10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 000-29621

NovAccess Global Inc.

(Exact name of registrant as specified in its charter)

Colorado	84-1384159
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer Identification no.)

Address of principal executive offices, including zip code: 8584 E. Washington Street #127, Chagrin Falls, Ohio 44023

Registrant’s telephone number, including area code: (213) 642-9268

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the Registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (check one):

Large accelerated Filer ☐ Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller Reporting Company ☒ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. There were 21,185,028 shares of common stock outstanding on May 15, 2023.

Table of Contents

PART I — FINANCIAL INFORMATION
Item 1. Financial Statements.	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	20
Cautionary and Forward-Looking Statements	20
Business Plan	20
Results of Operations for the Three Months Ended March 31, 2023 Compared to the Three Months Ended March 31, 2022	20
Results of Operations for the Six Months Ended March 31, 2023 Compared to the Six Months Ended March 31, 2022	21
Revenue and Cost of Sales	21
Selling, General and Administrative Expenses	21
Research and development expenses	21
Other Income/(Expenses)	21
Net Loss	21
Liquidity and Capital Resources	22
Off-Balance Sheet Arrangements	22
Critical Accounting Estimates	22
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	23
Item 4. Controls and Procedures.	23
Evaluation of Disclosure Controls and Procedures	23
Changes in Internal Control Over Financial Reporting	23
PART II — OTHER INFORMATION
Item 1. Legal Proceedings.	24
Item 1.A Risk Factors.	24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	24
Item 3. Defaults Upon Senior Securities.	24
Item 4. Mine Safety Disclosures.	24
Item 5. Other Information.	24
Item 6. Exhibit and Financial Statement Schedules.	25
SIGNATURES	26

Part I- Financial Information

Item 1. Financial Statements

NOVACCESS GLOBAL INC.

CONSOLIDATED BALANCE SHEETS

	March 31, 2023			September 30, 2022
	Unaudited
ASSETS
CURRENT ASSETS
Cash	$	21,991		$	64,251
Prepaid expenses		81,468			60,650
TOTAL ASSETS	$	103,459		$	124,901
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable	$	446,828		$	375,682
Accrued expenses and other current liabilities		1,654,274			1,486,561
Derivative and warrants liabilities		1,769,259			1,440,012
Due to related parties		181,217			186,217
Short term loan, related party		21,000			12,500
Convertible promissory notes, net of debt discount and debt issuance costs of $157,807 and $340,503 respectively		1,745,073			1,266,627
Convertible promissory note related party, net of debt discount and debt issuance cost of $0 and $2,132, respectively		12,500			10,368
Total Current Liabilities		5,830,151			4,777,967
TOTAL LIABILITIES		5,830,151			4,777,967
SHAREHOLDERS' DEFICIT
Preferred stock 50,000,000 shares authorized, shares issued and outstanding designated as follows:
Preferred Stock Series B, $0.01 par value, 25,000 authorized 600 shares issued and outstanding, respectively		6			6
Common stock, no par value; 2,000,000,000 authorized common shares 21,185,028 and 18,669,507 shares issued and outstanding, respectively		43,623,184			43,225,982
Additional paid in capital		6,047,212			5,340,398
Paid in capital, common stock option and warrants		4,747,108			4,747,108
Paid in capital, preferred stock		4,210,960			4,210,960
Accumulated deficit		(64,355,162	)		(62,177,520	)
TOTAL SHAREHOLDERS' DEFICIT		(5,726,692	)		(4,653,066	)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$	103,459		$	124,901

The accompanying notes are an integral part of these consolidated financial statements.

1

NOVACCESS GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2023 AND 2022

(Unaudited)

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2023			2022			2023			2022
SALES	$	-		$	-		$	-		$	-
COST OF GOODS SOLD		-			-			-			-
GROSS PROFIT		-			-			-			-
OPERATING EXPENSES
Research and development expenses		41,036			45,516			76,000			87,915
Selling, general and administrative expenses		1,013,952			381,428			1,496,106			661,358
TOTAL OPERATING EXPENSES		1,054,988			426,944			1,572,106			749,273
LOSS FROM OPERATIONS BEFORE OTHER INCOME/(EXPENSES)		(1,054,988	)		(426,944	)		(1,572,106	)		(749,273	)
OTHER INCOME/(EXPENSES)
Gain (Loss) on change in derivative liability		1,825,730			(492,425	)		(255,854	)		(33,399	)
Extinguishment of derivatives		138,863			-			138,863			96,205
Extinguishment of debt		-			(54,813	)		-			(54,813	)
Change in commitment fee guarantee		(193,625	)		-			74,125			-
Interest expense		(262,216	)		(255,603	)		(562,670	)		(631,813	)
TOTAL OTHER INCOME/(EXPENSES)		1,508,752			(802,841	)		(605,536	)		(623,820	)
NET INCOME (LOSS)		453,764			(1,229,785	)		(2,177,642	)		(1,373,093	)
Deemed dividend on warrant re-pricing		(44,241	)		-			(44,241	)		-
Net income loss attributable to common shareholders		409,523			(1,229,785	)		(2,221,883	)		(1,373,093	)
BASIC INCOME (LOSS) PER SHARE	$	0.02		$	(0.08	)	$	(0.11	)	$	(0.09	)
DILUTED INCOME (LOSS) PER SHARE	$	0.01		$	(0.08	)	$	(0.11	)	$	(0.09	)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
BASIC		20,698,747			15,379,289			19,832,524			14,914,920
DILUTED		39,680,653			15,379,289			19,832,524			14,914,920

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

NOVACCESS GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT

FOR THE SIX MONTHS ENDED MARCH 31, 2023 AND 2022

													Stock
	Preferred Stock,										Additional		Options/ Warrants		Paid in Capital,
	Class B						Common Stock				Paid-in		Paid in		Preferred			Accumulated
	Shares			Amount			Shares		Amount		Capital		Capital		Stock			Deficit			Total
Balance as of September 30, 2021		25,000		$	250			14,404,030	$	41,882,535	$	5,351,398	$	4,210,960	$	5,088,324		$	(60,461,561	)	$	(3,928,094	)
Preferred stock redemption		(24,400	)		(244	)		1,502,670		525,935		-		-		(341,216	)		-			184,475
Common Stock issued for services		-			-			265,973		119,480		-		-		-			-			119,480
Common Stock issued, subscriptions		-			-			791,000		170,200		-		-		-			-			170,200
Stock compensation cost		-			-			10,000		8,000		-		-		-			-			8,000
Common stock issued as repayment of loans		-			-			250,000		104,813		-		-		-			-			104,813
Common stock issued as commitment fee on promissory note payable		-			-			300,000		111,000		-		-		-			-			111,000
Common stock issuable, Subscriptions		-			-			-		-		5,000		-		-			-			5,000
Net Loss		-			-			-		-		-		-		-			(1,373,093	)		(1,373,093	)
Balance as of March 31, 2022 (Unaudited)		600		$	6			17,523,673	$	42,921,963	$	5,356,398	$	4,210,960	$	4,747,108		$	(61,834,654	)	$	(4,598,219	)

												Stock
	Preferred Stock,								Additional			Options/ Warrants		Paid in Capital,
	Class B				Common Stock				Paid-in			Paid in		Preferred		Accumulated
	Shares		Amount		Shares		Amount		Capital			Capital		Stock		Deficit			Total
Balance as of September 30, 2022		600	$	6		18,669,507	$	43,225,982	$	5,340,398		$	4,210,960	$	4,747,108	$	(62,177,520	)	$	(4,653,066	)
Common Stock issued for services		-		-		1,490,521		259,702		-			-		-		-			259,702
Common Stock issued, subscriptions		-		-		525,000		55,000		(5,000	)		-		-		-			50,000
Common stock issued for commitment fees		-		-		500,000		82,500		-			-		-		-			82,500
Stock compensation cost for options		-		-		-		-		563,314			-		-		-			563,314
Stock compensation cost for warrants		-		-		-		-		148,500			-		-		-			148,500
Net Loss		-		-		-		-		-			-		-		(2,177,642	)		(2,177,642	)
Balance as of March 31, 2023 (Unaudited)		600	$	6		21,185,028	$	43,623,184	$	6,047,212		$	4,210,960	$	4,747,108	$	(64,355,162	)	$	(5,726,692	)

3

NOVACCESS GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED MARCH 31, 2023 AND 2022

(Unaudited)

	For the Six Months Ended
	March 31, 2023			March 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(2,177,642	)	$	(1,373,093	)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities
Amortization of debt discount and debt issuance costs recorded as interest expense		432,083			479,689
Loss on change in derivative liability		255,854			33,399
Extinguishment of derivatives		(138,863	)		(96,205	)
Extinguishment of debt					54,813
Stock compensation expense		711,814			53,619
Stock issued and issuable for services		259,702			73,861
Stock issued as commitment fee on promissory note payable		82,500			79,043
Non-cash interest expense on bridge loan		-			546
Changes in Assets and Liabilities:
Prepaid expenses		(20,818	)		5,568
Accounts payable		71,147			39,700
Accrued expenses and interest on notes payable		167,713			210,216
NET CASH USED IN OPERATING ACTIVITIES		(356,510	)		(438,844	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Stock subscriptions received		50,000			175,200
Due to related party		-			3,151
Proceeds from convertible notes payable		340,000			213,000
Payments related party for redemption of preferred stock		(5,000	)		(50,000	)
Payments on convertible notes payable		-			-
Proceeds from related parties notes payable		8,500			75,000
Payment on the related parties loans payable		-			(2,316	)
Principal payments on convertible debt		(79,250	)		(94,250	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		314,250			319,785
NET INCREASE (DECREASE) IN CASH		(42,260	)		(119,059	)
CASH, BEGINNING OF PERIOD		64,251			180,668
CASH, END OF PERIOD	$	21,991		$	61,609
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	$	17,711		$	71,245
Taxes paid	$	800		$	-
SUPPLEMENTAL DISCLOSURES OF NON CASH TRANSACTIONS
Accrued interest capitalized into convertible note	$	-		$	546
Cash payable to TN3 for preferred stock	$	-		$	200,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- UNAUDITED

MARCH 31, 2023 AND 2022

1. ORGANIZATION AND LINE OF BUSINESS

Organization

NovAccess Global Inc. (“NovAccess” or the “Company”) is a Colorado corporation formerly known as Sun River Mining Inc. and XsunX, Inc.. The Company was originally incorporated in Colorado on February 25, 1997. Effective September 24, 2003, the Company completed a plan of reorganization and name change to XsunX, Inc. Effective August 25, 2020, we filed articles of amendment to our articles of incorporation with the Colorado Secretary of State to: effectuate a 1-for-1,000 reverse stock split of the Company’s outstanding shares of common stock; and change the name of the Company to “NovAccess Global Inc.” After completing the acquisition of StemVax, in September, 2020, we exited the solar business and focused all our efforts on our biopharmaceutical business.

Line of Business

NovAccess Global Inc. is a biopharmaceutical company that is developing novel immunotherapies to treat brain tumor patients in the United States with plans to expand globally. We specialize in cutting-edge research related to utilizing a patient’s own immune system to attack the cancer. We are filing an Investigational New Drug Application (IND) and working closely with the Food and Drug Administration (FDA) to obtain approval for human clinical trials to determine safety and efficacy of our drug product for brain cancer patients. Once we have successfully completed the clinical trials and proven that the new therapy is safe and efficacious, we plan to commercialize the product. We also have expertise in successfully executing clinical trials, bringing products to market and increasing the market size of products through our advisory board. Our scientists are well versed in immunology, stem cell biology, neuroscience, molecular biology, imaging, small molecules development, gene therapy and other technical assays needed for protein and genetic analysis of cancer cells.

NovAccess operates as a research and development (R&D) company out of Ohio and California, and our executive management and scientific advisory board provide over 15 years of extensive experience in all aspects of biopharmaceutical R&D and commercialization of drug candidates.

Going Concern

The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. The Company does not generate significant revenue, and has negative cash flows from operations, which raise substantial doubt about the Company’s ability to continue as a going concern.

The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, additional cash infusion. The Company has obtained funds from its shareholders since its inception through the period ended March 31, 2023. Management believes the existing shareholders and the prospective new investors will provide the additional cash needed to meet the Company’s obligations as they become due and will allow the development of its business.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of NovAccess Global Inc. is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary StemVax, LLC. All significant inter-company accounts and transactions between these entities have been eliminated in these consolidated financial statements.

5

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Significant estimates made in preparing these consolidated financial statements include the estimate of the deferred tax valuation allowance, the fair value of stock options, and derivative liabilities. Actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents include cash in banks and money markets with an original maturity of three months or less.

Stock-Based Compensation

Share-based Payment applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are to follow a fair value of those equity instruments. We are required to follow a fair value approach using an option-pricing model, such as the Binomial lattice valuation model, at the date of a stock option grant. The deferred compensation calculated under the fair value method would then be amortized over the respective vesting period of the stock option. This has not had a material impact on our results of operations.

Net Earnings (Loss) per Share Calculations

Net earnings (Loss) per share dictates the calculation of basic earnings (loss) per share and diluted earnings (loss) per share. Basic earnings (loss) per share are computed by dividing by the weighted average number of common shares outstanding during the period. Diluted net earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the effect of stock options and stock-based awards plus the assumed conversion of convertible debt (see notes 4 and 5). 

	For the three months ended					For the Six months ended
	March 31,					March 31,
	2023		2022			2023			2022
Income (Loss) to common shareholders (Numerator)	$	409,523		(1,229,785	)	$	(2,221,883	)	(1,373,093	)
Basic weighted average number of common shares outstanding (Denominator)		20,698,747		15,379,289			19,832,524		14,914,920
Diluted weighted average number of common shares outstanding		39,680,653		15,379,289			19,832,524,		14,914,920

Fair Value of Financial Instruments

Fair Value of Financial Instruments requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of March 31, 2023, the balances reported for cash, prepaid expenses, accounts payable, accrued expenses approximate the fair value because of their short maturities.

We adopted Accounting Standards Codification (“ASC”) Topic 820 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements.

6

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fair Value of Financial Instruments (continued)

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:

● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;

● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

We measure certain financial instruments at fair value on a recurring basis. The Company had no assets that are required to be valued on a recurring basis as of March 31, 2023 and September 30, 2022. The Company had liabilities that are required to be measured at fair value on a recurring basis as follows at March 31 2023 and September 30, 2022:

	Total		(Level 1)		(Level 2)		(Level 3)
Assets:	$	-	$	-	$	-	$	-
Liabilities:
Derivative Liability at fair value as of September 30, 2022	$	1,207,403	$	-	$	-	$	1,207,403
Derivative Liability warrants at fair value as of September 30, 2022	$	232,609	$	-	$	-	$	232,609
Total Derivative Liability as of September 30, 2022	$	1,440,012		-		-	$	1,440,012
Derivative Liability at fair value as of March 31, 2023	$	1,211,565		-		-	$	1,211,565
Derivative Liability warrants at fair value as of March 31, 2023	$	557,694		-		-	$	557,694
Total Derivative Liability as of March 31, 2023	$	1,769,259		-		-	$	1,769,259

The following is a reconciliation of the derivative liability for which Level 3 inputs were used in determining the approximate fair value:

	Derivative Liability Promissory Notes			Derivative Liability Warrants			Total Derivative Liability
Balance as of September 30, 2021	$	2,553,979		$	372,643		$	2,926,622
Fiscal year 2022 initial derivative liabilities		593,297			282,051			875,348
Net (Gain)/Loss on change in fair value of derivative liability		(1,662,156	)		(422,086	)		(2,084,242	)
Extinguishment of derivative		(277,716	)		-			(277,716	)
Ending balance as of September 30, 2022	$	1,207,403		$	232,609		$	1,440,012
Six Months ended March 31, 2023, initial derivative liabilities		212,256			-			212,256
Net (Gain)/Loss on change in fair value of derivative liability		(69,231	)		325,085			255,854
Extinguishment of derivative		(138,863	)		-			(138,863	)
Ending balance as of March 31, 2023	$	1,211,565		$	557,694		$	1,769,259

7

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent Accounting Pronouncements

In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations". This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, except for the amendment on roll forward information, which is effective for fiscal years beginning after December 15, 2023. We are currently evaluating the extent of the impact of this ASU, but do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sales Restrictions, which (1) clarifies the guidance in Topic 820 on the fair value measurement of an equity security that is subject to contractual restrictions that prohibit the sale of an equity security and (2) requires specific disclosures related to such an equity security. We are currently evaluating the extent of the impact of this ASU, but do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

In March 2022, the FASB issued ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance on troubled debt restructurings for creditors in ASC Topic 310 and amends the guidance on "vintage disclosures" to require disclosure of current-period gross write-offs by year of origination. ASU 2022-02 also updates the requirements related to accounting for credit losses under ASC Topic 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the extent of the impact of this ASU, but do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

3. CAPITAL STOCK

As of March 31, 2023 the Company’s authorized stock consisted of 2,000,000,000 shares of common stock, with no par value. Effective August 25, 2020, we filed articles of amendment to our articles of incorporation with the Colorado Secretary of State to effectuate a 1-for-1,000 reverse stock split of the Company’s outstanding shares of common stock.

The Company is also authorized to issue 50,000,000 shares of preferred stock with a par value of $0.01 per share. The rights, preferences and privileges of the holders of the preferred stock are determined by the Board of Directors prior to issuance of such shares.

Preferred Stock

As of March 31, 2023, the Company had 600 shares of issued and outstanding Series B Preferred. On September 4, 2020, the Company issued 25,000 shares of unregistered Series B Convertible Preferred stock, $0.01 par value per share, to TN3, LLC, a Wyoming limited liability company owned by Daniel G. Martin (“TN3”), in exchange for the redemption of all 5,000 shares of Series A preferred stock that TN3 previously held. At the time, Mr. Martin was our Chief Executive Officer and sole Board Member. On March 14, 2022, NovAccess redeemed 24,400 shares of the Company’s Series B Convertible Preferred Stock held by TN3. Irvin Consulting LLC, a company owned by Dwain Irvin, the CEO of NovAccess, purchased the remaining 600 shares (please refer to Note 11 for more details).

Each share of outstanding Series B Preferred Stock entitles the holder to cast 40,000 votes. Each share of Series B Preferred Stock is convertible at the option of the holder into 10,000 common shares. In the event of any voluntary or involuntary liquidation, dissolution, or winding-up of the Corporation, the holders of shares of Series B Preferred Stock shall be paid out based on an as converted basis. Dividends for Series B Preferred Stock shall be declared on an as converted basis.

8

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

3. CAPITAL STOCK (Continued)

Common Stock

During the six months ended March 31, 2023, the Company issued 2,515,521 shares of common stock.

The Company issued 1,490,521 shares to various vendors for services provided, including 216,500 shares issued to a related party for services provided, amounting to $259,702 recorded at the fair value of shares on the respective grant dates.

The Company issued 525,000 shares in relation to stock subscriptions.

The Company issued 500,000 shares as commitment fees in connection with the letter agreement issued on February 9, 2023. These shares were recorded at fair value as on the date of issuance.

During the six months ended March 31, 2022, the Company issued 3,119,643 shares of common stock. 1,502,670 shares were issued to TN3 as part of the transaction to redeem 24,400 shares of Series B Preferred Stock, 265,973 shares were issued to various vendors for services provided; 791,000 shares were issued in relation to stock subscriptions; 300,000 shares were issued as a commitment fee on a promissory note payable; 250,000 shares were issued as repayment of bridge loans (please refer to Note 4 for more details); and 10,000 shares were issued to related parties (please refer to Note 12 for more details).

