Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2020 | May 21, 2020 | |
Document Information Line Items | ||
Entity Registrant Name | FUSE GROUP HOLDING INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 64,778,050 | |
Amendment Flag | false | |
Entity Central Index Key | 0001636051 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-202948 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 47-1017473 | |
Entity Address, Address Line One | 805 W. Duarte Rd., Suite 102 | |
Entity Address, City or Town | Arcadia | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91007 | |
City Area Code | 626 | |
Local Phone Number | 210-0000 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | None | |
No Trading Symbol Flag | true | |
Security Exchange Name | NONE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2020 | Sep. 30, 2019 |
CURRENT ASSETS | ||
Cash and equivalents | $ 41,860 | $ 102,205 |
Prepaid expenses | 24,561 | 0 |
Total current assets | 66,421 | 102,205 |
NON-CURRENT ASSETS | ||
Prepaid expense | 1,000,000 | 1,000,000 |
Property and equipment, net | 7,477 | 8,572 |
Right-of-use asset | 42,067 | 0 |
Total non-current assets | 1,049,544 | 1,008,572 |
TOTAL ASSETS | 1,115,965 | 1,110,777 |
CURRENT LIABILITIES | ||
Other payables | 8,879 | 10,675 |
Lease liability - current | 25,144 | 0 |
Total current liabilities | 34,023 | 10,675 |
NON-CURRENT LIABILITIES | ||
Lease liability - noncurrent | 17,684 | 0 |
Total non-current liabilities | 17,684 | 0 |
TOTAL LIABILITIES | 51,707 | 10,675 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.001 per share, 375,000,000 shares authorized; 64,778,050 shares issued and outstanding | 64,778 | 64,778 |
Additional paid-in capital | 6,949,717 | 6,949,717 |
Accumulated deficit | (5,950,237) | (5,914,393) |
Total stockholders' equity | 1,064,258 | 1,100,102 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,115,965 | $ 1,110,777 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2020 | Sep. 30, 2019 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 375,000,000 | 375,000,000 |
Common stock, shares issued | 64,778,050 | 64,778,050 |
Common stock, shares outstanding | 64,778,050 | 64,778,050 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | $ 200,000 | $ 250,000 | $ 450,000 | $ 766,000 |
Cost of revenue | 48,063 | 88,759 | 180,401 | 177,519 |
Gross profit | 151,937 | 161,241 | 269,599 | 588,481 |
Operating expenses | ||||
General and administrative | 131,315 | 181,236 | 263,960 | 324,146 |
Consulting | 24,415 | 28,584 | 36,748 | 374,785 |
Total operating expenses | 155,730 | 209,820 | 300,708 | 698,931 |
Loss from operations | (3,793) | (48,579) | (31,109) | (110,450) |
Non-operating expenses | ||||
Interest income | 0 | 3 | 0 | 6 |
Financial expense | (240) | (210) | (535) | (672) |
Other expense | 0 | 0 | (200) | 0 |
Total non-operating expenses, net | (240) | (207) | (735) | (666) |
Loss before income tax | (4,033) | (48,786) | (31,844) | (111,116) |
Income tax | 2,400 | 800 | 4,000 | 800 |
Net loss | $ (6,433) | $ (49,586) | $ (35,844) | $ (111,916) |
Basic weighted average shares outstanding (in Shares) | 64,778,050 | 64,778,050 | 64,778,050 | 64,778,050 |
Basic net loss per share (in Dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (35,844) | $ (111,916) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,096 | 1,096 |
Amortization | 4,912 | 75,262 |
Interest expense on lease liability | 997 | 0 |
Amortization of right-of-use asset | 12,708 | 0 |
Changes in assets and liabilities: | ||
Prepaid expense | (29,474) | 0 |
Other payables | (1,796) | (3,854) |
Payment of Lease liability | (12,944) | 0 |
Net cash used in operating activities | (60,345) | (39,412) |
NET DECREASE IN CASH AND EQUIVALENTS | (60,345) | (39,412) |
CASH AND EQUIVALENTS, BEGINNING OF PERIOD | 102,205 | 103,364 |
CASH AND EQUIVALENTS, END OF PERIOD | 41,860 | 63,952 |
Supplemental cash flow data: | ||
Income tax paid | 4,000 | 800 |
Interest paid | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Sep. 30, 2018 | $ 64,778 | $ 6,949,717 | $ (5,834,737) | $ 1,179,758 |
Balance (in Shares) at Sep. 30, 2018 | 64,778,050 | |||
Net loss | (62,330) | (62,330) | ||
Balance at Dec. 31, 2018 | $ 64,778 | 6,949,717 | (5,897,067) | 1,117,428 |
Balance (in Shares) at Dec. 31, 2018 | 64,778,050 | |||
Balance at Sep. 30, 2018 | $ 64,778 | 6,949,717 | (5,834,737) | 1,179,758 |
Balance (in Shares) at Sep. 30, 2018 | 64,778,050 | |||
Net loss | (111,916) | |||
Balance at Mar. 31, 2019 | $ 64,778 | 6,949,717 | (5,946,653) | 1,067,842 |
Balance (in Shares) at Mar. 31, 2019 | 64,778,050 | |||
Balance at Dec. 31, 2018 | $ 64,778 | 6,949,717 | (5,897,067) | 1,117,428 |
Balance (in Shares) at Dec. 31, 2018 | 64,778,050 | |||
Net loss | (49,586) | (49,586) | ||
Balance at Mar. 31, 2019 | $ 64,778 | 6,949,717 | (5,946,653) | 1,067,842 |
Balance (in Shares) at Mar. 31, 2019 | 64,778,050 | |||
Balance at Sep. 30, 2019 | $ 64,778 | 6,949,717 | (5,914,393) | $ 1,100,102 |
Balance (in Shares) at Sep. 30, 2019 | 64,778,050 | 64,778,050 | ||
Net loss | (29,411) | $ (29,411) | ||
Balance at Dec. 31, 2019 | $ 64,778 | 6,949,717 | (5,943,804) | 1,070,691 |
Balance (in Shares) at Dec. 31, 2019 | 64,778,050 | |||
Balance at Sep. 30, 2019 | $ 64,778 | 6,949,717 | (5,914,393) | $ 1,100,102 |
Balance (in Shares) at Sep. 30, 2019 | 64,778,050 | 64,778,050 | ||
Net loss | $ (35,844) | |||
Balance at Mar. 31, 2020 | $ 64,778 | 6,949,717 | (5,950,237) | $ 1,064,258 |
Balance (in Shares) at Mar. 31, 2020 | 64,778,050 | 64,778,050 | ||
Balance at Dec. 31, 2019 | $ 64,778 | 6,949,717 | (5,943,804) | $ 1,070,691 |
Balance (in Shares) at Dec. 31, 2019 | 64,778,050 | |||
Net loss | (6,433) | (6,433) | ||
Balance at Mar. 31, 2020 | $ 64,778 | $ 6,949,717 | $ (5,950,237) | $ 1,064,258 |
Balance (in Shares) at Mar. 31, 2020 | 64,778,050 | 64,778,050 |
Organization and Operations
