2 .	Interim Financial Statements and Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information pursuant to Rule

of Regulation S-

Accordingly, these unaudited condensed consolidated financial statements do

not

include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the

three

months ended

December 31, 2019

may

not

necessarily be indicative of results that

may

be expected for any succeeding period or for the entire fiscal year. These condensed consolidated financial statements should be read in conjunction with our audited financial statements included in our Annual Report on Form

-K as of and for the fiscal years ended

September 30, 2019

and

2018

as filed with the Securities and Exchange Commission.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments, which are evaluated on an ongoing basis, and that affect the amounts reported in our unaudited condensed financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are

not

readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to revenue recognition, allowance for doubtful accounts, useful lives and valuation of property and equipment.

We adopted the Accounting Standard Codification (“ASC”)

606,

“Revenue from Contracts with Customers” as of

October 1, 2018,

using the modified retrospective method, and concluded that, consistent with prior reporting, our revenues are primarily generated from our involvement marketing services and contracts which are typically billed based on time and materials or at a fixed price. If billed at a fixed price, revenue is recognized on a proportional performance basis as the services specified in the arrangement are performed. The determination of proportional performance revenue recognition is dependent on the nature of the services specified in the arrangement. Advanced payments on services and contracts are deferred and recorded as unearned revenues on our balance sheet until the earnings process has been completed and revenue is then recognized. In all cases, we evaluate involvement marketing contracts to determine that the time and amount of services reflects the consideration expected to be received for the performance obligations that have been provided in accordance with the

five

-step process to recognize revenues as defined in ASC

606.

ASC

606

defines contracts as written, oral and through customary business practice. Under this definition, we consider contracts to be created at the time that an order to provide services is agreed upon regardless of whether or

not

there is a written contract. Results for reporting periods after

January 1, 2018

are presented under ASC

606.

There have been

material changes in the Company’s significant accounting policies, other than the adoption of accounting standards update (“ASU”)

2016

02,

Leases (Topic

842

) related to the accounting for leases, in the quarter ended

December 31, 2019

as described below, as compared to the significant accounting policies described in the Company’s Annual Report on Form

-K for the year ended

September 30, 2019.

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior accounting guidance. ASU

2016

requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. We adopted ASU

2016

in the quarter ending

December 31, 2019,

utilizing the modified retrospective transition method on

October 1, 2019.

We have elected the package of practical expedients, which allows the Company

not

to reassess (

) whether any expired or existing contracts as of the adoption date are or contain a lease, (

) lease classification for any expired or existing leases as of the adoption date, (

) initial direct costs for any existing leases as of the adoption date and (

) the application of hindsight when determining lease term and assessing impairment of right-of-use assets. The adoption of the new standard on

October 1, 2019,

resulted in a lease obligation and related right-of-use asset of approximately

$461,740.

The impact on the statement of operations was

not

material.