Cover
Cover - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Dec. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 001-34770 | |
Entity Registrant Name | Financial Gravity Companies, Inc. | |
Entity Central Index Key | 0001377167 | |
Entity Tax Identification Number | 20-4057712 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 2501 Ranch Road 620 South | |
Entity Address, Address Line Two | Suite 110 | |
Entity Address, City or Town | Lakeway | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78734 | |
City Area Code | 800 | |
Local Phone Number | 588-3893 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
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 Public Float | $ 286,356 | |
Entity Common Stock, Shares Outstanding | 91,806,412 | |
ICFR Auditor Attestation Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 306,057 | $ 482,854 |
Accrued revenues | 270,428 | 159,476 |
Current right to use lease | 112,469 | 259,645 |
Prepaid expenses and other current assets | 153,047 | 193,818 |
Total current assets | 842,001 | 1,095,793 |
OTHER ASSETS | ||
Property and equipment, net | 38,523 | 81,712 |
Proprietary content, net | 81,958 | 143,643 |
Intellectual Property | 53,170 | 53,170 |
Right to Use Lease | 156,863 | 0 |
Goodwill | 3,176,767 | 8,475,305 |
TOTAL ASSETS | 4,349,282 | 9,849,624 |
CURRENT LIABILITIES | ||
Accounts payable – trade | 32,746 | 107,674 |
Accrued expenses | 1,082,979 | 1,067,392 |
Related Party Payables | 66,432 | 69,838 |
Contract Liabilities | 66,654 | 76,470 |
Line of credit | 52,932 | 54,112 |
Rent Payable | 90,941 | 0 |
Lease Payable | 133,078 | 259,645 |
Notes payable | 45,412 | 23,596 |
Total current liabilities | 1,571,174 | 1,658,728 |
NOTES PAYABLE | 433,341 | 712,982 |
Lease Payable | 193,073 | 0 |
Total Long-Term Liabilities | 626,414 | 712,982 |
Total Liabilities | 2,197,588 | 2,371,710 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value; 300,000,000 shares authorized; 91,618,412 shares issued and outstanding as of September 30, 2021 and 83,618,412 shares issued and outstanding as of September 30, 2020 | 91,618 | 83,618 |
Additional paid-in capital | 16,473,946 | 14,385,086 |
Accumulated deficit | (14,413,871) | (6,990,790) |
Total stockholders’ equity | 2,151,693 | 7,477,914 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,349,282 | $ 9,849,624 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock shares issued | 91,618,412 | 83,618,412 |
Common stock shares outstanding | 91,618,412 | 83,618,412 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
REVENUE | ||
Total revenue | $ 6,672,793 | $ 3,687,480 |
OPERATING EXPENSES | ||
Cost of services | 106,630 | 73,071 |
Professional services | 396,755 | 375,363 |
Depreciation and amortization | 111,052 | 166,586 |
General and administrative | 1,141,570 | 672,784 |
Marketing | 77,858 | 125,161 |
Salaries and wages | 5,540,839 | 3,186,305 |
Total operating expenses | 7,374,703 | 4,599,270 |
Net operating loss | (701,910) | (911,790) |
Income tax | 7,658 | 0 |
Other Income | 0 | 129,801 |
PPP Loan Forgiveness | 661,045 | 0 |
Goodwill Impairment | (7,380,603) | 0 |
Interest Expense | (9,270) | (9,685) |
NET OTHER INCOME/EXPENSE | (6,721,171) | 120,116 |
NET LOSS | $ (7,423,081) | $ (791,675) |
LOSS PER SHARE - Basic and Diluted | $ (0.09) | $ (0.01) |
Investment Mgmt Fee [Member] | ||
REVENUE | ||
Total revenue | $ 3,849,538 | $ 1,969,845 |
Service Income [Member] | ||
REVENUE | ||
Total revenue | 1,859,958 | 1,281,611 |
Broker Dealer Income [Member] | ||
REVENUE | ||
Total revenue | $ 963,297 | $ 436,024 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Sep. 30, 2019 | $ 41,436 | $ 7,391,592 | $ (6,199,115) | $ 1,233,913 |
Ending balance, shares at Sep. 30, 2019 | 41,436,033 | |||
Stock based employee compensation expense | 59,196 | 59,196 | ||
Stock options exercised | $ 115 | 67 | 182 | |
Stock options exercised, shares | 116,375 | |||
Private Placement stock issue | $ 76 | 24,924 | 25,000 | |
Private Placement stock issue, shares | 75,757 | |||
Stock issued in exchange for services | $ 383 | 49,617 | 50,000 | |
Stock issued in exchange for services, Shares | 382,932 | |||
Forta acquisition | $ 41,608 | 6,859,690 | 6,901,298 | |
Forta acquisition, Shares | 41,607,315 | |||
Net loss | (791,675) | (791,675) | ||
Ending balance, value at Sep. 30, 2020 | $ 83,618 | 14,385,086 | (6,990,790) | 7,477,914 |
Ending balance, shares at Sep. 30, 2020 | 83,618,412 | |||
Stock based employee compensation expense | 98,460 | 98,460 | ||
NCW acquisition | $ 8,000 | 1,990,400 | 1,998,400 | |
NCW acquisition, Shares | 8,000,000 | |||
Net loss | (7,423,081) | (7,423,081) | ||
Ending balance, value at Sep. 30, 2021 | $ 91,618 | $ 16,473,946 | $ (14,413,871) | $ 2,151,693 |
Ending balance, shares at Sep. 30, 2021 | 91,618,412 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (7,423,081) | $ (791,675) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Loss on disposal of equipment | 0 | 20,200 |
Depreciation and amortization | 111,052 | 166,586 |
Common stock issued in exchange for services | 0 | 50,000 |
Stock based compensation | 128,430 | 80,275 |
Goodwill impairment | 7,380,603 | 0 |
Debt forgiveness income | (661,045) | 0 |
Changes in operating assets and liabilities | ||
Accrued revenue | (110,952) | 97,795 |
Accounts receivable - related party | 0 | 0 |
Prepaid expenses | 40,771 | (1,699) |
Accounts payable – trade | (74,928) | (85,291) |
Related party payables | 80,249 | (20,000) |
Accrued expenses | 15,587 | (47,419) |
Contract Liabilities | (9,816) | 0 |
Rent Payable | 90,941 | 0 |
Lease assets and liabilities | (54,882) | (18,263) |
Net cash provided by (used in) operating activities | (487,071) | (549,491) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid for purchase of property and equipment | (8,112) | (4,340) |
Cash paid for NCW | (83,655) | 0 |
Net cash Forta | 0 | 710,154 |
Net cash provided by investing activities | (91,767) | 705,814 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Change in line of credit | (1,180) | (9,807) |
Borrowings from note payable | 422,900 | 283,345 |
Payments on note payable | (19,680) | (8,242) |
Proceeds from the sale of common stock | 25,182 | |
Net cash (used in) provided by financing activities | 402,040 | 290,478 |
TOTAL CHANGE IN CASH AND CASH EQUIVALENTS | (176,797) | 446,801 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 482,854 | 36,053 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 306,057 | 482,854 |
Supplemental disclosures of cash flow information: | ||
Interest Paid | 9,270 | 7,285 |
Noncash investing and financing activities | ||
PPP Loan Forgiveness | 661,045 | 0 |
Common stock issued for acquisition | 1,998,400 | 6,901,298 |
Common stock to be issued for acquisition | 0 | 699,117 |
Note payable issued related to acquisition | 0 | 52,000 |
Note payable assumed in acquisition | $ 0 | $ 377,700 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS Financial Gravity Companies, Inc. and Subsidiaries (the “Company”) located in Austin, Texas. Operations are conducted through wholly owned subsidiaries: Company, along with its subsidiary companies, supports investment advisors and provides tax professionals with a turnkey family office charter. Company helps the tax professionals evolve from the commoditized business of tax compliance to a Family Office Director that runs and manages their own multi-family office. Family Office Directors are able to leverage the Financial Gravity systems, technology, proprietary resources, and deep domain expertise to bring an elevated and holistic financial service experience to their clients that spans proactive tax planning, retirement and estate planning, wealth management, and risk mitigation. Tax Master Network, LLC (“TMN”) services a network of over 300 accountants and tax preparers with three primary services including monthly subscriptions to the tax software systems, coaching and email marketing services. Financial Gravity Family Office Services, LLC (“FGFOS”) is a registered investment advisor that offers investment management advice to clients through independent investment advisors. Many of the independent investment advisors are members of TMN that are licensed to provide investment management advice. FGFOS provides support for the multi-family offices run by the TMN members. Financial Gravity Enhanced Markets, LLC, formerly MPath Advisors Resources, LLC (“FGEM”) is an insurance marketing organization and provides insurance products and services to insurance agents or agencies. Financial Gravity Asset Management, Inc., formerly Sofos Investment Management, Inc. (“FGAM”) is a registered investment advisor. FGAM provides asset management services. Forta Financial Group, Inc. is a securities broker dealer, a registered investment advisor and a licensed insurance agency. As part of its annual review of the performance of its subsidiaries, Company has decided to discontinue Forta’s broker/dealer operations, and is in the process of completing that transition. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING We manage our business in reportable segments. Each of our subsidiaries is treated as a segment. We evaluate the performance of our operating segments based on a segment’s share of consolidated operating income Therefore, for instance, Company determined that its broker dealer operation does not present a growth opportunity. As a result, the decision was made to discontinue Forta’s operations and concentrate on the other business segments. Forta’s operations is in the process of being shut down. CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended September 30, 2020 Segment Reporting Eliminations FGC FGT (A) Forta (B) FGEM FGAM TMN TOTAL Ordinary Income/Expense Income Broker Dealer $ – $ 0 $ 0 $ 436,024 $ 0 $ 0 $ 0 $ 436,024 Service Income – 70 69,721 77,024 73,882 42,902 1,018,012 1,281,611 Investment Management Fees (140,420 ) 0 0 757,290 0 1,352,975 0 1,969,845 Income from Inv in Subsidiaries (73,660 ) 73,660 0 0 0 0 0 0 Total Income (214,080 ) 73,730 69,721 1,270,339 73,882 1,395,877 1,018,012 3,687,480 Gross Profit (214,080 ) 73,730 69,721 1,270,339 73,882 1,395,877 1,018,012 3,687,480 Expense Compensation Expense (140,420 ) 1,530,836 (78 ) 808,670 1,972 641,566 343,759 3,186,305 Cost of services – (2,773 ) 4,410 33,784 0 0 37,651 73,071 Depreciation & Amortization – 152,173 0 64 0 0 14,350 166,586 General and Administrative – 267,623 1,620 275,497 8,221 30,227 89,596 672,784 Marketing – 85,111 2,411 20,568 3,300 658 13,112 125,161 Professional Services – 276,761 0 93,095 456 2,055 2,997 375,363 Total Expense (140,420 ) 2,309,731 8,363 1,231,678 13,949 674,505 501,465 4,599,270 Net Ordinary Income (73,660 ) (2,236,000 ) 61,358 38,661 59,933 721,372 516,547 (911,790 Other Income/Expense Other Income – 129,800 0 0 0 0 0 129,800 Other Expense – 44,738 0 (34,999 ) 0 0 (55 ) 9,685 Net Other Income – 85,062 0 34,999 0 0 55 120,116 Net Income/(Loss) $ (73,660 ) $ (2,150,939 ) $ 61,358 $ 73,660 $ 59,933 $ 721,372 $ 516,602 $ (791,675 ) CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended September 30, 2021 Eliminations FGC Forta FGAM FGFOS FGEM TMN TOTAL Ordinary Income/Expense Income $ – $ – $ – $ – $ – $ – $ – $ – Broker Dealer – – 963,297 – – – – 963,297 Service Income – – 157,206 1,406 – 536,990 1,164,356 1,859,958 Investment Management Fees (233,391 ) 233,391 1,774,561 2,074,977 – – – 3,849,538 Income from Inv in Subsidiaries (233,391 ) 233,391 2,895,064 2,076,383 – 536,990 1,164,356 6,672,793 Total