Organization and Operations | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Organization and Operations Fuse Group Holding Inc. (the “Company” or “Fuse Group” or “We”) was incorporated under the laws of the State of Nevada on December 24, 2013. Fuse Group currently explores opportunities in mining. On December 6, 2016, the Company incorporated Fuse Processing, Inc. (“Processing”) in the State of California. Processing seeks business opportunities in mining and is currently investigating potential mining targets in Asia and North America. Fuse Group is the sole shareholder of Processing. Fuse Group and Processing provide consulting services to mining industry clients to find mine acquisition targets within the parameters set by the clients, in circumstances in which the mine owner is considering selling its mining rights. The services of Fuse Group and Processing include due diligence on the potential mine seller and the mine, such as ownership and whether the mine meets all operation requirements and/or is currently in operation. In March 2017, Processing acquired 100% ownership of Fuse Trading Limited (“Trading”) for HKD1 ($0.13). Trading had no operations prior to the acquisition by Processing. Trading seeks mining-related business opportunities in Asia. On May 3, 2018, the Company incorporated Fuse Technology Inc. (“Technology”) in the State of Nevada. Fuse Group is the sole shareholder of Technology. Technology was mainly engaged in IMETAL system development. The Company originally planned to operate IMETAL as a platform to facilitate investment and trade in raw metals, find specialized minerals, exploit these opportunities and issue tokens to be used on the platform, subject to compliance with applicable laws and regulations. Considering recent development of laws and regulations on token issuance and trading, management discussed its function and compliance issues with the designer of the platform and concluded that the project had more issues and costs for compliance than originally expected. On December 23, 2019, the Board decided to terminate the IMETAL project. On April 29, 2019, the Board of Directors of the Company approved an amendment to the Company’s Articles of Incorporation (“Amendment”) to change its name from Fuse Enterprises Inc. to Fuse Group Holding Inc. Also on April 29, 2019, stockholders holding a majority of the Company’s outstanding capital stock approved the Amendment. The Amendment was filed with the Secretary of State for the State of Nevada on April 30, 2019, and became effective May 13, 2019. On May 29, 2019, the Company changed its trading symbol on OTC Markets from FNST to FUST. In December 2019, a novel strain of coronavirus, causing a disease referred to as COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19 has spread to multiple countries, including the United States. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, and the U.S. government imposed travel restrictions on travel between the United States, China and certain other countries. The state of California, where the Company is headquartered, has been affected by COVID-19. The Governor of California has issued a stay-at-home order, which took effect on March 19, 2020. The Company’s business and services and results of operations have been adversely affected and could continue to be adversely affected by the COVID-19 pandemic. Substantially all of the Company’s workforce is now working from home either all or substantially all of the time. The effects of the Stay-at-Home order have negatively impacted the Company’s business development, and disrupted or delayed the Company’s current mine projects and services to its clients, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on the Company’s ability to conduct its business in the ordinary course. Quarantines, travel restrictions, shelter-in-place and other restrictions related to COVID-19 have impacted the Company’s abilities to visit mines in Mexico and in Asian counties as well as to meet with potential clients and mine owners for the Company’s consulting business and for the Company’s own investment in mine projects. The Company’s clients that are negatively impacted by the outbreak of COVID-19 may cancel or suspend their mine acquisition projects, which in turn will reduce their demands for the Company’s services and materially adversely impact the Company’s revenue. The global economy has also been materially negatively affected by COVID-19 and there is continued severe uncertainty about the duration and intensity of its impacts. The U.S. and global growth forecast is extremely uncertain, which could seriously affect people’s investment desires in mines in Mexico, Asia and internationally. While the potential economic impact brought by, and the duration of, COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, reducing the Company’s ability to access capital, which could negatively affect the Company’s liquidity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements (“CFS”) were prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Basis of Consolidation The CFS include the accounts of Fuse Group and its subsidiaries, Processing, Trading and Technology. All significant inter-company accounts and transactions and balances were eliminated in consolidation. Cash For purposes of the statement of cash flows, the Company considers cash, money market funds, investments in interest bearing demand deposit accounts, time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents. Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s). Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: (i) Assumption as a going concern (ii) Valuation allowance for deferred tax assets: These significant accounting estimates or assumptions bear the risk of change because there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10 of the Financial Accounting Standards Board - Accounting Standards Codification (“FASB ASC”) for disclosures about fair value (“FV”) of its financial instruments and paragraph 820-10-35-37 of the FASB ASC (“Paragraph 820-10-35-37”) to measure the FV of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring FV in U.S. GAAP, and expands disclosures about FV measurements. Paragraph 820-10-35-37 establishes a FV hierarchy which prioritizes the inputs to valuation techniques used to measure FV into three broad levels. The FV hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of FV hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. Financial assets are considered Level 3 when their FVs are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The FV hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the FV measurement of the instrument. The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses, accounts receivable, accounts payable and accrued expenses, approximate their FV because of the short maturity of those instruments. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. Accounts Receivable The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. The Company had no outstanding accounts receivable at March 31, 2020 or September 30, 2019. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and impairment losses, if any. Expenditures for maintenance and repairs are expensed as incurred; while additions, renewals and improvements are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets and estimated lives as follows: Computer and office equipment 5 years Office furniture 7 years Leasehold decoration and renovation 10 years Production machinery 10 years Autos 5 years Related Parties The Company follows subtopic 850-10 of the FASB ASC for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include: (a) affiliates of the Company; (b) entities for which investments in their equity securities would be required, absent the election of the FV option under the FV Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Commitments and Contingencies The Company follows ASC 450-20 to account for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss was incurred and the amount of the liability can be reasonably estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Revenue Recognition In May 2014 the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective and transition dates: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The new revenue standards became effective for the Company October 1, 2018, and were adopted using the modified retrospective method. The adoption of the new revenue standards as of October 1, 2018 did not change the Company’s revenue recognition as the Company did not have any revenue prior to October 1, 2018. As the Company did not identify any accounting changes that impacted the amount of reported revenues with respect to its product revenues, no adjustment to retained earnings was required upon adoption. Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. For the Company’s mine information service, revenue is recognized when the mine information is forwarded to the client. Income Tax Provision The Company accounts for income taxes under Section 740-10-30 of the FASB ASC, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that was included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. Uncertain Tax Positions The Company follows paragraph 740-10-25 of the FASB ASC. Paragraph 740-10-25-13 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits are classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of income. The Company did not take any uncertain tax positions and had no unrecognized tax liabilities or benefits in accordance with the provisions of Section 740-10-25 at March 31, 2020 or September 30, 2019. The tax years 2016 - 2018 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which the Company is subject. Earnings (Loss) per Share Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the potential common shares, warrants and stock options had been issued and if the additional common shares were dilutive. Diluted EPS is based on the assumption that all dilutive convertible shares and stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding options and warrants, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). Cash Flows Reporting The Company follows paragraph 230-10-45-24 of the FASB ASC for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect Method”) as defined by paragraph 230-10-45-25 of the FASB ASC to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB ASC. Software Development Costs The Company incurs costs to develop software programs to be used primarily to meet its internal needs and to market to others. In accordance with ASC 350-40, Internal-Use Software, the Company capitalizes development costs for these software applications once the preliminary project stage is complete and it is probable that the project will be completed, the software will be used to perform the function intended, and the value will be recoverable. In accordance with ASC 985-20-25, costs incurred before product feasibility is established and all design and coding is completed are expensed. Reengineering costs and minor modifications and enhancements that do not significantly improve the overall functionality of the software are expensed as incurred. After considering recent developments of laws and regulations on token issuance and trading that would apply to the platform that the Company has been designing, management discussed its function and compliance issues with the designer of the software platform and concluded that the project had more issues and costs for compliance than originally expected. On December 23, 2019, the Board decided to terminate the project. Leases On October 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which superseded the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (“ROU”) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases and Note 9 – Commitments. The Company adopted Topic 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after October 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with its historical accounting under Topic 840. The Company elected the package of practical expedients permitted under the transition guidance, which allowed it to carry forward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to October 1, 2019. The Company also elected to combine its lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Upon adoption, the Company recognized total ROU assets of $54,775, with corresponding lease liabilities of $54,775 on its consolidated balance sheets. The ROU assets include adjustments for prepayments and accrued lease payments. The adoption did not impact our beginning retained earnings, or prior year consolidated statements of operations and statements of cash flows. At March 31, 2020, the ROU was $42,067. Under Topic 842, the Company determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. Operating leases are included in operating lease ROU assets and operating lease liabilities (current and non-current), on the consolidated balance sheets. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its FV, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this standard on its CFS. In June 2018, the FASB issued ASU 2018-07, “Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The new guidance is effective for SEC filers for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early adoption is permitted. The Company is evaluating the effects of the adoption of this guidance. |
Going Concern
Going Concern | 6 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | Note 3 – Going Concern The accompanying CFS were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the accompanying CFS, the Company had an accumulated deficit of $5.95 million at March 31, 2020, and net loss of $35,844 and $111,916 for the six months ended March 31, 2020 and 2019, net loss of $6,433 and $49,586 for the three months ended March 31, 2020 and 2019, respectively, which raise substantial doubt about the Company’s ability to continue as a going concern. Also see the discussion of COVID-19 in Note 1. Management intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. While the Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The CFS do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 4 – Property and Equipment Property and equipment at March 31, 2020 and September 30, 2019 consisted of the following: 2020 2019 Computer equipment $ 1,852 $ 1,852 Less accumulated depreciation (1,204 ) (1,019 ) Computer equipment, net 648 833 Office furniture 12,746 12,746 Less accumulated depreciation (5,917 ) (5,007 ) Office furniture, net 6,829 7,739 Total property and equipment, net $ 7,477 $ 8,572 Depreciation for the six months ended March 31, 2020 and 2019 was $1,096 and $1,096, respectively. Depreciation for the three months ended March 31, 2020 and 2019 was $548 and $548, respectively. |