4. CONVERTIBLE PROMISSORY NOTES

Convertible Promissory notes as on March 31, 2023	Principal Amount		Unamortized balance of Debt Discount		Outstanding balance as on March 31, 2023		Derivative balance as on March 31, 2023		Warrant liability balance as on March 31, 2023
2013 Note		12,000		-		12,000		-		-
2014 Note		50,880		-		50,880		215,591		-
2017 Note		115,000		-		115,000		453,384		-
August 2021 Note		-		-		-		-		151,920
February 2022 Note		250,000		-		250,000		81,815		76,762
May 2022 Note		1,000,000		-		1,000,000		245,784		171,753
August 2022 Note		100,000		27,517		72,483		48,797		-
November 2022 Note		55,000		32,937		22,063		48,883		-
December 2022 Note		55,000		37,207		17,793		49,719		-
February 2023 Note		265,000		60,146		204,854		63,650		157,259
Total		1,902,880		157,807		1,745,073		1,207,624		557,694

Convertible Promissory note, related party as on March 31, 2023	Principal Amount		Unamortized balance of Debt Discount		Outstanding balance as on March 31, 2023		Derivative balance as on March 31, 2023		Warrant liability balance as on March 31, 2023
July 2022 Note		12,500		-		12,500		3,941		-

2013 Note

On October 1, 2013, Company issued an unsecured convertible promissory note (the “2013 Note”) in the amount of $12,000 to a former Board member (the “Holder”) in exchange for retention as a director during the fiscal year ending September 30, 2014. The Note can be converted into shares of common stock by the Holder for $4.50 per share. The Note matured on October 1, 2015 and bore a one-time interest charge of $1,200 which was applied to the principal on October 1, 2014. As of March 31, 2023, the outstanding principal balance was $12,000.

9

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

4. CONVERTIBLE PROMISSORY NOTES (Continued)

2014 Note

On November 20, 2014, the Company issued a 10% unsecured convertible promissory note (the “2014 Note”) for the principal sum of up to $400,000 plus accrued interest on any advanced principal funds. The 2014 Note matured eighteen months from each advance. The 2014 Note may be converted by the lender into shares of common stock of the Company at the lesser of $12.50 per share or (b) fifty percent (50%) of the lowest traded prices following issuance of the 2014 Note or (c) the lowest effective price per share granted to any person or entity. On November 20, 2014, the lender advanced $50,000 to the Company under the 2014 Note at inception. On various dates from February 18, 2015 through September 30, 2016, the lender advanced an additional $350,000 under the 2014 Note. During the period ended September 30, 2021, the Company and lender agreed to extend the maturity date for the outstanding balance to June 30, 2023. As of March 31, 2023, outstanding principal balance was $50,880.

2017 Note

On May 10, 2017, the Company issued a 10% unsecured convertible promissory note (the “2017 Note”) for the principal sum of up to $150,000 plus accrued interest on any advanced principal funds. The lender may pay additional consideration at the lender’s discretion. The Company received a tranche in the amount of $25,000 upon execution of the 2017 Note. On various dates, the Company received additional tranches in the aggregate sum of $90,000. The 2017 Note matured twelve months from each tranche. Within thirty (30) days prior to the maturity date, the lender may extend the maturity date to sixty (60) months. During the period ended September 30, 2021, the Company and lender agreed to extend the maturity date for the outstanding balance to June 30, 2023. The 2017 Note may be converted by the lender into shares of common stock of the Company at the lesser of $10 per share or (b) fifty percent (50%) of the lowest traded price of common stock recorded on any trade day after the effective date, or (c) the lowest effective price per share granted to any person or entity. As of March 31, 2023 the outstanding principal balance was $115,000.

May 2021 Note

On May 28, 2021, the Company issued a 12% unsecured convertible promissory note (the “May 2021 Note”) for the principal sum of $55,500 plus accrued interest. The May 2021 Note was to mature on May 28, 2022. The May 2021 Note was convertible after November 23, 2021, by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest traded price of common stock recorded during the fifteen (15) trading days prior to conversion. On October 5, 2021, the Company paid the balance of this note to the lender. As of March 31, 2023, the balance of the May 2021 Note was $0.

July 2021 Note

On July 6, 2021, the Company issued a 12% unsecured convertible promissory note (the “July 2021 Note”) for the principal sum of $38,750 plus accrued interest with a maturity date of July 6, 2022. The July 2021 Note was convertible after January 1, 2022, by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest trade price of common stock recorded during the fifteen (15) trading days prior to conversion. On December 30, 2021, the Company paid the balance of this note to the lender. As of March 31, 2023, the balance of the July 2021 Note was $0.

August 2021 Note

On August 20, 2021, the Company issued a 10% secured promissory note (the “August 2021 Note”) for the principal sum of $500,000 plus accrued interest. The August 2021 Note was to mature on February 20, 2022, unless extended for up to an additional six months. The August 2021 Note could be converted, only following an event of default, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period. The Company issued 1,000,000 warrants at a price of $1.50 in connection with the note (note 7 below) and issued 400,000 shares as a commitment fee. In February 2022, the Company extended the term of the August 2021 Note for an additional six months. The Company repaid the August 2021 Note on May 9, 2022 in connection with the issuance of the May 2022 Note described below. As of March 31, 2023, the balance on the August 2021 Note was $0.

On February 9, 2023, the Company entered into a letter agreement in connection with the August 2021 Note, whereby the exercise price of the warrants issued on the August 2021 Note was reduced to $0.20 per share.

10

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

4. CONVERTIBLE PROMISSORY NOTES (Continued)

February 2022 Note

On February 15, 2022, the Company issued a 10% secured promissory note (the “February 2022 Note”) for the principal sum of $250,000 plus accrued interest. The February 2022 Note was to mature on August 15, 2022, unless extended for up to an additional six months. The February 2022 Note may be converted, only following an event of default, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period. In July 2022, the Company extended the term of the February 2022 note for another six months until February 16, 2023. In connection with the note, the Company issued 500,000 warrants with an exercise price of $1.50 (see note 7 below). The February 2022 Note had an original issuance discount amounting to $25,000, debt issuance cost amounting to $12,000 and the Company issued 300,000 shares as a commitment fee valued at $111,000 based on the share price on the date of the agreement, amortized over the term of the loan. The initial recognition of derivative and warrant liability was recorded as debt discount and amortized over the term of the loan. The debt discount is fully amortized and the balance in debt discount as on March 31, 2023, was $0. As of March 31, 2023, the balance outstanding net of debt discount was $250,000.

On February 9, 2023, the Company entered into a letter agreement in connection with the February 2022 Note, whereby the Company extended the due date of the loan to May 9, 2023 and deferred all interest payments for the period from January 1, 2023 until May 9, 2023. Pursuant to the letter agreement the exercise price of the warrants issued with the February 2022 Note was reduced to $0.20 per share. The warrants contained a ratchet provision and the difference in fair value of $44,241 upon the reduction of exercise price as mentioned above  is being treated as a deemed dividend for the down round provision.

The company did not make the payment of $258,958 due on May 9, 2023. The lender has agreed to waive the default provisions until June 1, 2023, or pending conclusion of negotiations on an extension of the loans.

May 2022 Note

On May 5, 2022, the Company issued a 12% secured promissory note (the “May 2022 Note”) for the principal sum of $1,000,000 plus accrued interest. The May 2022 Note was to mature on November 5, 2022, unless extended for up to an additional six months. If extended, the interest rate increased to 15% for the remaining six months. The May 2022 Note may be converted, only following an event of default, by the lender into shares of common stock of the Company at the lesser of the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period before conversion. The Company used some of the proceeds from the May 2022 Note to pay off the August 2021 Note. In November 2022, the Company extended the May 2022 Note for another six months until May 5, 2023. In connection with the loan the Company issued 1,000,000 warrants at an exercise price of $0.01 (see note 7 below). The May 2022 Note had an original issuance discount amounting to $100,000, debt issuance costs of $ 25,500 and the Company issued 875,000 shares as a commitment fee valued at $259,875 based on the share price on the date of the agreement. The initial recognition of derivative liability of $412,065 and warrant liability amounting to $282,051 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $0. As of March 31, 2023, the balance outstanding net of debt discount was $1,000,000.

On February 9, 2023, the Company entered into a letter agreement in connection with the May 2022 Note deferring all interest payments from January 1, 2023 until May 9, 2023.

The company did not make the payment of $1,053,750 due on May 9, 2023. The lender has agreed to waive the default provisions until June 1, 2023, or pending conclusion of negotiations on an extension of the loans.

August 2022 Note

On August 8, 2022, the Company issued a 12% unsecured promissory note (the “August 2022 Note”) for the principal sum of $100,000 plus accrued interest. The August 2022 Note matures on August 8, 2023, provided, however that after October 31, 2022, if the Company receives debt or equity financing of at least $3 million, the holder may call for payments of outstanding principal and interest at any time from such date giving notice of at least five business days before the date the payment is due. The holder shall have the right, until the date of payment in full of all amounts outstanding to convert unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at a conversion price of $0.15. The initial recognition of derivative liability of $77,259 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023 was $27,517. As of March 31, 2023 the balance outstanding net of debt discount was $72,483.

11

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

4. CONVERTIBLE PROMISSORY NOTES (Continued)

September 2022 Note

On September 22, 2022, the Company issued an 8% secured promissory note (the “September 2022 Note”) for the principal sum of $79,250 plus accrued interest. The September 2022 Note matures on September 22, 2023. In case of default in repayment of the outstanding amount on the due date the balance shall bear interest of 22% per annum. The holder shall have the right, after six months, until the date of payment in full of all amounts outstanding to convert unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at a variable conversion price equal to 65% multiplied by the market price. Market price means the average of the three lowest trading prices for the Common Stock during the fifteen-trading day period ending on the latest complete trading day prior to the conversion date. The initial recognition of derivative liability amounting to $75,000 was recorded as debt discount and amortized over the term of the loan. The debt issuance cost of $4,250 was recorded as debt discount and amortized over the term of the loan. The Company repaid the loan in full including interest of $3,127 on March 12, 2023. The prepayment penalty amounted to $20,594. The balance in debt discount as on March 31, 2023 was $0. As of March 31, 2023 the balance outstanding net of debt discount was $0.

November 2022 Note

On November 1, 2022, the Company issued an 8% secured promissory note (the “November 2022 Note”) for the principal sum of $55,000 plus accrued interest. The November 2022 Note matures on November 1, 2023. In case of default in repayment of the outstanding amount on the due date the balance shall bear interest of 22% per annum. Beginning on April 30, 2023, 1800 Diagonal Lending may convert the amount outstanding under the note into shares of NovAccess common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date. The initial recognition of derivative liability amounting to $50,700 was recorded as debt discount and amortized over the term of the loan. The debt issuance cost of $4,250 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $32,938. As of March 31, 2023, the balance outstanding net of debt discount was $22,063.

December 2022 Note

On December 7, 2022, the Company issued an 8% secured promissory note (the “December 2022 Note”) for the principal sum of $55,000 plus accrued interest. The December 2022 Note matures on December 7, 2023. In case of default in repayment of the outstanding amount on the due date the balance shall bear interest of 22% per annum. Beginning on June 5, 2023, 1800 Diagonal Lending may convert the amount outstanding under the note into shares of NovAccess common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date. The initial recognition of derivative liability amounting to $50,700 was recorded as debt discount and amortized over the term of the loan. The debt issuance cost of $4,250 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $37,207. As of March 31, 2023, the balance outstanding net of debt discount was $17,793.

February 2023 Letter Agreement

On February 9, 2023 the Company entered into a letter agreement, whereby the Company drew an additional loan amounting to $265,000, which was added to the May 2022 Note. The $265,000 loan has an original issuance discount of 10% of the principal and bears interest at 10% a year. This loan is due on May 9, 2023. The initial recognition of derivative liability amounting to $110,576 was recorded as debt discount and amortized over the term of the loan. The original issuance discount of $26,500 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $60,146. As of March 31, 2023, the balance outstanding net of debt discount was $204,854.

12

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

4. CONVERTIBLE PROMISSORY NOTES (Continued)

Also pursuant to the letter agreement , the Company paid a commitment fee of 500,000 unregistered shares of the Company’s common stock (the “commitment fee shares”). If the investor is unable to sell the commitment fee shares for $0.20 a share, then investor may require the Company to issue additional shares or pay cash in the amount of the shortfall. The Company also issued a common stock purchase warrant to purchase 1.0 million shares of the company’s Common stock for $0.20 a share. The warrant expires on February 9, 2028. The company recorded expense of 82,500 in respect of the commitment fee shares and 157,933 in respect of the warrant.

The Company did not make the payment of $271,551 due on May 9, 2023. The lender has agreed to waive the default provisions until June 1, 2023, or pending conclusion of negotiations on an extension of the loans.

We evaluated the financing transactions in accordance with ASC Topic 815, Derivatives and Hedging, and determined that the conversion feature of the convertible promissory notes was not afforded the exemption for conventional convertible instruments due to its variable conversion rate. The notes have no explicit limit on the number of shares issuable so they did not meet the conditions set forth in current accounting standards for equity classification. The Company elected to recognize the notes under paragraph 815-15-25-4, whereby, there would be a separation into a host contract and derivative instrument. The Company elected to initially and subsequently measure the notes in their entirety at fair value, with changes in fair value recognized in earnings. The Company recorded a derivative liability representing the imputed interest associated with the embedded derivative. The derivative liability is adjusted periodically according to the stock price fluctuations based upon the Binomial lattice model calculation.

The convertible notes issued and described in this Note do not have fixed settlement provisions because their conversion prices are not fixed. The conversion feature has been characterized as a derivative liability to be re-measured at the end of every reporting period with the change in value reported in the statement of operations.

We record the full value of the derivative as a liability at issuance with an offset to valuation discount, which will be amortized over the life of the notes.

For purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows:

Risk free interest rate	Between 4.74% and 4.955%
Stock volatility factor	Between 141% and 177.6%
Years to Maturity	0.28 years
Expected dividend yield	None

5. CONVERTIBLE PROMISSORY NOTES, RELATED PARTY

July 2022 Note, related party

On July 28, 2022, the Company issued a 12% unsecured promissory note (the “July 2022 Note”) for the principal sum of $12,500 plus accrued interest. All amounts outstanding under the July 2022 Note were payable on the earlier of: (a) October 31, 2022, or (b) the receipt by the Company of debt or equity financing of $3 million. In November 2022, the holder agreed to extend the term of the note until April 2023 and in April 2023 agreed to a further extension until August 31, 2023. The holder has the right, until the date of payment in full of all amounts outstanding to convert unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at conversion price of $0.15. The initial recognition of derivative liability of $12,500 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $0. As of March 31, 2023, the balance outstanding net of debt discount was $12,500.

13

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

6. SHORT TERM LOAN, RELATED PARTY

On July 28, 2022, the Company entered into a short-term interest free loan agreement amounting to $12,500, with Jason M. Anderson, an independent member of our board of directors, to fund the operations until longer term financing can be obtained by the Company. The loan terms required repayment of all amounts outstanding under the loan on the earlier of: (a) October 31, 2022 or (b) the receipt by the Company of debt or equity financing of $3 million In November, 2022, the Board Member signed a waiver and extension agreement changing the due date to April 30, 2023 and in April 2023, agreed to a further extension until August 31, 2023.

On February 9, 2023, NovAccess entered into a second interest-free loan agreement with Mr. Anderson. Reflecting his faith in NovAccess and our management team, Mr. Anderson loaned the Company $8,500. The loan does not bear interest (except on default) and is due on the earlier of August 31, 2023 or our receipt of debt or equity financing of at least $3.0 million.

7. WARRANTS

On August 20, 2021, for value received in connection with the issuance of the August 2021 Note (see note 4 for more details), the Company issued 1,000,000 warrants to the lender with an exercise price of $1.50 per share with a five-year exercise period. On February 9, 2023, the Company entered into a letter agreement in connection with the August 2021 Note, whereby the exercise price of the warrants issued on the August 2021 Note was reduced to $0.20 per share.

On February 16, 2022, for value received in connection with the issuance of the February 2022 Note (see note 4 for more details), the Company issued 500,000 warrants to the lender with an exercise price of $1.50 per share with a five-year exercise period. On February 9, 2023, the Company entered into a letter agreement in connection with the August 2021 Note, whereby the exercise price of the warrants issued on the August 2021 Note was reduced to $0.20 per share.

On May 10, 2022, for value received in connection with the issuance of the May 2022 Note (see note 4 for more details), the Company issued 1,000,000 warrants to the lender with an exercise price of $0.01 per share with a five-year exercise period. On February 9, 2023, for value received in connection with the issuance of the February 2023 Note (see note 4 for more details), the Company issued 1,000,000 warrants to the lender with an exercise price of $0.20 per share with a five-year exercise period. The fair value of the warrant issued in relation to the letter agreement issued on February 2023 , is recorded as stock compensation expense amounting to $148,500.

On March 31, 2023 the fair value of the derivative liability of the warrants was $557,694 and $232,609 as of September 30, 2022.

For the purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used the Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows:

Risk free interest rate	Between 3.6% and 3.81%
Stock volatility factor	Between 147% and 164%
Years to Maturity	4.25 years
Expected dividend yield	None

Per guidance on ASC 260, the Company determined that the repricing of warrants discussed above, was an exchange of the existing 1,500,000 warrants and the difference between the fair value of the warrants immediately prior to modification of terms and immediately after the adjustment was a s a deemed dividend. The difference between the fair value of the warrants immediately prior to modification of terms and immediately after the adjustment was calculated as $44,241, using a Black Scholes model based on the following significant inputs: On February 9, 2023: common stock price of $0.165; company volatility of 156%-159%; remaining term 3.2-4.1 years; dividend yield of 0% and risk-free interest rate of 3.81-3.71%.

8. OPTIONS

On June 2, 2020, the Company issued 2,000,000,000 options, on a pre reverse split basis, to purchase common stock to the then directors of the Company as compensation for serving on the board during 2019. These options are exercisable on a cashless basis for a period of ten years from September 30, 2022 at an exercise price of $0.00001. The number of options on the post stock split basis is 2,000,000, and the exercise price of $0.01 per share.

14

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

8. OPTIONS (Continued)

For purpose of determining the fair market value of the options issued on June 2, 2020, the Company used the Black Scholes valuation model. The significant assumptions used in the Black Scholes valuation model for the options are as follows:

Risk Free Interest Rate	0.32%
Stock Volatility Factor	146.0%
Weighted Average Expected Option Life	5 Years
Expected Dividend Yield	None

On March 13, 2023, the Company entered into non-qualified stock option agreements and granted vested ten-year options to purchase shares of the Company’s common stock for $0.175 a share, the closing price on the grant date. The Company issued options to purchase a total of 3,542,857 shares as follows: (a) 857,143 to each of the independent directors, (b) 428,571 to the chief financial officer, and 571,429 to the president of our StemVax Therapeutics subsidiary; (c) 57,143 to each of our scientific advisory board members; and (d) the remaining 542,857 to staff members and other officers.

Vesting Schedule. The Options are 100% vested and exercisable on the grant date, March 31, 2023.

Expiration. The Option will expire on the tenth anniversary from the grant date which falls on March 31, 2033.

For purpose of determining the fair market value of the options, the Company used the Black Scholes valuation model. The significant assumptions used in the Black Scholes valuation model for the options are as follows:

Risk Free Interest Rate	3.68%
Stock Volatility Factor	146.79%
Weighted Average Expected Option Life	5 Years
Expected Dividend Yield	None

A summary of the Company’s options activity and related information follows for the quarter ended March 31, 2023:

	March 31, 2023
			Weighted
	Number		average
	Of		exercise
	Options		price
Outstanding - beginning of period		2,000,000	$	.01
Granted		3,542,857	$	0.175
Exercised		-	$	-
Forfeited		-	$	-
Outstanding - end of period		5,542,857	$	0.115

At March 31, 2023, the weighted average remaining contractual life of options outstanding:

		March 31, 2023
						Weighted
						Average
						Remaining
Exercisable		Options		Options		Contractual
Prices		Outstanding		Exercisable		Life (years)
$	.01		2,000,000		2,000,000		7.17
$	0.175		3,542,857		3,542,857		9.95

The entire stock-based compensation expense amounting to $563,314 was recorded in the income statement on the grant date as the options are fully vested and exercisable on the grant date.

15

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and accrued other current liabilities consisted of the following at March 31, 2023 and September 30, 2022:

	March 31, 2023		September 30, 2022
Accrued liabilities		5,570		4,370
Interest payable		159,506		94,251
Provision for guaranteed commitment fees *		886,875		961,000
Accrued payroll		7,367		4,740
Deferred compensation		485,421		344,983
License Fees Payable		40,402		40,402
Insurance finance liability		69,133		36,815
	$	1,654,274	$	1,486,561

* Under the terms of the August 2021 Note, February 2022 Note, May 2022 Note and February 2023 Note the Company issued a total of 2,075,000 shares of common stock as commitment fees. If the lender is unable to sell the shares for more than $1,250,000, it may make a one-time claim for each note to be reimbursed for the difference between their sale proceeds and $1,250,000. The difference between the fair value of the 2,075,000 shares as on March 31, 2023 and the exercise amount of $1,250,000 was recorded as a provision for guaranteed commitment fees and included in the table above.