Income (233,391 ) 233,391 2,895,064 2,076,383 – 536,990 1,164,356 6,672,793 Gross Profit – Expense – – Compensation Expense – 1,834,413 2,436,523 772,103 – 131,300 366,500 5,540,839 Cost of services – – 55,858 11,074 – – 39,698 106,630 Depreciation & Amortization – 65,290 486 – – – 45,276 111,052 General and Administrative – 258,195 732,158 19,781 11,259 22,069 98,108 1,141,570 Marketing – 25,459 17,854 132 – 1,816 32,597 77,858 Professional Services – 225,504 119,474 10,016 – 960 40,801 396,755 Total Expense – 2,408,861 3,362,353 813,106 11,259 156,145 622,979 7,374,703 Net Ordinary Income (233,391 ) (2,175,470 ) (467,290 ) 1,263,277 (11,259 ) 380,845 541,378 (701,910 ) Other Income/Expense Debt Forgiveness – 283,345 377,700 – – – – 661,045 Goodwill Impairment – 7,380,603 – – – – – 7,380,603 Other Expense – (1,325 ) 2,938 – – – – 1,613 Net Other Income – (7,095,933 ) 374,762 – – – – (6,721,171 ) Net Income/(Loss) $ (233,391 ) $ (9,271,403 ) $ (92,527 ) $ 1,263,277 $ (11,259 ) $ 380,845 $ 541,378 $ (7,423,081 ) |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITION | BUSINESS ACQUISITION On September 30, 2019, the Company entered into a merger agreement with Forta to acquire 100% of the stock of Forta in exchange for 45,785,879 The Company acquired Forta in May of 2020 in exchange for stock. A liability of $ 699,117 4,178,564 700,000 Identification of Company as the Acquirer The acquisition was primarily effected by a merger and an exchange of Company’s common stock as the consideration paid to Forta stockholders by Company for their equity interests in Forta. We looked at all pertinent facts and circumstances identified in ASC 805-10-25-1, ASC 805-10-05-4 to be considered in identifying the acquirer in a business combination effected by exchanging equity interests. The standard recognizes that the acquirer usually is the entity that issues its equity interests, but that in some business combinations the issuing entity is the acquiree. In these situations, the accounting acquiror is different than the legal acquiror. The guidance provides the following factors to consider in identifying the accounting acquiror in a business combination like the acquisition that is effected by exchanging equity interests: The majority shares ended up being held by Forta shareholders. The original calculation was to be an even 50% for Forta and Company shareholders. However, the calculations included shares that were granted through the option plan at Company, and it was assumed that each of the option share grants would be exercised. As it turned out, the vast majority of the option shares were not exercised, so that ended up skewing the majority calculation in favor of the Forta shareholders. There were no other special or unusual voting arrangements, convertible securities or other financial instruments of the combined Company immediately after the acquisition. After the acquisition, the largest single minority interest would be held by a Company shareholder, John Pollock, and members of the Board of Directors and management of Company, some of whom were shareholders of Forta, would end up owning in excess of 40% of the voting shares of Company. There is no agreement on the election of Board members, and neither Forta nor Financial Gravity shareholders have any agreement to elect a majority of the Board. The composition of the senior management of the combined entity is from Financial Gravity. Based upon the above, the Company has concluded that Financial Gravity will be treated as the acquirer. Purchase Price Allocation The purchase price of $ 7,652,415 52,000 7,380,603 Assets Acquired and Liabilities Assumed Forta Financial Group, Inc. Assets Acquired and Liabilities Assumed As of May 21, 2020 Assets Acquired and Liabilities Assumed PURCHASE PRICE $ 7,652,415 ASSETS Current Assets Cash 710,154 Accounts Receivable 20,882 Other Current Assets 135,056 Total Current Assets 866,093 Other Assets 582,330 TOTAL ASSETS 1,448,423 LIABILITIES – Liabilities – Current Liabilities – Total Accounts Payable 18,215 Total Other Current Liabilities 710,131 Total Current Liabilities 728,346 Long-Term Liabilities – Total Long-Term Liabilities 448,265 TOTAL LIABILITIES 1,176,611 Goodwill $ 7,380,603 The accompanying unaudited pro forma condensed combined financial statement of Financial Gravity Companies, Inc. (“Financial Gravity,” “FGCO” or the “Company”) is presented to illustrate the estimated effects of the acquisition of 100% of the stock of Forta Financial Group, Inc. (“Forta” or “FFGI”), which closed on May 21, 2020 (the “acquisition” or the “transaction”) on the historical financial position and results of operations of the Company. The unaudited pro forma condensed combined statement of operations is based upon and derived from and should be read in conjunction with Company’s and Forta’s historical audited financial statements for the year ended September 30, 2020. |
UNAUDITED PRO FORMA COMBINED FI
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS | 12 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS | UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS Forta’s results of operations have been included in the following financial statement for the twelve months ending September 30, 2020 prospectively from the assumed date of acquisition of October 1, 2019. Pro forma results have been prepared by adjusting historical results to include Forta’s results of operations. The unaudited pro forma results presented do not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of October 1, 2019, nor does it indicate the results of operations in future periods. Additionally, the unaudited pro forma results do not include the impact of possible business model changes, nor does it consider any potential impacts of current market conditions on revenues, reduction of expenses, asset dispositions, or other factors. The impact of these items could alter the following pro forma results: FINANCIAL GRAVITY COMPANIES, INC. UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR YEAR ENDED SEPTEMBER 30, 2020 Pro Forma financial information Financial Gravity Forta Combined REVENUE Investment management fees $ 1,969,845 $ 987,942 $ 2,957,787 Service income 1,281,611 – 1,281,611 Commissions 436,024 1,419,031 1,855,055 Total revenue 3,687,480 2,406,972 6,094,452 OPERATING EXPENSES Cost of services 73,071 137,310 210,381 Professional services 375,363 100,000 475,363 Depreciation and amortization 166,586 – 166,586 General and administrative 672,784 474,443 1,147,227 Marketing 125,161 50,000 175,161 Salaries and wages 3,186,305 1,514,254 4,700,559 Total operating expenses 4,599,270 2,276,008 6,875,278 Net operating loss (911,790 ) 130,964 (780,826 ) Interest Expense 9,685 – 9,685 NET INCOME/(LOSS) $ (921,475 ) $ 130,964 $ (790,511 ) In March of 2021, the Company entered into a merger agreement with NCW to acquire 100% of the stock of NCW in exchange for 8,000,000 shares of Company common stock and NCW was merged into Forta. NCW was investment advisory organization. The acquisition transaction closed on July 23, 2021. Prior to the acquisition, the client accounts of NCW were transferred to Forta. NCW had key employees who assumed vital executive leadership roles within the Company, including key executives who will focus on improving operations and growth opportunity. Purchase Price Allocation The purchase price of $2,082,065 was based upon the share price of Company’s stock as of July 23, 2021, plus $83,665 in cash. We believe significant synergies may arise from this acquisition, as a result of which the purchase price was in excess of the fair value of the net assets acquired and, as a result, we have preliminarily recorded goodwill of $2,082,065, which is based upon book value, to account for adjustments made. We have not yet finalized estimates that relate to certain tangible and intangible assets, including customer relationships, trade names, contracts. Our estimates and assumptions for these acquisitions are subject to change as we obtain additional information for our estimates during the respective measurement periods (up to one year from the acquisition date). Assets Acquired and Liabilities Assumed NCW Group, Inc. As of August 2, 2021 Schedule Of Purchase Price PURCHASE PRICE 2,082,065 TOTAL ASSETS (A) – TOTAL LIABILITIES – Goodwill 2,082,065 (A) NCW's client accounts and related assets were transferred to Forta prior to the closing of the merger. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting polices consistently applied in the preparation of the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) is as follows. Basis of Consolidation The consolidated financial statements include the accounts of Financial Gravity Companies, FGAM, FGEM, TMN and Forta, FGFOS (collectively referred to as the “Company”). All significant intercompany accounts and transactions have been eliminated on consolidation. Cash and Cash Equivalents The Company considers all highly liquid investments with an initial maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash balances at several financial institutions located throughout the United States, which at times may exceed insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Prepaid Expenses Prepaid expenses consist of expenses the Company has paid for prior to the service or good being provided. These prepaid expenses will be recorded as expense at the time the service has been provided. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to earnings over their estimated service lives by the straight-line method. Maintenance and repairs are charged to earnings as incurred; major repairs and replacements are capitalized. When items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Proprietary Content The proprietary content acquired as a part of the TMN purchase has been recognized in the accompanying consolidated balance sheets at $ 525,100 57,868 114,955 443,142 377,505 Future amortization of proprietary content is estimated to be as follows for the years ended September 30: Schedule of future amortization 2022 65,817 2023 16,141 Future amortization $ 81,958 Intellectual Property The Company accounts for intellectual property in accordance with GAAP and accordingly, intellectual property are stated at cost. Intellectual property with indefinite lives are not amortized but are tested for impairment at least annually. Management has determined that the intellectual property have an indefinite life and do not consider the value of intellectual property recorded in the accompanying consolidated balance sheet to be impaired as of September 30, 2021 and 2020. Goodwill The Company conducts ongoing annual impairment assessments, at the reporting unit level, of its recorded goodwill. The Company assesses qualitative factors in order to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The qualitative factors evaluated by the Company include: macroeconomic conditions of the local business environment, overall financial performance, and other entity specific factors as deemed appropriate. If, through this qualitative assessment, the As such, Management has written off the full amount, $ 7,380,603 Goodwill consists of the following: Schedule of goodwill September 30, September 30, 2021 2020 Net TMN Goodwill $ 1,094,702 $ 1,094,702 Forta Goodwill (Net NCW Transaction) 2,082,065 – Company Goodwill (Forta Transaction) – 7,380,603 Total Goodwill $ 3,176,767 $ 8,475,305 Income Taxes The Company accounts for Federal and state income taxes pursuant to GAAP, which requires an asset and liability approach for financial accounting and reporting for income taxes based on tax effects of differences between the financial statement and tax basis of assets and liabilities. The Company accounts for all uncertain tax positions in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740 – Income Taxes (“ASC 740”). ASC 740 provides guidance on de-recognition, classification, interest and penalties and disclosure related to uncertain income tax positions. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no uncertain tax positions or accrued interest or penalties as of September 30, 2021 and 2020. From time to time, the Company is audited by taxing authorities. These audits could result in proposed assessments of additional taxes. The Company believes that its tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes. The Company’s Federal returns since 2017 are still subject for examination by taxing authorities. Earnings Per Share Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding for the reporting period. Average number of common shares were 84,951,745 57,138,793 For the years ended September 30, 2021 and 2020, approximately 6,712,888 6,972,696 0 0 Revenue Recognition The Company adopted the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates (“ASU”) ASU 2014-09, Revenue from Contracts with Customers October 1, 2019 on a modified basis. As the initial adoption of the standard did not have a material impact on the Company's financial condition or results of operations, no cumulative effect was recognized at the date of initial application. The Company also had no significant changes to systems, processes, or controls. The Company derives its revenues primarily from the following activities: Investment Management Fees, Securities Brokerage Commissions, Tax Master Network subscriptions, Tax Operating System subscriptions, Financial Advisor subscriptions, Tax BluePrint sales, and Insurance Sales. Investment management fees are recognized as services are provided by the Company. Investment management fees include fees earned from assets under management by providing professional services to manage clients’ investments. Fees are generally paid quarterly, in advance, for each quarter or monthly in arrears. Revenues are earned over the period in which the service is provided, which is typically monthly. The Company generates services income which is recognized when consulting and other professional services are performed by the Company (primarily from TMN and FGEM). Income is recognized as services are delivered. Revenue represents gross billings less discounts, and are net of sales taxes, as applicable. Amounts invoiced for work not yet completed are shown as contract liabilities in the accompanying consolidated balance sheets. Accrued revenues are recorded for investment management fees that are paid in arrears. The allowance for doubtful accounts was $ 0 0 In the normal course of business, the Company extends credit on an unsecured basis to its customers, substantially all of whom are located in the United States of America. The Company does not believe that it is exposed to any significant risk of loss on accounts receivable. FGAM generates investment management fees for services provided by the Company. Investment management fees include fees earned from assets under management by providing professional services to manage client investments. Revenue is recognized as earned, at the end of each monthly period. Forta generates commission revenue from the sale of annuities and premiums on life insurance policies held by third parties. Commission revenue is derived from the sale of annuities and premiums on life insurance policies. The revenue is recognized when commissions are earned from when it is determined that insurance products are sold. Commissions are received after products are sold, issued or in force. FGEM generates revenue from insurance marketing services for insurance agents, including sourcing of insurance policies through selling agreements. Revenue is recognized when the policies have been accepted by the issuer and it is probable the commission will be received. Tax Master Network has five levels of network subscription services that are charged and collected on a month-to-month basis. None of these programs come with a long-term commitment or contract, and there is no up-front payment beyond the monthly subscription fee. Cancellations are processed within the month requested and memberships are closed at the end of the period for which the most recent payment was made. Members are not entitled to refunds for unused memberships. Any subscription fees paid for a future period are deferred in the financial statements. TMN also sells Tax Blueprint®. These are tax planning strategies guides, to save customers taxes through the implementation of the recommended tax strategies. After an initial assessment, the customers pay half of the year one tax savings. A contract liability is recognized when the customer payment is received. Revenue is deferred until the customer reviews and accepts the final Tax Blueprint® document and returns an executed delivery agreement. The Company received revenue from FGAM’s operations that are primarily from investment management fees, including money management fees. Investment management fees are based upon a percentage of assets under management and totaled $ 2,076,383 1,352,975 1,255,457 140,420 The Company received revenue from Forta’s operations during fiscal year 2021 and from (the date of the merger) from the following sources from May 21, 2020 through fiscal year ending September 30, 2020 including: Schedule of revenues from operations 2021 2020 Investment Advisory fees $ 1,774,561 $ 757,290 Commission-based transactions 963,297 436,024 Insurance and Other Service Revenue 91,628 77,024 Total Revenue from contracts with customers 2,829,486 1,270,339 Other service fee revenue 65,578 0 Total revenue $ 2,895,064 $ 1,270,339 The Company received revenue from TMN’s operations from the following sources during the fiscal year ending September 30, 2021 and 2020 including: 2021 2020 TMN membership subscriptions $ 857,699 $ 733,838 Tax Blueprints 255,000 224,000 Commissions/Referrals 51,657 60,174 Total $ 1,164,356 $ 1,018,012 The Company received revenue from FGEM’s operations from insurance sales of $ 536,990 73,882 Advertising Marketing costs are charged to operations when incurred. Marketing expenses were $ 77,858 125,161 Stock-Based Compensation The Company recognizes the fair value of stock-based compensation awards as wages in the accompanying statements of operations for employee grants, commissions for non-employee grants, and stock appreciation rights grants, on a straight-line basis over the vesting period, using the Black-Scholes option pricing model, which is based on risk-free rate of 0.88339 1.3171 0 10 87.6769 159 Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The estimate of potential losses resulting from the Forta FINRA arbitration claims may change materially in the near term. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the Company will need to manage additional asset units under contract and/or additional financing to fully implement its business plan, including continued growth and establishment of a stronger brand. For the year ended September 30, 2021, the Company reported $ 6,672,793 7,423,081 487,071 14,413,871 On May 8, 2020, the Company received a PPP loan in the amount of $ 283,345 377,700 422,900 1 Company’s plans for expansion include attracting additional clients through marketing efforts with its current and future brokerage, investment management and insurance agent representatives, as well as increasing the TMN membership and the investment advisory activity of the members to increase assets under management and Company’s revenue. Future growth plans will include efforts to increase advisory headcount through recruiting of individuals advisors and groups of advisors. There is no guaranty that the Company will achieve these objectives. Future Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses, which amends how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, which applies to trade accounts receivable and the calculation of the allowance for uncollectible accounts receivable. The new standard will become effective for the Company for fiscal years beginning after December 31, 2019, with early adoption permitted. In November of 2019, the FASB issued ASU 2019-10 Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which deferred the effective date of ASU Topic No. 2016-13 to fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of the adoption of this accounting guidance will have on the consolidated financial statements. Since the Company currently uses an expected loss from customers method, the Company does not anticipate the adoption of ASU 2016-13 will have a material impact on the Company's financial condition or results of operations. In January 2017, the FASB issued ASU No. 2017-04 Intangibles-Goodwill and Other Simplifying the Test for Goodwill Impairment, which provides guidance to simplify the subsequent measurement of goodwill by eliminating the Step 2 procedure from the goodwill impairment test. The new guidance is effective for the Company beginning October 1, 2023. The Company does not anticipate the adoption of ASU 2017-04 will have a material impact on the Company's financial condition or results of operations conclusion is made that it is more likely than not that a reporting unit’s fair value is less than its carrying amount, an impairment test is performed. Management determined, by assessing the qualitative factors, that it is more likely than not that the fair value of the Forta reporting unit is less than its carrying value and that the goodwill associated with the Forta reporting unit has been fully impaired. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 2. PROPERTY AND EQUIPMENT Property and equipment consist of the following at September 30: Schedule of property and equipment Estimated Service Lives 2021 2020 Furniture, fixtures and equipment 2 to 5 years $ 61,554 $ 407,580 Internally developed software 5 years 152,000 152,000 213,554 559,580 Less accumulated depreciation and amortization (175,031 ) (477,868 ) $ 38,523 $ 81,712 Depreciation expense was $ 53,184 42,419 |
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTELLECTUAL PROPERTY | 3. INTELLECTUAL PROPERTY Intellectual property consists of the following: Schedule of intellectual property Trademarks at September 30, 2021 $ 53,170 Trademarks at September 30, 2020 $ 53,170 |
LINE OF CREDIT