Prepaid expenses
Prepaid expenses | 6 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Other Assets Disclosure [Text Block] | Note 5 – Prepaid expenses As of March 31, 2020, the Company had current prepaid Director & Officer insurance of $24,561. At March 31, 2020 and September 30, 2019, the Company had noncurrent prepaid expense of $1,000,000. On January 4, 2017, Processing entered into a Consulting and Strategist Agreement with a consulting company for a six-month |
Other payables
Other payables | 6 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | Note 6 – Other payables As of March 31, 2020, and September 30, 2019, the Company had other payables of $8,879 and $10,675, respectively. Other payables mainly consisted of salary and payroll tax payables. |
Income Tax
Income Tax | 6 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 7 – Income Tax The President of the United States signed into law H.R. 1 (the “Tax Reform Law”). The Tax Reform Law, effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in significant changes to existing United States tax law, including various provisions that are expected to impact the Company. The Tax Reform Law reduced the federal corporate tax rate from 34% to 21% effective October 1, 2018 for the Company. For most taxpayers, NOLs arising in tax years ending after 2017 can only be carried forward. At March 31, 2020 and September 30, 2019, the Company had net operating loss (“NOL”) carryforward for income tax purposes; for federal income tax purposes, the NOL arising in tax years beginning after 2017 may only reduce 80% of a taxpayer’s taxable income, and may be carried forward indefinitely; for California income tax purposes, the entire NOL can be carried forward up to 20 years. The Company has estimated NOL carry-forwards for Federal and California income tax purposes of $4.13 million and $4.07 million at March 31, 2020 and September 30, 2019, respectively. No tax benefit was reported with respect to these NOL carry-forwards in the accompanying CFS because the Company believes the realization of the Company’s net deferred tax assets for the NOL for both federal and California State of approximately $1.22 million as of March 31, 2020, was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are fully offset by a full valuation allowance. Components of deferred tax assets as of March 31, 2020 and September 30, 2019 are as follows: Net deferred tax assets – Non-current: Expected income tax benefit from NOL carry-forwards $ 1,215,966 $ 1,207,488 Less valuation allowance (1,215,966 ) (1,207,488 ) Deferred tax assets, net of valuation allowance $ - $ - The recently issued Coronavirus Aid, Relief and Economic Security Act (the CARES Act or the Act), provides four relief provisions for corporate taxpayers as follows: 1. Five-year net operating loss (NOL) carryback provision: the Act allows for the carryback of losses arising in a taxable year beginning after December 31, 2017, and before January 1, 2021, to each of the five taxable years preceding the taxable year of the loss. 2. Fiscal year NOL carryback fix from the Tax Cuts and Jobs Act (TCJA) of 2017: the Act corrects the language to provide fiscal year taxpayers who had NOLs arising in years that began prior to December 31, 2017 and ended after December 31, 2017 with the ability to carry back those NOLs. 3. Deferral of 80% income limitation on post-2017 NOLs to 2021: the Act suspends this 80% limitation for taxable years beginning before January 1, 2021, and instead allows the full offset of taxable income. For tax years beginning after December 31, 2020, the Act reinstates the 80% limitation. 4. Immediate Alternative Minimum Tax (“AMT”) tax credit refunds: the Act accelerates availability of AMT credits. The full remaining refundable AMT credit amount will be available for a corporation’s first taxable year beginning in 2019. Alternatively, a corporation may elect to use 100% of its AMT credits for its first taxable year beginning in 2018. Income Tax Provision in the Statements of Operations A reconciliation of the consolidated federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes for the six months ended March 31, 2020 and 2019 is as follows: 2020 2019 Federal statutory income tax expense (benefit) rate (21.00 )% (21.00 )% Federal income tax rate difference 0.00 % 0.01 % State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax (6.98 )% (0.61 )% Change in valuation allowance on net operating loss carry-forwards 40.54 % 22.32 % Effective income tax rate 12.56 % 0.72 % A reconciliation of the consolidated federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes for the three months ended March 31, 2020 and 2019 is as follows: 2020 2019 Federal statutory income tax expense (benefit) rate (21.00 )% (21.00 )% Federal income tax rate difference 0.00 % 0.03 % State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax (6.98 )% 0.40 % Change in valuation allowance on net operating loss carry-forwards 87.50 % 22.21 % Effective income tax rate 59.52 % 1.64 % |
Revenue, Cost of Revenue and Ma
Revenue, Cost of Revenue and Major Customers | 6 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 8 – Revenue, Cost of Revenue and Major Customers Fuse Group and Processing provide consulting services to mining industry clients to find mine acquisition targets within the parameters set by the clients, in circumstances in which the mine owner is considering selling its mining rights. The services of Fuse Group and Processing include due diligence on the potential mine seller and the mine, such as ownership of the mine and whether the mine meets all operation requirements and/or is currently in operation. Cost of revenue mainly consisted of the management’s travel expenses to visit these mines and consulting expenses paid for mine expertise during the mine due diligence period. For the six months ended March 31, 2020 and 2019, the Company recorded revenue of $450,000 and $766,000 for the services provided, respectively. For the three months ended March 31, 2020 and 2019, the Company recorded revenue of $200,000 and $250,000 for the services provided, respectively. For the six and three months ended March 31, 2020, the Company had one customer which accounted for 100% of the Company’s total revenue. For the six and three months ended March 31, 2019, the Company had one customer which accounted for 95% and 100% of the Company’s total revenue. |