10. BRIDGE LOAN PAYABLE

Related parties

In December 2021, the Company’s CEO and CFO each advanced funds to the Company for operating expenses in the total amount of $50,000. The notes were payable on demand with a five business day written notice and bore interest at a rate of 10% per annum. The Company could prepay all or any part of the balance owed without penalty.

In March, 2022, our CEO purchased 600 shares of Series B Preferred stock and the Company applied $18,616 of the loan balance against this purchase. The remaining balance of $6,384 was paid to our CEO in several payments with the final balance being paid in May, 2022. The Company recognized and paid interest expense in the amount of $583 to our CEO during the year ended September 30, 2022. No balance is due to our CEO as March 31, 2023.

On January 25, 2022, the Company issued 125,000 shares of its common stock in settlement of the bridge loan to the Company’s CFO and recognized a loss on extinguishment of debt in the amount of $17,313. Any potential gain would not have been recognized on extinguishment of this loan due to the nature of the relationship between the parties. The Company recognized and paid interest expense in the amount of $237 to our CFO during the year ended September 30, 2022. No balance is due to our CFO as of March 31, 2023.

Service provider, related party

In December 2021, one of the Company’s service providers advanced funds to the Company for operating expenses in the total amount of $25,000. On February 14, 2022, the Company issued 125,000 shares of its common stock to the service provider in settlement of the note payable. The Company recognized a loss on extinguishment of debt in the amount of $37,500. During the year ended September 30, 2022, the Company recognized and paid interest expense of $226 in relation to this loan. No balance was outstanding on the note payable to our service provider as of March 31, 2023.

The total loss on account of extinguishment of debt on the CFO Note and service provider note amounting to $54,813 was recorded in the income statement.

16

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

11. DUE TO RELATED PARTIES

Due to Innovest Global

During the periods prior to the year ended September 30, 2022, Innovest Global, Inc. (“Innovest”) advanced funds to the Company for operating expenses in the amount of $86,217. As of March 31, 2023, the amount has not been reimbursed to Innovest. Our former Chairman Daniel Martin was the CEO of Innovest when the funds were advanced.

Due to TN3 LLC

On January 31, 2022, the Company entered into a preferred stock redemption agreement with Daniel G. Martin, at the time, our sole board member and chairman, TN3, LLC, a company owned by Mr. Martin, Dwain K. Irvin, our chief executive officer, and Irvin Consulting, LLC, a company owned by Dr. Irvin. TN3 owned 25,000 shares of the Series B convertible preferred stock. Pursuant to the redemption agreement, on March 14, 2022, NovAccess redeemed 24,400 of the preferred shares and Irvin Consulting purchased 600 of the preferred shares from TN3. The Company also issued to TN3 1,502,670 shares of unregistered common stock, at $ 0.35 amounting to $525,934 which was equal to 10% of our outstanding common stock on the date the redemption agreement was signed. Upon completion of the redemption transaction, the Company is obligated to pay to TN3 a total of $250,000 over a period of eleven months, with payment accelerated if the Company raises at least $2.5 million of equity capital. As of March 31, 2023, the Company owed TN3 $95,000 of the redemption price.

12. COMMITMENTS AND CONTINGENCIES

There are no material pending legal proceedings to which we are a party, nor are there any such proceedings known to be contemplated by governmental authorities. None of our directors, officers, or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business.

Under the terms of the August 2021 Note, February 2022 Note, May 2022 Note and February 2023 Note the Company issued a total of 2,075,000 shares of common stock as commitment fees. If the lender is unable to sell the shares for more than $1,250,000, it may make a onetime claim for each note to be reimbursed for the difference between their sale proceeds and $1,250,000. The difference between the fair value of the 1,575,000 shares as on March 31, 2023, and the exercise amount of $1,250,000 was recorded as a make-whole provision for commitment fees and included in the accrued expenses.

13. RELATED PARTY TRANSACTIONS

On February 9, 2023, NovAccess entered into an interest-free loan agreement with Jason M. Anderson, an independent member of our board of directors. Reflecting his faith in NovAccess and our management team, Mr. Anderson loaned the company $8,500. The loan does not bear interest (except on default) and is due on the earlier of August 31, 2023 or our receipt of debt or equity financing of at least $3.0 million. We will use the proceeds of the loan for general working capital purposes.

On July 28, 2022, the Company entered into a short-term interest free loan agreement amounting to $12,500 with Mr. Anderson to fund operations until longer term financing can be obtained by the Company. The loan terms required repayment of all amounts outstanding under this agreement on the earlier of: (a) October 31, 2022 or (b) the receipt by the Company of debt or equity financing of $3 million. In November 2022 Mr. Anderson signed a waiver and extension agreement changing the due date to April 30, 2023 and in April 2023 Mr. Anderson agreed to extend the due date to August 31, 2023. The balance outstanding on March 31, 2023 was $12,500.

On July 28, 2022, the Company issued a convertible promissory note to Letzhangout, LLC, a company that provides accounting consulting services to NovAccess and also employs our chief financial officer, Neil J. Laird. Pursuant to the note, Letzhangout loaned the Company $12,500 on July 29, 2022. All amounts outstanding under this agreement were payable on the earlier of: (a) October 31, 2022, or (b) the receipt by the Company of debt or equity financing of $3 million. In November 2022, the holder agreed to extend the term of the note until April 2023 and in April 2023 agreed to extend the due date to August 31, 2023. The holder has the right, until the date of payment in full. to convert all amounts outstanding under the note and unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at conversion price of $0. 15. As of March 31, 2023, the balance of the July 2022 Note was $12,500.

17

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

13. RELATED PARTY TRANSACTIONS (Continued)

On January 31, 2022, the Company entered into a preferred stock redemption agreement with Daniel G. Martin, at the time our sole board member and chairman, TN3, LLC, a company owned by Mr. Martin, Dwain K. Irvin, our chief executive officer, and Irvin Consulting, LLC, a company owned by Dr. Irvin. TN3 owned 25,000 shares of the Series B convertible preferred stock. Pursuant to the redemption agreement, on March 14, 2022, NovAccess redeemed 24,400 of the preferred shares and Irvin Consulting purchased 600 of the preferred shares from TN3.

Upon completion of the redemption transaction, the Company was obligated to pay to TN3 a total of $250,000 over a period of eleven months, with payment accelerated if the Company raises at least $2.5 million of equity capital. As of March 31, 2023, the Company owed TN3 $95,000 of the redemption price. Pursuant to the redemption agreement, the Company also issued to TN3 1,502,670 shares of unregistered common stock, which was equal to 10% of our outstanding common stock on the date the redemption agreement was signed. Upon completion of the redemption transaction, Mr. Martin resigned from the NovAccess board and was replaced by John A. Cassarini and Dr. Irvin.

Also in connection with closing the redemption transaction, on March 14, 2022, the Company entered into a common stock distribution agreement with Innovest Global, Inc. Innovest acquired 7.5 million shares of the Company’s common stock when Innovest sold StemVax, LLC to NovAccess in September 2020. Pursuant to the stock distribution agreement, Innovest agreed to distribute its NovAcess common stock to Innovest’s shareholders. Innovest is currently in the process of effectuating the distribution.

In December 2021, the Company’s CEO and CFO each advanced funds to the Company for operating expenses in the total amount of $25,000 each. The notes were payable on demand with a five business-day written notice and bore interest at a rate of 10% per annum. The Company could prepay all or any part of the balance owed without penalty. On January 25, 2022, the Company issued 125,000 shares of its common stock in settlement of a bridge loan to the Company’s CFO and recognized a loss on extinguishment of debt in the amount of $17,313. Any potential gain would not have been recognized on extinguishment of this loan due to the nature of the relationship between the parties. The Company recognized and paid interest expense in the amount of $237 to our CFO during the year ended September 30, 2022. No balance is due to our CFO as March 31, 2023. In March, 2022, our CEO purchased 600 shares of Series B Preferred stock and the Company applied $18,616 of the loan balance against this purchase. The remaining balance of $6,384 was paid to our CEO in several payments with the final balance being paid in May, 2022. The Company recognized and paid interest expense in the amount of $583 to our CEO during the year ended March 31, 2023. No balance is due to our CEO as of March 31, 2023.

On September 4, 2020, the Company entered into a management services agreement with TN3, LLC. Pursuant to the agreement, TN3 provided the Company with office space in Chesterland, Ohio and management, administrative, marketing, bookkeeping and IT services for a fee of $30,000 a month. The initial term of the agreement was three years, with subsequent one-year renewals. We paid TN3 $40,000 under the agreement in fiscal 2022. In connection with the redemption of TN3’s preferred shares, the management services agreement was terminated and outstanding amounts cancelled, and as of March 31, 2023 there were no amounts owed under this agreement.

14. SUBSEQUENT EVENTS

On April 11, 2023, the Company entered into a securities purchase agreement (the “SPA”) with a lender and issued a convertible promissory note in the original principal amount of $79,250 (the “note”) pursuant to the SPA. The loan funded on April 14, 2023. The Company will use the proceeds of the loan for general working capital purposes.

The Company provided typical representations and agreed to standard covenants pursuant to the SPA. The SPA does not include any financial covenants.

18

NOVACCESS GLOBAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2023 AND 2022

14. SUBSEQUENT EVENTS (Continued)

The note bears interest at 8% a year and is due on April 11, 2024. The Company may prepay the note upon payment of a prepayment penalty ranging from 15-25% of the amount outstanding on the note when prepaid. Under the terms of the note, the Company may not sell a significant portion of its assets without the approval of the lender, must comply with the company’s reporting requirements under the Securities Exchange Act of 1934, and must maintain the listing of the Company’s common stock on the OTCQB Market or other exchange. The Company’s failure to comply with any of these covenants, among other matters, would constitute an event of default. Upon an event of default, the note will bear interest at 22% and the lender will be entitled to its costs of collection.

Beginning on October 8, 2023, the lender may convert the amount outstanding under the note into shares of the Company’s common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date.

On April 24, 2023, the Company entered into a securities purchase agreement (the “SPA”) with a lender and issued a convertible promissory note in the original principal amount of $54,250 (the “note”) to the lender pursuant to the SPA. The loan funded on April 28, 2023. The Company will use the proceeds of the loan for general working capital purposes.

The note bears interest at 8% a year and is due on April 24, 2024. The Company may prepay the note upon payment of a prepayment penalty ranging from 15-25% of the amount outstanding on the note when prepaid. Under the terms of the note, the Company may not sell a significant portion of its assets without the approval of 1800 Diagonal Lending, must comply with the Company’s reporting requirements under the Securities Exchange Act of 1934, and must maintain the listing of the Company’s common stock on the OTCQB Market or other exchange. The Company’s failure to comply with any of these covenants, among other matters, would constitute an event of default. Upon an event of default, the note will bear interest at 22% and the lender will be entitled to its costs of collection.

Beginning on October 21, 2023, the lender may convert the amount outstanding under the note into shares of the Company’s common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date.

The Company did not make the payment of $1,584,260 including principal and interest, due on May 9, 2023 on the notes issued on Feb 2022, May 2022 and Feb 2023. The lender has agreed to waive the default provisions until June 1, 2023, or pending conclusion of negotiations on an extension of the loans.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Cautionary and Forward-Looking Statements

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. In addition to historical consolidated financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially from those anticipated by these forward-looking statements as a result of many factors, including those discussed in this Quarterly Report and under “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended September 30, 2022.

We undertake no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this report. Readers should carefully review the factors described in other documents that the Company files from time to time with the SEC.

Business Plan

In 2020, we transitioned our operations from solar contracting operations to the commercialization of developmental healthcare solutions in the biotechnology, medical, and health and wellness markets. On June 2, 2020, we entered into a membership interest purchase agreement with Innovest Global, Inc. to acquire StemVax for 7.5 million shares of our unregistered common stock. The acquisition was completed on September 8, 2020.

StemVax, LLC (“StemVax”) is a biopharmaceutical company developing novel therapies for brain tumor patients that holds an exclusive patent license from Cedars-Sinai Medical Center in Los Angeles, California (Cedars-Sinai) known as StemVax Glioblast (SVX-GB/TLR-AD1). TLR-AD1 specifically targets glioblastoma, the most common and lethal type of adult brain tumor. Christopher Wheeler, President of StemVax, has been involved in the pre-clinical research and development of the drug candidate at Cedars-Sinai Department of Neurosurgery since 1997. Dr. Wheeler began preparing the pre-IND application to obtain FDA approval to start human clinical trials. In 2021, Dr. Wheeler led pre-IND interactions with the FDA and obtained a recommended roadmap from the FDA to facilitate the filing of an IND application for a Phase I application or a Phase IIa application. We are currently executing on their recommendations and plan to submit an IND application in 2023. In August 2022, we filed an application with the U.S. Food and Drug Administration for orphan drug designation (“ODD”) for TLR-AD1, which was granted in October 2022. Receiving ODD status represents a milestone in the development of TLR-AD1 and provides us with multiple incentives, including seven-year marketing exclusivity and federal tax credits, among other benefits.

We believe that investing in the biotechnology industry will significantly increase value for our shareholders. However, we cannot guarantee that we will be successful in this endeavor or that we can locate, acquire and finance the acquisition of additional biotechnology companies.

Results of Operations for the three months ended March 31, 2023, compared to three months ended March 31, 2022

Revenue and Cost of Sales

We are in research and development phase, and generated no revenue or cost of goods sold in the three months ended March 31, 2023, and 2022.

Selling, General and Administrative Expenses

Selling, general and administrative (SG&A) expenses increased by $632,524 during the three months ended March 31, 2023, to $1,013,952 as compared to $381,428 for the three months ended March 31, 2022. The increase in SG&A expenses during the three months ended March 31, 2023, was related primarily to the increase in stock- based compensation by $794,313 on account of stock options issued during the current quarter, offset by in part by a decrease in consulting and professional fees by $135,592. The payroll costs increased by $18,554 during the quarter and insurance costs were reduced by $11,331.

Research and development expenses

The research and development expense marginally decreased by $4,479 for the three months ended March 31, 2023, to $41,036 as compared to $45,516 for the three months ended March 31, 2022. The primary reason for the decrease was on account of the decrease in costs for bio-technical services by $4,000.

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Other Income/(Expenses)

Other income increased by $2,311,593 from other expense of $802,841 for the three months ended March 31, 2022 to other income of $1,08,752 for the three months ended March 31, 2023. The change was primarily due to the increase in gain on change in derivative liability by $2,318,155 and increase in gain on extinguishment of derivative liability amounting to $138,863. During the three months ended March 31, 2023, the Company recorded gain on account of the change in make whole provision on shares issued as loan commitment fees amounting to $193,625 to partially offset the increase in other income. The increase in other income was also partially offset by an increase in interest expense of $6,613 during the current quarter. The estimates of fair market value are based on multiple inputs, including the market price of our stock, interest rates, our stock price, volatility, variable conversion prices based on market prices defined in the respective agreements and probabilities of certain outcomes based on managements’ estimates. These inputs are subject to significant changes from period to period, therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

Net Income/(Loss)

For the three months ended March 31, 2023, our net income was $453,764 as compared to a net loss of $1,229,785 for the same period in 2022. The increase in net income of $1,683,5495 was due to the decrease in other expenses on account of gain on change in derivative liability, partially offset by increase in SG&A, as described above.

Results of Operations for the six months ended March 31, 2023, compared to six months ended March 31, 2022

Revenue and Cost of Sales

We are in research and development phase, and generated no revenue or cost of goods sold in the six months ended March 31, 2023, and 2022.

Selling, General and Administrative Expenses

Selling, general and administrative (SG&A) expenses increased by $834,748 during the six months ended March 31, 2023, to $1,496,106 as compared to $661,358 for the six months ended March 31, 2022. The increase in SG&A expenses during the six months ended March 31, 2023, was related primarily to the increase in stockbased compensation by $794,313 on account of stock options issued during the second quarter, the increase in consulting and professional fees by $22,928, the increase in payroll costs by $31,415 and the increase in insurance costs by $32,074 during the six month period ended March 31, 2023.

Research and development expenses

The research and development expense marginally decreased by $11,915 for the six months ended March 31, 2023, to $76,000 as compared to $87,915 for the six months ended March 31, 2022. The primary reason for the decrease was on account of the decrease in costs for bio-technical services by $11,000.

Other Income/(Expenses)

Other expenses decreased by $18,284 from other expense of $623,820 for the six months ended March 31, 2022 to other expenses of $605,536 for the six months ended March 31, 2023. The change was primarily due to the Company recording a gain on account of the change in make whole provision on shares issued as loan commitment fees of $74,125, and an increase in gain on extinguishment of derivative liability of $42,658 during the six months ended March 31, 2023. These gains were partly offset by an increase in loss on change in derivative liability by $222,455, and an decrease in interest expense of $69,143 during the six months ended March 31, 2023. The estimates of fair market value are based on multiple inputs, including the market price of our stock, interest rates, our stock price, volatility, variable conversion prices based on market prices defined in the respective agreements and probabilities of certain outcomes based on managements’ estimates. These inputs are subject to significant changes from period to period, therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

Net Loss

For the six months ended March 31, 2023, our net loss was $2,177,642 as compared to a net loss of $1,373,093 for the same period in 2022. The increase in net loss of $804,549 was due to the increase in SG&A, offset in part by the decrease in other expenses as described above.

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Liquidity and Capital Resources

We had a working capital deficit at March 31, 2023 of $5,726,692 as compared to a working capital deficit of $4,653,066, as of September 30, 2022. The increase of $1,073,627 in the working capital deficit was the result of an increase in the derivative liability on convertible notes amounting to $329,247, an increase in convertible notes payable of $480,578, an increase in the short term loan from a related party, an increase in accounts payable of $71,149, and an increase in accrued expenses and other current liabilities amounting to $167,713 and a decrease in cash of $21,442. This was partially offset by a decrease in amounts due to related parties of $5,000.

For the six months ended March 31, 2023, our cash flow used by operating activities was $356,510, as compared to cash flow used by operating activities of $438,844 for the six months ended March 3l, 2022. The decrease in cash flow used by operating activities was primarily due to changes in assets and liabilities described above as well as the increase in net loss being primarily the result of non-cash charges recorded in the statement of operations.

Cash flow used by investing activities was $0 during the six months ended March 31, 2023 or 2022.

Cash flow provided by financing activities was $314,250 for the six months ended March 31, 2023, as compared to cash provided by financing activities of $319,785 during same period in 2022. The decrease in cash flow provided by financing activities was primarily the result of the mix of funds raised by selling equity and debt instruments and repayment of convertible notes and bridge loans.

The Company will need to raise additional funds to finance its ongoing operations, complete its IND application to the FDA and to make payments under its loan agreements. We expect this will require at least $3.0 million through December 31, 2023. We plan to raise this capital through the issuance of additional common stock as well as obtaining additional debt as needed.

Off-Balance Sheet Arrangements

We do not have any relationships with unconsolidated entities or financial partnerships such as entities often referred to as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance-sheet arrangements or for other contractually narrow or limited purposes. As a result, we are not exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

Critical Accounting Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Significant estimates made in preparing these consolidated financial statements include the estimate of useful lives of property and equipment, the deferred tax valuation allowance, the fair value of stock options, and derivative liabilities. Actual results could differ materially from those estimates.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Because NovAccess is a “smaller reporting company” as defined by the Securities and Exchange Commission we are not required to provide additional market risk disclosure.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management team, with the participation of our chief executive officer, Dwain K. Irvin, and chief financial officer, Neil J. Laird, evaluated the effectiveness of the design and operation of NovAccess’ disclosure controls and procedures (as defined under the Securities Exchange Act) as of March 31, 2023. Based upon this evaluation, Messrs. Irvin and Laird concluded that the Company’s disclosure controls and procedures were effective as of March 31.

Changes in Internal Control Over Financial Reporting

Our senior management team is responsible for establishing and maintaining adequate internal control over financial reporting, defined under the Exchange Act as a process designed by, or under the supervision of, our principal executive and principal financial officers, or persons performing similar functions, and effected by our board, senior management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with United States generally accepted accounting principles.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. We continue to review our internal control over financial reporting and may from time to time make changes aimed at enhancing their effectiveness and to ensure that our systems evolve with our business.

