0001394638
2011-10-01
2012-06-30
0001394638
2012-06-30
0001394638
2011-09-30
0001394638
2010-10-01
2011-06-30
0001394638
2010-09-30
0001394638
2011-06-30
0001394638
2012-08-14
0001394638
2012-04-01
2012-06-30
0001394638
2011-04-01
2011-06-30
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
CREATIVE LEARNING Corp
0001394638
10-Q
2012-06-30
false
--09-30
No
No
Yes
Smaller Reporting Company
Q3
2011
621178
517830
27271
362578
259270
89005
23407
0
47618
2118
951473
608953
11806
10000
257530
157619
7619
7619
1228428
784191
11100
81051
69534
13535
4123
59144
0
0
153730
84757
0
1145
1029
1984129
1975445
-910576
-1277040
1074698
699434
1228428
784191
2000
28660
23577
11280
0.0001
0.0001
10000000
10000000
0
0
0
0
0.0001
0.0001
50000000
50000000
11451075
10288575
11451075
10288575
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Accounts receivable</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The Company reviews accounts
receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when
deemed necessary. At June 30, 2012 and September 30, 2011 the Company had $28,660, respectively and $-0- in its allowance for doubtful
accounts.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Property and equipment</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">Property and equipment are
recorded at cost and depreciated under straight line or accelerated methods over each item's estimated useful life.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Revenue recognition</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">Revenue is recognized on
an accrual basis after services have been performed under contract terms, the service price to the client is fixed or determinable,
and collectability is reasonably assured.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Use of Estimates</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The preparation of financial
statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that
affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Income tax</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The Company accounts for
income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are
recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for
taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities
and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely
than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted
for the effects of changes in tax laws and rates on the date of enactment.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br /></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">Prior to fiscal year 2010
the Company operated as an LLC, was a pass-through entity for federal income tax purposes and paid no income tax at the company
level. At June 30, 2012 and June 30, 2011 the Company had net operating loss carryforwards of approximately $910,100 and $1,107,741
respectively, which begin to expire in 2031. The deferred tax asset of approximately $182,020 and $221,548 respectively created
by the net operating loss has been offset by a 100% valuation allowance. The change in the valuation allowance in the nine month
period ended June 30, 2012 and 2011 was decreased by $73,388 and increased by $67,343 respectively.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Advertising costs</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">Advertising costs are expensed
as incurred. The Company had advertising costs for the nine month period ended June 30, 2012 and 2011 was $188,789 and $128,478
respectively.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Net income (loss) per
share</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The net income (loss) per
share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock
options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation
if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Financial Instruments</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The carrying value of the
Company’s financial instruments, as reported in the accompanying balance sheets, approximates fair value.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Long-Lived Assets</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">In accordance with ASC 350,
the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances,
both internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment
loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br /></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><u>Stock based compensation</u></p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The Company accounts for
employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded
based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the
consideration received or the fair value of the equity instrument, whichever is more reliably measurable.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">For the nine month period
ended June 30, 2012 the Company issued 11,000 shares of stock in exchange for services valued at $8,800.</p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The accompanying unaudited
financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information
and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are,
in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been
made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not
necessarily indicative of operations for a full year.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"> The accompanying consolidated financial statements include the accounts
of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.</p>
<p style="margin: 0; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The Company considers all
highly liquid investments with an original maturity of three months or less as cash equivalents.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The Company reviews accounts
receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when
deemed necessary. At June 30, 2012 and September 30, 2011 the Company had $28,660, respectively and $-0- in its allowance for doubtful
accounts.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif">Property and equipment are recorded at cost and depreciated under straight line or accelerated methods
over each item's estimated useful life.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"> Revenue is recognized on an accrual basis after services have been
performed under contract terms, the service price to the client is fixed or determinable, and collectability is reasonably assured.</p>
<p style="margin: 0; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif">The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The Company accounts for
income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are
recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for
taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities
and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely
than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted
for the effects of changes in tax laws and rates on the date of enactment.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br /></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">Prior to fiscal year 2010
the Company operated as an LLC, was a pass-through entity for federal income tax purposes and paid no income tax at the company
level. At June 30, 2012 and June 30, 2011 the Company had net operating loss carryforwards of approximately $910,100 and $1,107,741
respectively, which begin to expire in 2031. The deferred tax asset of approximately $182,020 and $221,548 respectively created
by the net operating loss has been offset by a 100% valuation allowance. The change in the valuation allowance in the nine month
period ended June 30, 2012 and 2011 was decreased by $73,388 and increased by $67,343 respectively.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">Advertising costs are expensed
as incurred. The Company had advertising costs for the nine month period ended June 30, 2012 and 2011 was $188,789 and $128,478
respectively.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The net income (loss) per
share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock
options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation
if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif">The carrying value of the Company’s financial instruments,
as reported in the accompanying balance sheets, approximates fair value.</p>
<p style="margin: 0; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">In accordance with ASC 350,
the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances,
both internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment
loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The Company accounts for
employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded
based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the
consideration received or the fair value of the equity instrument, whichever is more reliably measurable.</p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"><br />
</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">For the nine month period
ended June 30, 2012 the Company issued 11,000 shares of stock in exchange for services valued at $8,800.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="text-align: left; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
11451075
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1008046
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361659
539667
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255770
247212
93113
83435
49179
50618
18615
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12400
0
1501
0
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663915
492437
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8800
0
0
0
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617018
200650
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1806
8800
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif">The Company employs a fiscal
year ending September 30.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 8pt Times New Roman, Times, Serif"> </p>