounts Payable | 31,960 | 1,959 |
Common Stock Issued upon Conversion of Convertible Notes Payable and Accrued Interest | $ 105,000 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 6 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS GulfSlope Energy, Inc. (the “Company” or “GulfSlope”) is an independent oil and natural gas exploration company whose interests are concentrated in the United States Gulf of Mexico federal waters offshore Louisiana. The Company currently has under lease two three |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES The condensed financial statements included herein are unaudited. However, these condensed financial statements include all adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for an entire year. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain information, accounting policies, and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been omitted pursuant to certain rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed financial statements should be read in conjunction with the audited financial statements for the year ended September 30, 2021, which were included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021 and filed with the Securities and Exchange Commission on December 29, 2021. Cash GulfSlope considers highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. There were no cash equivalents at March 31, 2022 and September 30, 2021. Liquidity / Going Concern The Company has incurred accumulated losses as of March 31, 2022 of $ 64.6 million 13.3 million 4.4 million 0.5 million 10.0 million 12.3 million Accounts Receivable The Company records an accounts receivable for operations expense reimbursements due from joint interest partners, and also from normal operations. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, the receivable and the underlying asset are assessed for recovery. As of March 31, 2022 and September 30, 2021, there was no allowance for doubtful accounts receivable. Gross accounts receivable was nil Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include property acquisition costs, geological and geophysical (“G&G”) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells. Overhead costs, which includes employee compensation and benefits including stock-based compensation, incurred that are directly related to acquisition, exploration and development activities are capitalized. Interest expense is capitalized related to unevaluated properties and wells in process during the period in which the Company is incurring costs and expending resources to get the properties ready for their intended purpose. For significant investments in unproved properties and major development projects that are not being currently depreciated, depleted, or amortized and on which exploration or development activities are in progress, interest costs are capitalized. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. Proved properties are amortized on a country-by-country basis using the units of production method (“UOP”), whereby capitalized costs are amortized over total proved reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (“DD&A”), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation that considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. For the quarter ended March 31, 2022, the Company has taken an impairment of approximately $3.1 million for all of the costs associated with one of the Tau Prospect leases that will expire within the next ninety days. The Company continues to actively pursue the development of its remaining unproved properties. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve-month period. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. The Company capitalizes exploratory well costs into oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. The well costs are charged to expense when the exploratory well costs are determined to be impaired. Capitalized exploratory well costs have been pending the outcome of exploration activities involving the drilling of the Tau No. 2 well (twin well). During the quarter ended March 31, 2022 approximately $3.1 million of these suspended well costs have been impaired. The impairment charge was recorded because without the commencement of drilling the Tau #2 well or a lease extension being granted, one of the Tau Prospect lease blocks will expire on June 30, 2022. As of March 31, 2022, the Company’s oil and gas properties consisted of unproved properties, wells in process and no proved reserves. A combination of Biden administration actions regarding oil and gas exploration on federal lands and world events have placed tremendous pressures on the global supply-demand balance for crude oil and related products resulting in volatile commodity prices. The Company has evaluated the effect of these factors on its business and notes these factors have caused a delay in the plans for the Company’s 2022 