Commitments
Commitments | 6 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Leases [Text Block] | Note 9 – Commitments Acquisition commitment On January 4, 2017, Processing entered into a Consulting and Strategist Agreement with a consulting company for a six-month term. On July 3, 2017, Processing and the consulting company extended the Consulting and Strategist Agreement until January 3, 2018 at no additional cost, and the Agreement was subsequently extended to July 3, 2018. The consultant provided Processing with market research findings, exploration and advice on business development opportunities in certain countries, and other general business advisory services. The consulting company found acquisition targets for the Company, and on June 22, 2018, the Company entered into a MOU with a seller for the purchase of five mines located in different areas of Mexico for an aggregate purchase price of $1,000,000. Upon the execution of the MOU, the Company acquired the exclusive right to purchase the mines from the seller, effective until September 30, 2018. The parties entered into an oral agreement pursuant to which the Company will pay the $1,000,000 purchase price upon receiving approvals from the Mexican government allowing for the transfer of the mining concession. The transfer request was submitted to, and is being processed by, the Mexican government, but that processing was delayed due to elections and new administration in Mexico and the COVID-19 pandemic (see Note 5), the Company was not able to provide an estimated time for the approval at this report date. Lease Commitment Effective January 1, 2017, Processing, as a sublessee, entered into a sublease agreement for office space with a sublessor for a term of two years. The monthly rent was $1,897, and increased to $1,949 starting in January 2018. The lease expired on December 31, 2018. Effective April 16, 2018, the Company entered a one-year lease for an office in the City of Diamond Bar, California. The monthly rent was approximately $1,500. The Company did not renew the lease at expiration. Effective December 1, 2018, the Company entered a three-year lease for an office in the city of Arcadia, California. The monthly base rent is $2,115 payable on the first day of each month, with a 3% increase each year. The Company recorded rental cost of $13,705 and $27,718 for the six months ended March 31, 2020 and 2019, respectively. The Company recorded rental cost of $6,853 and $10,903 for the three months ended March 31, 2020 and 2019, respectively. The components of lease costs, lease term and discount rate with respect to the office lease with an initial term of more than 12 months are as follows: Six Months Ended March 31, 2020 Operating lease cost $ 13,705 Weighted Average Remaining Lease Term - Operating leases 1.75 years Weighted Average Discount Rate - Operating leases 4 % The operating lease cost for the three months ended March 31, 20202 was $6,853. The following is a schedule of maturities of lease liabilities as of March 31, 2020: For the 12 months ended Operating Leases March 31, 2021 $ 26,403 March 31, 2022 17,950 Total undiscounted cash flows 44,353 Less: imputed interest (1,525 ) Present value of lease liabilities $ 42,828 Consulting and Service Agreements 1) On April 1, 2017, the Company entered into a strategic consulting agreement with a consulting company with a term of one year. The consulting company provides the Company the strategic advices on business development and marketing. The compensation to the consulting company is $50,000 per year, payable in equal installments at the end of each month. The agreement was extended to March 31, 2021 with the same terms. 2) On May 4, 2018, the Company entered into a Mineral Mining Interactive Technology and Related Application Software Development Service Contract (the “Contract”) with Prime King Investment Limited (“Prime King”) described as below: Pursuant to the terms of the Contract, Prime King is providing services to the Company relating to the development, installation and debugging of a software system called IMETAL. The Company originally planned to operate IMETAL as a platform to facilitate investment and trade in raw metals, find specialized minerals, exploit these opportunities and issue tokens to be used on the platform, subject to compliance with applicable laws and regulations (the “Project”). Prime King shall also provide training to the Company’s staff per the Company’s request as well as maintenance for the Project for one year after the completion of the Project, in each case free of charge. Under the Contract, the Company shall pay Prime King $3,000,000, of which 50% was paid within 10 days of the execution of the Contract, and the remaining 50% was to be paid within 10 days of the completion of the Project after inspection and approval by the Company. The service was required to be completed in three months, however, on July 17, 2018, the deadline was extended until October 17, 2018, and the Company agreed to extend the deadline further, due to changes in technical requirements requested by the Company. Up to September 30, 2018, the Company paid Prime King $1.5 million, which was recorded as software development costs. The Company has not paid anything to Prime King since September 30, 2018. The Company previously expected the project to be completed by March 31, 2019. However, the process was delayed because the Company wanted to evaluate certain functions of this platform and regulatory compliance requirements for such functions before determining whether to include them in the platform. After considering the recent development of laws and regulations on token issuance and trading, management discussed its function and compliance issues with the designer of the platform and concluded that the project has more issues and costs for compliance than originally expected. On December 23, 2019, the Board decided to terminate the IMETAL project. 