LINE OF CREDIT | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | 4. LINE OF CREDIT The Company has a revolving line of credit with Wells Fargo Bank, N.A. in the amount of $ 67,500 9.5 52,932 54,112 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | 5. NOTES PAYABLE On April 19, 2019, the Company entered into an unsecured Promissory Note Payable with Charles O’Banon (“O’Banon”), a customer, in the amount of $ 32,205 623 14,048 6 17,305 23,534 On August 31, 2020, the Company entered into an agreement with John DuPriest (DuPriest), a former officer of Forta, in settlement pursuant to employment termination. The parties entered into an unsecured promissory note to DuPriest in the amount of $ 52,000 5 38,548 52,000 On February 2, 2021 Forta received a PPP loan in the amount of $ 422,900 1 The Company’s maturities of debt subsequent to September 30, 2021 are as follows: Schedule of debt maturities 2022 $ 45,412 2023 10,441 2024 0 2025 0 2026 422,900 Total debt $ 478,753 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | 6. ACCRUED EXPENSES Accrued expenses consist of the following at September 30: Schedule of accrued expenses 2021 2020 SAR Liability $ 61,763 $ 31,793 Accrued benefits 42,858 105,458 Commissions payable 80,588 16,783 State Tax liability – 3,165 Federal Tax liability – 3,355 Credit Cards – 12,798 Other Accounts payable 765,117 699,117 Accrued operating expenses 132,652 194,923 Total accrued expenses $ 1,082,979 $ 1,067,392 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 7. INCOME TAXES The Company elected C Corporation tax status from inception. Net operating losses (“NOL”) since that date total $ 6,259,594 The following table summarizes the difference between the actual tax provision and the amounts obtained by applying the statutory tax rates to the income or loss before income taxes for the years ended September 30: Schedule of Components of Income Tax Expense 2021 2020 Tax benefit calculated at statutory rate 21 21.00 Expense not deductible (19.3% ) (2.4% ) State tax, net of federal benefit – – Effect of rate change – – Changes to valuation allowance (1.7% ) (18.6% ) Provision for income taxes – – A deferred tax liability or asset is determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense or benefit in the accompanying consolidated statements of operations are the result of changes in the assets and liabilities for deferred taxes. The measurement of deferred tax assets is reduced, if necessary, by the amount for any tax benefits that, based on available evidence, are not expected to be realized. Income tax expense is the current tax payable or refundable for the year plus or minus the net change in the deferred tax assets and liabilities. Deferred income taxes of the Company arise from the temporary differences between financial statement and income tax recognition of NOL carry-forwards. The deferred tax assets and liabilities in the accompanying consolidated balance sheets include the following components at September 30: Schedule of deferred tax assets and liabilities 2021 2020 Net non-current deferred tax assets: Net operating loss carryforward $ 1,328,093 $ 1,314,515 Amortization (8,770 ) (7,221 ) Depreciation 5,625 4,329 Valuation allowance (1,324,949 ) (1,311,623 ) Net deferred taxes $ – $ – |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | 8. COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS Leases In February 2016, the FASB issued ASU 2016-02 Leases, which changed financial reporting as it relates to leasing transactions to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. In July 2018, the FASB issued ASU No. 2018-10 Codification Improvements to Topic 842, Leases and ASU No. 2018-11 Leases (Topic 842): Targeted Improvements. In March 2019, the FASB issued ASU No. 2019-1 Codification Improvements to Topic 842, Leases. The Company adopted these ASUs on October 1, 2019 on a modified retrospective basis. The Company did not elect the hindsight practical expedient and did elect the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases. The initial adoption of the standard recognized right-of-use assets of $ 323,097 337,454 The Company leases their office space through an operating lease in Denver, Colorado and Carmel, California, and non-material offices leases in Cincinnati, Ohio. The Denver lease agreement was amended in December 2020, extending the lease terms into 2024 and deferring some past due lease obligations over the amended lease term. The Carmel lease is for a term that ends in June of 2023. The Company previously had a lease for office space in Loveland, CO, which expired in August 2021, without renewal. Company’s lease agreements obligate the Company to pay real estate taxes, insurance, and certain maintenance costs, which are accounted for separately. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet as right-of-use assets and lease liabilities for the lease term. Lease assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at lease commencement date. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in general and administrative expenses. The Company terminated its lease in Allen Texas with the consent of the landlord. The termination agreement including a contingent stock issuance. Company will be issuing 188,000 shares of common stock to the landlord and the liability has been included in accrued expenses as of September 30, 2021. Total rent expense for the years ended September 30, 2021 and September 30, 2020 was $ 157,485 117,344 Forta assumed an existing lease in Carmel CA upon the merger with NCW/Vestus. The lease runs through June 2023. The total rent expense for the Carmel lease was $22,500 for the year ended September 30, 2021. There are renewal options at the end of this lease. At this time, renewal is uncertain. A discount rate of 6% was used in determining the lease asset and liability. Minimum future annual rental payments under non-cancelable operating leases having original terms in excess of one year are as follows (however, the Leases obligations have changed – see Subsequent Events): Schedule of Future Minimum Rental Payments for Operating Lease 2022 $ 184,244 2023 174,903 2024 82,896 Total 442,043 Rent Payable (90,941 ) Interest (25,001 ) Lease Liability $ 326,201 Cash paid for lease payments on the Denver and Carmel leases was approximately $ 55,000 6 2.17 Legal Proceedings From time to time, we are a party to or otherwise involved in legal proceedings, claims and other legal matters, arising in the ordinary course of our business or otherwise. During 2021, Forta had over 20 FINRA arbitrations that were pending. The claims arise from the sale to clients of alternative investments (REITs, Business Development Loan Funds, and Oil and Gas securities). Most of the claims arise from investments prior 2015. None of the registered representatives that recommended these alternative investments is currently associated with Forta. Many of the claims have been settled, and most of the remaining claims are in settlement discussions. The total amount of the currently pending claims (approximately $500,000) does not exceed the amount of insurance available. However, the Company cannot estimate the potential loss that may occur. (see Subsequent Events). |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | 9. STOCKHOLDERS’ EQUITY Common Stock The Company is authorized to issue up to 300,000,000 shares of common stock, par value $0.001 per share. Preferred Stock The Company and its subsidiaries does not have a preferred stock authorization in its articles of incorporation. Additional Common Stock Issuances During the year ended September 30, 2021, 8,000,000 382,932 75,757 116,375 41,607,315 |
STOCK OPTION PLAN
STOCK OPTION PLAN | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTION PLAN | 10. STOCK OPTION PLAN Effective February 27, 2015, the Company established the 2015 Stock Option Plan (the “2015 Plan”). The Board of Directors of the Company has the authority and discretion to grant stock options. The maximum number of shares of stock that may be issued and exercised under the Plan is 9,000,000 Effective November 22, 2016, the Company established the 2016 Stock Option Plan (the “2016 Plan”). The Board of Directors of the Company has the authority and discretion to grant stock options. The maximum number of shares of stock that may be issued and exercised under the Plan is 20,000,000 10 Schedule of option activity Shares under Option Value of Shares under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding - September 30, 2019 2,788,476 $ 550,455 $ 0.29 87 Granted 5,600,000 $ 1,361,200 $ 0.23 114 Exercised 116,375 $ 13,850 $ 0.09 93 Canceled or expired 1,299,405 $ 1,845,870 $ 0.27 – Outstanding - September 30, 2020 6,972,696 $ 550,455 $ 0.17 106 Granted 787,500 $ 1,361,200 $ 0.4 115 Exercised – $ – $ 0 Canceled or expired 500,000 $ 1,845,870 $ 0.44 4 Outstanding - September 30, 2021 7,260,196 $ 1,742,447 $ 0.24 95 Exercisable - September 30, 2021 2,877,693 $ 0.25 83 All outstanding 2015 Plan stock options at September 30, 2016 became immediately vested upon the completion of the reverse merger with Pacific Oil Company. The stock options granted under the 2016 Plan have 2 to 5 -year vesting periods. Total compensation expense included in salaries and wages of previously unamortized stock compensation was $ 128,430 80,275 225,254 2.5 Stock appreciation rights representing 1.9 million shares included in the table above are recorded as liability with an accrual of $ 61,763 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS Included in compensation expenses for TMN were consulting fees paid to a related party as a condition to the TMN acquisition. One agreement is with Tax Tuneup, LLC which is owned by Ed Lyon, the CEO of TMN. Through this arrangement, Tax Tuneup, LLC provides consulting services to TMN, including updating of the tax strategies to comply with tax law and rules. The payments each month are $16,500. The total paid under this agreement in fiscal 2021 and 2020 respectively, were $ 258,000 253,000 On April 12, 2019 2.76 2,520 5,296 5,152 50,750 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS Forta has settled most of the pending FINRA claims. The total of the outstanding claims that are still pending against Forta is approximately $500,000. There is adequate insurance to cover each of the remaining claims. There is one uninsured claim, but Forta’s role was as a finder, Forta owed no duties to the claimant, and there is no basis for liability. Forta violated FINRA net capital rules in November 2021. Prior to the net cap violation, Forta discontinued all securities operations. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of Financial Gravity Companies, FGAM, FGEM, TMN and Forta, FGFOS (collectively referred to as the “Company”). All significant intercompany accounts and transactions have been eliminated on consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an initial maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash balances at several financial institutions located throughout the United States, which at times may exceed insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Prepaid Expenses | Prepaid Expenses Prepaid expenses consist of expenses the Company has paid for prior to the service or good being provided. These prepaid expenses will be recorded as expense at the time the service has been provided. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to earnings over their estimated service lives by the straight-line method. Maintenance and repairs are charged to earnings as incurred; major repairs and replacements are capitalized. When items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operations. |
Proprietary Content | Proprietary Content The proprietary content acquired as a part of the TMN purchase has been recognized in the accompanying consolidated balance sheets at $ 525,100 57,868 114,955 443,142 377,505 Future amortization of proprietary content is estimated to be as follows for the years ended September 30: Schedule of future amortization 2022 65,817 2023 16,141 Future amortization $ 81,958 |