During the quarter the Company implemented enhanced review procedures for the accounting of certain derivatives and other income. This included engaging a third party to review the assumptions and calculation. There were no other changes in our internal control over financial reporting identified in connection with the evaluation required by the Securities Exchange Act that occurred during our second fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II — Other Information

Item 1. Legal Proceedings.

We are not involved in any legal proceedings.

Item 1A. Risk Factors.

Please refer to the risk factors listed under “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended September 30, 2022., for information relating to certain risk factors applicable to NovAccess.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the quarter ended March 31, 2023, we issued 858,752 unregistered shares of our common stock for capital raising and compensatory purposes as described in more detail below.

On February 9, 2023, we entered into a letter agreement with AJB Capital Investments, LLC. Pursuant to the letter agreement, AJB loaned us $265,000, which was added to the principal of a promissory note we had previously issued to AJB in May 2022. Also pursuant to the letter agreement, NovAccess paid AJB a commitment fee of 500,000 unregistered shares of the company’s common stock. If AJB is unable to sell the commitment fee shares for $0.20 a share, then AJB may require NovAccess to issue additional shares or pay cash in the amount of the shortfall. We are also required to register the commitment fee shares for resale under the Securities Act. Pursuant to the letter agreement, NovAccess also issued to AJB a common stock purchase warrant to purchase 1.0 million shares of the company’s common stock for $0.20 a share. The warrant expires on February 9, 2028. The issuances of the commitment fee shares and warrant to AJB were exempt from registration under Section 4(a)(2) of the Securities Act.

Effective April 4, 2023, we issued 108,750 unregistered shares of our common stock to Letzhangout, LLC for accounting services provided to NovAccess during the second quarter. Also, effective April 4, 2023, we issued 100,002 shares of our unregistered shares to Darrow Associates for investor relations services provided to NovAccess during the second quarter. The issuances of shares to our service providers were exempt from registration under Section 4(a)(2) of the Securities Act.

During January and February 2023, we offered unregistered shares of our common stock in a private placement to accredited investors to fund our working capital needs. During the quarter we sold to two investors 150,000 shares for an aggregate amount of $15,000. The issuance of shares in the private placement was exempt from registration under Section 4(a)(2) of the Securities Act and Rule 506(b) under the Securities Act.

On March 13, 2023, we entered into non-qualified stock option agreements and granted vested ten-year options to purchase shares of the Company’s common stock for $0.175 a share, the closing price on the grant date. We issued options to purchase a total of 3,542,857 shares as follows: (a) 857,143 to each of our independent directors, Jason M. Anderson and John A. Cassarini; (b) 428,571 to Neil J. Laird, our chief financial officer, and 571,429 to Dr. Christopher Wheeler, president of our StemVax Therapeutics subsidiary; (c) 57,143 to each of our scientific advisory board members; and (d) the remaining 542,857 to staff members and other officers.

Item 3. Defaults Upon Senior Securities.

During the quarter ended March 31, 2023, NovAccess was not in material default with respect to any of its material indebtedness.

Item 4. Mine Safety Disclosures.

We are not engaged in mining operations.

Item 5. Other Information.

We have disclosed on Form 8-K all reportable events that occurred in the quarter ended March 31, 2023.

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Item 6. Exhibit and Financial Statement Schedules.

(a) Financial Statement Schedules (see Item 1 Financial Statements and Supplementary Data)

(b) Exhibits

Exhibit	Description
31.1*	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act — Dwain K. Irvin
31.2*	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act — Neil J. Laird
32.1*	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
101	The following materials from the NovAccess Global Inc. Quarterly Report on Form 10-Q for the period ended March 31, 2023, formatted in iXBRL (Inline eXtensible Business Reporting Language):
	(i) the Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022
	(ii) the Condensed Consolidated Statements of Operations for the Three and Six Months Ended March 31, 2023 and March 31, 2022,
	(iii) the Condensed Consolidated Statements of Shareholders’ Deficit for the Three and Six Months Ended March 31, 2023 and March 31, 2022,
	(iv) the Condensed Consolidated Statements of Cash Flows for the Three and Six Months Ended March 31, 2023 and March 31, 2022, and
	(v) Related Notes to the Condensed Consolidated Financial Statements
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, NovAccess has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	NovAccess Global Inc.
Date: May 15, 2023	/s/ Dwain K. Irvin
	By Dwain K. Irvin, Chief Executive Officer
	(Principal Executive Officer)
Date: May 15, 2023	/s/ Neil J. Laird
	Neil J. Laird, Chief Financial Officer
	(Principal Financial and Accounting Officer)

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EX-31.1

Exhibit 31.1

OFFICER’S CERTIFICATE

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Dwain Irvin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NovAccess Global Inc. for the period ending March 31, 2023;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer (s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2023

/s/ Dwain Irvin, PhD, MPH

Name: Dwain Irvin

Title: Chief Executive Officer

EX-31.2

Exhibit 31.2

OFFICER’S CERTIFICATE

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Neil J. Laird, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NovAccess Global Inc. for the period ending March 31, 2023;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer (s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2023

/s/ Neil J. Laird

Name: Neil J. Laird

Title: Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Quarterly Report of NovAccess Global Inc. (the “Company”) on Form 10-Q for the period ending March 31, 2023 (the “Report”) with the Securities and Exchange Commission, I, Dwain Morris-Irvin, Chief Executive Officer of the Company, and I, Neil J. Laird, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Company for such period.

Date: May 15, 2023

/s/ Dwain Irvin, PhD, MPH

Name: Dwain Irvin

Title: Chief Executive Officer

Date: May 15, 2023

/s/ Neil J. Laird

Name: Neil J. Laird

Title: Chief Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2023	May 15, 2023
Document Information Line Items
Entity Registrant Name	NovAccess Global Inc.
Document Type	10-Q
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		21,185,028
Amendment Flag	false
Entity Central Index Key	0001039466
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-29621
Entity Incorporation, State or Country Code	CO
Entity Tax Identification Number	84-1384159
Entity Address, Address Line One	8584 E. Washington Street #127
Entity Address, City or Town	Chagrin Falls
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44023
City Area Code	213
Local Phone Number	642-9268
Title of 12(b) Security	None
Entity Interactive Data Current	Yes
No Trading Symbol Flag	true
Security Exchange Name	NONE

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2023	Sep. 30, 2022
CURRENT ASSETS
Cash	$ 21,991	$ 64,251
Prepaid expenses	81,468	60,650
TOTAL ASSETS	103,459	124,901
CURRENT LIABILITIES
Accounts payable	446,828	375,682
Accrued expenses and other current liabilities	1,654,274	1,486,561
Derivative and warrants liabilities	1,769,259	1,440,012
Due to related parties	181,217	186,217
Short term loan, related party	21,000	12,500
Convertible promissory notes, net of debt discount and debt issuance costs of $157,807 and $340,503 respectively	1,745,073	1,266,627
Convertible promissory note related party, net of debt discount and debt issuance cost of $0 and $2,132, respectively	12,500	10,368
Total Current Liabilities	5,830,151	4,777,967
TOTAL LIABILITIES	5,830,151	4,777,967
Preferred stock 50,000,000 shares authorized, shares issued and outstanding designated as follows:
Preferred Stock Series B, $0.01 par value, 25,000 authorized 25,000 and 25,000 shares issued and outstanding, respectively	6	6
Common stock, no par value; 2,000,000,000 authorized common shares 21,185,028 and 18,669,507 shares issued and outstanding, respectively	43,623,184	43,225,982
Additional paid in capital	6,047,212	5,340,398
Paid in capital, common stock option and warrants	4,747,108	4,747,108
Paid in capital, preferred stock	4,210,960	4,210,960
Accumulated deficit	(64,355,162)	(62,177,520)
TOTAL SHAREHOLDERS' DEFICIT	(5,726,692)	(4,653,066)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$ 103,459	$ 124,901

XML

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Mar. 31, 2023	Sep. 30, 2022
Convertible promissory notes, debt discount and debt issuance costs (in Dollars)	$ 157,807	$ 340,503
Convertible promissory note related party, debt discount and debt issuance cost (in Dollars)	$ 0	$ 2,132
Preferred stock, shares issued	25,000	25,000
Preferred stock, par (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	21,185,028	18,669,507
Common stock, shares outstanding	21,185,028	18,669,507
Common stock, no par value (in Dollars per share)	$ 0	$ 0
Series B Preferred Stock [Member]
Preferred stock, shares authorized	25,000	25,000

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
SALES	$ 0	$ 0	$ 0	$ 0
COST OF GOODS SOLD	0	0	0	0
GROSS PROFIT	0	0	0	0
OPERATING EXPENSES
Research and development expenses	41,036	45,516	76,000	87,915
Selling, general and administrative expenses	1,013,952	381,428	1,496,106	661,358
TOTAL OPERATING EXPENSES	1,054,988	426,944	1,572,106	749,273
LOSS FROM OPERATIONS BEFORE OTHER INCOME/(EXPENSES)	(1,054,988)	(426,944)	(1,572,106)	(749,273)
OTHER INCOME/(EXPENSES)
Gain (Loss) on change in derivative liability	1,825,730	(492,425)	(255,854)	(33,399)
Extinguishment of derivatives	138,863	0	138,863	96,205
Extinguishment of debt	0	(54,813)	0	(54,813)
Change in commitment fee guarantee	(193,625)	0	74,125	0
Interest expense	(262,216)	(255,603)	(562,670)	(631,813)
TOTAL OTHER INCOME/(EXPENSES)	1,508,752	(802,841)	(605,536)	(623,820)
NET INCOME (LOSS)	453,764	(1,229,785)	(2,177,642)	(1,373,093)
Deemed dividend on warrant re-pricing	(44,241)	0	(44,241)	0
Net income loss attributable to common shareholders	$ 409,523	$ (1,229,785)	$ (2,221,883)	$ (1,373,093)
BASIC INCOME (LOSS) PER SHARE (in Dollars per share)	$ 0.02	$ (0.08)	$ (0.11)	$ (0.09)
DILUTED INCOME (LOSS) PER SHARE (in Dollars per share)	$ 0.01	$ (0.08)	$ (0.11)	$ (0.09)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
BASIC (in Shares)	20,698,747	15,379,289	19,832,524	14,914,920
DILUTED (in Shares)	39,680,653	15,379,289	19,832,524	14,914,920

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Series A Preferred Stock [Member] Preferred Stock [Member]	Series B Preferred Stock [Member] Common Stock [Member]	Additional Paid-in Capital [Member]	Additional Paid in Capital Stock Options / Warrants [Member]	Additional Paid in Capital Preferred Stock [Member]	Retained Earnings [Member]	Common Stock Issuable [Member]	Total
Balance at Sep. 30, 2021	$ 250	$ 41,882,535	$ 5,351,398	$ 4,210,960	$ 5,088,324	$ (60,461,561)		$ (3,928,094)
Balance (in Shares) at Sep. 30, 2021	25,000	14,404,030
Preferred stock redemption	$ (244)	$ 525,935			(341,216)			184,475
Preferred stock redemption (in Shares)	(24,400)	1,502,670
Common Stock issued for services		$ 119,480						$ 119,480
Common Stock issued for services (in Shares)		265,973						265,973
Common Stock issued, subscriptions		$ 170,200	5,000				$ 5,000	$ 170,200
Common Stock issued, subscriptions (in Shares)		791,000
Net loss						(1,373,093)		(1,373,093)
Stock compensation cost		$ 8,000						8,000
Stock compensation cost (in Shares)		10,000
Common stock issued as repayment of loans		$ 104,813						104,813
Common stock issued as repayment of loans (in Shares)		250,000
Common stock issued as commitment fee on promissory note payable		$ 111,000						$ 111,000
Common stock issued as commitment fee on promissory note payable (in Shares)		300,000						300,000
Balance at Mar. 31, 2022	$ 6	$ 42,921,963	5,356,398	4,210,960	4,747,108	(61,834,654)		$ (4,598,219)
Balance (in Shares) at Mar. 31, 2022	600	17,523,673
Balance at Sep. 30, 2022	$ 6	$ 43,225,982	5,340,398	4,210,960	4,747,108	(62,177,520)		(4,653,066)
Balance (in Shares) at Sep. 30, 2022	600	18,669,507
Common Stock issued for services		$ 259,702						$ 259,702
Common Stock issued for services (in Shares)		1,490,521						1,490,521
Common Stock issued, subscriptions		$ 55,000	(5,000)					$ 50,000
Common Stock issued, subscriptions (in Shares)		525,000
Net loss						(2,177,642)		(2,177,642)
Stock compensation cost			563,314					563,314
Deemed dividend warrant protection reserve			148,500					148,500
Common stock issued as commitment fee on promissory note payable		$ 82,500						82,500
Common stock issued as commitment fee on promissory note payable (in Shares)		500,000
Balance at Mar. 31, 2023	$ 6	$ 43,623,184	$ 6,047,212	$ 4,210,960	$ 4,747,108	$ (64,355,162)		$ (5,726,692)
Balance (in Shares) at Mar. 31, 2023	600	21,185,028

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ 453,764	$ (1,229,785)	$ (2,177,642)	$ (1,373,093)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities
Amortization of debt discount and debt issuance costs recorded as interest expense			432,083	479,689
Loss on change in derivative liability	(1,825,730)	492,425	255,854	33,399
Extinguishment of derivatives	(138,863)	0	(138,863)	(96,205)
Extinguishment of debt	0	54,813	0	54,813	$ 54,813
Stock compensation expense			711,814	53,619
Stock issued and issuable for services			259,702	73,861
Stock issued as commitment fee on promissory note payable			82,500	79,043
Non-cash interest expense on bridge loan			0	546
Changes in Assets and Liabilities:
Prepaid expenses			(20,818)	5,568
Accounts payable			71,147	39,700
Accrued expenses and interest on notes payable			167,713	210,216
NET CASH USED IN OPERATING ACTIVITIES			(356,510)	(438,844)
CASH FLOWS FROM FINANCING ACTIVITIES:
Stock subscriptions received			50,000	175,200
Due to related party			0	3,151
Proceeds from convertible notes payable			340,000	213,000
Payments related party for redemption of preferred stock			(5,000)	(50,000)
Proceeds from related parties notes payable			8,500	75,000
Payment on the related parties loans payable			0	(2,316)
Principal payments on convertible debt			(79,250)	(94,250)
NET CASH PROVIDED BY FINANCING ACTIVITIES			314,250	319,785
NET INCREASE (DECREASE) IN CASH			(42,260)	(119,059)
CASH, BEGINNING OF PERIOD			64,251	180,668	180,668
CASH, END OF PERIOD	$ 21,991	$ 61,609	21,991	61,609	$ 64,251
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid			17,711	71,245
Taxes paid			800	0
SUPPLEMENTAL DISCLOSURES OF NON CASH TRANSACTIONS
Accrued interest capitalized into convertible note			0	546
Cash payable to TN3 for preferred stock			$ 0	$ 200,000

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ORGANIZATION AND LINE OF BUSINESS

6 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. ORGANIZATION AND LINE OF BUSINESS

Organization

NovAccess Global Inc. (“NovAccess” or the “Company”) is a Colorado corporation formerly known as Sun River Mining Inc. and XsunX, Inc.. The Company was originally incorporated in Colorado on February 25, 1997. Effective September 24, 2003, the Company completed a plan of reorganization and name change to XsunX, Inc. Effective August 25, 2020, we filed articles of amendment to our articles of incorporation with the Colorado Secretary of State to: effectuate a 1-for-1,000 reverse stock split of the Company’s outstanding shares of common stock; and change the name of the Company to “NovAccess Global Inc.” After completing the acquisition of StemVax, in September, 2020, we exited the solar business and focused all our efforts on our biopharmaceutical business.

Line of Business

NovAccess Global Inc. is a biopharmaceutical company that is developing novel immunotherapies to treat brain tumor patients in the United States with plans to expand globally. We specialize in cutting-edge research related to utilizing a patient’s own immune system to attack the cancer. We are filing an Investigational New Drug Application (IND) and working closely with the Food and Drug Administration (FDA) to obtain approval for human clinical trials to determine safety and efficacy of our drug product for brain cancer patients. Once we have successfully completed the clinical trials and proven that the new therapy is safe and efficacious, we plan to commercialize the product. We also have expertise in successfully executing clinical trials, bringing products to market and increasing the market size of products through our advisory board. Our scientists are well versed in immunology, stem cell biology, neuroscience, molecular biology, imaging, small molecules development, gene therapy and other technical assays needed for protein and genetic analysis of cancer cells.

NovAccess operates as a research and development (R&D) company out of Ohio and California, and our executive management and scientific advisory board provide over 15 years of extensive experience in all aspects of biopharmaceutical R&D and commercialization of drug candidates.

Going Concern

The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. The Company does not generate significant revenue, and has negative cash flows from operations, which raise substantial doubt about the Company’s ability to continue as a going concern.

The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, additional cash infusion. The Company has obtained funds from its shareholders since its inception through the period ended March 31, 2023. Management believes the existing shareholders and the prospective new investors will provide the additional cash needed to meet the Company’s obligations as they become due and will allow the development of its business.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of NovAccess Global Inc. is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary StemVax, LLC. All significant inter-company accounts and transactions between these entities have been eliminated in these consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Significant estimates made in preparing these consolidated financial statements include the estimate of the deferred tax valuation allowance, the fair value of stock options, and derivative liabilities. Actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents include cash in banks and money markets with an original maturity of three months or less.

Stock-Based Compensation

Share-based Payment applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are to follow a fair value of those equity instruments. We are required to follow a fair value approach using an option-pricing model, such as the Binomial lattice valuation model, at the date of a stock option grant. The deferred compensation calculated under the fair value method would then be amortized over the respective vesting period of the stock option. This has not had a material impact on our results of operations.

Net Earnings (Loss) per Share Calculations

Net earnings (Loss) per share dictates the calculation of basic earnings (loss) per share and diluted earnings (loss) per share. Basic earnings (loss) per share are computed by dividing by the weighted average number of common shares outstanding during the period. Diluted net earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the effect of stock options and stock-based awards plus the assumed conversion of convertible debt (see notes 4 and 5). 

	For the three months ended					For the Six months ended
	March 31,					March 31,
	2023		2022			2023			2022
Income (Loss) to common shareholders (Numerator)	$	409,523		(1,229,785	)	$	(2,221,883	)	(1,373,093	)
Basic weighted average number of common shares outstanding (Denominator)		20,698,747		15,379,289			19,832,524		14,914,920
Diluted weighted average number of common shares outstanding		39,680,653		15,379,289			19,832,524,		14,914,920

Fair Value of Financial Instruments

Fair Value of Financial Instruments requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of March 31, 2023, the balances reported for cash, prepaid expenses, accounts payable, accrued expenses approximate the fair value because of their short maturities.