3) Exploratory Drilling Agreement and Related Costs. On April 1, 2018, the Company entered into a contract with an individual owner of a mining concession in Mexico. The mine is located in Mexico, in the state of Sinaloa, Badiraguato municipality, Nocoriba village. The latitude is 25.2520000 and the longitude is -107.225500. The Company started drilling within the concession 10HAAS. For the six and three months ended March 31, 2020, the Company spent $0; for the six and three months ended March 31, 2019, the Company spent $238,750 and $0, respectively, which was recorded as consulting expense. The Company expects to spend an additional $1.56 million on this project as of March 31, 2020. If the project is successful, the Company will receive 3% equity in the mine (which percentage will be paid upon successful completion of exploration and drilling of the mine). The mine owner is currently in discussion with a potential buyer to purchase this mine and the buyer is analyzing the minerals of this mine. The mine owner and Fuse Group have agreed to put exploration on hold until this buyer completes its analysis in preparation for making the acquisition decision. The project is currently on hold due to the COVID-19 pandemic. Negotiations will resume once the analysis of minerals of the mine is completed and accepted by the potential buyer. Employment Agreement The Company currently has an employment agreement with Michael Viotto, the Company’s CFO. Pursuant to the terms of his employment agreement, dated August 21, 2019, Mr. Viotto receives annual compensation of $50,000, and the agreement has a term of one year. Mr. Viotto’s employment agreement includes typical clauses relating to noncompetition, nonsolicitation and indemnification of Mr. Viotto in connection with his service as the Company’s CFO. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 10 – Subsequent Events The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company did not have any material subsequent events to disclose in its CFS. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements (“CFS”) were prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). |
Consolidation, Policy [Policy Text Block] | Basis of Consolidation The CFS include the accounts of Fuse Group and its subsidiaries, Processing, Trading and Technology. All significant inter-company accounts and transactions and balances were eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash For purposes of the statement of cash flows, the Company considers cash, money market funds, investments in interest bearing demand deposit accounts, time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s). Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: (i) Assumption as a going concern (ii) Valuation allowance for deferred tax assets: These significant accounting estimates or assumptions bear the risk of change because there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10 of the Financial Accounting Standards Board - Accounting Standards Codification (“FASB ASC”) for disclosures about fair value (“FV”) of its financial instruments and paragraph 820-10-35-37 of the FASB ASC (“Paragraph 820-10-35-37”) to measure the FV of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring FV in U.S. GAAP, and expands disclosures about FV measurements. Paragraph 820-10-35-37 establishes a FV hierarchy which prioritizes the inputs to valuation techniques used to measure FV into three broad levels. The FV hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of FV hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. Financial assets are considered Level 3 when their FVs are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The FV hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the FV measurement of the instrument. The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses, accounts receivable, accounts payable and accrued expenses, approximate their FV because of the short maturity of those instruments. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. |
Accounts Receivable [Policy Text Block] | Accounts Receivable The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. The Company had no outstanding accounts receivable at March 31, 2020 or September 30, 2019. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and impairment losses, if any. Expenditures for maintenance and repairs are expensed as incurred; while additions, renewals and improvements are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets and estimated lives as follows: Computer and office equipment 5 years Office furniture 7 years Leasehold decoration and renovation 10 years Production machinery 10 years Autos 5 years |
Related Parties, Policy [Policy Text Block] | Related Parties The Company follows subtopic 850-10 of the FASB ASC for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include: (a) affiliates of the Company; (b) entities for which investments in their equity securities would be required, absent the election of the FV option under the FV Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and Contingencies, Policy [Policy Text Block] | Commitments and Contingencies The Company follows ASC 450-20 to account for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss was incurred and the amount of the liability can be reasonably estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Revenue [Policy Text Block] | Revenue Recognition In May 2014 the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective and transition dates: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The new revenue standards became effective for the Company October 1, 2018, and were adopted using the modified retrospective method. The adoption of the new revenue standards as of October 1, 2018 did not change the Company’s revenue recognition as the Company did not have any revenue prior to October 1, 2018. As the Company did not identify any accounting changes that impacted the amount of reported revenues with respect to its product revenues, no adjustment to retained earnings was required upon adoption. Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. For the Company’s mine information service, revenue is recognized when the mine information is forwarded to the client. |
Income Tax, Policy [Policy Text Block] | Income Tax Provision The Company accounts for income taxes under Section 740-10-30 of the FASB ASC, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that was included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. |
Income Tax Uncertainties, Policy [Policy Text Block] | Uncertain Tax Positions The Company follows paragraph 740-10-25 of the FASB ASC. Paragraph 740-10-25-13 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits are classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of income. The Company did not take any uncertain tax positions and had no unrecognized tax liabilities or benefits in accordance with the provisions of Section 740-10-25 at March 31, 2020 or September 30, 2019. The tax years 2016 - 2018 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which the Company is subject. |
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) per Share Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the potential common shares, warrants and stock options had been issued and if the additional common shares were dilutive. Diluted EPS is based on the assumption that all dilutive convertible shares and stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding options and warrants, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). |