drilling program. The Company continues to monitor the economic environment and evaluate the impact on the business Asset Retirement Obligations The Company’s asset retirement obligations will represent the present value of the estimated future costs associated with plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the seabed in accordance with the terms of oil and gas leases and applicable state and federal laws. Determining asset retirement obligations requires estimates of the costs of plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the sea bed as well as estimates of the economic lives of the oil and gas wells and future inflation rates. The resulting estimate of future cash outflows will be discounted using a credit-adjusted risk-free interest rate that corresponds with the timing of the cash outflows. Cost estimates will consider historical experience, third party estimates, the requirements of oil and natural gas leases and applicable local, state and federal laws, but do not consider estimated salvage values. Asset retirement obligations will be recognized when the wells drilled reach total depth or when the production equipment and facilities are installed or acquired with an associated increase in proved oil and gas property costs. Asset retirement obligations will be accreted each period through depreciation, depletion and amortization to their expected settlement values with any difference between the actual cost of settling the asset retirement obligations and recorded amount being recognized as an adjustment to proved oil and gas property costs. Cash paid to settle asset retirement obligations will be included in net cash provided by operating activities from continuing operations in the statements of cash flows. On a quarterly basis, when indicators suggest there have been material changes in the estimates underlying the obligation, the Company reassesses its asset retirement obligations to determine whether any revisions to the obligations are necessary. At least annually, the Company will assess all of its asset retirement obligations to determine whether any revisions to the obligations are necessary. Future revisions could occur due to changes in estimated costs or well economic lives, or if federal or state regulators enact new requirements regarding plugging and abandoning oil and natural gas wells. The Company drilled two well bores in 2018 and 2019 and these wellbores were both plugged with no further cost required and as such, the asset retirement obligation was completely extinguished. Derivative Financial Instruments The accounting treatment of derivative financial instruments requires that the Company the Company Prior to November 19, 2020, the Company had a certain note payable which contained a variable conversion feature with no floor, and accordingly, the Company Basic and Dilutive Earnings Per Share Basic income (loss) per share (“EPS“) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and convertible notes payable. The number of potential common shares outstanding relating to stock options and warrants, is computed using the treasury stock method. The number of potential common shares related to convertible notes payable is determined using the if-converted method. As the Company has incurred losses for the three and six months ended March 31, 2022 and 2021, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of March 31, 2022 and 2021, there were 288,070,151 298,285,026 Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020. ASU No. 2020-06 can be adopted on either a fully retrospective or modified retrospective basis. The adoption of ASU 2020-06 is not expected to have a material impact on the Company’s financial statements or disclosures. In May 2021, the FASB issued 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. ASU 2021-04 provides clarification and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. An issuer measures the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange. ASU 2021-04 introduces a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have a material impact on the Company’s financial statements or disclosures. The Company has evaluated all other recent accounting pronouncements and believes either they are not applicable or that none of them will have a significant effect on the Company’s financial statements. |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 6 Months Ended |
Mar. 31, 2022 | |