We adopted Accounting Standards Codification (“ASC”) Topic 820 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:

● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;

● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

We measure certain financial instruments at fair value on a recurring basis. The Company had no assets that are required to be valued on a recurring basis as of March 31, 2023 and September 30, 2022. The Company had liabilities that are required to be measured at fair value on a recurring basis as follows at March 31 2023 and September 30, 2022:

	Total		(Level 1)		(Level 2)		(Level 3)
Assets:	$	-	$	-	$	-	$	-
Liabilities:
Derivative Liability at fair value as of September 30, 2022	$	1,207,403	$	-	$	-	$	1,207,403
Derivative Liability warrants at fair value as of September 30, 2022	$	232,609	$	-	$	-	$	232,609
Total Derivative Liability as of September 30, 2022	$	1,440,012		-		-	$	1,440,012
Derivative Liability at fair value as of March 31, 2023	$	1,211,565		-		-	$	1,211,565
Derivative Liability warrants at fair value as of March 31, 2023	$	557,694		-		-	$	557,694
Total Derivative Liability as of March 31, 2023	$	1,769,259		-		-	$	1,769,259

The following is a reconciliation of the derivative liability for which Level 3 inputs were used in determining the approximate fair value:

	Derivative Liability Promissory Notes			Derivative Liability Warrants			Total Derivative Liability
Balance as of September 30, 2021	$	2,553,979		$	372,643		$	2,926,622
Fiscal year 2022 initial derivative liabilities		593,297			282,051			875,348
Net (Gain)/Loss on change in fair value of derivative liability		(1,662,156	)		(422,086	)		(2,084,242	)
Extinguishment of derivative		(277,716	)		-			(277,716	)
Ending balance as of September 30, 2022	$	1,207,403		$	232,609		$	1,440,012
Six Months ended March 31, 2023, initial derivative liabilities		212,256			-			212,256
Net (Gain)/Loss on change in fair value of derivative liability		(69,231	)		325,085			255,854
Extinguishment of derivative		(138,863	)		-			(138,863	)
Ending balance as of March 31, 2023	$	1,211,565		$	557,694		$	1,769,259

Recent Accounting Pronouncements

In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations". This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, except for the amendment on roll forward information, which is effective for fiscal years beginning after December 15, 2023. We are currently evaluating the extent of the impact of this ASU, but do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sales Restrictions, which (1) clarifies the guidance in Topic 820 on the fair value measurement of an equity security that is subject to contractual restrictions that prohibit the sale of an equity security and (2) requires specific disclosures related to such an equity security. We are currently evaluating the extent of the impact of this ASU, but do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

In March 2022, the FASB issued ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance on troubled debt restructurings for creditors in ASC Topic 310 and amends the guidance on "vintage disclosures" to require disclosure of current-period gross write-offs by year of origination. ASU 2022-02 also updates the requirements related to accounting for credit losses under ASC Topic 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the extent of the impact of this ASU, but do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

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CAPITAL STOCK

6 Months Ended

Mar. 31, 2023

Stockholders' Equity Note [Abstract]

Equity [Text Block]

3. CAPITAL STOCK

As of March 31, 2023 the Company’s authorized stock consisted of 2,000,000,000 shares of common stock, with no par value. Effective August 25, 2020, we filed articles of amendment to our articles of incorporation with the Colorado Secretary of State to effectuate a 1-for-1,000 reverse stock split of the Company’s outstanding shares of common stock.

The Company is also authorized to issue 50,000,000 shares of preferred stock with a par value of $0.01 per share. The rights, preferences and privileges of the holders of the preferred stock are determined by the Board of Directors prior to issuance of such shares.

Preferred Stock

As of March 31, 2023, the Company had 600 shares of issued and outstanding Series B Preferred. On September 4, 2020, the Company issued 25,000 shares of unregistered Series B Convertible Preferred stock, $0.01 par value per share, to TN3, LLC, a Wyoming limited liability company owned by Daniel G. Martin (“TN3”), in exchange for the redemption of all 5,000 shares of Series A preferred stock that TN3 previously held. At the time, Mr. Martin was our Chief Executive Officer and sole Board Member. On March 14, 2022, NovAccess redeemed 24,400 shares of the Company’s Series B Convertible Preferred Stock held by TN3. Irvin Consulting LLC, a company owned by Dwain Irvin, the CEO of NovAccess, purchased the remaining 600 shares (please refer to Note 11 for more details).

Each share of outstanding Series B Preferred Stock entitles the holder to cast 40,000 votes. Each share of Series B Preferred Stock is convertible at the option of the holder into 10,000 common shares. In the event of any voluntary or involuntary liquidation, dissolution, or winding-up of the Corporation, the holders of shares of Series B Preferred Stock shall be paid out based on an as converted basis. Dividends for Series B Preferred Stock shall be declared on an as converted basis.

Common Stock

During the six months ended March 31, 2023, the Company issued 2,515,521 shares of common stock.

The Company issued 1,490,521 shares to various vendors for services provided, including 216,500 shares issued to a related party for services provided, amounting to $259,702 recorded at the fair value of shares on the respective grant dates.

The Company issued 525,000 shares in relation to stock subscriptions.

The Company issued 500,000 shares as commitment fees in connection with the letter agreement issued on February 9, 2023. These shares were recorded at fair value as on the date of issuance.

During the six months ended March 31, 2022, the Company issued 3,119,643 shares of common stock. 1,502,670 shares were issued to TN3 as part of the transaction to redeem 24,400 shares of Series B Preferred Stock, 265,973 shares were issued to various vendors for services provided; 791,000 shares were issued in relation to stock subscriptions; 300,000 shares were issued as a commitment fee on a promissory note payable; 250,000 shares were issued as repayment of bridge loans (please refer to Note 4 for more details); and 10,000 shares were issued to related parties (please refer to Note 12 for more details).

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CONVERTIBLE PROMISSORY NOTES

6 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

4. CONVERTIBLE PROMISSORY NOTES

Convertible Promissory notes as on March 31, 2023	Principal Amount		Unamortized balance of Debt Discount		Outstanding balance as on March 31, 2023		Derivative balance as on March 31, 2023		Warrant liability balance as on March 31, 2023
2013 Note		12,000		-		12,000		-		-
2014 Note		50,880		-		50,880		215,591		-
2017 Note		115,000		-		115,000		453,384		-
August 2021 Note		-		-		-		-		151,920
February 2022 Note		250,000		-		250,000		81,815		76,762
May 2022 Note		1,000,000		-		1,000,000		245,784		171,753
August 2022 Note		100,000		27,517		72,483		48,797		-
November 2022 Note		55,000		32,937		22,063		48,883		-
December 2022 Note		55,000		37,207		17,793		49,719		-
February 2023 Note		265,000		60,146		204,854		63,650		157,259
Total		1,902,880		157,807		1,745,073		1,207,624		557,694

Convertible Promissory note, related party as on March 31, 2023	Principal Amount		Unamortized balance of Debt Discount		Outstanding balance as on March 31, 2023		Derivative balance as on March 31, 2023		Warrant liability balance as on March 31, 2023
July 2022 Note		12,500		-		12,500		3,941		-

2013 Note

On October 1, 2013, Company issued an unsecured convertible promissory note (the “2013 Note”) in the amount of $12,000 to a former Board member (the “Holder”) in exchange for retention as a director during the fiscal year ending September 30, 2014. The Note can be converted into shares of common stock by the Holder for $4.50 per share. The Note matured on October 1, 2015 and bore a one-time interest charge of $1,200 which was applied to the principal on October 1, 2014. As of March 31, 2023, the outstanding principal balance was $12,000.

2014 Note

On November 20, 2014, the Company issued a 10% unsecured convertible promissory note (the “2014 Note”) for the principal sum of up to $400,000 plus accrued interest on any advanced principal funds. The 2014 Note matured eighteen months from each advance. The 2014 Note may be converted by the lender into shares of common stock of the Company at the lesser of $12.50 per share or (b) fifty percent (50%) of the lowest traded prices following issuance of the 2014 Note or (c) the lowest effective price per share granted to any person or entity. On November 20, 2014, the lender advanced $50,000 to the Company under the 2014 Note at inception. On various dates from February 18, 2015 through September 30, 2016, the lender advanced an additional $350,000 under the 2014 Note. During the period ended September 30, 2021, the Company and lender agreed to extend the maturity date for the outstanding balance to June 30, 2023. As of March 31, 2023, outstanding principal balance was $50,880.

2017 Note

On May 10, 2017, the Company issued a 10% unsecured convertible promissory note (the “2017 Note”) for the principal sum of up to $150,000 plus accrued interest on any advanced principal funds. The lender may pay additional consideration at the lender’s discretion. The Company received a tranche in the amount of $25,000 upon execution of the 2017 Note. On various dates, the Company received additional tranches in the aggregate sum of $90,000. The 2017 Note matured twelve months from each tranche. Within thirty (30) days prior to the maturity date, the lender may extend the maturity date to sixty (60) months. During the period ended September 30, 2021, the Company and lender agreed to extend the maturity date for the outstanding balance to June 30, 2023. The 2017 Note may be converted by the lender into shares of common stock of the Company at the lesser of $10 per share or (b) fifty percent (50%) of the lowest traded price of common stock recorded on any trade day after the effective date, or (c) the lowest effective price per share granted to any person or entity. As of March 31, 2023 the outstanding principal balance was $115,000.

May 2021 Note

On May 28, 2021, the Company issued a 12% unsecured convertible promissory note (the “May 2021 Note”) for the principal sum of $55,500 plus accrued interest. The May 2021 Note was to mature on May 28, 2022. The May 2021 Note was convertible after November 23, 2021, by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest traded price of common stock recorded during the fifteen (15) trading days prior to conversion. On October 5, 2021, the Company paid the balance of this note to the lender. As of March 31, 2023, the balance of the May 2021 Note was $0.

July 2021 Note

On July 6, 2021, the Company issued a 12% unsecured convertible promissory note (the “July 2021 Note”) for the principal sum of $38,750 plus accrued interest with a maturity date of July 6, 2022. The July 2021 Note was convertible after January 1, 2022, by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest trade price of common stock recorded during the fifteen (15) trading days prior to conversion. On December 30, 2021, the Company paid the balance of this note to the lender. As of March 31, 2023, the balance of the July 2021 Note was $0.

August 2021 Note

On August 20, 2021, the Company issued a 10% secured promissory note (the “August 2021 Note”) for the principal sum of $500,000 plus accrued interest. The August 2021 Note was to mature on February 20, 2022, unless extended for up to an additional six months. The August 2021 Note could be converted, only following an event of default, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period. The Company issued 1,000,000 warrants at a price of $1.50 in connection with the note (note 7 below) and issued 400,000 shares as a commitment fee. In February 2022, the Company extended the term of the August 2021 Note for an additional six months. The Company repaid the August 2021 Note on May 9, 2022 in connection with the issuance of the May 2022 Note described below. As of March 31, 2023, the balance on the August 2021 Note was $0.

On February 9, 2023, the Company entered into a letter agreement in connection with the August 2021 Note, whereby the exercise price of the warrants issued on the August 2021 Note was reduced to $0.20 per share.

February 2022 Note

On February 15, 2022, the Company issued a 10% secured promissory note (the “February 2022 Note”) for the principal sum of $250,000 plus accrued interest. The February 2022 Note was to mature on August 15, 2022, unless extended for up to an additional six months. The February 2022 Note may be converted, only following an event of default, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period. In July 2022, the Company extended the term of the February 2022 note for another six months until February 16, 2023. In connection with the note, the Company issued 500,000 warrants with an exercise price of $1.50 (see note 7 below). The February 2022 Note had an original issuance discount amounting to $25,000, debt issuance cost amounting to $12,000 and the Company issued 300,000 shares as a commitment fee valued at $111,000 based on the share price on the date of the agreement, amortized over the term of the loan. The initial recognition of derivative and warrant liability was recorded as debt discount and amortized over the term of the loan. The debt discount is fully amortized and the balance in debt discount as on March 31, 2023, was $0. As of March 31, 2023, the balance outstanding net of debt discount was $250,000.

On February 9, 2023, the Company entered into a letter agreement in connection with the February 2022 Note, whereby the Company extended the due date of the loan to May 9, 2023 and deferred all interest payments for the period from January 1, 2023 until May 9, 2023. Pursuant to the letter agreement the exercise price of the warrants issued with the February 2022 Note was reduced to $0.20 per share. The warrants contained a ratchet provision and the difference in fair value of $44,241 upon the reduction of exercise price as mentioned above  is being treated as a deemed dividend for the down round provision.

The company did not make the payment of $258,958 due on May 9, 2023. The lender has agreed to waive the default provisions until June 1, 2023, or pending conclusion of negotiations on an extension of the loans.

May 2022 Note

On May 5, 2022, the Company issued a 12% secured promissory note (the “May 2022 Note”) for the principal sum of $1,000,000 plus accrued interest. The May 2022 Note was to mature on November 5, 2022, unless extended for up to an additional six months. If extended, the interest rate increased to 15% for the remaining six months. The May 2022 Note may be converted, only following an event of default, by the lender into shares of common stock of the Company at the lesser of the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period before conversion. The Company used some of the proceeds from the May 2022 Note to pay off the August 2021 Note. In November 2022, the Company extended the May 2022 Note for another six months until May 5, 2023. In connection with the loan the Company issued 1,000,000 warrants at an exercise price of $0.01 (see note 7 below). The May 2022 Note had an original issuance discount amounting to $100,000, debt issuance costs of $ 25,500 and the Company issued 875,000 shares as a commitment fee valued at $259,875 based on the share price on the date of the agreement. The initial recognition of derivative liability of $412,065 and warrant liability amounting to $282,051 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $0. As of March 31, 2023, the balance outstanding net of debt discount was $1,000,000.

On February 9, 2023, the Company entered into a letter agreement in connection with the May 2022 Note deferring all interest payments from January 1, 2023 until May 9, 2023.

The company did not make the payment of $1,053,750 due on May 9, 2023. The lender has agreed to waive the default provisions until June 1, 2023, or pending conclusion of negotiations on an extension of the loans.

August 2022 Note

On August 8, 2022, the Company issued a 12% unsecured promissory note (the “August 2022 Note”) for the principal sum of $100,000 plus accrued interest. The August 2022 Note matures on August 8, 2023, provided, however that after October 31, 2022, if the Company receives debt or equity financing of at least $3 million, the holder may call for payments of outstanding principal and interest at any time from such date giving notice of at least five business days before the date the payment is due. The holder shall have the right, until the date of payment in full of all amounts outstanding to convert unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at a conversion price of $0.15. The initial recognition of derivative liability of $77,259 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023 was $27,517. As of March 31, 2023 the balance outstanding net of debt discount was $72,483.

September 2022 Note

On September 22, 2022, the Company issued an 8% secured promissory note (the “September 2022 Note”) for the principal sum of $79,250 plus accrued interest. The September 2022 Note matures on September 22, 2023. In case of default in repayment of the outstanding amount on the due date the balance shall bear interest of 22% per annum. The holder shall have the right, after six months, until the date of payment in full of all amounts outstanding to convert unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at a variable conversion price equal to 65% multiplied by the market price. Market price means the average of the three lowest trading prices for the Common Stock during the fifteen-trading day period ending on the latest complete trading day prior to the conversion date. The initial recognition of derivative liability amounting to $75,000 was recorded as debt discount and amortized over the term of the loan. The debt issuance cost of $4,250 was recorded as debt discount and amortized over the term of the loan. The Company repaid the loan in full including interest of $3,127 on March 12, 2023. The prepayment penalty amounted to $20,594. The balance in debt discount as on March 31, 2023 was $0. As of March 31, 2023 the balance outstanding net of debt discount was $0.

November 2022 Note

On November 1, 2022, the Company issued an 8% secured promissory note (the “November 2022 Note”) for the principal sum of $55,000 plus accrued interest. The November 2022 Note matures on November 1, 2023. In case of default in repayment of the outstanding amount on the due date the balance shall bear interest of 22% per annum. Beginning on April 30, 2023, 1800 Diagonal Lending may convert the amount outstanding under the note into shares of NovAccess common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date. The initial recognition of derivative liability amounting to $50,700 was recorded as debt discount and amortized over the term of the loan. The debt issuance cost of $4,250 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $32,938. As of March 31, 2023, the balance outstanding net of debt discount was $22,063.

December 2022 Note

On December 7, 2022, the Company issued an 8% secured promissory note (the “December 2022 Note”) for the principal sum of $55,000 plus accrued interest. The December 2022 Note matures on December 7, 2023. In case of default in repayment of the outstanding amount on the due date the balance shall bear interest of 22% per annum. Beginning on June 5, 2023, 1800 Diagonal Lending may convert the amount outstanding under the note into shares of NovAccess common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date. The initial recognition of derivative liability amounting to $50,700 was recorded as debt discount and amortized over the term of the loan. The debt issuance cost of $4,250 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $37,207. As of March 31, 2023, the balance outstanding net of debt discount was $17,793.

February 2023 Letter Agreement

On February 9, 2023 the Company entered into a letter agreement, whereby the Company drew an additional loan amounting to $265,000, which was added to the May 2022 Note. The $265,000 loan has an original issuance discount of 10% of the principal and bears interest at 10% a year. This loan is due on May 9, 2023. The initial recognition of derivative liability amounting to $110,576 was recorded as debt discount and amortized over the term of the loan. The original issuance discount of $26,500 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $60,146. As of March 31, 2023, the balance outstanding net of debt discount was $204,854.

Also pursuant to the letter agreement , the Company paid a commitment fee of 500,000 unregistered shares of the Company’s common stock (the “commitment fee shares”). If the investor is unable to sell the commitment fee shares for $0.20 a share, then investor may require the Company to issue additional shares or pay cash in the amount of the shortfall. The Company also issued a common stock purchase warrant to purchase 1.0 million shares of the company’s Common stock for $0.20 a share. The warrant expires on February 9, 2028. The company recorded expense of 82,500 in respect of the commitment fee shares and 157,933 in respect of the warrant.

The Company did not make the payment of $271,551 due on May 9, 2023. The lender has agreed to waive the default provisions until June 1, 2023, or pending conclusion of negotiations on an extension of the loans.

We evaluated the financing transactions in accordance with ASC Topic 815, Derivatives and Hedging, and determined that the conversion feature of the convertible promissory notes was not afforded the exemption for conventional convertible instruments due to its variable conversion rate. The notes have no explicit limit on the number of shares issuable so they did not meet the conditions set forth in current accounting standards for equity classification. The Company elected to recognize the notes under paragraph 815-15-25-4, whereby, there would be a separation into a host contract and derivative instrument. The Company elected to initially and subsequently measure the notes in their entirety at fair value, with changes in fair value recognized in earnings. The Company recorded a derivative liability representing the imputed interest associated with the embedded derivative. The derivative liability is adjusted periodically according to the stock price fluctuations based upon the Binomial lattice model calculation.

The convertible notes issued and described in this Note do not have fixed settlement provisions because their conversion prices are not fixed. The conversion feature has been characterized as a derivative liability to be re-measured at the end of every reporting period with the change in value reported in the statement of operations.

We record the full value of the derivative as a liability at issuance with an offset to valuation discount, which will be amortized over the life of the notes.

For purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows:

Risk free interest rate	Between 4.74% and 4.955%
Stock volatility factor	Between 141% and 177.6%
Years to Maturity	0.28 years
Expected dividend yield	None

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CONVERTIBLE PROMISSORY NOTE, RELATED PARTY

6 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Long-Term Debt [Text Block]

5. CONVERTIBLE PROMISSORY NOTES, RELATED PARTY

July 2022 Note, related party

On July 28, 2022, the Company issued a 12% unsecured promissory note (the “July 2022 Note”) for the principal sum of $12,500 plus accrued interest. All amounts outstanding under the July 2022 Note were payable on the earlier of: (a) October 31, 2022, or (b) the receipt by the Company of debt or equity financing of $3 million. In November 2022, the holder agreed to extend the term of the note until April 2023 and in April 2023 agreed to a further extension until August 31, 2023. The holder has the right, until the date of payment in full of all amounts outstanding to convert unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at conversion price of $0.15. The initial recognition of derivative liability of $12,500 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on March 31, 2023, was $0. As of March 31, 2023, the balance outstanding net of debt discount was $12,500.

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SHORT TERM LOAN, RELATED PARTY

6 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Short-Term Debt [Text Block]

6. SHORT TERM LOAN, RELATED PARTY

On July 28, 2022, the Company entered into a short-term interest free loan agreement amounting to $12,500, with Jason M. Anderson, an independent member of our board of directors, to fund the operations until longer term financing can be obtained by the Company. The loan terms required repayment of all amounts outstanding under the loan on the earlier of: (a) October 31, 2022 or (b) the receipt by the Company of debt or equity financing of $3 million In November, 2022, the Board Member signed a waiver and extension agreement changing the due date to April 30, 2023 and in April 2023, agreed to a further extension until August 31, 2023.

On February 9, 2023, NovAccess entered into a second interest-free loan agreement with Mr. Anderson. Reflecting his faith in NovAccess and our management team, Mr. Anderson loaned the Company $8,500. The loan does not bear interest (except on default) and is due on the earlier of August 31, 2023 or our receipt of debt or equity financing of at least $3.0 million.

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WARRANTS

6 Months Ended

Mar. 31, 2023

Disclosure Text Block Supplement [Abstract]

Shareholders' Equity and Share-Based Payments [Text Block]

7. WARRANTS

On August 20, 2021, for value received in connection with the issuance of the August 2021 Note (see note 4 for more details), the Company issued 1,000,000 warrants to the lender with an exercise price of $1.50 per share with a five-year exercise period. On February 9, 2023, the Company entered into a letter agreement in connection with the August 2021 Note, whereby the exercise price of the warrants issued on the August 2021 Note was reduced to $0.20 per share.

