Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --09-30 | |
Entity Registrant Name | VIRTUAL INTERACTIVE TECHNOLOGIES CORP. | |
Entity Central Index Key | 0001536089 | |
Entity Tax Identification Number | 36-4752858 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 600 17th Street | |
Entity Address, Address Line Two | Suite 2800 South | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | (303) | |
Local Phone Number | 228-7120 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,817,784 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 40,824 | $ 36,244 |
Royalties receivable | 104,184 | 171,096 |
Interest receivable | 2,887 | 1,586 |
Notes receivable | 25,000 | 25,000 |
Convertible note receivable | 7,500 | |
Total current assets | 180,395 | 233,926 |
TOTAL ASSETS | 180,395 | 233,926 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 2,100 | 7,070 |
Accounts payable, related party | 4,000 | 9,994 |
Notes payable | 10,000 | 10,000 |
Interest payable | 1,369 | 921 |
Total current liabilities | 17,469 | 27,985 |
LONG-TERM LIABILITIES: | ||
Note payable, related party | 741,030 | 741,030 |
Interest payable, related party | 155,161 | 118,263 |
Total liabilities | 913,660 | 887,278 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Common stock, $ 0.001 par value; 90,000,000 shares authorized, 6,817,784 shares issued and outstanding | 6,817 | 6,817 |
Additional paid-in-capital | 4,353,430 | 4,353,430 |
Accumulated deficit | (5,099,968) | (5,020,055) |
Total stockholders’ equity (deficit) | (733,265) | (653,352) |
Total liabilities and stockholders’ equity (deficit) | 180,395 | 233,926 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Preferred Stock, value | 500 | 500 |
Series B Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Preferred Stock, value | $ 5,956 | $ 5,956 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Sep. 30, 2020 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 6,817,784 | 6,817,784 |
Common stock, shares outstanding | 6,817,784 | 6,817,784 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 595,612 | 595,612 |
Preferred stock, shares outstanding | 595,612 | 595,612 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue - royalties | $ 35,767 | $ 34,839 | $ 130,898 | $ 111,821 |
Operating expenses: | ||||
General, administrative and selling | 48,352 | 71,429 | 175,383 | 223,842 |
Research and development | 5,477 | 54,383 | ||
Total operating expenses | 48,352 | 76,906 | 175,383 | 278,225 |
Income (loss) from operations | (12,585) | (42,067) | (44,485) | (166,404) |
Other income (expense) | ||||
Other income | 449 | 378 | 1,300 | 2,751 |
Gain on extinguishment of debt | 77,118 | |||
Interest expense, related party | (12,300) | (13,211) | (36,899) | (36,800) |
Interest expense | (150) | (31) | (449) | (433) |
Bad debt expense | 8,970 | |||
Gain (loss) from foreign currency transactions | (5) | 542 | 620 | 209 |
Total other income (expense) | (12,006) | (3,352) | (35,428) | 42,845 |
Net income (loss) | $ (24,591) | $ (45,419) | $ (79,913) | $ (123,558) |
Income (loss) per share attributable to common shareholders - Basic and Diluted | $ 0 | $ (0.01) | $ (0.01) | $ (0.02) |
Weighted average number of shares outstanding - Basic and Diluted | 6,817,784 | 6,817,784 | 6,817,784 | 6,817,752 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Preferred Stock Series A Convertible [Member] | Preferred Stock Series B Convertible [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, shares at Sep. 30, 2019 | 50,000 | 595,612 | 6,817,484 | |||
Stock issued for notes payable, related party | $ 131 | $ 131 | ||||
Stock issued for notes payable, related party, shares | 94 | |||||
Stock issued for accrued interest payable, related party | 8 | 8 | ||||
Stock issued for accrued interest payable, related party, shares | 6 | |||||
Stock issued for notes payable | 202 | 202 | ||||
Stock issued for notes payable, shares | 144 | |||||
Stock issued for accrued interest payable | 78 | 78 | ||||
Stock issued for accrued interest payable, shares | 56 | |||||
Net loss | (123,558) | (123,558) | ||||
Ending balance, value at Jun. 30, 2020 | $ 500 | $ 5,956 | $ 6,817 | 4,313,430 | (5,133,791) | (807,088) |
Ending balance, shares at Jun. 30, 2020 | 50,000 | 595,612 | 6,817,784 | |||
Beginning balance, value at Sep. 30, 2019 | $ 500 | $ 5,956 | $ 6,817 | 4,313,011 | (5,010,232) | (683,948) |
Ending balance, value at Jun. 30, 2020 | 500 | 5,956 | 6,817 | 4,313,430 | (5,133,790) | (807,087) |
Beginning balance, value at Mar. 31, 2020 | $ 500 | $ 5,956 | $ 6,817 | 4,313,430 | (5,088,372) | (761,669) |
Beginning balance, shares at Mar. 31, 2020 | 50,000 | 595,612 | 6,817,784 | |||
Net loss | (45,419) | (45,419) | ||||
Ending balance, value at Jun. 30, 2020 | $ 500 | $ 5,956 | $ 6,817 | 4,313,430 | (5,133,791) | (807,088) |
Ending balance, shares at Jun. 30, 2020 | 50,000 | 595,612 | 6,817,784 | |||
Ending balance, value at Jun. 30, 2020 | $ 500 | $ 5,956 | $ 6,817 | 4,313,430 | (5,133,790) | (807,087) |