Extractive Industries [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | NOTE 3 – OIL AND NATURAL GAS PROPERTIES The Company currently has under lease two The Company, as the operator of two 15,254 29,857 As of March 31, 2022, the Company’s oil and natural gas properties consisted of unproved properties, wells in process and no proved reserves. During the six months ended March 31, 2022 and 2021, an impairment charge of approximately $ 3.1 million nil 0.06 million 0.03 million |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 4 – RELATED PARTY TRANSACTIONS During April 2013 through September 2017, the Company entered into convertible promissory notes whereby it borrowed a total of approximately $ 8.7 million 5.3 million 0.12 8.7 million 3.2 million On November 15, 2016, a family member of the CEO entered into a $ 50,000 Domenica Seitz CPA, related to John Seitz, has provided accounting services to the Company through September 30, 2020 as a consultant and beginning October 2020 as an employee. During the three months ended March 31, 2022 and 2021, the services provided were valued at approximately $ 19,000 38,000 |
NOTE PAYABLE
NOTE PAYABLE | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE | NOTE 5 – NOTE PAYABLE On April 16, 2020, GulfSlope Energy, Inc. entered into a promissory note (the “Note“) evidencing an unsecured $ 100,300 662 100,962 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 6 – CONVERTIBLE NOTES PAYABLE The Company’s convertible promissory notes consisted of the following as of September 30, 2021 and March 31, 2022. September 30, 2021 March 31, 2022 Notes Discount Notes, Net of Discount Notes Discount Notes Net of Discount Bridge Financing Notes $ 227,000 $ (50,337 ) $ 176,663 $ 227,000 $ (7,124 ) $ 219,876 Total $ 227,000 $ (50,337 ) $ 176,663 $ 227,000 $ (7,124 ) $ 219,876 Bridge Financing Notes Between June and November 2016, the Company issued eleven convertible promissory notes (“Bridge Financing Notes”) with associated warrants in a private placement to accredited investors for total gross proceeds of $ 837,000 222,000 one year 8 0.025 277,000 7,000 50,000 21,000 5,000 43,000 10,000 June 2019 Convertible Debenture In November 2020, the Company made a $ 300,000 35,678 43,000 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 7 – FAIR VALUE MEASUREMENT Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the term of the derivative instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange traded derivative financial instruments as well as warrants to purchase common stock and long-term incentive plan liabilities calculated using the Black-Scholes model to estimate the fair value as of the measurement date. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). As required by ASC 820-10, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Fair Value on a Recurring Basis The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2021 and March 31, 2022, respectively: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Fair Value as of Derivative Financial Instrument at September 30, 2021 $ $ (1,201,656 ) $ $ (1,201,656 ) Derivative Financial Instrument at March 31, 2022 $ — $ (1,385,887 ) $ — $ (1,385,887 ) The change in derivative financial instruments for the six months ended March 31, 2022 is as follows: September 30, 2021 balance $ (1,201,656 ) New derivative instruments issued — Derivative instruments extinguished — Change in fair value (184,231 ) March 31, 2022 balance $ (1,385,887 ) Non-recurring fair value assessments include impaired oil and natural gas property assessments and stock-based compensation. An impairment charge of approximately $ 3.1 million nil nil 33,000 32,000 33,000 |
COMMON STOCK_PAID IN CAPITAL
COMMON STOCK/PAID IN CAPITAL | 6 Months Ended |
Mar. 31, 2022 | |
Stockholders’ Equity (Deficit) | |
COMMON STOCK/PAID IN CAPITAL | NOTE 8 – COMMON STOCK/PAID IN CAPITAL Six Months Ended March 31, 2021 In October 2020, the Company issued approximately 17.5 million 0.1 million |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 9 – STOCK-BASED COMPENSATION Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award using the Black Scholes option pricing model, and is recognized over the vesting period. The Company recognized stock-based compensation of nil 33,000 33,000 32,000 33,000 The following table summarizes the Company’s stock option activity during the six months ended March 31, 2022: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Outstanding at September 30, 2021 146,000,000 $ 0.0444 Granted — — Exercised — — Cancelled — — Outstanding at March 31, 2022 146,000,000 $ 0.0444 3.3 Vested and expected to vest 146,000,000 $ 0.0444 3.3 Exercisable at March 31, 2022 146,000,000 $ 0.0444 3.3 As of March 31, 2022, there were no unrecognized stock-based compensation expense. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS AND CONTINGENCIES From time to time, the Company may become involved in litigation relating to claims arising out of its operations in the normal course of business. No legal proceedings, government actions, administrative actions, investigations, or claims are currently pending against us or involve the Company. In July 2018, the Company entered into a 39 5,000 square feet of office space in 4 Houston Center in downtown Houston. Annual base rent is approximately $ 94,000 for the first 18 months, increasing to approximately $ 97,000 and $ 99,000 respectively during the remaining term of the lease. The lease term ended on September 30, 2021, and the Company entered into a twelve-month can be terminated with at least 30 days prior written notice The Company reached an agreement in August 2018 for the settlement of approximately $ 1 million 0.16 million 10 million 1.3 million 0.7 million |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS The Company completed a review and analysis of all events that occurred after the condensed balance sheet date to determine if any such events must be reported and has determined that there are no other subsequent events to be disclosed. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Cash | Cash GulfSlope considers highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. There were no cash equivalents at March 31, 2022 and September 30, 2021. |
Liquidity / Going Concern | Liquidity / Going Concern The Company has incurred accumulated losses as of March 31, 2022 of $ 64.6 million 13.3 million 4.4 million 0.5 million 10.0 million 12.3 million |
Accounts Receivable | Accounts Receivable The Company records an accounts receivable for operations expense reimbursements due from joint interest partners, and also from normal operations. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, the receivable and the underlying asset are assessed for recovery. As of March 31, 2022 and September 30, 2021, there was no allowance for doubtful accounts receivable. Gross accounts receivable was nil |
Full Cost Method | Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include property acquisition costs, geological and geophysical (“G&G”) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells. Overhead costs, which includes employee compensation and benefits including stock-based compensation, incurred that are directly related to acquisition, exploration and development activities are capitalized. Interest expense is capitalized related to unevaluated properties and wells in process during the period in which the Company is incurring costs and expending resources to get the properties ready for their intended purpose. For significant investments in unproved properties and major development projects that are not being currently depreciated, depleted, or amortized and on which exploration or development activities are in progress, interest costs are capitalized. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. Proved properties are amortized on a country-by-country basis using the units of production method (“UOP”), whereby capitalized costs are amortized over total proved reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (“DD&A”), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation that considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. For the quarter ended March 31, 2022, the Company has taken an impairment of approximately $3.1 million for all of the costs associated with one of the Tau Prospect leases that will expire within the next ninety days. The Company continues to actively pursue the development of its remaining unproved properties. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve-month period. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. The Company capitalizes exploratory well costs into oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. The well costs are charged to expense when the exploratory well costs are determined to be impaired. Capitalized exploratory well costs have been pending the outcome of exploration activities involving the drilling of the Tau No. 2 well (twin well). During the quarter ended March 31, 2022 approximately $3.1 million of these suspended well costs have been impaired. The impairment charge was recorded because without the commencement of drilling the Tau #2 well or a lease extension being granted, one of the Tau Prospect lease blocks will expire on June 30, 2022. As of March 31, 2022, the Company’s oil and gas properties consisted of unproved properties, wells in process and no proved reserves. A combination of Biden administration actions regarding oil and gas exploration on federal lands and world events have placed tremendous pressures on the global supply-demand balance for crude oil and related products resulting in volatile commodity prices. The Company has evaluated the effect of these factors on its business and notes these factors have caused a delay in the plans for the Company’s 2022 drilling program. The Company continues to monitor the economic environment and evaluate the impact on the business |