On February 16, 2022, for value received in connection with the issuance of the February 2022 Note (see note 4 for more details), the Company issued 500,000 warrants to the lender with an exercise price of $1.50 per share with a five-year exercise period. On February 9, 2023, the Company entered into a letter agreement in connection with the August 2021 Note, whereby the exercise price of the warrants issued on the August 2021 Note was reduced to $0.20 per share.

On May 10, 2022, for value received in connection with the issuance of the May 2022 Note (see note 4 for more details), the Company issued 1,000,000 warrants to the lender with an exercise price of $0.01 per share with a five-year exercise period. On February 9, 2023, for value received in connection with the issuance of the February 2023 Note (see note 4 for more details), the Company issued 1,000,000 warrants to the lender with an exercise price of $0.20 per share with a five-year exercise period. The fair value of the warrant issued in relation to the letter agreement issued on February 2023 , is recorded as stock compensation expense amounting to $148,500.

On March 31, 2023 the fair value of the derivative liability of the warrants was $557,694 and $232,609 as of September 30, 2022.

For the purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used the Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows:

Risk free interest rate	Between 3.6% and 3.81%
Stock volatility factor	Between 147% and 164%
Years to Maturity	4.25 years
Expected dividend yield	None

Per guidance on ASC 260, the Company determined that the repricing of warrants discussed above, was an exchange of the existing 1,500,000 warrants and the difference between the fair value of the warrants immediately prior to modification of terms and immediately after the adjustment was a s a deemed dividend. The difference between the fair value of the warrants immediately prior to modification of terms and immediately after the adjustment was calculated as $44,241, using a Black Scholes model based on the following significant inputs: On February 9, 2023: common stock price of $0.165; company volatility of 156%-159%; remaining term 3.2-4.1 years; dividend yield of 0% and risk-free interest rate of 3.81-3.71%.

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OPTIONS

6 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement [Text Block]

8. OPTIONS

On June 2, 2020, the Company issued 2,000,000,000 options, on a pre reverse split basis, to purchase common stock to the then directors of the Company as compensation for serving on the board during 2019. These options are exercisable on a cashless basis for a period of ten years from September 30, 2022 at an exercise price of $0.00001. The number of options on the post stock split basis is 2,000,000, and the exercise price of $0.01 per share.

For purpose of determining the fair market value of the options issued on June 2, 2020, the Company used the Black Scholes valuation model. The significant assumptions used in the Black Scholes valuation model for the options are as follows:

Risk Free Interest Rate	0.32%
Stock Volatility Factor	146.0%
Weighted Average Expected Option Life	5 Years
Expected Dividend Yield	None

On March 13, 2023, the Company entered into non-qualified stock option agreements and granted vested ten-year options to purchase shares of the Company’s common stock for $0.175 a share, the closing price on the grant date. The Company issued options to purchase a total of 3,542,857 shares as follows: (a) 857,143 to each of the independent directors, (b) 428,571 to the chief financial officer, and 571,429 to the president of our StemVax Therapeutics subsidiary; (c) 57,143 to each of our scientific advisory board members; and (d) the remaining 542,857 to staff members and other officers.

Vesting Schedule. The Options are 100% vested and exercisable on the grant date, March 31, 2023.

Expiration. The Option will expire on the tenth anniversary from the grant date which falls on March 31, 2033.

For purpose of determining the fair market value of the options, the Company used the Black Scholes valuation model. The significant assumptions used in the Black Scholes valuation model for the options are as follows:

Risk Free Interest Rate	3.68%
Stock Volatility Factor	146.79%
Weighted Average Expected Option Life	5 Years
Expected Dividend Yield	None

A summary of the Company’s options activity and related information follows for the quarter ended March 31, 2023:

	March 31, 2023
			Weighted
	Number		average
	Of		exercise
	Options		price
Outstanding - beginning of period		2,000,000	$	.01
Granted		3,542,857	$	0.175
Exercised		-	$	-
Forfeited		-	$	-
Outstanding - end of period		5,542,857	$	0.115

At March 31, 2023, the weighted average remaining contractual life of options outstanding:

		March 31, 2023
						Weighted
						Average
						Remaining
Exercisable		Options		Options		Contractual
Prices		Outstanding		Exercisable		Life (years)
$	.01		2,000,000		2,000,000		7.17
$	0.175		3,542,857		3,542,857		9.95

The entire stock-based compensation expense amounting to $563,314 was recorded in the income statement on the grant date as the options are fully vested and exercisable on the grant date.

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

6 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and accrued other current liabilities consisted of the following at March 31, 2023 and September 30, 2022:

	March 31, 2023		September 30, 2022
Accrued liabilities		5,570		4,370
Interest payable		159,506		94,251
Provision for guaranteed commitment fees *		886,875		961,000
Accrued payroll		7,367		4,740
Deferred compensation		485,421		344,983
License Fees Payable		40,402		40,402
Insurance finance liability		69,133		36,815
	$	1,654,274	$	1,486,561

* Under the terms of the August 2021 Note, February 2022 Note, May 2022 Note and February 2023 Note the Company issued a total of 2,075,000 shares of common stock as commitment fees. If the lender is unable to sell the shares for more than $1,250,000, it may make a one-time claim for each note to be reimbursed for the difference between their sale proceeds and $1,250,000. The difference between the fair value of the 2,075,000 shares as on March 31, 2023 and the exercise amount of $1,250,000 was recorded as a provision for guaranteed commitment fees and included in the table above.

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BRIDGE LOANS PAYABLE

6 Months Ended

Mar. 31, 2023

Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]

Other Liabilities Disclosure [Text Block]

10. BRIDGE LOAN PAYABLE

Related parties

In December 2021, the Company’s CEO and CFO each advanced funds to the Company for operating expenses in the total amount of $50,000. The notes were payable on demand with a five business day written notice and bore interest at a rate of 10% per annum. The Company could prepay all or any part of the balance owed without penalty.

In March, 2022, our CEO purchased 600 shares of Series B Preferred stock and the Company applied $18,616 of the loan balance against this purchase. The remaining balance of $6,384 was paid to our CEO in several payments with the final balance being paid in May, 2022. The Company recognized and paid interest expense in the amount of $583 to our CEO during the year ended September 30, 2022. No balance is due to our CEO as March 31, 2023.

On January 25, 2022, the Company issued 125,000 shares of its common stock in settlement of the bridge loan to the Company’s CFO and recognized a loss on extinguishment of debt in the amount of $17,313. Any potential gain would not have been recognized on extinguishment of this loan due to the nature of the relationship between the parties. The Company recognized and paid interest expense in the amount of $237 to our CFO during the year ended September 30, 2022. No balance is due to our CFO as of March 31, 2023.

Service provider, related party

In December 2021, one of the Company’s service providers advanced funds to the Company for operating expenses in the total amount of $25,000. On February 14, 2022, the Company issued 125,000 shares of its common stock to the service provider in settlement of the note payable. The Company recognized a loss on extinguishment of debt in the amount of $37,500. During the year ended September 30, 2022, the Company recognized and paid interest expense of $226 in relation to this loan. No balance was outstanding on the note payable to our service provider as of March 31, 2023.

The total loss on account of extinguishment of debt on the CFO Note and service provider note amounting to $54,813 was recorded in the income statement.

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DUE TO RELATED PARTIES

6 Months Ended

Mar. 31, 2023

Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]

Other Liabilities [Table Text Block]

11. DUE TO RELATED PARTIES

Due to Innovest Global

During the periods prior to the year ended September 30, 2022, Innovest Global, Inc. (“Innovest”) advanced funds to the Company for operating expenses in the amount of $86,217. As of March 31, 2023, the amount has not been reimbursed to Innovest. Our former Chairman Daniel Martin was the CEO of Innovest when the funds were advanced.

Due to TN3 LLC

On January 31, 2022, the Company entered into a preferred stock redemption agreement with Daniel G. Martin, at the time, our sole board member and chairman, TN3, LLC, a company owned by Mr. Martin, Dwain K. Irvin, our chief executive officer, and Irvin Consulting, LLC, a company owned by Dr. Irvin. TN3 owned 25,000 shares of the Series B convertible preferred stock. Pursuant to the redemption agreement, on March 14, 2022, NovAccess redeemed 24,400 of the preferred shares and Irvin Consulting purchased 600 of the preferred shares from TN3. The Company also issued to TN3 1,502,670 shares of unregistered common stock, at $ 0.35 amounting to $525,934 which was equal to 10% of our outstanding common stock on the date the redemption agreement was signed. Upon completion of the redemption transaction, the Company is obligated to pay to TN3 a total of $250,000 over a period of eleven months, with payment accelerated if the Company raises at least $2.5 million of equity capital. As of March 31, 2023, the Company owed TN3 $95,000 of the redemption price.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

12. COMMITMENTS AND CONTINGENCIES

There are no material pending legal proceedings to which we are a party, nor are there any such proceedings known to be contemplated by governmental authorities. None of our directors, officers, or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business.

Under the terms of the August 2021 Note, February 2022 Note, May 2022 Note and February 2023 Note the Company issued a total of 2,075,000 shares of common stock as commitment fees. If the lender is unable to sell the shares for more than $1,250,000, it may make a onetime claim for each note to be reimbursed for the difference between their sale proceeds and $1,250,000. The difference between the fair value of the 1,575,000 shares as on March 31, 2023, and the exercise amount of $1,250,000 was recorded as a make-whole provision for commitment fees and included in the accrued expenses.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

13. RELATED PARTY TRANSACTIONS

On February 9, 2023, NovAccess entered into an interest-free loan agreement with Jason M. Anderson, an independent member of our board of directors. Reflecting his faith in NovAccess and our management team, Mr. Anderson loaned the company $8,500. The loan does not bear interest (except on default) and is due on the earlier of August 31, 2023 or our receipt of debt or equity financing of at least $3.0 million. We will use the proceeds of the loan for general working capital purposes.

On July 28, 2022, the Company entered into a short-term interest free loan agreement amounting to $12,500 with Mr. Anderson to fund operations until longer term financing can be obtained by the Company. The loan terms required repayment of all amounts outstanding under this agreement on the earlier of: (a) October 31, 2022 or (b) the receipt by the Company of debt or equity financing of $3 million. In November 2022 Mr. Anderson signed a waiver and extension agreement changing the due date to April 30, 2023 and in April 2023 Mr. Anderson agreed to extend the due date to August 31, 2023. The balance outstanding on March 31, 2023 was $12,500.

On July 28, 2022, the Company issued a convertible promissory note to Letzhangout, LLC, a company that provides accounting consulting services to NovAccess and also employs our chief financial officer, Neil J. Laird. Pursuant to the note, Letzhangout loaned the Company $12,500 on July 29, 2022. All amounts outstanding under this agreement were payable on the earlier of: (a) October 31, 2022, or (b) the receipt by the Company of debt or equity financing of $3 million. In November 2022, the holder agreed to extend the term of the note until April 2023 and in April 2023 agreed to extend the due date to August 31, 2023. The holder has the right, until the date of payment in full. to convert all amounts outstanding under the note and unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at conversion price of $0. 15. As of March 31, 2023, the balance of the July 2022 Note was $12,500.

On January 31, 2022, the Company entered into a preferred stock redemption agreement with Daniel G. Martin, at the time our sole board member and chairman, TN3, LLC, a company owned by Mr. Martin, Dwain K. Irvin, our chief executive officer, and Irvin Consulting, LLC, a company owned by Dr. Irvin. TN3 owned 25,000 shares of the Series B convertible preferred stock. Pursuant to the redemption agreement, on March 14, 2022, NovAccess redeemed 24,400 of the preferred shares and Irvin Consulting purchased 600 of the preferred shares from TN3.

Upon completion of the redemption transaction, the Company was obligated to pay to TN3 a total of $250,000 over a period of eleven months, with payment accelerated if the Company raises at least $2.5 million of equity capital. As of March 31, 2023, the Company owed TN3 $95,000 of the redemption price. Pursuant to the redemption agreement, the Company also issued to TN3 1,502,670 shares of unregistered common stock, which was equal to 10% of our outstanding common stock on the date the redemption agreement was signed. Upon completion of the redemption transaction, Mr. Martin resigned from the NovAccess board and was replaced by John A. Cassarini and Dr. Irvin.

Also in connection with closing the redemption transaction, on March 14, 2022, the Company entered into a common stock distribution agreement with Innovest Global, Inc. Innovest acquired 7.5 million shares of the Company’s common stock when Innovest sold StemVax, LLC to NovAccess in September 2020. Pursuant to the stock distribution agreement, Innovest agreed to distribute its NovAcess common stock to Innovest’s shareholders. Innovest is currently in the process of effectuating the distribution.

In December 2021, the Company’s CEO and CFO each advanced funds to the Company for operating expenses in the total amount of $25,000 each. The notes were payable on demand with a five business-day written notice and bore interest at a rate of 10% per annum. The Company could prepay all or any part of the balance owed without penalty. On January 25, 2022, the Company issued 125,000 shares of its common stock in settlement of a bridge loan to the Company’s CFO and recognized a loss on extinguishment of debt in the amount of $17,313. Any potential gain would not have been recognized on extinguishment of this loan due to the nature of the relationship between the parties. The Company recognized and paid interest expense in the amount of $237 to our CFO during the year ended September 30, 2022. No balance is due to our CFO as March 31, 2023. In March, 2022, our CEO purchased 600 shares of Series B Preferred stock and the Company applied $18,616 of the loan balance against this purchase. The remaining balance of $6,384 was paid to our CEO in several payments with the final balance being paid in May, 2022. The Company recognized and paid interest expense in the amount of $583 to our CEO during the year ended March 31, 2023. No balance is due to our CEO as of March 31, 2023.

On September 4, 2020, the Company entered into a management services agreement with TN3, LLC. Pursuant to the agreement, TN3 provided the Company with office space in Chesterland, Ohio and management, administrative, marketing, bookkeeping and IT services for a fee of $30,000 a month. The initial term of the agreement was three years, with subsequent one-year renewals. We paid TN3 $40,000 under the agreement in fiscal 2022. In connection with the redemption of TN3’s preferred shares, the management services agreement was terminated and outstanding amounts cancelled, and as of March 31, 2023 there were no amounts owed under this agreement.

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SUBSEQUENT EVENTS

6 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

Subsequent Events [Text Block]

14. SUBSEQUENT EVENTS

On April 11, 2023, the Company entered into a securities purchase agreement (the “SPA”) with a lender and issued a convertible promissory note in the original principal amount of $79,250 (the “note”) pursuant to the SPA. The loan funded on April 14, 2023. The Company will use the proceeds of the loan for general working capital purposes.

The Company provided typical representations and agreed to standard covenants pursuant to the SPA. The SPA does not include any financial covenants.

The note bears interest at 8% a year and is due on April 11, 2024. The Company may prepay the note upon payment of a prepayment penalty ranging from 15-25% of the amount outstanding on the note when prepaid. Under the terms of the note, the Company may not sell a significant portion of its assets without the approval of the lender, must comply with the company’s reporting requirements under the Securities Exchange Act of 1934, and must maintain the listing of the Company’s common stock on the OTCQB Market or other exchange. The Company’s failure to comply with any of these covenants, among other matters, would constitute an event of default. Upon an event of default, the note will bear interest at 22% and the lender will be entitled to its costs of collection.

Beginning on October 8, 2023, the lender may convert the amount outstanding under the note into shares of the Company’s common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date.

On April 24, 2023, the Company entered into a securities purchase agreement (the “SPA”) with a lender and issued a convertible promissory note in the original principal amount of $54,250 (the “note”) to the lender pursuant to the SPA. The loan funded on April 28, 2023. The Company will use the proceeds of the loan for general working capital purposes.

The note bears interest at 8% a year and is due on April 24, 2024. The Company may prepay the note upon payment of a prepayment penalty ranging from 15-25% of the amount outstanding on the note when prepaid. Under the terms of the note, the Company may not sell a significant portion of its assets without the approval of 1800 Diagonal Lending, must comply with the Company’s reporting requirements under the Securities Exchange Act of 1934, and must maintain the listing of the Company’s common stock on the OTCQB Market or other exchange. The Company’s failure to comply with any of these covenants, among other matters, would constitute an event of default. Upon an event of default, the note will bear interest at 22% and the lender will be entitled to its costs of collection.

Beginning on October 21, 2023, the lender may convert the amount outstanding under the note into shares of the Company’s common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date.

The Company did not make the payment of $1,584,260 including principal and interest, due on May 9, 2023 on the notes issued on Feb 2022, May 2022 and Feb 2023. The lender has agreed to waive the default provisions until June 1, 2023, or pending conclusion of negotiations on an extension of the loans.

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Accounting Policies, by Policy (Policies)

6 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary StemVax, LLC. All significant inter-company accounts and transactions between these entities have been eliminated in these consolidated financial statements.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Significant estimates made in preparing these consolidated financial statements include the estimate of the deferred tax valuation allowance, the fair value of stock options, and derivative liabilities. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents include cash in banks and money markets with an original maturity of three months or less.

Share-Based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

Share-based Payment applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are to follow a fair value of those equity instruments. We are required to follow a fair value approach using an option-pricing model, such as the Binomial lattice valuation model, at the date of a stock option grant. The deferred compensation calculated under the fair value method would then be amortized over the respective vesting period of the stock option. This has not had a material impact on our results of operations.

Earnings Per Share, Policy [Policy Text Block]

Net Earnings (Loss) per Share Calculations

Net earnings (Loss) per share dictates the calculation of basic earnings (loss) per share and diluted earnings (loss) per share. Basic earnings (loss) per share are computed by dividing by the weighted average number of common shares outstanding during the period. Diluted net earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the effect of stock options and stock-based awards plus the assumed conversion of convertible debt (see notes 4 and 5). 

	For the three months ended					For the Six months ended
	March 31,					March 31,
	2023		2022			2023			2022
Income (Loss) to common shareholders (Numerator)	$	409,523		(1,229,785	)	$	(2,221,883	)	(1,373,093	)
Basic weighted average number of common shares outstanding (Denominator)		20,698,747		15,379,289			19,832,524		14,914,920
Diluted weighted average number of common shares outstanding		39,680,653		15,379,289			19,832,524,		14,914,920

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Fair Value of Financial Instruments requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of March 31, 2023, the balances reported for cash, prepaid expenses, accounts payable, accrued expenses approximate the fair value because of their short maturities.

We adopted Accounting Standards Codification (“ASC”) Topic 820 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:

● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;

● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

We measure certain financial instruments at fair value on a recurring basis. The Company had no assets that are required to be valued on a recurring basis as of March 31, 2023 and September 30, 2022. The Company had liabilities that are required to be measured at fair value on a recurring basis as follows at March 31 2023 and September 30, 2022:

	Total		(Level 1)		(Level 2)		(Level 3)
Assets:	$	-	$	-	$	-	$	-
Liabilities:
Derivative Liability at fair value as of September 30, 2022	$	1,207,403	$	-	$	-	$	1,207,403
Derivative Liability warrants at fair value as of September 30, 2022	$	232,609	$	-	$	-	$	232,609
Total Derivative Liability as of September 30, 2022	$	1,440,012		-		-	$	1,440,012
Derivative Liability at fair value as of March 31, 2023	$	1,211,565		-		-	$	1,211,565
Derivative Liability warrants at fair value as of March 31, 2023	$	557,694		-		-	$	557,694
Total Derivative Liability as of March 31, 2023	$	1,769,259		-		-	$	1,769,259

The following is a reconciliation of the derivative liability for which Level 3 inputs were used in determining the approximate fair value:

	Derivative Liability Promissory Notes			Derivative Liability Warrants			Total Derivative Liability
Balance as of September 30, 2021	$	2,553,979		$	372,643		$	2,926,622
Fiscal year 2022 initial derivative liabilities		593,297			282,051			875,348
Net (Gain)/Loss on change in fair value of derivative liability		(1,662,156	)		(422,086	)		(2,084,242	)
Extinguishment of derivative		(277,716	)		-			(277,716	)
Ending balance as of September 30, 2022	$	1,207,403		$	232,609		$	1,440,012
Six Months ended March 31, 2023, initial derivative liabilities		212,256			-			212,256
Net (Gain)/Loss on change in fair value of derivative liability		(69,231	)		325,085			255,854
Extinguishment of derivative		(138,863	)		-			(138,863	)
Ending balance as of March 31, 2023	$	1,211,565		$	557,694		$	1,769,259

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations". This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, except for the amendment on roll forward information, which is effective for fiscal years beginning after December 15, 2023. We are currently evaluating the extent of the impact of this ASU, but do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sales Restrictions, which (1) clarifies the guidance in Topic 820 on the fair value measurement of an equity security that is subject to contractual restrictions that prohibit the sale of an equity security and (2) requires specific disclosures related to such an equity security. We are currently evaluating the extent of the impact of this ASU, but do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

In March 2022, the FASB issued ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance on troubled debt restructurings for creditors in ASC Topic 310 and amends the guidance on "vintage disclosures" to require disclosure of current-period gross write-offs by year of origination. ASU 2022-02 also updates the requirements related to accounting for credit losses under ASC Topic 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the extent of the impact of this ASU, but do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Net earnings (Loss) per share dictates the calculation of basic earnings (loss) per share and diluted earnings (loss) per share. Basic earnings (loss) per share are computed by dividing by the weighted average number of common shares outstanding during the period. Diluted net earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the effect of stock options and stock-based awards plus the assumed conversion of convertible debt (see notes 4 and 5). 