Cash Flow, Policy [Policy Text Block] | Cash Flows Reporting The Company follows paragraph 230-10-45-24 of the FASB ASC for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect Method”) as defined by paragraph 230-10-45-25 of the FASB ASC to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB ASC. |
Research and Development Expense, Policy [Policy Text Block] | Software Development Costs |
Lessee, Leases [Policy Text Block] | Leases On October 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which superseded the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (“ROU”) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases and Note 9 – Commitments. The Company adopted Topic 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after October 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with its historical accounting under Topic 840. The Company elected the package of practical expedients permitted under the transition guidance, which allowed it to carry forward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to October 1, 2019. The Company also elected to combine its lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Upon adoption, the Company recognized total ROU assets of $54,775, with corresponding lease liabilities of $54,775 on its consolidated balance sheets. The ROU assets include adjustments for prepayments and accrued lease payments. The adoption did not impact our beginning retained earnings, or prior year consolidated statements of operations and statements of cash flows. At March 31, 2020, the ROU was $42,067. Under Topic 842, the Company determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. Operating leases are included in operating lease ROU assets and operating lease liabilities (current and non-current), on the consolidated balance sheets. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its FV, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this standard on its CFS. In June 2018, the FASB issued ASU 2018-07, “Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The new guidance is effective for SEC filers for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early adoption is permitted. The Company is evaluating the effects of the adoption of this guidance. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Estimated Useful Lives [Member] | |
Summary of Significant Accounting Policies (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost, net of accumulated depreciation and impairment losses, if any. Expenditures for maintenance and repairs are expensed as incurred; while additions, renewals and improvements are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets and estimated lives as follows: Computer and office equipment 5 years Office furniture 7 years Leasehold decoration and renovation 10 years Production machinery 10 years Autos 5 years |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Member] | |
Property and Equipment (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment at March 31, 2020 and September 30, 2019 consisted of the following: 2020 2019 Computer equipment $ 1,852 $ 1,852 Less accumulated depreciation (1,204 ) (1,019 ) Computer equipment, net 648 833 Office furniture 12,746 12,746 Less accumulated depreciation (5,917 ) (5,007 ) Office furniture, net 6,829 7,739 Total property and equipment, net $ 7,477 $ 8,572 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Components of deferred tax assets as of March 31, 2020 and September 30, 2019 are as follows: Net deferred tax assets – Non-current: Expected income tax benefit from NOL carry-forwards $ 1,215,966 $ 1,207,488 Less valuation allowance (1,215,966 ) (1,207,488 ) Deferred tax assets, net of valuation allowance $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2020 2019 Federal statutory income tax expense (benefit) rate (21.00 )% (21.00 )% Federal income tax rate difference 0.00 % 0.01 % State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax (6.98 )% (0.61 )% Change in valuation allowance on net operating loss carry-forwards 40.54 % 22.32 % Effective income tax rate 12.56 % 0.72 % 2020 2019 Federal statutory income tax expense (benefit) rate (21.00 )% (21.00 )% Federal income tax rate difference 0.00 % 0.03 % State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax (6.98 )% 0.40 % Change in valuation allowance on net operating loss carry-forwards 87.50 % 22.21 % Effective income tax rate 59.52 % 1.64 % |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease costs, lease term and discount rate with respect to the office lease with an initial term of more than 12 months are as follows: Six Months Ended March 31, 2020 Operating lease cost $ 13,705 Weighted Average Remaining Lease Term - Operating leases 1.75 years Weighted Average Discount Rate - Operating leases 4 % |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following is a schedule of maturities of lease liabilities as of March 31, 2020: For the 12 months ended Operating Leases March 31, 2021 $ 26,403 March 31, 2022 17,950 Total undiscounted cash flows 44,353 Less: imputed interest (1,525 ) Present value of lease liabilities $ 42,828 |
Organization and Operations (De
Organization and Operations (Details) - Fuse Trading Limited ("Trading") [Member] | Mar. 31, 2017$ / shares |
Organization and Operations (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Share Price | $ 0.13 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | Mar. 31, 2020 | Oct. 01, 2019 | Sep. 30, 2019 |
Accounting Policies [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 42,067 | $ 54,775 | $ 0 |
Operating Lease, Liability | $ 42,828 | $ 54,775 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Property, Plant and Equipment | 6 Months Ended |
Mar. 31, 2020 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 5 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 10 years |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 10 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 5 years |
Going Concern (Details)
Going Concern (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Retained Earnings (Accumulated Deficit) | $ (5,950,237) | $ (5,950,237) | $ (5,914,393) | ||||
Net Income (Loss) Attributable to Parent | $ (6,433) | $ (29,411) | $ (49,586) | $ (62,330) | $ (35,844) | $ (111,916) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 548 | $ 548 | $ 1,096 | $ 1,096 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Property, Plant and Equipment - USD ($) | Mar. 31, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 7,477 | $ 8,572 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, and Equipment, Gross | 1,852 | 1,852 |
Less accumulated depreciation | (1,204) | (1,019) |