Beginning balance, value at Sep. 30, 2020 | $ 500 | $ 5,956 | $ 6,817 | 4,353,430 | (5,020,055) | (653,352) |
Beginning balance, shares at Sep. 30, 2020 | 50,000 | 595,612 | 6,817,784 | |||
Net loss | (79,913) | (79,913) | ||||
Ending balance, value at Jun. 30, 2021 | $ 500 | $ 5,956 | $ 6,817 | 4,353,430 | (5,099,968) | (733,265) |
Ending balance, shares at Jun. 30, 2021 | 50,000 | 595,612 | 6,817,784 | |||
Beginning balance, value at Mar. 31, 2021 | $ 500 | $ 5,956 | $ 6,817 | 4,353,430 | (5,075,377) | (708,674) |
Beginning balance, shares at Mar. 31, 2021 | 50,000 | 595,612 | 6,817,784 | |||
Net loss | (24,591) | (24,591) | ||||
Ending balance, value at Jun. 30, 2021 | $ 500 | $ 5,956 | $ 6,817 | $ 4,353,430 | $ (5,099,968) | $ (733,265) |
Ending balance, shares at Jun. 30, 2021 | 50,000 | 595,612 | 6,817,784 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (79,913) | $ (123,558) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Gain on extinguishment of debt Changes in operating assets and operating liabilities: | (77,118) | |
Other assets | 2,660 | |
Royalty receivable | 66,912 | 132,664 |
Accrued interest note receivable | (1,301) | (1,208) |
Accounts payable, related parties | (5,994) | 70,000 |
Accounts payable and accrued liabilities | (4,970) | (21,587) |
Accrued interest payable, related parties | 36,898 | 36,772 |
Accrued interest payable | 448 | 266 |
Net cash provided by operating activities | 12,080 | 18,890 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sale of land | 36,195 | |
Advances to convertible note receivable | (7,500) | |
Advances to related parties | (25,000) | |
Net cash (used in) provided by investing activities | (7,500) | 11,195 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment to notes payable | (32,000) | |
Payment to notes payable, related parties | (4,000) | |
Net cash used in financing activities | (36,000) | |
Net change in cash and cash equivalents | 4,580 | (5,915) |
Cash and cash equivalents, beginning of period | 36,244 | 36,136 |
Cash and cash equivalents, end of period | 40,824 | 30,221 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 248 | |
Income taxes paid | ||
Non-cash Investing and Financing Activities: | ||
Stock issued for note payable, related parties | 131 | |
Stock issued for accrued interest, related parties | 8 | |
Stock issued for note payable | 202 | |
Stock issued for accrued interest | $ 78 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Note 1. Basis of Presentation and Consolidation While the information presented in the accompanying June 30, 2021 financial statements is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted. These financial statements should be read in conjunction with the Company’s September 30, 2020 audited financial statements (and notes thereto). Operating results for the three and nine months ended June 30, 2021 are not necessarily indicative of the results that can be expected for the year ending September 30, 2021. The accompanying unaudited condensed consolidated financial statements herein contain the operations of Virtual Interactive Technologies Corp (“VIT”), and its wholly-owned subsidiaries Advanced Interactive Gaming Inc. (“AIG Inc.”) and Advanced Interactive Gaming Ltd. (“AIG Ltd”) (collectively, the “Company”). All significant intercompany amounts have been eliminated. |
Business
Business | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Note 2. Business Nature of Operations Virtual Interactive Technologies Corp. was incorporated in Nevada on November 3, 2011 under the name Mascota Resources Corp. On November 25, 2019 the following became effective on the over-the-counter market ● a 1-for-20 reverse split ● the Company’s name was changed to Virtual Interactive Technologies Corp. On September 27, 2019, Virtual Interactive Technologies Corp merged with Advanced Interactive Gaming Inc, and its subsidiary Advanced Interactive Gaming Ltd. (collectively “Advanced Interactive Gaming” or “AIG”), through a reverse merger transaction. Advanced Interactive Gaming was founded in 2016 to provide financing solutions for independent video game developers globally. Advanced Interactive Gaming was deemed to be the accounting acquirer of the transaction and will be the operating entity moving forward under the name of Virtual Interactive Technologies Corp (“VIT,” “the Company” or “we”). VIT finances the development of video game projects to be released on various popular gaming platforms in exchange for a royalty stream on the games. To date the Company has financed several gaming titles including Carmageddon Max Damage, Carmageddon Crashers, Interplanetary: Enhanced Edition, Catch & Release and Worbital. Collectively these games are distributed world-wide on various gaming platforms including Sony PlayStation, Xbox, Steam and Oculus among others. In addition to financing solutions, VIT offers expertise in development solutions, publishing and marketing video game products and is actively involved in the early stages of VR/AR game development. VIT continues to reinvest its royalty income into growing its royalty contracts and intellectual property in the video game development industry. The Company’s strategy moving forward is to continue to invest in new game development through partnerships and royalty contracts. Management believes that there is significant opportunity in VR games given the relatively early stage in the product cycle and the growing need for content to support VR hardware sales. While the Company has historically participated mostly in the PC and console market, it will continue to explore addition opportunities in the gaming space as they present themselves. In addition, the VIT may explore strategic alliances and acquisitions in order to expand its business. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimated. Cash Equivalents The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. The Company had no Fair Value of Financial Instruments The Company accounts for fair value measurements in accordance with accounting standard ASC 820-10-50, “ Fair Value Measurements.” - Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. - Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. - Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. The Company’s financial instruments consist of cash, royalties receivable, notes receivable and related accrued interest receivable, accounts payable and accrued expenses, and notes payable. The carrying value of these financial instruments approximates fair value due to the short-term nature of the instruments. Royalties Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts estimated in determining the allowance. The Company has determined that no allowance is necessary as of June 30, 2021 or September 30, 2020. Net Income (Loss) Per Share In accordance with ASC 260 “Earnings per Share,” 595,612 Foreign Currency The Company’s functional currency is the US dollar. With the exception of stockholders’ equity (deficit), all transactions that are originally denominated in foreign currency are translated to US dollars by our international customers, on a monthly basis, when recognized by them and prior to paying royalties to the Company. All royalty revenues that are received and recognized by the Company are recorded in US dollars. The Company has a Euro currency bank account located in Bermuda. This account is used for payments to vendors that bill the Company in a currency other than US dollars and for funds received from shareholders located outside the United States. As of June 30, 2021 and September 30, 2020, the Euro account had a balance of $- 0 Foreign currency translation gains/losses are recorded in other accumulated comprehensive income (“AOCI”) based exchange rates prevalent on reporting dates for balance sheet items, and at weighted average exchange rates during the reporting period for the statement of operations. Foreign currency transaction gains/losses are recorded as other expense in the period of settlement. No AOCI items were present during the three months ended June 30, 2021 and 2020, as all financial statement items were denominated in the US dollar. Gains and losses from foreign currency transactions during the three and nine months ended June 30, 2021 totaled $ 5 620 542 209 Concentration of Credit Risk Some of our US dollar balances are held in a Bermuda bank that is not insured. As of June 30, 2021 and September 30, 2020, uninsured deposits in the Bermuda bank totaled $ 20,583 20,649 250,000 Revenue Recognition The Company follows guidance contained in ASC 606, “Revenue Recognition The Company has several contracts with video game developers that entitle us to royalty streams as a percentage of revenues generated by the game sales, which vary from contract to contract. As of June 30, 2021, the Company has four royalty contracts with three developers that are generating royalty revenue, and two royalty contracts for games that are in development. Once a game has been developed and has met the terms of the underlying royalty agreement, the game is released for commercial sales. Per each contract, the Company will receive reports on a regular basis from the game developers’ sales platforms that identify the amount of game sales, from which consideration expected to be collected from the commercial customers is computed based on the applicable royalty percentages. Royalty revenue is based on a percentage of net receipts as defined in each customer agreement, and is recognized in accordance with the sale-based royalty provisions of ASC 606, which requires revenue recognition after the subsequent sales occur. The Company’s performance obligation under each royalty contract as an investor in the game is complete once funds are advanced to the gaming developer. Subsequent consideration is then received by the Company from the developers in the amount of the Company’s percentage fee of royalty income (net receipts) received by the customer. Net receipts include all gross revenues received by the customer as