Intellectual Property | Intellectual Property The Company accounts for intellectual property in accordance with GAAP and accordingly, intellectual property are stated at cost. Intellectual property with indefinite lives are not amortized but are tested for impairment at least annually. Management has determined that the intellectual property have an indefinite life and do not consider the value of intellectual property recorded in the accompanying consolidated balance sheet to be impaired as of September 30, 2021 and 2020. |
Goodwill | Goodwill The Company conducts ongoing annual impairment assessments, at the reporting unit level, of its recorded goodwill. The Company assesses qualitative factors in order to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The qualitative factors evaluated by the Company include: macroeconomic conditions of the local business environment, overall financial performance, and other entity specific factors as deemed appropriate. If, through this qualitative assessment, the As such, Management has written off the full amount, $ 7,380,603 Goodwill consists of the following: Schedule of goodwill September 30, September 30, 2021 2020 Net TMN Goodwill $ 1,094,702 $ 1,094,702 Forta Goodwill (Net NCW Transaction) 2,082,065 – Company Goodwill (Forta Transaction) – 7,380,603 Total Goodwill $ 3,176,767 $ 8,475,305 |
Income Taxes | Income Taxes The Company accounts for Federal and state income taxes pursuant to GAAP, which requires an asset and liability approach for financial accounting and reporting for income taxes based on tax effects of differences between the financial statement and tax basis of assets and liabilities. The Company accounts for all uncertain tax positions in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740 – Income Taxes (“ASC 740”). ASC 740 provides guidance on de-recognition, classification, interest and penalties and disclosure related to uncertain income tax positions. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no uncertain tax positions or accrued interest or penalties as of September 30, 2021 and 2020. From time to time, the Company is audited by taxing authorities. These audits could result in proposed assessments of additional taxes. The Company believes that its tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes. The Company’s Federal returns since 2017 are still subject for examination by taxing authorities. |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding for the reporting period. Average number of common shares were 84,951,745 57,138,793 For the years ended September 30, 2021 and 2020, approximately 6,712,888 6,972,696 0 0 |
Revenue Recognition | Revenue Recognition The Company adopted the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates (“ASU”) ASU 2014-09, Revenue from Contracts with Customers October 1, 2019 on a modified basis. As the initial adoption of the standard did not have a material impact on the Company's financial condition or results of operations, no cumulative effect was recognized at the date of initial application. The Company also had no significant changes to systems, processes, or controls. The Company derives its revenues primarily from the following activities: Investment Management Fees, Securities Brokerage Commissions, Tax Master Network subscriptions, Tax Operating System subscriptions, Financial Advisor subscriptions, Tax BluePrint sales, and Insurance Sales. Investment management fees are recognized as services are provided by the Company. Investment management fees include fees earned from assets under management by providing professional services to manage clients’ investments. Fees are generally paid quarterly, in advance, for each quarter or monthly in arrears. Revenues are earned over the period in which the service is provided, which is typically monthly. The Company generates services income which is recognized when consulting and other professional services are performed by the Company (primarily from TMN and FGEM). Income is recognized as services are delivered. Revenue represents gross billings less discounts, and are net of sales taxes, as applicable. Amounts invoiced for work not yet completed are shown as contract liabilities in the accompanying consolidated balance sheets. Accrued revenues are recorded for investment management fees that are paid in arrears. The allowance for doubtful accounts was $ 0 0 In the normal course of business, the Company extends credit on an unsecured basis to its customers, substantially all of whom are located in the United States of America. The Company does not believe that it is exposed to any significant risk of loss on accounts receivable. FGAM generates investment management fees for services provided by the Company. Investment management fees include fees earned from assets under management by providing professional services to manage client investments. Revenue is recognized as earned, at the end of each monthly period. Forta generates commission revenue from the sale of annuities and premiums on life insurance policies held by third parties. Commission revenue is derived from the sale of annuities and premiums on life insurance policies. The revenue is recognized when commissions are earned from when it is determined that insurance products are sold. Commissions are received after products are sold, issued or in force. FGEM generates revenue from insurance marketing services for insurance agents, including sourcing of insurance policies through selling agreements. Revenue is recognized when the policies have been accepted by the issuer and it is probable the commission will be received. Tax Master Network has five levels of network subscription services that are charged and collected on a month-to-month basis. None of these programs come with a long-term commitment or contract, and there is no up-front payment beyond the monthly subscription fee. Cancellations are processed within the month requested and memberships are closed at the end of the period for which the most recent payment was made. Members are not entitled to refunds for unused memberships. Any subscription fees paid for a future period are deferred in the financial statements. TMN also sells Tax Blueprint®. These are tax planning strategies guides, to save customers taxes through the implementation of the recommended tax strategies. After an initial assessment, the customers pay half of the year one tax savings. A contract liability is recognized when the customer payment is received. Revenue is deferred until the customer reviews and accepts the final Tax Blueprint® document and returns an executed delivery agreement. The Company received revenue from FGAM’s operations that are primarily from investment management fees, including money management fees. Investment management fees are based upon a percentage of assets under management and totaled $ 2,076,383 1,352,975 1,255,457 140,420 The Company received revenue from Forta’s operations during fiscal year 2021 and from (the date of the merger) from the following sources from May 21, 2020 through fiscal year ending September 30, 2020 including: Schedule of revenues from operations 2021 2020 Investment Advisory fees $ 1,774,561 $ 757,290 Commission-based transactions 963,297 436,024 Insurance and Other Service Revenue 91,628 77,024 Total Revenue from contracts with customers 2,829,486 1,270,339 Other service fee revenue 65,578 0 Total revenue $ 2,895,064 $ 1,270,339 The Company received revenue from TMN’s operations from the following sources during the fiscal year ending September 30, 2021 and 2020 including: 2021 2020 TMN membership subscriptions $ 857,699 $ 733,838 Tax Blueprints 255,000 224,000 Commissions/Referrals 51,657 60,174 Total $ 1,164,356 $ 1,018,012 The Company received revenue from FGEM’s operations from insurance sales of $ 536,990 73,882 |
Advertising | Advertising Marketing costs are charged to operations when incurred. Marketing expenses were $ 77,858 125,161 |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the fair value of stock-based compensation awards as wages in the accompanying statements of operations for employee grants, commissions for non-employee grants, and stock appreciation rights grants, on a straight-line basis over the vesting period, using the Black-Scholes option pricing model, which is based on risk-free rate of 0.88339 1.3171 0 10 87.6769 159 |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The estimate of potential losses resulting from the Forta FINRA arbitration claims may change materially in the near term. |
Going Concern | Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the Company will need to manage additional asset units under contract and/or additional financing to fully implement its business plan, including continued growth and establishment of a stronger brand. For the year ended September 30, 2021, the Company reported $ 6,672,793 7,423,081 487,071 14,413,871 On May 8, 2020, the Company received a PPP loan in the amount of $ 283,345 377,700 422,900 1 Company’s plans for expansion include attracting additional clients through marketing efforts with its current and future brokerage, investment management and insurance agent representatives, as well as increasing the TMN membership and the investment advisory activity of the members to increase assets under management and Company’s revenue. Future growth plans will include efforts to increase advisory headcount through recruiting of individuals advisors and groups of advisors. There is no guaranty that the Company will achieve these objectives. |
Future Accounting Pronouncements | Future Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses, which amends how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, which applies to trade accounts receivable and the calculation of the allowance for uncollectible accounts receivable. The new standard will become effective for the Company for fiscal years beginning after December 31, 2019, with early adoption permitted. In November of 2019, the FASB issued ASU 2019-10 Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which deferred the effective date of ASU Topic No. 2016-13 to fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of the adoption of this accounting guidance will have on the consolidated financial statements. Since the Company currently uses an expected loss from customers method, the Company does not anticipate the adoption of ASU 2016-13 will have a material impact on the Company's financial condition or results of operations. In January 2017, the FASB issued ASU No. 2017-04 Intangibles-Goodwill and Other Simplifying the Test for Goodwill Impairment, which provides guidance to simplify the subsequent measurement of goodwill by eliminating the Step 2 procedure from the goodwill impairment test. The new guidance is effective for the Company beginning October 1, 2023. The Company does not anticipate the adoption of ASU 2017-04 will have a material impact on the Company's financial condition or results of operations conclusion is made that it is more likely than not that a reporting unit’s fair value is less than its carrying amount, an impairment test is performed. Management determined, by assessing the qualitative factors, that it is more likely than not that the fair value of the Forta reporting unit is less than its carrying value and that the goodwill associated with the Forta reporting unit has been fully impaired. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Eliminations FGC FGT (A) Forta (B) FGEM FGAM TMN TOTAL Ordinary Income/Expense Income Broker Dealer $ – $ 0 $ 0 $ 436,024 $ 0 $ 0 $ 0 $ 436,024 Service Income – 70 69,721 77,024 73,882 42,902 1,018,012 1,281,611 Investment Management Fees (140,420 ) 0 0 757,290 0 1,352,975 0 1,969,845 Income from Inv in Subsidiaries (73,660 ) 73,660 0 0 0 0 0 0 Total Income (214,080 ) 73,730 69,721 1,270,339 73,882 1,395,877 1,018,012 3,687,480 Gross Profit (214,080 ) 73,730 69,721 1,270,339 73,882 1,395,877 1,018,012 3,687,480 Expense Compensation Expense (140,420 ) 1,530,836 (78 ) 808,670 1,972 641,566 343,759 3,186,305 Cost of services – (2,773 ) 4,410 33,784 0 0 37,651 73,071 Depreciation & Amortization – 152,173 0 64 0 0 14,350 166,586 General and Administrative – 267,623 1,620 275,497 8,221 30,227 89,596 672,784 Marketing – 85,111 2,411 20,568 3,300 658 13,112 125,161 Professional Services – 276,761 0 93,095 456 2,055 2,997 375,363 Total Expense (140,420 ) 2,309,731 8,363 1,231,678 13,949 674,505 501,465 4,599,270 Net Ordinary Income (73,660 ) (2,236,000 ) 61,358 38,661 59,933 721,372 516,547 (911,790 Other Income/Expense Other Income – 129,800 0 0 0 0 0 129,800 Other Expense – 44,738 0 (34,999 ) 0 0 (55 ) 9,685 Net Other Income – 85,062 0 34,999 0 0 55 120,116 Net Income/(Loss) $ (73,660 ) $ (2,150,939 ) $ 61,358 $ 73,660 $ 59,933 $ 721,372 $ 516,602 $ (791,675 ) CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended September 30, 2021 Eliminations FGC Forta FGAM FGFOS FGEM TMN TOTAL Ordinary Income/Expense Income $ – $ – $ – $ – $ – $ – $ – $ – Broker Dealer – – 963,297 – – – – 963,297 Service Income – – 157,206 1,406 – 536,990 1,164,356 1,859,958 Investment Management Fees (233,391 ) 233,391 1,774,561 2,074,977 – – – 3,849,538 Income from Inv in Subsidiaries (233,391 ) 233,391 2,895,064 2,076,383 – 536,990 1,164,356 6,672,793 Total Income (233,391 ) 233,391 2,895,064 2,076,383 – 536,990 1,164,356 6,672,793 Gross Profit – Expense – – Compensation Expense – 1,834,413 2,436,523 772,103 – 131,300 366,500 5,540,839 Cost of services – – 55,858 11,074 – – 39,698 106,630 Depreciation & Amortization – 65,290 486 – – – 45,276 111,052 General and Administrative – 258,195 732,158 19,781 11,259 22,069 98,108 1,141,570 Marketing – 25,459 17,854 132 – 1,816 32,597 77,858 Professional Services – 225,504 119,474 10,016 – 960 40,801 396,755 Total Expense – 2,408,861 3,362,353 813,106 11,259 156,145 622,979 7,374,703 Net Ordinary Income (233,391 ) (2,175,470 ) (467,290 ) 1,263,277 (11,259 ) 380,845 541,378 (701,910 ) Other Income/Expense Debt Forgiveness – 283,345 377,700 – – – – 661,045 Goodwill Impairment – 7,380,603 – – – – – 7,380,603 Other Expense – (1,325 ) 2,938 – – – – 1,613 Net Other Income – (7,095,933 ) 374,762 – – – – (6,721,171 ) Net Income/(Loss) $ (233,391 ) $ (9,271,403 ) $ (92,527 ) $ 1,263,277 $ (11,259 ) $ 380,845 $ 541,378 $ (7,423,081 ) |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Assets Acquired and Liabilities Assumed | Assets Acquired and Liabilities Assumed PURCHASE PRICE $ 7,652,415 ASSETS Current Assets Cash 710,154 Accounts Receivable 20,882 Other Current Assets 135,056 Total Current Assets 866,093 Other Assets 582,330 TOTAL ASSETS 1,448,423 LIABILITIES – Liabilities – Current Liabilities – Total Accounts Payable 18,215 Total Other Current Liabilities 710,131 Total Current Liabilities 728,346 Long-Term Liabilities – Total Long-Term Liabilities 448,265 TOTAL LIABILITIES 1,176,611 Goodwill $ 7,380,603 |
UNAUDITED PRO FORMA COMBINED _2
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Pro Forma financial information | Pro Forma financial information Financial Gravity Forta Combined REVENUE Investment management fees $ 1,969,845 $ 987,942 $ 2,957,787 Service income 1,281,611 – 1,281,611 Commissions 436,024 1,419,031 1,855,055 Total revenue 3,687,480 2,406,972 6,094,452 OPERATING EXPENSES Cost of services 73,071 137,310 210,381 Professional services 375,363 100,000 475,363 Depreciation and amortization 166,586 – 166,586 General and administrative 672,784 474,443 1,147,227 Marketing 125,161 50,000 175,161 Salaries and wages 3,186,305 1,514,254 4,700,559 Total operating expenses 4,599,270 2,276,008 6,875,278 Net operating loss (911,790 ) 130,964 (780,826 ) Interest Expense 9,685 – 9,685 NET INCOME/(LOSS) $ (921,475 ) $ 130,964 $ (790,511 ) |
Schedule Of Purchase Price | Schedule Of Purchase Price PURCHASE PRICE 2,082,065 TOTAL ASSETS (A) – TOTAL LIABILITIES – Goodwill 2,082,065 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of future amortization | Schedule of future amortization 2022 65,817 2023 16,141 Future amortization $ 81,958 |
Schedule of goodwill | Schedule of goodwill September 30, September 30, 2021 2020 Net TMN Goodwill $ 1,094,702 $ 1,094,702 Forta Goodwill (Net NCW Transaction) 2,082,065 – Company Goodwill (Forta Transaction) – 7,380,603 Total Goodwill $ 3,176,767 $ 8,475,305 |
Schedule of revenues from operations | Schedule of revenues from operations 2021 2020 Investment Advisory fees $ 1,774,561 $ 757,290 Commission-based transactions 963,297 436,024 Insurance and Other Service Revenue 91,628 77,024 Total Revenue from contracts with customers 2,829,486 1,270,339 Other service fee revenue 65,578 0 Total revenue $ 2,895,064 $ 1,270,339 The Company received revenue from TMN’s operations from the following sources during the fiscal year ending September 30, 2021 and 2020 including: 2021 2020 TMN membership subscriptions $ 857,699 $ 733,838 Tax Blueprints 255,000 224,000 Commissions/Referrals 51,657 60,174 Total $ 1,164,356 $ 1,018,012 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Schedule of property and equipment Estimated Service Lives 2021 2020 Furniture, fixtures and equipment 2 to 5 years $ 61,554 $ 407,580 Internally developed software 5 years 152,000 152,000 213,554 559,580 Less accumulated depreciation and amortization (175,031 ) (477,868 ) $ 38,523 $ 81,712 |
INTELLECTUAL PROPERTY (Tables)
INTELLECTUAL PROPERTY (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intellectual property | Schedule of intellectual property Trademarks at September 30, 2021 $ 53,170 Trademarks at September 30, 2020 $ 53,170 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt maturities | Schedule of debt maturities 2022 $ 45,412 2023 10,441 2024 0 2025 0 2026 422,900 Total debt $ 478,753 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Schedule of accrued expenses 2021 2020 SAR Liability $ 61,763 $ 31,793 Accrued benefits 42,858 105,458 Commissions payable 80,588 16,783 State Tax liability – 3,165 Federal Tax liability – 3,355 Credit Cards – 12,798 Other Accounts payable 765,117 699,117 Accrued operating expenses 132,652 194,923 Total accrued expenses $ 1,082,979 $ 1,067,392 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Schedule of Components of Income Tax Expense 2021 2020 Tax benefit calculated at statutory rate 21 21.00 Expense not deductible (19.3% ) (2.4% ) State tax, net of federal benefit – – Effect of rate change – – Changes to valuation allowance (1.7% ) (18.6% ) Provision for income taxes – – |
Schedule of deferred tax assets and liabilities | Schedule of deferred tax assets and liabilities 2021 2020 Net non-current deferred tax assets: Net operating loss carryforward $ 1,328,093 $ 1,314,515 Amortization (8,770 ) (7,221 ) Depreciation 5,625 4,329 Valuation allowance (1,324,949 ) (1,311,623 ) Net deferred taxes $ – $ – |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Lease | Schedule of Future Minimum Rental Payments for Operating Lease 2022 $ 184,244 2023 174,903 2024 82,896 Total 442,043 Rent Payable (90,941 ) Interest (25,001 ) Lease Liability $ 326,201 |
STOCK OPTION PLAN (Tables)
STOCK OPTION PLAN (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of option activity | Schedule of option activity Shares under Option Value of Shares under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding - September 30, 2019 2,788,476 $ 550,455 $ 0.29 87 Granted 5,600,000 $ 1,361,200 $ 0.23 114 Exercised 116,375 $ 13,850 $ 0.09 93 Canceled or expired 1,299,405 $ 1,845,870 $ 0.27 – Outstanding - September 30, 2020 6,972,696 $ 550,455 $ 0.17 106 Granted 787,500 $ 1,361,200 $ 0.4 115 Exercised – $ – $ 0 Canceled or expired 500,000 $ 1,845,870 $ 0.44 4 Outstanding - September 30, 2021 7,260,196 $ 1,742,447 $ 0.24 95 Exercisable - September 30, 2021 2,877,693 $ 0.25 83 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 4 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Total Income | $ 6,672,793 | $ 3,687,480 | |
Income from Inv in Subsidiaries | 6,672,793 | 0 | |
Total Income | 6,672,793 | 3,687,480 | |
Gross Profit | 0 | 3,687,480 | |
Expense | |||
Compensation Expense | 5,540,839 | 3,186,305 | |
Cost of services | 106,630 | 73,071 | |
Depreciation & Amortization | 111,052 | 166,586 | |
General and Administrative | 1,141,570 | 672,784 | |
Marketing | 77,858 | 125,161 | |
Professional Services | 396,755 | 375,363 | |
Total Expense | 7,374,703 | 4,599,270 | |
Net Ordinary Income | (701,910) | (911,790) | |
Other Income/Expense | |||
Debt Forgiveness | 661,045 | 0 | |
Goodwill Impairment | 7,380,603 | 0 | |
Other Income | 129,800 | ||
Other Expense | 1,613 | 9,685 | |
Net Other Income | (6,721,171) | 120,116 | |
Net Income/(Loss) | (7,423,081) | (791,675) | |
Broker Dealer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 963,297 | 436,024 | |
Service Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 1,859,958 | 1,281,611 | |
Investment Mgmt Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 3,849,538 | 1,969,845 | |
Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Companies [Member] | |||
Segment Reporting Information [Line Items] | |||
Income from Inv in Subsidiaries | 233,391 | 73,660 | |
Total Income | 233,391 | 73,730 | |
Gross Profit | 73,730 | ||
Expense | |||
Compensation Expense | 1,834,413 | 1,530,836 | |
Cost of services | 0 | (2,773) | |
Depreciation & Amortization | 65,290 | 152,173 | |
General and Administrative | 258,195 | 267,623 | |
Marketing | 25,459 | 85,111 | |
Professional Services | 225,504 | 276,761 | |
Total Expense | 2,408,861 | 2,309,731 | |
Net Ordinary Income | (2,175,470) | (2,236,000) | |
Other Income/Expense | |||
Debt Forgiveness | 283,345 | ||
Goodwill Impairment | 7,380,603 | ||
Other Income | 129,800 | ||
Other Expense | (1,325) | 44,738 | |
Net Other Income | (7,095,933) | 85,062 | |
Net Income/(Loss) | (9,271,403) | (2,150,939) | |
Financial Gravity Companies [Member] | Broker Dealer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Total Income | 0 | ||
Financial Gravity Companies [Member] | Service Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 70 | ||
Total Income | 0 | ||
Financial Gravity Companies [Member] | Investment Mgmt Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Total Income | 233,391 | ||
Financial Gravity Companies [Member] | Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Tax [Member] | |||
Segment Reporting Information [Line Items] | |||
Income from Inv in Subsidiaries | 0 | ||
Total Income | 69,721 | ||
Gross Profit | 69,721 | ||
Expense | |||
Compensation Expense | (78) | ||
Cost of services | 4,410 | ||
Depreciation & Amortization | 0 | ||
General and Administrative | 1,620 | ||
Marketing | 2,411 | ||
Professional Services | 0 | ||
Total Expense | 8,363 | ||
Net Ordinary Income | 61,358 | ||
Other Income/Expense | |||
Other Income | 0 | ||
Other Expense | 0 | ||
Net Other Income | 0 | ||
Net Income/(Loss) | 61,358 | ||
Financial Gravity Tax [Member] | Broker Dealer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Tax [Member] | Service Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 69,721 | ||
Financial Gravity Tax [Member] | Investment Mgmt Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Forta Financial Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | $ 1,270,339 | 2,895,064 | |