Property and equipment, net | 648 | 833 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, and Equipment, Gross | 12,746 | 12,746 |
Less accumulated depreciation | (5,917) | (5,007) |
Property and equipment, net | $ 6,829 | $ 7,739 |
Prepaid expenses (Details)
Prepaid expenses (Details) | Jun. 22, 2018USD ($) | Jan. 04, 2017USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Prepaid expenses (Details) [Line Items] | |||||||
Prepaid Expense, Current | $ 24,561 | $ 0 | |||||
Prepaid Expense, Noncurrent | 1,000,000 | $ 1,000,000 | |||||
Increase (Decrease) in Prepaid Expense | $ 29,474 | $ 0 | |||||
Number of Mines Under MOU | 5 | ||||||
Consulting and Strategist Agreement [Member] | |||||||
Prepaid expenses (Details) [Line Items] | |||||||
Prepaid Expense, Noncurrent | $ 1,000,000 | ||||||
Contract, Term | 6 months | ||||||
Deposit Assets | $ 1,325,000 | ||||||
Increase (Decrease) in Prepaid Expense | $ (325,000) | ||||||
Number of Mines Under MOU | 5 | ||||||
Mine Purchase Price | $ 1,000,000 |
Other payables (Details)
Other payables (Details) - USD ($) | Mar. 31, 2020 | Sep. 30, 2019 |
Disclosure Text Block Supplement [Abstract] | ||
Other Liabilities, Current | $ 8,879 | $ 10,675 |
Income Tax (Details)
Income Tax (Details) - USD ($) | Oct. 01, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 |
Income Tax Disclosure [Abstract] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 34.00% | |
Operating Loss Carryforwards | $ 4.13 | $ 4.13 | $ 4.07 | ||||
Deferred Tax Assets, Net | $ 1.22 | $ 1.22 |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | Mar. 31, 2020 | Sep. 30, 2019 |
Schedule of Deferred Tax Assets and Liabilities [Abstract] | ||
Expected income tax benefit from NOL carry-forwards | $ 1,215,966 | $ 1,207,488 |
Less valuation allowance | (1,215,966) | (1,207,488) |
Deferred tax assets, net of valuation allowance | $ 0 | $ 0 |
Income Tax (Details) - Schedu_2
Income Tax (Details) - Schedule of Effective Income Tax Rate Reconciliation | Oct. 01, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2018 |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||||||
Federal statutory income tax expense (benefit) rate | (21.00%) | (21.00%) | (21.00%) | (21.00%) | (21.00%) | (34.00%) |
Federal income tax rate difference | 0.00% | 0.03% | 0.00% | 0.01% | ||
State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax | (6.98%) | 0.40% | (6.98%) | (0.61%) | ||
Change in valuation allowance on net operating loss carry-forwards | 87.50% | 22.21% | 40.54% | 22.32% | ||
Effective income tax rate | 59.52% | 1.64% | 12.56% | 0.72% |
Revenue, Cost of Revenue and _2
Revenue, Cost of Revenue and Major Customers (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, Cost of Revenue and Major Customers (Details) [Line Items] | ||||
Deferred Revenue, Revenue Recognized | $ 200,000 | $ 250,000 | $ 450,000 | $ 766,000 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||
Revenue, Cost of Revenue and Major Customers (Details) [Line Items] | ||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | 95.00% |
Commitments (Details)
Commitments (Details) | Dec. 01, 2018USD ($) | Aug. 20, 2018USD ($) | Jun. 22, 2018USD ($) | May 04, 2018 | Apr. 16, 2018USD ($) | Jan. 01, 2018USD ($) | Apr. 01, 2017USD ($) | Jan. 01, 2017USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) |
Commitments (Details) [Line Items] | |||||||||||||
Number of Mines Under MOU | 5 | ||||||||||||
Payments to Acquire Mining Assets | $ 1,000,000 | ||||||||||||
Operating Leases, Rent Expense | $ 6,853 | $ 10,903 | $ 13,705 | $ 27,718 | |||||||||
Lease, Cost | 6,853 | ||||||||||||
Employment Agreement, Annual Compensation | $ 50,000 | ||||||||||||
Employment Agreement, Term | 1 year | ||||||||||||
Lease of Office Space [Member] | |||||||||||||
Commitments (Details) [Line Items] | |||||||||||||
Lessee, Operating Lease, Term of Contract | 2 years | ||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 1,949 | $ 1,897 | |||||||||||
City of Diamond Bar, California [Member] | Lease of Office Space [Member] | |||||||||||||
Commitments (Details) [Line Items] | |||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 1,500 | ||||||||||||
Arcadia, California [Member] | Lease of Office Space [Member] | |||||||||||||
Commitments (Details) [Line Items] | |||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 2,115 | ||||||||||||
Lessee, Operating Lease, Description | 3% increase each year | ||||||||||||
Strategic Consulting Agreement [Member] | |||||||||||||
Commitments (Details) [Line Items] | |||||||||||||
Contract, Annual Fee | $ 50,000 | ||||||||||||
Contract, Term | 1 year | ||||||||||||
Mineral Mining Interactive Technology and Related Application Software Development Service Contract [Member] | |||||||||||||
Commitments (Details) [Line Items] | |||||||||||||
Contract, Term | 1 year | ||||||||||||
Research, Development and Computer Software, Activity Description | Under the Contract, the Company shall pay Prime King $3,000,000, of which 50% was paid within 10 days of the execution of the Contract, and the remaining 50% was to be paid within 10 days of the completion of the Project after inspection and approval by the Company. The service was required to be completed in three months, however, on July 17, 2018, the deadline was extended until October 17, 2018, and the Company agreed to extend the deadline further, due to changes in technical requirements requested by the Company. Up to September 30, 2018, the Company paid Prime King $1.5 million, which was recorded as software development costs. The Company has not paid anything to Prime King since September 30, 2018. The Company previously expected the project to be completed by March 31, 2019. | ||||||||||||
Payments to Develop Software | $ 1,500,000 | ||||||||||||
Exploratory Drilling Agreement and Related Costs [Member] | |||||||||||||
Commitments (Details) [Line Items] | |||||||||||||
Costs Incurred, Exploration Costs | $ 0 | $ 0 | 0 | $ 238,750 | |||||||||
Exploratory Dirlling, Estimated Project Cost | $ 1,560,000 | ||||||||||||
Portion of Net Profit from Minining Operations | 3.00% |
Commitments (Details) - Lease,
Commitments (Details) - Lease, Cost | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Lease, Cost [Abstract] | |
Operating lease cost | $ 13,705 |
Weighted Average Remaining Lease Term - Operating leases | 1 year 9 months |
Weighted Average Discount Rate - Operating leases | 4.00% |
Commitments (Details) - Schedul
Commitments (Details) - Schedule of Future Minimum Rental Payments for Operating Leases - USD ($) | Mar. 31, 2020 | Oct. 01, 2019 |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | ||
March 31, 2021 | $ 26,403 | |
March 31, 2022 | 17,950 | |
Total undiscounted cash flows | 44,353 | |
Less: imputed interest | (1,525) | |
Present value of lease liabilities | $ 42,828 | $ 54,775 |