Asset Retirement Obligations | Asset Retirement Obligations The Company’s asset retirement obligations will represent the present value of the estimated future costs associated with plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the seabed in accordance with the terms of oil and gas leases and applicable state and federal laws. Determining asset retirement obligations requires estimates of the costs of plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the sea bed as well as estimates of the economic lives of the oil and gas wells and future inflation rates. The resulting estimate of future cash outflows will be discounted using a credit-adjusted risk-free interest rate that corresponds with the timing of the cash outflows. Cost estimates will consider historical experience, third party estimates, the requirements of oil and natural gas leases and applicable local, state and federal laws, but do not consider estimated salvage values. Asset retirement obligations will be recognized when the wells drilled reach total depth or when the production equipment and facilities are installed or acquired with an associated increase in proved oil and gas property costs. Asset retirement obligations will be accreted each period through depreciation, depletion and amortization to their expected settlement values with any difference between the actual cost of settling the asset retirement obligations and recorded amount being recognized as an adjustment to proved oil and gas property costs. Cash paid to settle asset retirement obligations will be included in net cash provided by operating activities from continuing operations in the statements of cash flows. On a quarterly basis, when indicators suggest there have been material changes in the estimates underlying the obligation, the Company reassesses its asset retirement obligations to determine whether any revisions to the obligations are necessary. At least annually, the Company will assess all of its asset retirement obligations to determine whether any revisions to the obligations are necessary. Future revisions could occur due to changes in estimated costs or well economic lives, or if federal or state regulators enact new requirements regarding plugging and abandoning oil and natural gas wells. The Company drilled two well bores in 2018 and 2019 and these wellbores were both plugged with no further cost required and as such, the asset retirement obligation was completely extinguished. |
Derivative Financial Instruments | Derivative Financial Instruments The accounting treatment of derivative financial instruments requires that the Company the Company Prior to November 19, 2020, the Company had a certain note payable which contained a variable conversion feature with no floor, and accordingly, the Company |
Basic and Dilutive Earnings Per Share | Basic and Dilutive Earnings Per Share Basic income (loss) per share (“EPS“) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and convertible notes payable. The number of potential common shares outstanding relating to stock options and warrants, is computed using the treasury stock method. The number of potential common shares related to convertible notes payable is determined using the if-converted method. As the Company has incurred losses for the three and six months ended March 31, 2022 and 2021, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of March 31, 2022 and 2021, there were 288,070,151 298,285,026 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020. ASU No. 2020-06 can be adopted on either a fully retrospective or modified retrospective basis. The adoption of ASU 2020-06 is not expected to have a material impact on the Company’s financial statements or disclosures. In May 2021, the FASB issued 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. ASU 2021-04 provides clarification and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. An issuer measures the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange. ASU 2021-04 introduces a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have a material impact on the Company’s financial statements or disclosures. The Company has evaluated all other recent accounting pronouncements and believes either they are not applicable or that none of them will have a significant effect on the Company’s financial statements. |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
The Company’s convertible promissory notes consisted of the following as of September 30, 2021 and March 31, 2022. | The Company’s convertible promissory notes consisted of the following as of September 30, 2021 and March 31, 2022. September 30, 2021 March 31, 2022 Notes Discount Notes, Net of Discount Notes Discount Notes Net of Discount Bridge Financing Notes $ 227,000 $ (50,337 ) $ 176,663 $ 227,000 $ (7,124 ) $ 219,876 Total $ 227,000 $ (50,337 ) $ 176,663 $ 227,000 $ (7,124 ) $ 219,876 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2021 and March 31, 2022, respectively: | The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2021 and March 31, 2022, respectively: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Fair Value as of Derivative Financial Instrument at September 30, 2021 $ $ (1,201,656 ) $ $ (1,201,656 ) Derivative Financial Instrument at March 31, 2022 $ — $ (1,385,887 ) $ — $ (1,385,887 ) |