Income from Inv in Subsidiaries | 2,895,064 | 0 | |
Total Income | 2,895,064 | 1,270,339 | |
Gross Profit | 1,270,339 | ||
Expense | |||
Compensation Expense | 2,436,523 | 808,670 | |
Cost of services | 55,858 | 33,784 | |
Depreciation & Amortization | 486 | 64 | |
General and Administrative | 732,158 | 275,497 | |
Marketing | 17,854 | 20,568 | |
Professional Services | 119,474 | 93,095 | |
Total Expense | 3,362,353 | 1,231,678 | |
Net Ordinary Income | (467,290) | 38,661 | |
Other Income/Expense | |||
Debt Forgiveness | 377,700 | ||
Goodwill Impairment | 0 | ||
Other Income | 0 | ||
Other Expense | 2,938 | (34,999) | |
Net Other Income | 374,762 | 34,999 | |
Net Income/(Loss) | (92,527) | 73,660 | |
Forta Financial Group [Member] | Broker Dealer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 963,297 | 436,024 | |
Forta Financial Group [Member] | Service Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 157,206 | 77,024 | |
Forta Financial Group [Member] | Investment Mgmt Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 1,774,561 | 757,290 | |
Forta Financial Group [Member] | Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Enhanced Markets [Member] | |||
Segment Reporting Information [Line Items] | |||
Income from Inv in Subsidiaries | 536,990 | 0 | |
Total Income | 536,990 | 73,882 | |
Gross Profit | 73,882 | ||
Expense | |||
Compensation Expense | 131,300 | 1,972 | |
Cost of services | 0 | 0 | |
Depreciation & Amortization | 0 | 0 | |
General and Administrative | 22,069 | 8,221 | |
Marketing | 1,816 | 3,300 | |
Professional Services | 960 | 456 | |
Total Expense | 156,145 | 13,949 | |
Net Ordinary Income | 380,845 | 59,933 | |
Other Income/Expense | |||
Debt Forgiveness | 0 | ||
Goodwill Impairment | 0 | ||
Other Income | 0 | ||
Other Expense | 0 | 0 | |
Net Other Income | 0 | 0 | |
Net Income/(Loss) | 380,845 | 59,933 | |
Financial Gravity Enhanced Markets [Member] | Broker Dealer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | 0 | |
Financial Gravity Enhanced Markets [Member] | Service Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 536,990 | 73,882 | |
Financial Gravity Enhanced Markets [Member] | Investment Mgmt Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | 0 | |
Financial Gravity Enhanced Markets [Member] | Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Asset Management [Member] | |||
Segment Reporting Information [Line Items] | |||
Income from Inv in Subsidiaries | 2,076,383 | 0 | |
Total Income | 2,076,383 | 1,395,877 | |
Gross Profit | 1,395,877 | ||
Expense | |||
Compensation Expense | 772,103 | 641,566 | |
Cost of services | 11,074 | 0 | |
Depreciation & Amortization | 0 | 0 | |
General and Administrative | 19,781 | 30,227 | |
Marketing | 132 | 658 | |
Professional Services | 10,016 | 2,055 | |
Total Expense | 813,106 | 674,505 | |
Net Ordinary Income | 1,263,277 | 721,372 | |
Other Income/Expense | |||
Debt Forgiveness | 0 | ||
Goodwill Impairment | 0 | ||
Other Income | 0 | ||
Other Expense | 0 | 0 | |
Net Other Income | 0 | 0 | |
Net Income/(Loss) | 1,263,277 | 721,372 | |
Financial Gravity Asset Management [Member] | Broker Dealer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Asset Management [Member] | Service Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 1,406 | 42,902 | |
Financial Gravity Asset Management [Member] | Investment Mgmt Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 2,074,977 | 1,352,975 | |
Financial Gravity Asset Management [Member] | Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Tax Masters Network [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 1,164,356 | 1,018,012 | |
Income from Inv in Subsidiaries | 1,164,356 | 0 | |
Total Income | 1,164,356 | 1,018,012 | |
Gross Profit | 1,018,012 | ||
Expense | |||
Compensation Expense | 366,500 | 343,759 | |
Cost of services | 39,698 | 37,651 | |
Depreciation & Amortization | 45,276 | 14,350 | |
General and Administrative | 98,108 | 89,596 | |
Marketing | 32,597 | 13,112 | |
Professional Services | 40,801 | 2,997 | |
Total Expense | 622,979 | 501,465 | |
Net Ordinary Income | 541,378 | 516,547 | |
Other Income/Expense | |||
Debt Forgiveness | 0 | ||
Goodwill Impairment | 0 | ||
Other Income | 0 | ||
Other Expense | 0 | (55) | |
Net Other Income | 0 | 55 | |
Net Income/(Loss) | 541,378 | 516,602 | |
Tax Masters Network [Member] | Broker Dealer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | 0 | |
Tax Masters Network [Member] | Service Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 1,164,356 | 1,018,012 | |
Tax Masters Network [Member] | Investment Mgmt Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | 0 | |
Tax Masters Network [Member] | Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Family Office Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Income from Inv in Subsidiaries | 0 | ||
Total Income | 0 | ||
Expense | |||
Compensation Expense | 0 | ||
Cost of services | 0 | ||
Depreciation & Amortization | 0 | ||
General and Administrative | 11,259 | ||
Marketing | 0 | ||
Professional Services | 0 | ||
Total Expense | 11,259 | ||
Net Ordinary Income | (11,259) | ||
Other Income/Expense | |||
Debt Forgiveness | 0 | ||
Goodwill Impairment | 0 | ||
Other Expense | 0 | ||
Net Other Income | 0 | ||
Net Income/(Loss) | (11,259) | ||
Financial Gravity Family Office Services [Member] | Broker Dealer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Family Office Services [Member] | Service Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Family Office Services [Member] | Investment Mgmt Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Financial Gravity Family Office Services [Member] | Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | ||
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Income from Inv in Subsidiaries | (233,391) | (73,660) | |
Total Income | (233,391) | (214,080) | |
Gross Profit | (214,080) | ||
Expense | |||
Compensation Expense | 0 | (140,420) | |
Cost of services | 0 | 0 | |
Depreciation & Amortization | 0 | 0 | |
General and Administrative | 0 | 0 | |
Marketing | 0 | 0 | |
Professional Services | 0 | 0 | |
Total Expense | 0 | (140,420) | |
Net Ordinary Income | (233,391) | (73,660) | |
Other Income/Expense | |||
Debt Forgiveness | 0 | ||
Goodwill Impairment | 0 | ||
Other Income | 0 | ||
Other Expense | 0 | 0 | |
Net Other Income | 0 | 0 | |
Net Income/(Loss) | (233,391) | (73,660) | |
Intersegment Eliminations [Member] | Broker Dealer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | 0 | |
Intersegment Eliminations [Member] | Service Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | 0 | 0 | |
Intersegment Eliminations [Member] | Investment Mgmt Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | (233,391) | $ (140,420) | |
Intersegment Eliminations [Member] | Income [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Income | $ 0 |
BUSINESS ACQUISITION (Details -
BUSINESS ACQUISITION (Details - Assets Acquired and Liabilities Assumed) - USD ($) | 8 Months Ended | |||
May 21, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | May 21, 2020 | |
Long-Term Liabilities | ||||
Goodwill | $ 3,176,767 | $ 8,475,305 | $ 7,380,603 | |
Forta Financial Group [Member] | ||||
Business Acquisition [Line Items] | ||||
PURCHASE PRICE | $ 7,652,415 | |||
Current Assets | ||||
Cash | 710,154 | |||
Accounts Receivable | 20,882 | |||
Other Current Assets | 135,056 | |||
Total Current Assets | 866,093 | |||
Other Assets | 582,330 | |||
TOTAL ASSETS | 1,448,423 | |||
Current Liabilities | ||||
Total Accounts Payable | 18,215 | |||
Total Other Current Liabilities | 710,131 | |||
Total Current Liabilities | 728,346 | |||
Long-Term Liabilities | ||||
Total Long-Term Liabilities | 448,265 | |||
TOTAL LIABILITIES | 1,176,611 | |||
Goodwill | $ 7,380,603 | $ 0 | $ 7,380,603 |
BUSINESS ACQUISITION (Details N
BUSINESS ACQUISITION (Details Narrative) - USD ($) | 8 Months Ended | 12 Months Ended | |||
May 21, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | May 21, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | |||||
Cash | $ 700,000 | ||||
Notes payable | $ 52,000 | ||||
Goodwill | 3,176,767 | $ 8,475,305 | $ 7,380,603 | ||
Forta Financial Group [Member] | |||||
Business Acquisition [Line Items] | |||||
Forta stock received | 45,785,879 | ||||
Stock to be issued for acquisition, value | $ 699,117 | ||||
Stock to be issued for acquisition | 4,178,564 | ||||
PURCHASE PRICE | $ 7,652,415 | ||||
Goodwill | $ 7,380,603 | $ 0 | $ 7,380,603 |
UNAUDITED PRO FORMA COMBINED _3
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS (Details - Unaudited Pro Forma Condensed Combined Statement Of Operations) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING EXPENSES | ||
Salaries and wages | $ 5,540,839 | $ 3,186,305 |
Financial Gravity [Member] | ||
REVENUE | ||
Total revenue | 3,687,480 | |
OPERATING EXPENSES | ||
Cost of services | 73,071 | |
Professional services | 375,363 | |
Depreciation and amortization | 166,586 | |
General and administrative | 672,784 | |
Marketing | 125,161 | |
Salaries and wages | 3,186,305 | |
Total operating expenses | 4,599,270 | |
Net operating loss | (911,790) | |
Interest Expense | 9,685 | |
NET INCOME/(LOSS) | (921,475) | |
Financial Gravity [Member] | Investment Mgmt Fees [Member] | ||
REVENUE | ||
Total revenue | 1,969,845 | |
Financial Gravity [Member] | Service Income [Member] | ||
REVENUE | ||
Total revenue | 1,281,611 | |
Financial Gravity [Member] | Commissions [Member] | ||
REVENUE | ||
Total revenue | 436,024 | |
Forta Financial Group [Member] | ||
REVENUE | ||
Total revenue | 2,406,972 | |
OPERATING EXPENSES | ||
Cost of services | 137,310 | |
Professional services | 100,000 | |
Depreciation and amortization | 0 | |
General and administrative | 474,443 | |
Marketing | 50,000 | |
Salaries and wages | 1,514,254 | |
Total operating expenses | 2,276,008 | |
Net operating loss | 130,964 | |
Interest Expense | 0 | |
NET INCOME/(LOSS) | 130,964 | |
Forta Financial Group [Member] | Investment Mgmt Fees [Member] | ||
REVENUE | ||
Total revenue | 987,942 | |
Forta Financial Group [Member] | Service Income [Member] | ||
REVENUE | ||
Total revenue | 0 | |
Forta Financial Group [Member] | Commissions [Member] | ||
REVENUE | ||
Total revenue | 1,419,031 | |
Combined [Member] | ||
REVENUE | ||
Total revenue | 6,094,452 | |
OPERATING EXPENSES | ||
Cost of services | 210,381 | |
Professional services | 475,363 | |
Depreciation and amortization | 166,586 | |
General and administrative | 1,147,227 | |
Marketing | 175,161 | |
Salaries and wages | 4,700,559 | |
Total operating expenses | 6,875,278 | |
Net operating loss | (780,826) | |
Interest Expense | 9,685 | |
NET INCOME/(LOSS) | (790,511) | |
Combined [Member] | Investment Mgmt Fees [Member] | ||
REVENUE | ||
Total revenue | 2,957,787 | |
Combined [Member] | Service Income [Member] | ||
REVENUE | ||
Total revenue | 1,281,611 | |
Combined [Member] | Commissions [Member] | ||
REVENUE | ||
Total revenue | $ 1,855,055 |
UNAUDITED PRO FORMA COMBINED _4
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS (Details - Purchase Price) - USD ($) | 10 Months Ended | ||||
Aug. 02, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | May 21, 2020 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill | $ 3,176,767 | $ 8,475,305 | $ 7,380,603 | ||
NCW Group [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
PURCHASE PRICE | $ 2,082,065 | ||||
TOTAL ASSETS (A) | [1] | 0 | |||
TOTAL LIABILITIES | 0 | ||||
Goodwill | $ 2,082,065 | $ 2,082,065 | $ 0 | ||