a result of sales of the games or related exploitation less certain taxes, refunds, manufacturing costs, freight, and other items specified in the underlying contract. New Accounting Pronouncements The Company has evaluated all other recently issued or enacted accounting pronouncements, and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements. COVID-19 Uncertainties The COVID-19 pandemic could have an impact on our ability to obtain financing to fund the operations. The Company is unable to predict the ultimate impact at this time. |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) | 9 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity (Deficit) | Note 3. Stockholders’ Equity (Deficit) The Company’s common stock is quoted under the symbol “VRVR” on the OTC Pink tier operated by OTC Markets Group, Inc. To date, an active trading market for the Company’s common stock has not developed. Preferred Stock The Company is authorized to issue 10,000,000 0.01 50,000 595,612 The holders of the Series B preferred stock are entitled to dividends (which are not guaranteed), carry one vote per share convertible into common stock on a 1:1 basis at the option of the holder. 50,000 Common Stock The Company is authorized to issue 90,000,000 0.001 6,817,784 During the six months ended March 31, 2020, the Company issued 300 300 100 |
Note Payable
Note Payable | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Note Payable | Note 4. Note Payable On March 20, 2019, an unrelated individual loaned VIT $ 10,000 . The note carries a 6% interest rate and was payable March 20, 2020. The note has been amended to mature on March 20, 2022 10,000 . As of June 30, 2021 and September 30, 2020, the accrued interest on the note totaled $ 1,369 and $ 921 , respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5. Related Party Transactions During the three and nine months ended June 30, 2021 the Company incurred $ 0 30,000 90,000 0 During the three and nine months ended June 30, 2021, the Company incurred $ 16,000 and $ 64,000 in contract management services rendered by an affiliate of our CFO. During the three and nine months ended June 30, 2020, the Company incurred $ 24,000 and $ 72,000 in contract management services rendered by an affiliate of our CFO. As of June 30, 2021 and September 30, 2020, the Company owed $ 4,000 and $ 9,994 , respectively, for these services. Note Payable, Related Party On March 29, 2018, the Company issued a $ 750,000 741,030 8,970 8,970 741,030 6 December 31, 2022 741,030 155,161 118,263 |
Note Receivable
Note Receivable | 9 Months Ended |
Jun. 30, 2021 | |
Note Receivable | |
Note Receivable | Note 6. Note Receivable On December 11, 2019, the Company issued a $ 25,000 6% 2,709 1,586 |
Convertible Note Receivable
Convertible Note Receivable | 9 Months Ended |
Jun. 30, 2021 | |
Convertible Note Receivable | |
Convertible Note Receivable | Note 7. Convertible Note Receivable On November 20, 2020, the Company invested $ 7,500 November 20, 2022 4% 1.25% 178 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8. Subsequent Events The Company has evaluated events subsequent to the balance sheet date through the date these financial statements were issued and determined that there are no events requiring disclosure. |
Business (Policies)
Business (Policies) | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Virtual Interactive Technologies Corp. was incorporated in Nevada on November 3, 2011 under the name Mascota Resources Corp. On November 25, 2019 the following became effective on the over-the-counter market ● a 1-for-20 reverse split ● the Company’s name was changed to Virtual Interactive Technologies Corp. On September 27, 2019, Virtual Interactive Technologies Corp merged with Advanced Interactive Gaming Inc, and its subsidiary Advanced Interactive Gaming Ltd. (collectively “Advanced Interactive Gaming” or “AIG”), through a reverse merger transaction. Advanced Interactive Gaming was founded in 2016 to provide financing solutions for independent video game developers globally. Advanced Interactive Gaming was deemed to be the accounting acquirer of the transaction and will be the operating entity moving forward under the name of Virtual Interactive Technologies Corp (“VIT,” “the Company” or “we”). VIT finances the development of video game projects to be released on various popular gaming platforms in exchange for a royalty stream on the games. To date the Company has financed several gaming titles including Carmageddon Max Damage, Carmageddon Crashers, Interplanetary: Enhanced Edition, Catch & Release and Worbital. Collectively these games are distributed world-wide on various gaming platforms including Sony PlayStation, Xbox, Steam and Oculus among others. In addition to financing solutions, VIT offers expertise in development solutions, publishing and marketing video game products and is actively involved in the early stages of VR/AR game development. VIT continues to reinvest its royalty income into growing its royalty contracts and intellectual property in the video game development industry. The Company’s strategy moving forward is to continue to invest in new game development through partnerships and royalty contracts. Management believes that there is significant opportunity in VR games given the relatively early stage in the product cycle and the growing need for content to support VR hardware sales. While the Company has historically participated mostly in the PC and console market, it will continue to explore addition opportunities in the gaming space as they present themselves. In addition, the VIT may explore strategic alliances and acquisitions in order to expand its business. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimated. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. The Company had no |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company accounts for fair value measurements in accordance with accounting standard ASC 820-10-50, “ Fair Value Measurements.” - Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. - Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. - Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. The Company’s financial instruments consist of cash, royalties receivable, notes receivable and related accrued interest receivable, accounts payable and accrued expenses, and notes payable. The carrying value of these financial instruments approximates fair value due to the short-term nature of the instruments. |
Royalties Receivable | Royalties Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts estimated in determining the allowance. The Company has determined that no allowance is necessary as of June 30, 2021 or September 30, 2020. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share In accordance with ASC 260 “Earnings per Share,” 595,612 |
Foreign Currency | Foreign Currency The Company’s functional currency is the US dollar. With the exception of stockholders’ equity (deficit), all transactions that are originally denominated in foreign currency are translated to US dollars by our international customers, on a monthly basis, when recognized by them and prior to paying royalties to the Company. All royalty revenues that are received and recognized by the Company are recorded in US dollars. The Company has a Euro currency bank account located in Bermuda. This account is used for payments to vendors that bill the Company in a currency other than US dollars and for funds received from shareholders located outside the United States. As of June 30, 2021 and September 30, 2020, the Euro account had a balance of $- 0 Foreign currency translation gains/losses are recorded in other accumulated comprehensive income (“AOCI”) based exchange rates prevalent on reporting dates for balance sheet items, and at weighted average exchange rates during the reporting period for the statement of operations. Foreign currency transaction gains/losses are recorded as other expense in the period of settlement. No AOCI items were present during the three months ended June 30, 2021 and 2020, as all financial statement items were denominated in the US dollar. Gains and losses from foreign currency transactions during the three and nine months ended June 30, 2021 totaled $ 5 620 542 209 |
Concentration of Credit Risk | Concentration of Credit Risk Some of our US dollar balances are held in a Bermuda bank that is not insured. As of June 30, 2021 and September 30, 2020, uninsured deposits in the Bermuda bank totaled $ 20,583 20,649 250,000 |
Revenue Recognition | Revenue Recognition The Company follows guidance contained in ASC 606, “Revenue Recognition The Company has several contracts with video game developers that entitle us to royalty streams as a percentage of revenues generated by the game sales, which vary from contract to contract. As of June 30, 2021, the Company has four royalty contracts with three developers that are generating royalty revenue, and two royalty contracts for games that are in development. Once a game has been developed and has met the terms of the underlying royalty agreement, the game is released for commercial sales. Per each contract, the Company will receive reports on a regular basis from the game developers’ sales platforms that identify the amount of game sales, from which consideration expected to be collected from the commercial customers is computed based on the applicable royalty percentages. Royalty revenue is based on a percentage of net receipts as defined in each customer agreement, and is recognized in accordance with the sale-based royalty provisions of ASC 606, which requires revenue recognition after the subsequent sales occur. The Company’s performance obligation under each royalty contract as an investor in the game is complete once funds are advanced to the gaming developer. Subsequent consideration is then received by the Company from the developers in the amount of the Company’s percentage fee of royalty income (net receipts) received by the customer. Net receipts include all gross revenues received by the customer as a result of sales of the games or related exploitation less certain taxes, refunds, manufacturing costs, freight, and other items specified in the underlying contract. |