The change in derivative financial instruments for the six months ended March 31, 2022 is as follows: | The change in derivative financial instruments for the six months ended March 31, 2022 is as follows: September 30, 2021 balance $ (1,201,656 ) New derivative instruments issued — Derivative instruments extinguished — Change in fair value (184,231 ) March 31, 2022 balance $ (1,385,887 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
The following table summarizes the Company’s stock option activity during the six months ended March 31, 2022: | The following table summarizes the Company’s stock option activity during the six months ended March 31, 2022: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Outstanding at September 30, 2021 146,000,000 $ 0.0444 Granted — — Exercised — — Cancelled — — Outstanding at March 31, 2022 146,000,000 $ 0.0444 3.3 Vested and expected to vest 146,000,000 $ 0.0444 3.3 Exercisable at March 31, 2022 146,000,000 $ 0.0444 3.3 |
ORGANIZATION AND NATURE OF BU_2
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) | Mar. 31, 2022N |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of leased federal outer continental shelf blocks | 2 |
Number of licensed three-dimensional (3-D) seismic data | 3 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||||||
Accumulated losses | $ (64,564,911) | $ (64,564,911) | $ (60,207,991) | |||
Amount of negative working capital | 13,300,000 | 13,300,000 | ||||
Generated losses | (3,852,036) | $ (1,001,019) | (4,356,920) | $ (1,359,508) | ||
Unrestricted cash | 541,193 | $ 2,165,178 | 541,193 | $ 2,165,178 | 1,517,522 | $ 3,190,418 |
Minimum capital which company estimated to raise to meet its obligations and planned expenditures | 10,000,000 | |||||
Outstanding debt obligations | 12,300,000 | 12,300,000 | ||||
Gross accounts receivable | $ 0 | $ 0 | $ 0 | |||
Antidilutive securities excluded from EPS calculation | 288,070,151 | 298,285,026 |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details Narrative) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022USD ($)N | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)Nft | Mar. 31, 2021USD ($) | |
Reserve Quantities [Line Items] | ||||
Number of leased federal outer continental shelf blocks | Number | N | 2 | 2 | ||
Asset Impairment Charges | $ 3,100,000 | $ 0 | $ 0 | |
Oil and Gas Properties [Member] | ||||
Reserve Quantities [Line Items] | ||||
Amount of interest expense capitalized during period | $ 60,000 | $ 30,000 | ||
Gulf of Mexico Well Tau [Member] | ||||
Reserve Quantities [Line Items] | ||||
Depth of second drilled well | ft | ft | 15,254 | |||
Depth of originally permitted second drilled well | ft | ft | 29,857 | |||
Accrued payable | $ 3,100,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Nov. 15, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2017 | Sep. 30, 2021 |
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Face Amount | $ 227,000 | $ 227,000 | $ 227,000 | ||||
Interest Payable, Current | 126,940 | 126,940 | $ 115,860 | ||||
Proceeds from issuance of convertible notes and warrants | |||||||
Accounting Service [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Accounting consulting services, included in related party payables | 19,000 | $ 19,000 | 38,000 | $ 38,000 | |||
Convertible Notes Payable [Member] | Chief Executive Officer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Face Amount | $ 8,700,000 | ||||||
Debt Conversion, Converted Instrument, Amount | $ 5,300,000 | ||||||
Debt Instrument, Convertible, Conversion Price | $ 0.12 | ||||||
Notes Payable, Related Parties | 8,700,000 | 8,700,000 | |||||
Interest Payable, Current | $ 3,200,000 | $ 3,200,000 | |||||
Promissory Notes [Member] | Related Party [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from issuance of convertible notes and warrants | $ 50,000 |
The Company_s convertible promi
The Company’s convertible promissory notes consisted of the following as of September 30, 2021 and March 31, 2022. (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Short-term Debt [Line Items] | ||
Notes | $ 227,000 | $ 227,000 |
Discount | (7,124) | (50,337) |
Notes, Net of Discount | 219,876 | 176,663 |
Medium-term Notes [Member] | ||
Short-term Debt [Line Items] | ||
Notes | 227,000 | 227,000 |
Discount | (7,124) | (50,337) |
Notes, Net of Discount | $ 219,876 | $ 176,663 |
NOTE PAYABLE (Details Narrative
NOTE PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | Apr. 16, 2020 | |
Short-term Debt [Line Items] | |||||||
Principal amount | $ 227,000 | $ 227,000 | $ 227,000 | ||||
Accrued interest payable | 126,940 | 126,940 | $ 115,860 | ||||
Gains on extinguishment debt | $ 136,640 | ||||||
PPP Loan Payable [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Principal amount | $ 100,300 | ||||||
Accrued interest payable | $ 662 | $ 662 | |||||