	For the three months ended					For the Six months ended
	March 31,					March 31,
	2023		2022			2023			2022
Income (Loss) to common shareholders (Numerator)	$	409,523		(1,229,785	)	$	(2,221,883	)	(1,373,093	)
Basic weighted average number of common shares outstanding (Denominator)		20,698,747		15,379,289			19,832,524		14,914,920
Diluted weighted average number of common shares outstanding		39,680,653		15,379,289			19,832,524,		14,914,920

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

We measure certain financial instruments at fair value on a recurring basis. The Company had no assets that are required to be valued on a recurring basis as of March 31, 2023 and September 30, 2022. The Company had liabilities that are required to be measured at fair value on a recurring basis as follows at March 31 2023 and September 30, 2022:

	Total		(Level 1)		(Level 2)		(Level 3)
Assets:	$	-	$	-	$	-	$	-
Liabilities:
Derivative Liability at fair value as of September 30, 2022	$	1,207,403	$	-	$	-	$	1,207,403
Derivative Liability warrants at fair value as of September 30, 2022	$	232,609	$	-	$	-	$	232,609
Total Derivative Liability as of September 30, 2022	$	1,440,012		-		-	$	1,440,012
Derivative Liability at fair value as of March 31, 2023	$	1,211,565		-		-	$	1,211,565
Derivative Liability warrants at fair value as of March 31, 2023	$	557,694		-		-	$	557,694
Total Derivative Liability as of March 31, 2023	$	1,769,259		-		-	$	1,769,259

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following is a reconciliation of the derivative liability for which Level 3 inputs were used in determining the approximate fair value:

	Derivative Liability Promissory Notes			Derivative Liability Warrants			Total Derivative Liability
Balance as of September 30, 2021	$	2,553,979		$	372,643		$	2,926,622
Fiscal year 2022 initial derivative liabilities		593,297			282,051			875,348
Net (Gain)/Loss on change in fair value of derivative liability		(1,662,156	)		(422,086	)		(2,084,242	)
Extinguishment of derivative		(277,716	)		-			(277,716	)
Ending balance as of September 30, 2022	$	1,207,403		$	232,609		$	1,440,012
Six Months ended March 31, 2023, initial derivative liabilities		212,256			-			212,256
Net (Gain)/Loss on change in fair value of derivative liability		(69,231	)		325,085			255,854
Extinguishment of derivative		(138,863	)		-			(138,863	)
Ending balance as of March 31, 2023	$	1,211,565		$	557,694		$	1,769,259

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CONVERTIBLE PROMISSORY NOTES (Tables)

6 Months Ended

Mar. 31, 2023

CONVERTIBLE PROMISSORY NOTES (Tables) [Line Items]

Schedule of Debt [Table Text Block]

Convertible Promissory notes as on March 31, 2023	Principal Amount		Unamortized balance of Debt Discount		Outstanding balance as on March 31, 2023		Derivative balance as on March 31, 2023		Warrant liability balance as on March 31, 2023
2013 Note		12,000		-		12,000		-		-
2014 Note		50,880		-		50,880		215,591		-
2017 Note		115,000		-		115,000		453,384		-
August 2021 Note		-		-		-		-		151,920
February 2022 Note		250,000		-		250,000		81,815		76,762
May 2022 Note		1,000,000		-		1,000,000		245,784		171,753
August 2022 Note		100,000		27,517		72,483		48,797		-
November 2022 Note		55,000		32,937		22,063		48,883		-
December 2022 Note		55,000		37,207		17,793		49,719		-
February 2023 Note		265,000		60,146		204,854		63,650		157,259
Total		1,902,880		157,807		1,745,073		1,207,624		557,694

Convertible Promissory note, related party as on March 31, 2023	Principal Amount		Unamortized balance of Debt Discount		Outstanding balance as on March 31, 2023		Derivative balance as on March 31, 2023		Warrant liability balance as on March 31, 2023
July 2022 Note		12,500		-		12,500		3,941		-

Convertible Debt [Member]

CONVERTIBLE PROMISSORY NOTES (Tables) [Line Items]

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

For purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows:

Risk free interest rate	Between 4.74% and 4.955%
Stock volatility factor	Between 141% and 177.6%
Years to Maturity	0.28 years
Expected dividend yield	None

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WARRANTS (Tables)

6 Months Ended

Mar. 31, 2023

Warrant [Member]

WARRANTS (Tables) [Line Items]

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

For the purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used the Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows:

Risk free interest rate	Between 3.6% and 3.81%
Stock volatility factor	Between 147% and 164%
Years to Maturity	4.25 years
Expected dividend yield	None

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OPTIONS (Tables)

6 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

For purpose of determining the fair market value of the options issued on June 2, 2020, the Company used the Black Scholes valuation model. The significant assumptions used in the Black Scholes valuation model for the options are as follows:

Risk Free Interest Rate	0.32%
Stock Volatility Factor	146.0%
Weighted Average Expected Option Life	5 Years
Expected Dividend Yield	None

Risk Free Interest Rate	3.68%
Stock Volatility Factor	146.79%
Weighted Average Expected Option Life	5 Years
Expected Dividend Yield	None

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

A summary of the Company’s options activity and related information follows for the quarter ended March 31, 2023:

	March 31, 2023
			Weighted
	Number		average
	Of		exercise
	Options		price
Outstanding - beginning of period		2,000,000	$	.01
Granted		3,542,857	$	0.175
Exercised		-	$	-
Forfeited		-	$	-
Outstanding - end of period		5,542,857	$	0.115

Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block]

At March 31, 2023, the weighted average remaining contractual life of options outstanding:

		March 31, 2023
						Weighted
						Average
						Remaining
Exercisable		Options		Options		Contractual
Prices		Outstanding		Exercisable		Life (years)
$	.01		2,000,000		2,000,000		7.17
$	0.175		3,542,857		3,542,857		9.95

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

6 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

Accrued expenses and accrued other current liabilities consisted of the following at March 31, 2023 and September 30, 2022:

	March 31, 2023		September 30, 2022
Accrued liabilities		5,570		4,370
Interest payable		159,506		94,251
Provision for guaranteed commitment fees *		886,875		961,000
Accrued payroll		7,367		4,740
Deferred compensation		485,421		344,983
License Fees Payable		40,402		40,402
Insurance finance liability		69,133		36,815
	$	1,654,274	$	1,486,561

* Under the terms of the August 2021 Note, February 2022 Note, May 2022 Note and February 2023 Note the Company issued a total of 2,075,000 shares of common stock as commitment fees. If the lender is unable to sell the shares for more than $1,250,000, it may make a one-time claim for each note to be reimbursed for the difference between their sale proceeds and $1,250,000. The difference between the fair value of the 2,075,000 shares as on March 31, 2023 and the exercise amount of $1,250,000 was recorded as a provision for guaranteed commitment fees and included in the table above.

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ORGANIZATION AND LINE OF BUSINESS (Details)	Aug. 25, 2020
Accounting Policies [Abstract]
Stockholders' Equity, Reverse Stock Split	1-for-1,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Schedule Of Earnings Per Share Basic And Diluted Abstract
(Loss) to common shareholders (Numerator) (in Dollars)	$ 409,523	$ (1,229,785)	$ (2,221,883)	$ (1,373,093)
Basic weighted average number of common shares outstanding (Denominator)	20,698,747	15,379,289	19,832,524	14,914,920
Diluted weighted average number of common shares outstanding (Denominator)	39,680,653	15,379,289	19,832,524	14,914,920

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($)	Mar. 31, 2023	Sep. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets:		$ 0
Derivative Liability at fair value	$ 1,211,565	1,207,403
Derivative Liability warrants at fair value	557,694	232,609
Total Derivative Liability	1,769,259	1,440,012
Fair Value, Inputs, Level 1 [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets:		0
Derivative Liability at fair value	0	0
Derivative Liability warrants at fair value	0	0
Total Derivative Liability	0	0
Fair Value, Inputs, Level 2 [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets:		0
Derivative Liability at fair value	0	0
Derivative Liability warrants at fair value	0	0
Total Derivative Liability	0	0
Fair Value, Inputs, Level 3 [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets:		0
Derivative Liability at fair value	1,211,565	1,207,403
Derivative Liability warrants at fair value	557,694	232,609
Total Derivative Liability	$ 1,769,259	$ 1,440,012

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Sep. 30, 2022
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance	$ 1,440,012	$ 2,926,622
Initial derivative liabilities	212,256	875,348
Net (Gain)/Loss on change in fair value of derivative liability	255,854	(2,084,242)
Extinguishment of derivative	(138,863)	(277,716)
Balance	1,769,259	1,440,012
Fair Value, Inputs, Level 3 [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance	1,207,403	2,553,979
Initial derivative liabilities	212,256	593,297
Net (Gain)/Loss on change in fair value of derivative liability	(69,231)	(1,662,156)
Extinguishment of derivative	(138,863)	(277,716)
Balance	1,211,565	1,207,403
Fair Value, Inputs, Level 3 [Member] | Embedded Derivative Financial Instruments [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance	232,609	372,643
Initial derivative liabilities	0	282,051
Net (Gain)/Loss on change in fair value of derivative liability	325,085	(422,086)
Extinguishment of derivative	0	0
Balance	$ 557,694	$ 232,609

XML

CAPITAL STOCK (Details) - USD ($)					1 Months Ended		6 Months Ended
	Mar. 14, 2022	Jan. 25, 2022	Sep. 04, 2020	Aug. 25, 2020	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
CAPITAL STOCK (Details) [Line Items]
Common Stock, Shares Authorized							2,000,000,000		2,000,000,000
Stockholders' Equity, Reverse Stock Split				1-for-1,000
Preferred Stock, Shares Authorized							50,000,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)							$ 0.01		$ 0.01
Conversion of Stock, Shares Issued	1,502,670						1,502,670	1,502,670
Stock Issued During Period, Shares, Other								300,000
Stock Issued During Period, Shares, Period Increase (Decrease)							2,515,521	3,119,643
Stock Issued During Period, Shares, Issued for Services							1,490,521	265,973
Stock Issued During Period, Value, Issued for Services (in Dollars)							$ 259,702	$ 119,480
Debt Conversion, Converted Instrument, Shares Issued		125,000				125,000	500,000	250,000
Stock Subscriptions [Member]
CAPITAL STOCK (Details) [Line Items]
Stock Issued During Period, Value, Issued for Services (in Dollars)							$ 259,702
Stock Issued During Period, Shares, New Issues							525,000	791,000
Series B Preferred Stock [Member]
CAPITAL STOCK (Details) [Line Items]
Preferred Stock, Shares Authorized							25,000		25,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)			$ 0.01
Preferred Stock, Shares Outstanding							600
Conversion of Stock, Shares Issued			25,000
Preferred Stock, Voting Rights			Each share of outstanding Series B Preferred Stock entitles the holder to cast 40,000 votes.
Preferred Stock, Conversion Basis			Each share of Series B Preferred Stock is convertible at the option of the holder into 10,000 common shares
Stock Issued During Period, Shares, New Issues					600
Conversion of Stock, Shares Converted								24,400
TN3, LLC [Member] | Series B Preferred Stock [Member]
CAPITAL STOCK (Details) [Line Items]
Stock Issued During Period, Shares, Other	24,400
TN3, LLC [Member] | Series B Preferred Stock [Member] | Irvin Consulting, LLC ("IC") [Member]
CAPITAL STOCK (Details) [Line Items]
Stock Issued During Period, Shares, Other	600
Related Party [Member]
CAPITAL STOCK (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services							216,500
Stock Issued During Period, Shares, New Issues								10,000

XML

CONVERTIBLE PROMISSORY NOTES (Details) - USD ($)																	1 Months Ended		2 Months Ended	6 Months Ended		19 Months Ended
	Mar. 12, 2023	Feb. 09, 2023	Dec. 07, 2022	Nov. 01, 2022	Sep. 22, 2022	Aug. 08, 2022	Jul. 28, 2022	May 10, 2022	May 05, 2022	Feb. 16, 2022	Feb. 15, 2022	Aug. 20, 2021	Jul. 06, 2021	May 28, 2021	May 10, 2017	Nov. 20, 2014	Nov. 30, 2022	Dec. 31, 2021	Sep. 18, 2017	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2016	May 09, 2023	Sep. 30, 2022	Oct. 01, 2013
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount							$ 12,500													$ 1,902,880					$ 12,000
Debt Instrument, Convertible, Conversion Price (in Dollars per share)																									$ 4.5
Debt Instrument, Fee Amount																									$ 1,200
Debt Instrument, Interest Rate, Stated Percentage																		10.00%
Proceeds from Convertible Debt																				(79,250)	$ (94,250)
Convertible Debt																				1,745,073
Class of Warrant or Rights, Granted (in Shares)		1,000,000						1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ 0.2						$ 0.01			$ 1.5
Stock Issued During Period, Shares, Other (in Shares)																					300,000
Debt Instrument, Unamortized Discount																				157,807
Stock Issued During Period, Value, Other																				82,500	$ 111,000
Fair Value Adjustment of Warrants		$ 44,241
Debt Instrument, Debt Default, Amount																							$ 271,551
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net																				157,807				$ 340,503
Debt Instrument, Maturity Date, Description							The loan terms required repayment of all amounts outstanding under the loan on the earlier of: (a) October 31, 2022 or (b) the receipt by the Company of debt or equity financing of $3 million											The notes were payable on demand with a five business-day written notice
Debt Instrument, Maturity Date																	Apr. 30, 2023
September 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Maturity Date					Sep. 22, 2023
May Note [Member
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount														$ 55,500
Debt Instrument, Interest Rate, Stated Percentage														12.00%
Debt Instrument, Convertible, Terms of Conversion Feature														The May 2021 Note was convertible after November 23, 2021, by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest traded price of common stock recorded during the fifteen (15) trading days prior to conversion.
Convertible Debt																				0
July Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount													$ 38,750
Debt Instrument, Interest Rate, Stated Percentage													12.00%
Debt Instrument, Convertible, Terms of Conversion Feature													The July 2021 Note was convertible after January 1, 2022, by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest trade price of common stock recorded during the fifteen (15) trading days prior to conversion.
Convertible Debt																				0
August Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount												$ 500,000								0
Debt Instrument, Interest Rate, Stated Percentage												10.00%
Debt Instrument, Convertible, Terms of Conversion Feature												The August 2021 Note could be converted, only following an event of default, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period.
Convertible Debt																				0
Class of Warrant or Rights, Granted (in Shares)												1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ 0.2										$ 1.5
Stock Issued During Period, Shares, Other (in Shares)												400,000
Debt Instrument, Unamortized Discount																				0
February Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount											$ 250,000									250,000
Debt Instrument, Convertible, Conversion Price (in Dollars per share)		0.2
Debt Instrument, Interest Rate, Stated Percentage											10.00%
Debt Instrument, Convertible, Terms of Conversion Feature											The February 2022 Note may be converted, only following an event of default, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period
Convertible Debt																				250,000
Class of Warrant or Rights, Granted (in Shares)										500,000	500,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ 0.2								$ 1.5
Stock Issued During Period, Shares, Other (in Shares)											300,000
Debt Instrument, Unamortized Discount											$ 25,000									0
Unamortized Debt Issuance Expense											12,000
Stock Issued During Period, Value, Other											$ 111,000
Fair Value Adjustment of Warrants		$ 44,241
Debt Instrument, Debt Default, Amount																							258,958
May 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount									$ 1,000,000											1,000,000
Debt Instrument, Interest Rate, Stated Percentage									12.00%
Debt Instrument, Convertible, Terms of Conversion Feature									The May 2022 Note may be converted, only following an event of default, by the lender into shares of common stock of the Company at the lesser of the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period before conversion
Convertible Debt																				1,000,000
Class of Warrant or Rights, Granted (in Shares)									1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)									$ 0.01
Stock Issued During Period, Shares, Other (in Shares)									875,000
Debt Instrument, Unamortized Discount									$ 100,000											0
Unamortized Debt Issuance Expense									25,500
Stock Issued During Period, Value, Other									$ 259,875
Debt Instrument, Debt Default, Amount																							$ 1,053,750
Debt Instrument, Description									If extended, the interest rate increased to 15% for the remaining six months
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net									$ 282,051
August 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount						$ 100,000														100,000
Debt Instrument, Convertible, Conversion Price (in Dollars per share)						$ 0.15
Debt Instrument, Interest Rate, Stated Percentage						12.00%
Convertible Debt																				72,483
Debt Instrument, Unamortized Discount																				27,517
Debt Instrument, Maturity Date, Description						The August 2022 Note matures on August 8, 2023, provided, however that after October 31, 2022, if the Company receives debt or equity financing of at least $3 million, the holder may call for payments of outstanding principal and interest at any time from such date giving notice of at least five business days before the date the payment is due
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances						$ 77,259
September 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount					$ 79,250
Debt Instrument, Fee Amount	$ 20,594
Debt Instrument, Interest Rate, Stated Percentage					8.00%
Debt Instrument, Convertible, Terms of Conversion Feature					The holder shall have the right, after six months, until the date of payment in full of all amounts outstanding to convert unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at a variable conversion price equal to 65% multiplied by the market price. Market price means the average of the three lowest trading prices for the Common Stock during the fifteen-trading day period ending on the latest complete trading day prior to the conversion date.
Convertible Debt																				0
Debt Instrument, Unamortized Discount																				0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances					$ 75,000
Debt Instrument, Unamortized Discount, Noncurrent					$ 4,250															27,517
Debt, Default Interest Rate					22.00%
Repayments of Debt	$ 3,127
November 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount				$ 55,000																55,000
Debt Instrument, Interest Rate, Stated Percentage				8.00%
Debt Instrument, Convertible, Terms of Conversion Feature				Beginning on April 30, 2023, 1800 Diagonal Lending may convert the amount outstanding under the note into shares of NovAccess common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date.
Convertible Debt																				22,063
Debt Instrument, Unamortized Discount																				32,937
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances				$ 50,700
Debt Instrument, Unamortized Discount, Noncurrent				$ 4,250																32,938
Debt Instrument, Maturity Date				Nov. 01, 2023
Debt, Default Interest Rate				22.00%
December 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount			$ 55,000																	55,000
Debt Instrument, Interest Rate, Stated Percentage			8.00%
Convertible Debt																				17,793
Debt Instrument, Unamortized Discount																				37,207
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances			$ 50,700
Debt Instrument, Unamortized Discount, Noncurrent			$ 4,250																	37,207
Debt Instrument, Maturity Date			Dec. 07, 2023
February 2023 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount		265,000																		265,000
Debt Instrument, Fee Amount		$ 157,933
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Convertible Debt																				$ 204,854
Class of Warrant or Rights, Granted (in Shares)		1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ 0.2
Stock Issued During Period, Shares, Other (in Shares)																				500,000
Debt Instrument, Unamortized Discount																				$ 60,146
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances		$ 110,576
Debt Instrument, Unamortized Discount, Noncurrent		$ 26,500
Debt Instrument, Maturity Date		May 09, 2023
Debt, Discount Rate		10.00%
Debt Instrument, Fee		If the investor is unable to sell the commitment fee shares for $0.20 a share, then investor may require the Company to issue additional shares or pay cash in the amount of the shortfall.
February 2023 Note [Member] | Commitment Fee [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Fee Amount		$ 82,500
Convertible Debt [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount															$ 150,000
Debt Instrument, Interest Rate, Stated Percentage															10.00%
Debt Instrument, Convertible, Terms of Conversion Feature																			The 2017 Note may be converted by the lender into shares of common stock of the Company at the lesser of $10 per share or (b) fifty percent (50%) of the lowest traded price of common stock recorded on any trade day after the effective date, or (c) the lowest effective price per share granted to any person or entity
Proceeds from Convertible Debt															$ 25,000				$ 90,000
Convertible Debt																				115,000
Convertible Debt [Member] | Convertible Note Payable Two [Member]
CONVERTIBLE PROMISSORY NOTES (Details) [Line Items]
Debt Instrument, Face Amount																$ 400,000
Debt Instrument, Interest Rate, Stated Percentage																10.00%
Debt Instrument, Term																18 months
Debt Instrument, Convertible, Terms of Conversion Feature																The 2014 Note may be converted by the lender into shares of common stock of the Company at the lesser of $12.50 per share or (b) fifty percent (50%) of the lowest traded prices following issuance of the 2014 Note or (c) the lowest effective price per share granted to any person or entity
Proceeds from Convertible Debt																$ 50,000						$ 350,000
Convertible Debt																				$ 50,880