New Accounting Pronouncements | New Accounting Pronouncements The Company has evaluated all other recently issued or enacted accounting pronouncements, and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements. |
COVID-19 Uncertainties | COVID-19 Uncertainties The COVID-19 pandemic could have an impact on our ability to obtain financing to fund the operations. The Company is unable to predict the ultimate impact at this time. |
Business (Details Narrative)
Business (Details Narrative) - USD ($) | Nov. 25, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 |
Entity Listings [Line Items] | ||||||
Reverse stock split | 1-for-20 reverse split | |||||
Cash equivalents | $ 0 | $ 0 | $ 0 | |||
Gain and losses from foreign currency transactions | (5) | $ 542 | 620 | $ 209 | ||
Gain and losses from foreign currency transactions | 5 | $ (542) | (620) | $ (209) | ||
Maximum [Member] | ||||||
Entity Listings [Line Items] | ||||||
Cash, FDIC insured amount | 250,000 | 250,000 | ||||
Bermuda Bank [Member] | ||||||
Entity Listings [Line Items] | ||||||
Cash, uninsured deposits | $ 20,583 | 20,583 | 20,649 | |||
EUR [Member] | ||||||
Entity Listings [Line Items] | ||||||
Gain and losses from foreign currency transactions | 0 | 0 | ||||
Gain and losses from foreign currency transactions | $ 0 | $ 0 | ||||
Series B Convertible Preferred Stock [Member] | ||||||
Entity Listings [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per shares | 595,612 | 595,612 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) (Details Narrative) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | ||||
Preferred stock voting per shares, description | The holders of the Series B preferred stock are entitled to dividends (which are not guaranteed), carry one vote per share | |||
Preferred stock, conversion basis | convertible into common stock on a 1:1 basis at the option of the holder. | |||
Common stock, shares authorized | 90,000,000 | 90,000,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Common stock, shares issued | 6,817,784 | 6,817,784 | ||
Common stock, shares outstanding | 6,817,784 | 6,817,784 | ||
Shares issued as part of payoff on notes | 300 | |||
Related Party [Member] | ||||
Class of Stock [Line Items] | ||||
Shares issued as part of payoff on notes | 100 | |||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued | 50,000 | 50,000 | ||
Preferred stock, shares outstanding | 50,000 | 50,000 | ||
Series B Convertible Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued | 595,612 | 595,612 | ||
Preferred stock, shares outstanding | 595,612 | 595,612 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | Mar. 20, 2019 | Jun. 30, 2021 | Sep. 30, 2020 |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Notes payable | $ 10,000 | $ 10,000 | |
Interest payable | $ 1,369 | $ 921 | |
Two Unrelated Individuals [Member] | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Debt Instrument, Face Amount | $ 10,000 | ||
Debt instrument interest rate | 6.00% | ||
Maturity date | Mar. 20, 2022 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Mar. 29, 2018 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Notes payable, related party | $ 741,030 | $ 741,030 | $ 741,030 | |||
Interest payable, related party | 155,161 | 155,161 | 118,263 | |||
Chief Executive Officer [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Related party transaction expenses | 0 | $ 30,000 | 0 | $ 90,000 | ||
Due to related party | $ 0 | $ 0 | 0 | |||
Chief Executive Officer [Member] | Unsecured Debt [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Debt instrument, face amount | 741,030 | $ 750,000 | ||||
Notes receivable, related parties | 8,970 | |||||
Debt instrument, interest rate | 6.00% | 6.00% | ||||
Debt instrument, maturity date | Dec. 31, 2022 | |||||
Chief Financial Officer [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Related party transaction expenses | $ 16,000 | $ 24,000 | $ 64,000 | $ 72,000 | ||
Due to related party | $ 4,000 | $ 4,000 | $ 9,994 |
Note Receivable (Details Narrat
Note Receivable (Details Narrative) - Unsecured Promissory Note Receivable [Member] - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 | Dec. 11, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Debt instrument, face amount | $ 25,000 | ||
Debt instrument, interest rate | 6.00% | ||
Accrued interest | $ 2,709 | $ 1,586 |
Convertible Note Receivable (De
Convertible Note Receivable (Details Narrative) - Convertible Note Receivable [Member] - USD ($) | Nov. 20, 2020 | Jun. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment to acquire note receivable | $ 7,500 | |
Debt, maturity date | Nov. 20, 2022 | |
Debt instrument interest rate | 4.00% | |
Eligibility of convertible note into entity stock | 1.25% | |
Accrued interest | $ 178 |