Gains on extinguishment debt | $ 100,962 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Nov. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Nov. 30, 2016 | Mar. 30, 2022 | Sep. 30, 2021 | |
Short-term Debt [Line Items] | ||||||||
Proceeds from issuance of convertible notes and warrants | ||||||||
Debt discount amortization | 43,213 | 53,219 | ||||||
Gain on extinguishment of debt | 136,640 | |||||||
Notes Payable, Other Payables [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Proceeds from issuance of convertible notes and warrants | $ 837,000 | |||||||
Interest rate | 8.00% | |||||||
Conversion price (in dollars per share) | $ 0.025 | |||||||
Future cash payment | 277,000 | 277,000 | $ 277,000 | |||||
Amortization of debt discount | $ 21,000 | $ 5,000 | 21,000 | 5,000 | $ 7,000 | $ 50,000 | ||
Debt discount amortization | $ 43,000 | 10,000 | ||||||
Notes Payable, Other Payables [Member] | Related Parties [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Proceeds from issuance of convertible notes and warrants | $ 222,000 | |||||||
Maturity term | 1 year | |||||||
Convertible Debentures One [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Debt discount amortization | $ 43,000 | |||||||
Repayment of convertible notes | $ 300,000 | |||||||
Gain on extinguishment of debt | $ 35,678 |
The following table sets forth
The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2021 and March 31, 2022, respectively: (Details) - Fair Value, Recurring [Member] - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instrument | $ (1,385,887) | $ (1,201,656) |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instrument | (1,385,887) | $ (1,201,656) |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instrument | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instrument |
The change in derivative financ
The change in derivative financial instruments for the six months ended March 31, 2022 is as follows: (Details) | 6 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial liabilities fair value disclosure | $ (1,385,887) |
Fair Value, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial liabilities fair value disclosure | (1,201,656) |
Issuance of derivative financial instruments | |
Derivative instruments converted/extinguished | |
Change in fair value | $ (184,231) |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Impairment charge | $ 3,100,000 | $ 0 | $ 0 | |
Stock-based compensation | $ 0 | $ 33,000 | $ 32,000 | $ 33,000 |
COMMON STOCK_PAID IN CAPITAL (D
COMMON STOCK/PAID IN CAPITAL (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Sep. 30, 2020 | |
Common Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock issued during period new issue, shares | 17,500,000 | |
Additional Paid-in Capital [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock issued during period new issue | $ 100,000 |
The following table summarizes
The following table summarizes the Company’s stock option activity during the six months ended March 31, 2022: (Details) | 6 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Outstanding at beginning of period | shares | 146,000,000 |
Outstanding at beginning of period | $ / shares | $ 0.0444 |
Granted | shares | 0 |
Granted | $ / shares | $ 0 |
Outstanding at end of period | shares | 146,000,000 |
Outstanding at end of period | $ / shares | $ 0.0444 |
Outstanding at end of period | 3 years 3 months 19 days |
Vested and expected to vest | shares | 146,000,000 |
Vested and expected to vest | $ / shares | $ 0.0444 |
Vested and expected to vest | 3 years 3 months 19 days |
Exercisable at end of period | shares | 146,000,000 |
Exercisable at end of period | $ / shares | $ 0.0444 |
Exercisable at end of period | 3 years 3 months 19 days |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 33,000 | $ 32,000 | $ 33,000 |
General and Administrative Expense [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 33,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 1 Months Ended | 3 Months Ended | |||
Aug. 31, 2018USD ($)shares | Jul. 31, 2018USD ($)ft² | Dec. 31, 2021 | Mar. 31, 2022USD ($) | Sep. 30, 2021USD ($) | |
Loss Contingencies [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 39 months | 12 months | |||
Area of Land | ft² | 5,000 | ||||
Annual base rent for the first 18 months | $ 94,000 | ||||
Annual base rent - year two | $ 97,000 | ||||
Annual base rent - year three | 99,000 | ||||
Lessee, Operating Lease, Option to Terminate | can be terminated with at least 30 days prior written notice | ||||
Debt Instrument, Face Amount | 227,000 | $ 227,000 | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 700,000 | ||||
Vendor [Member] | |||||
Loss Contingencies [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,000,000 | ||||
Long-term Debt, Gross | $ 160,000 | ||||
Stock Issued During Period, Shares, Other | shares | 10,000,000 | ||||
Vendor [Member] | Minimum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Gain on sale of stock by vendor in excess of | $ 1,300,000 |