XML

CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt - USD ($)	Mar. 31, 2023	Feb. 09, 2023	Dec. 07, 2022	Nov. 01, 2022	Sep. 30, 2022	Aug. 08, 2022	Jul. 28, 2022	May 05, 2022	Feb. 15, 2022	Aug. 20, 2021	Oct. 01, 2013
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	$ 1,902,880						$ 12,500				$ 12,000
Unamortized balance of Debt Discount	157,807
Outstanding balance	1,745,073
Derivative balance	1,769,259				$ 1,440,012
Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	1,207,624
Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	557,694
2013 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	12,000
Unamortized balance of Debt Discount	0
Outstanding balance	12,000
2013 Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	0
2013 Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	0
2014 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	50,880
Unamortized balance of Debt Discount	0
Outstanding balance	50,880
2014 Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	215,591
2014 Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	0
2017 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	115,000
Unamortized balance of Debt Discount	0
Outstanding balance	115,000
2017 Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	453,384
2017 Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	0
August Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	0									$ 500,000
Unamortized balance of Debt Discount	0
Outstanding balance	0
August Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	0
August Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	151,920
February Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	250,000								$ 250,000
Unamortized balance of Debt Discount	0								$ 25,000
Outstanding balance	250,000
February Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	81,815
February Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	76,762
May 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	1,000,000							$ 1,000,000
Unamortized balance of Debt Discount	0							$ 100,000
Outstanding balance	1,000,000
May 2022 Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	245,784
May 2022 Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	171,753
August 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	100,000					$ 100,000
Unamortized balance of Debt Discount	27,517
Outstanding balance	72,483
August 2022 Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	48,797
August 2022 Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	0
November 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	55,000			$ 55,000
Unamortized balance of Debt Discount	32,937
Outstanding balance	22,063
November 2022 Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	48,883
November 2022 Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	0
December 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	55,000		$ 55,000
Unamortized balance of Debt Discount	37,207
Outstanding balance	17,793
December 2022 Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	49,719
December 2022 Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	0
February 2023 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	265,000	$ 265,000
Unamortized balance of Debt Discount	60,146
Outstanding balance	204,854
February 2023 Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	63,650
February 2023 Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	157,259
July 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount							$ 12,500
Unamortized balance of Debt Discount	0
Related Party [Member] | July 2022 Note [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Principal Amount	12,500
Unamortized balance of Debt Discount	0
Outstanding balance	12,500
Related Party [Member] | July 2022 Note [Member] | Embedded Derivative Financial Instruments [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	3,941
Related Party [Member] | July 2022 Note [Member] | Warrant [Member]
CONVERTIBLE PROMISSORY NOTES (Details) - Schedule of Debt [Line Items]
Derivative balance	$ 0

XML

CONVERTIBLE PROMISSORY NOTES (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques - Embedded Derivative Financial Instruments [Member]	Mar. 31, 2023
Measurement Input, Expected Term [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value Measurement Input	0.28
Measurement Input, Expected Dividend Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value Measurement Input	0
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value Measurement Input	4.74
Minimum [Member] | Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value Measurement Input	141
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value Measurement Input	4.955
Maximum [Member] | Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value Measurement Input	177.6

XML

CONVERTIBLE PROMISSORY NOTE, RELATED PARTY (Details) - July 2022 Note [Member] - USD ($)	Jul. 28, 2022	Mar. 31, 2023
CONVERTIBLE PROMISSORY NOTE, RELATED PARTY (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Debt Instrument, Face Amount	$ 12,500
Debt Instrument, Maturity Date, Description	the earlier of: (a) October 31, 2022, or (b) the receipt by the Company of debt or equity financing of $3 million
Debt Instrument, Convertible, Conversion Price (in Dollars per share)	$ 0.15
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances	$ 12,500
Debt Instrument, Unamortized Discount		$ 0
Notes Payable, Current		$ 12,500

XML

SHORT TERM LOAN, RELATED PARTY (Details) - USD ($)			1 Months Ended
	Feb. 09, 2023	Jul. 28, 2022	Nov. 30, 2022	Dec. 31, 2021	Mar. 31, 2023	Oct. 01, 2013
SHORT TERM LOAN, RELATED PARTY (Details) [Line Items]
Debt Instrument, Face Amount		$ 12,500			$ 1,902,880	$ 12,000
Debt Instrument, Maturity Date, Description		The loan terms required repayment of all amounts outstanding under the loan on the earlier of: (a) October 31, 2022 or (b) the receipt by the Company of debt or equity financing of $3 million		The notes were payable on demand with a five business-day written notice
Debt Instrument, Maturity Date			Apr. 30, 2023
Proceeds from Short-Term Debt	$ 8,500
Director [Member]
SHORT TERM LOAN, RELATED PARTY (Details) [Line Items]
Debt Instrument, Face Amount		$ 12,500

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WARRANTS (Details)	Feb. 09, 2023 USD ($) $ / shares shares	May 10, 2022 $ / shares shares	Feb. 16, 2022 $ / shares shares	Feb. 15, 2022 $ / shares shares	Aug. 20, 2021 $ / shares shares	Mar. 31, 2023 USD ($)	Sep. 30, 2022 USD ($)
WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted | shares	1,000,000	1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.2	$ 0.01		$ 1.5
Adjustments to Additional Paid in Capital, Warrant Issued | $	$ 148,500
Embedded Derivative, Fair Value of Embedded Derivative Liability | $						$ 557,694	$ 232,609
Class of Warrant or Right, Outstanding | shares	1,500,000
Fair Value Adjustment of Warrants | $	$ 44,241
Measurement Input, Expected Term [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input						4.25
Measurement Input, Expected Dividend Rate [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input						0
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input						3.81
Maximum [Member] | Measurement Input, Price Volatility [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input						164
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input						3.6
Minimum [Member] | Measurement Input, Price Volatility [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input						147
August Note [Member]
WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted | shares					1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.2				$ 1.5
February Note [Member]
WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted | shares			500,000	500,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.2		$ 1.5
Fair Value Adjustment of Warrants | $	$ 44,241
Warrant [Member]
WARRANTS (Details) [Line Items]
Share Price | $ / shares	$ 0.165
Warrant [Member] | Measurement Input, Expected Dividend Rate [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input	0
Warrant [Member] | Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input	3.71
Warrant [Member] | Maximum [Member] | Measurement Input, Price Volatility [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input	(159)
Warrant [Member] | Maximum [Member] | Measurement Input, Expected Term [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input	4.1
Warrant [Member] | Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input	3.81
Warrant [Member] | Minimum [Member] | Measurement Input, Price Volatility [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input	156
Warrant [Member] | Minimum [Member] | Measurement Input, Expected Term [Member]
WARRANTS (Details) [Line Items]
Embedded Derivative Liability, Measurement Input	3.2

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WARRANTS (Details) - Fair Value Measurement Inputs and Valuation Techniques	Mar. 31, 2023
Measurement Input, Expected Term [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded Derivative Liability, Measurement Input	4.25
Measurement Input, Expected Dividend Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded Derivative Liability, Measurement Input	0
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded Derivative Liability, Measurement Input	3.6
Minimum [Member] | Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded Derivative Liability, Measurement Input	147
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded Derivative Liability, Measurement Input	3.81
Maximum [Member] | Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded Derivative Liability, Measurement Input	164

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OPTIONS (Details) - USD ($)				6 Months Ended
	Mar. 13, 2023	Aug. 25, 2020	Jun. 02, 2020	Mar. 31, 2023	Mar. 31, 2022
OPTIONS (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	3,542,857	2,000,000	2,000,000,000	3,542,857
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period			10 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price (in Dollars per share)			$ 0.00001
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share)		$ 0.01
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)	$ 0.175			$ 0.175
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage	100.00%
Share-Based Payment Arrangement, Noncash Expense (in Dollars)				$ 711,814	$ 53,619
Share-Based Payment Arrangement, Option [Member]
OPTIONS (Details) [Line Items]
Share-Based Payment Arrangement, Noncash Expense (in Dollars)				$ 563,314
Director [Member]
OPTIONS (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	857,143
Chief Financial Officer [Member]
OPTIONS (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	428,571
President of StemVax Therapeutics [Member]
OPTIONS (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	571,429
Scientific Advisory Board [Member]
OPTIONS (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	57,143
Staff Members and Officers [Member]
OPTIONS (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	542,857

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OPTIONS (Details) - Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions	Mar. 13, 2023	Jun. 02, 2020
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions Abstract
Risk Free Interest Rate	3.68%	0.32%
Stock Volatility Factor	146.79%	146.00%
Weighted Average Expected Option Life	5 years	5 years
Expected Dividend Yield	0.00%	0.00%

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OPTIONS (Details) - Share-Based Payment Arrangement, Option, Activity - $ / shares				6 Months Ended
	Mar. 13, 2023	Aug. 25, 2020	Jun. 02, 2020	Mar. 31, 2023
Share Based Payment Arrangement Option Activity Abstract
Outstanding, Number of Options				2,000,000
Outstanding, Weighted average exercise price				$ 0.01
Granted, Number of Options	3,542,857	2,000,000	2,000,000,000	3,542,857
Granted, Weighted average exercise price	$ 0.175			$ 0.175
Exercised, Number of Options				0
Exercised, Weighted average exercise price				$ 0
Forfeited, Number of Options				0
Forfeited, Weighted average exercise price				$ 0
Outstanding, Number of Options				5,542,857
Outstanding, Weighted average exercise price				$ 0.115

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OPTIONS (Details) - Share-based Payment Arrangement, Option, Exercise Price Range	6 Months Ended
	Mar. 31, 2023 $ / shares shares
Options at .01 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercisable Prices (in Dollars per share) | $ / shares	$ 0.01
Options Outstanding	2,000,000
Options Exercisable	2,000,000
Weighted Average Remaining Contractual Life	7 years 2 months 1 day
Options at $0.175 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercisable Prices (in Dollars per share) | $ / shares	$ 0.175
Options Outstanding	3,542,857
Options Exercisable	3,542,857
Weighted Average Remaining Contractual Life	9 years 11 months 12 days

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Commitment Fee [Member]	6 Months Ended
	Mar. 31, 2023 USD ($) shares
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) [Line Items]
Stock Issued During Period, Shares, Other | shares	2,075,000
Debt Instrument, Fee	If the lender is unable to sell the shares for more than $1,250,000, it may make a one-time claim for each note to be reimbursed for the difference between their sale proceeds and $1,250,000.
Stock Issued During Period, Value, Other | $	$ 1,250,000

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Schedule of Accounts Payable and Accrued Liabilities - USD ($)		Mar. 31, 2023	Sep. 30, 2022
Schedule Of Accounts Payable And Accrued Liabilities Abstract
Accrued liabilities		$ 5,570	$ 4,370
Interest payable		159,506	94,251
Provision for guaranteed commitment fees *	[1]	886,875	961,000
Accrued payroll		7,367	4,740
Deferred compensation		485,421	344,983
License Fees Payable		40,402	40,402
Insurance finance liability		69,133	36,815
Accrued expenses and accrued other current liabilities		$ 1,654,274	$ 1,486,561

[1] Under the terms of the August 2021 Note, February 2022 Note, May 2022 Note and February 2023 Note the Company issued a total of 2,075,000 shares of common stock as commitment fees. If the lender is unable to sell the shares for more than $1,250,000, it may make a one-time claim for each note to be reimbursed for the difference between their sale proceeds and $1,250,000. The difference between the fair value of the 2,075,000 shares as on March 31, 2023 and the exercise amount of $1,250,000 was recorded as a provision for guaranteed commitment fees and included in the table above.

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BRIDGE LOANS PAYABLE (Details) - USD ($)			1 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 09, 2023	Jan. 25, 2022	May 31, 2022	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
BRIDGE LOANS PAYABLE (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					10.00%
Interest Paid, Including Capitalized Interest, Operating and Investing Activities										$ 583
Debt Conversion, Converted Instrument, Shares Issued (in Shares)		125,000			125,000			500,000	250,000
Gain (Loss) on Extinguishment of Debt		$ (17,313)			$ (37,500)	$ 0	$ (54,813)	$ 0	$ (54,813)	(54,813)
Proceeds from Other Debt	$ 8,500				$ 25,000
Interest Expense, Debt										226
Series B Preferred Stock [Member]
BRIDGE LOANS PAYABLE (Details) [Line Items]
Stock Issued During Period, Shares, New Issues (in Shares)				600
Proceeds from Issuance of Convertible Preferred Stock				$ 18,616
Chief Financial Officer [Member]
BRIDGE LOANS PAYABLE (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Repayments of Debt			$ 6,384
Interest Paid, Including Capitalized Interest, Operating and Investing Activities										$ 237
Debt Conversion, Converted Instrument, Shares Issued (in Shares)		125,000
Gain (Loss) on Extinguishment of Debt		$ (17,313)
Chief Executive Officer [Member]
BRIDGE LOANS PAYABLE (Details) [Line Items]
Repayments of Debt			$ 6,384
Interest Paid, Including Capitalized Interest, Operating and Investing Activities								$ 583

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DUE TO RELATED PARTIES (Details) - USD ($)				1 Months Ended	6 Months Ended
	Mar. 14, 2022	Jan. 31, 2022	Sep. 04, 2020	Dec. 31, 2021	Mar. 31, 2023	Mar. 31, 2022
DUE TO RELATED PARTIES (Details) [Line Items]
Proceeds from Related Party Debt				$ 25,000
Investment Owned, Balance, Shares		24,400
Stock Issued During Period, Shares, Other						300,000
Conversion of Stock, Shares Issued	1,502,670				1,502,670	1,502,670
Preferred Stock, Convertible, Conversion Price	$ 0.35
Conversion of Stock, Amount Issued	$ 525,934
Common Stock Outstanding, Percentage	10.00%				10.00%
Payments to Acquire Investments	$ 250,000
Preferred Stock, Redemption Amount					$ 95,000
TN3, LLC [Member]
DUE TO RELATED PARTIES (Details) [Line Items]
Investment Owned, Balance, Shares		25,000
Payments to Acquire Investments		$ 250,000
Irvin Consulting, LLC ("IC") [Member]
DUE TO RELATED PARTIES (Details) [Line Items]
Investment Owned, Balance, Shares		600
Series B Preferred Stock [Member]
DUE TO RELATED PARTIES (Details) [Line Items]
Conversion of Stock, Shares Issued			25,000
Series B Preferred Stock [Member] | TN3, LLC [Member]
DUE TO RELATED PARTIES (Details) [Line Items]
Investment Owned, Balance, Shares		25,000
TN3, LLC [Member] | Series B Preferred Stock [Member]
DUE TO RELATED PARTIES (Details) [Line Items]
Stock Issued During Period, Shares, Other	24,400
TN3, LLC [Member] | Series B Preferred Stock [Member] | Irvin Consulting, LLC ("IC") [Member]
DUE TO RELATED PARTIES (Details) [Line Items]
Stock Issued During Period, Shares, Other	600
Affiliated Entity [Member]
DUE TO RELATED PARTIES (Details) [Line Items]
Proceeds from Related Party Debt					$ 86,217

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COMMITMENTS AND CONTINGENCIES (Details) - Commitment Fee [Member]	6 Months Ended
	Mar. 31, 2023 USD ($) shares
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Stock Issued During Period, Shares, Other | shares	2,075,000
Stock Issued During Period, Value, Other | $	$ 1,250,000

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RELATED PARTY TRANSACTIONS (Details) - USD ($)							1 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 09, 2023	Jul. 28, 2022	Mar. 14, 2022	Jan. 31, 2022	Jan. 25, 2022	Sep. 04, 2020	May 31, 2022	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022	Oct. 01, 2013
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Proceeds from Other Debt	$ 8,500								$ 25,000
Debt Instrument, Face Amount		$ 12,500								$ 1,902,880		$ 1,902,880			$ 12,000
Convertible Debt										1,745,073		$ 1,745,073
Debt Instrument, Convertible, Conversion Price (in Dollars per share)															$ 4.5
Investment Owned, Balance, Shares (in Shares)				24,400
Payments to Acquire Investments			$ 250,000
Conversion of Stock, Shares Issued (in Shares)			1,502,670									1,502,670	1,502,670
Common Stock Outstanding, Percentage			10.00%									10.00%
Stock Issued During Period, Shares, Acquisitions (in Shares)			7,500,000
Proceeds from Related Party Debt									$ 25,000
Debt Instrument, Maturity Date, Description		The loan terms required repayment of all amounts outstanding under the loan on the earlier of: (a) October 31, 2022 or (b) the receipt by the Company of debt or equity financing of $3 million							The notes were payable on demand with a five business-day written notice
Debt Instrument, Interest Rate, Stated Percentage									10.00%
Debt Conversion, Converted Instrument, Shares Issued (in Shares)					125,000				125,000			500,000	250,000
Gain (Loss) on Extinguishment of Debt					$ (17,313)				$ (37,500)	0	$ (54,813)	$ 0	$ (54,813)	$ (54,813)
Interest Paid, Including Capitalized Interest, Operating and Investing Activities														583
Agreement, Monthly Amount						$ 30,000
Agreement, Term						3 years
Related Party Transaction, Amounts of Transaction														40,000
TN3, LLC [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Investment Owned, Balance, Shares (in Shares)				25,000
Payments to Acquire Investments				$ 250,000
Debt Instrument, Payment Terms				over a period of eleven months, with payment accelerated if the Company raises at least $2.5 million of equity capital
Irvin Consulting, LLC ("IC") [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Investment Owned, Balance, Shares (in Shares)				600
Series B Preferred Stock [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Conversion of Stock, Shares Issued (in Shares)						25,000
Stock Issued During Period, Shares, New Issues (in Shares)								600
Proceeds from Issuance of Convertible Preferred Stock								$ 18,616
Series B Preferred Stock [Member] | TN3, LLC [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Investment Owned, Balance, Shares (in Shares)				25,000
Board Member [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Convertible Debt										12,500		12,500
Letzhangout, LLC [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Debt Instrument, Face Amount		$ 12,500
Convertible Debt										$ 12,500		12,500
Debt Instrument, Convertible, Conversion Price (in Dollars per share)		$ 0
Chief Financial Officer [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					10.00%
Debt Conversion, Converted Instrument, Shares Issued (in Shares)					125,000
Gain (Loss) on Extinguishment of Debt					$ (17,313)
Interest Paid, Including Capitalized Interest, Operating and Investing Activities														$ 237
Repayments of Debt							$ 6,384
Chief Executive Officer [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Interest Paid, Including Capitalized Interest, Operating and Investing Activities												$ 583
Repayments of Debt							$ 6,384

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SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - USD ($)	Apr. 24, 2023	Apr. 11, 2023	May 09, 2023
SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount (in Dollars)	$ 54,250	$ 79,250
Debt Instrument, Interest Rate, Stated Percentage	8.00%	8.00%
Debt, Default Interest Rate	22.00%	22.00%
Debt Instrument, Convertible, Terms of Conversion Feature	the lender may convert the amount outstanding under the note into shares of the Company’s common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date	the lender may convert the amount outstanding under the note into shares of the Company’s common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date
Debt Instrument, Debt Default, Amount (in Dollars)			$ 1,584,260
Minimum [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Debt Prepayment Penalty, Percentage	15.00%	15.00%
Maximum [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Debt Prepayment Penalty, Percentage	25.00%	25.00%