[1] | NCW's client accounts and related assets were transferred to Forta prior to the closing of the merger. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Amortization) | Sep. 30, 2021USD ($) |
Accounting Policies [Abstract] | |
2022 | $ 65,817 |
2023 | 16,141 |
Future amortization | $ 81,958 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Goodwill) - USD ($) | Sep. 30, 2021 | Aug. 02, 2021 | May 21, 2021 | Sep. 30, 2020 | May 21, 2020 |
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill | $ 3,176,767 | $ 8,475,305 | $ 7,380,603 | ||
Tax Masters Network [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill | 1,094,702 | 1,094,702 | |||
NCW Group [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill | 2,082,065 | $ 2,082,065 | 0 | ||
Forta Financial Group [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill | $ 0 | $ 7,380,603 | $ 7,380,603 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Revenues from Forta) - USD ($) | 4 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Product Information [Line Items] | |||
Revenues | $ 6,672,793 | $ 3,687,480 | |
Forta Financial Group [Member] | |||
Product Information [Line Items] | |||
Revenues | $ 1,270,339 | 2,895,064 | |
Forta Financial Group [Member] | Customer [Member] | |||
Product Information [Line Items] | |||
Revenues | 1,270,339 | 2,829,486 | |
Forta Financial Group [Member] | Investment Advisory Fees [Member] | |||
Product Information [Line Items] | |||
Revenues | 757,290 | 1,774,561 | |
Forta Financial Group [Member] | Commission Based Transactions [Member] | |||
Product Information [Line Items] | |||
Revenues | 436,024 | 963,297 | |
Forta Financial Group [Member] | Insurance And Other Service Revenue [Member] | |||
Product Information [Line Items] | |||
Revenues | 77,024 | 91,628 | |
Forta Financial Group [Member] | Other Service Fee Revenue [Member] | |||
Product Information [Line Items] | |||
Revenues | $ 0 | 65,578 | |
Tax Masters Network [Member] | |||
Product Information [Line Items] | |||
Revenues | 1,164,356 | 1,018,012 | |
Tax Masters Network [Member] | Subscriptions [Member] | |||
Product Information [Line Items] | |||
Revenues | 857,699 | 733,838 | |
Tax Masters Network [Member] | Tax Blueprints [Member] | |||
Product Information [Line Items] | |||
Revenues | 255,000 | 224,000 | |
Tax Masters Network [Member] | Commissions Referrals [Member] | |||
Product Information [Line Items] | |||
Revenues | $ 51,657 | $ 60,174 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Feb. 02, 2021 | May 15, 2020 | May 08, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill impairment | $ 7,380,603 | $ 0 | |||
Weighted average number of shares outstanding | 84,951,745 | 57,138,793 | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |||
Management fees | 2,076,383 | 1,352,975 | |||
Revenues | 6,672,793 | 3,687,480 | |||
Advertising and marketing expense | $ 77,858 | $ 125,161 | |||
Risk free interest rate minimum | 0.88339% | 1.3171% | |||
Dividend yield | 0.00% | 0.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | |||
Volatility rate | 87.6769% | 159.00% | |||
Net loss | $ 7,423,081 | $ 791,675 | |||
Net cash provided by (used in) operating activities | 487,071 | 549,491 | |||
Accumulated deficit | 14,413,871 | 6,990,790 | |||
Borrowings from note payable | 422,900 | 283,345 | |||
P P P Loan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Proceeds from loans | $ 422,900 | $ 377,700 | $ 283,345 | ||
Interest rate | 1.00% | 1.00% | |||
M Path [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Revenues | $ 536,990 | $ 73,882 | |||
Equity Option [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Antidilutive shares excluded from computation of EPS | 6,712,888 | 6,972,696 | |||
Warrant [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Antidilutive shares excluded from computation of EPS | 0 | 0 | |||
Tax Coach [Member] | Proprietary Content [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Finite lived intangible assets | $ 525,100 | ||||
Amortization expense | 57,868 | $ 114,955 | |||
Accumulated amortization | 443,142 | 377,505 | |||
Inter Company Eliminations [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Management fees | $ 1,255,457 | $ 140,420 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 213,554 | $ 559,580 |
Accumulated depreciation and amortization | (175,031) | (477,868) |
Property and equipment, net | $ 38,523 | 81,712 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 2 to 5 years | |
Property and equipment, gross | $ 61,554 | 407,580 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 5 years | |
Property and equipment, gross | $ 152,000 | $ 152,000 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 53,184 | $ 42,419 |
INTELLECTUAL PROPERTY (Details)
INTELLECTUAL PROPERTY (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trademarks | $ 53,170 | $ 53,170 |
LINE OF CREDIT (Details Narrati
LINE OF CREDIT (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Line of Credit Facility [Line Items] | ||
Line of credit, amount outstanding | $ 52,932 | $ 54,112 |
Wells Fargo [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum amount | $ 67,500 | |
Line of credit interest rate | 9.50% |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 45,412 |
2023 | 10,441 |
2024 | 0 |
2025 | 0 |
2026 | 422,900 |
Total debt | $ 478,753 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | Feb. 02, 2021 | May 15, 2020 | May 08, 2020 | Apr. 19, 2020 | Sep. 30, 2021 | Aug. 31, 2021 | Sep. 30, 2020 |
Charles O Banon [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 32,205 | ||||||
Debt payment | 623 | ||||||
Debt balloon payment | $ 14,048 | ||||||
Debt stated interest rate | 6.00% | ||||||
Notes payable | $ 17,305 | $ 23,534 | |||||
John Du Priest [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 52,000 | ||||||
Debt stated interest rate | 5.00% | ||||||
Notes payable | $ 38,548 | $ 52,000 | |||||
P P P Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from loans | $ 422,900 | $ 377,700 | $ 283,345 | ||||
Interest rate | 1.00% | 1.00% |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Payables and Accruals [Abstract] | ||
SAR Liability | $ 61,763 | $ 31,793 |
Accrued benefits | 42,858 | 105,458 |
Commissions payable | 80,588 | 16,783 |
State Tax liability | 0 | 3,165 |
Federal Tax liability | 0 | 3,355 |
Credit Cards | 0 | 12,798 |
Other Accounts payable | 765,117 | 699,117 |
Accrued operating expenses | 132,652 | 194,923 |
Total accrued expenses | $ 1,082,979 | $ 1,067,392 |
INCOME TAXES (Details - Income
INCOME TAXES (Details - Income taxes) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax benefit calculated at statutory rate | 21.00% | 21.00% |
Expense not deductible | (19.30%) | (2.40%) |
State tax, net of federal benefit | 0.00% | 0.00% |
Effect of rate change | 0.00% | 0.00% |
Changes to valuation allowance | (1.70%) | (18.60%) |
Provision for income taxes | 0.00% | 0.00% |
INCOME TAXES (Details - Deferre
INCOME TAXES (Details - Deferred taxes) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Net non-current deferred tax assets: | ||
Net operating loss carryforward | $ 1,328,093 | $ 1,314,515 |
Amortization | (8,770) | (7,221) |
Depreciation | 5,625 | 4,329 |
Valuation allowance | (1,324,949) | (1,311,623) |
Net deferred taxes | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | Sep. 30, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Net operating loss carryover | $ 6,259,594 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details) | Sep. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 184,244 |
2023 | 174,903 |
2024 | 82,896 |
Total | 442,043 |
Rent Payable | (90,941) |
Interest | (25,001) |
Lease Liability | $ 326,201 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Oct. 02, 2019 | |
Loss Contingencies [Line Items] | |||
Right-of-use assets | $ 156,863 | $ 0 | $ 323,097 |
Lease liabilities | 326,201 | ||
Rent expense | 157,485 | $ 117,344 | |
Lease payments | $ 55,000 | ||
Weighted average discount rate | 6.00% | ||
Weighted average remaining lease term | 2 years 2 months 1 day | ||
Lease Liabilities [Member] | |||
Loss Contingencies [Line Items] | |||
Lease liabilities | $ 337,454 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Common Stock [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Stock issued for services, shares | 382,932 | |
Stock issued in private placement, shares | 75,757 | |
Stock options exercised, shares | 116,375 | |
NCW Vestus [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Stock Issued During Period, Shares, Acquisitions | 8,000,000 | |
Forta Financial Group [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Stock Issued During Period, Shares, Acquisitions | 41,607,315 |
STOCK OPTION PLAN (Details)
STOCK OPTION PLAN (Details) - Equity Option [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, beginning balance | 6,972,696 | 2,788,476 | |
Options outstanding, beginning balance | $ 550,455 | $ 550,455 | |
Weighted average exercise price, options outstanding, beginning balance | $ 0.17 | $ 0.29 | |
Weighted average remaining contractual life, options outstanding | 95 months | 106 months | 87 months |
Options granted | 787,500 | 5,600,000 | |
Options granted | $ 1,361,200 | $ 1,361,200 | |
Weighted average exercise price, options granted | $ 0.4 | $ 0.23 | |
Weighted average remaining contractual life, options granted | 115 months | 114 months | |
Options exercised | 0 | 116,375 | |
Options exercised | $ 0 | $ 13,850 | |
Weighted average exercise price, options exercised | $ 0 | $ 0.09 | |
Weighted average remaining contractual life, options exercised | 93 months | ||
Options cancelled or expired | 500,000 | 1,299,405 | |
Options cancelled or expired | $ 1,845,870 | $ 1,845,870 | |
Weighted average exercise price, options cancelled or expired | $ 0.44 | $ 0.27 | |
Weighted average remaining contractual life, options canceled or expired | 4 months | ||
Options outstanding, ending balance | 7,260,196 | 6,972,696 | 2,788,476 |
Options outstanding, ending balance | $ 1,742,447 | $ 550,455 | $ 550,455 |
Weighted average exercise price, options outstanding, ending balance | $ 0.24 | $ 0.17 | $ 0.29 |
Options exercisable | 2,877,693 | ||
Weighted average exercise price, options exercisable | $ 0.25 | ||
Weighted average remaining contractual life, options exercisable | 83 months |
STOCK OPTION PLAN (Details Narr
STOCK OPTION PLAN (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation | $ 128,430 | $ 80,275 |
Unamortized share-based compensation expense | $ 225,254 | |
Unamortized share-based compensation expense recognition period | 2 years 6 months | |
Accrued liability | $ 1,082,979 | $ 1,067,392 |
Plan 2015 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum shares allowed under plan | 9,000,000 | |
Accrued liability | $ 61,763 | |
Plan 2016 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum shares allowed under plan | 20,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 10 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Apr. 12, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | |||
Salaries and wages | $ 5,540,839 | $ 3,186,305 | |
TMN Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Salaries and wages | 258,000 | 253,000 | |
John Pollock [Member] | |||
Related Party Transaction [Line Items] | |||
Salaries and wages | $ 50,750 | ||
Debt issuance date | Apr. 12, 2019 | ||
Debt stated interest rate | 2.76% | ||
Debt face amount | $ 2,520 | ||
Note payable related party | $ 5,296 | $ 5,152 |