2.4.0.8007 - Disclosure - Summary of Significant Accounting Policies and Organizationtruefalsefalse1falsefalsefalseContext_9ME__30-Jun-2013http://www.sec.gov/CIK0001422949duration2012-10-01T00:00:002013-06-30T00:00:001true1us-gaap_AccountingPoliciesAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureAndSignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00<div>
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<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">NOTE 1</font></div>
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<div align="left"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(A) Basis of Presentation</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information.  Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">It is management's opinion, however that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.  The results for the interim period are not necessarily indicative of the results to be expected for the year.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Next Fuel, Inc. (the "Company") was incorporated under the laws of the State of Nevada on August 14, 2007.  Next Fuel, Inc. is a service-based firm that has developed and will continue to develop and commercialize innovative technologies associated with renewable energy, such as unconventional natural gas production from lower grade coal, lignite, oil shale and other carbonaceous deposits.  We refer to this generally as CTG Technology.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">We are also investigating opportunities to develop or acquire other advanced technologies with focus on clean renewable energy, such as novel systems for energy-related water treatment, and processes for carbon dioxide conversion and carbon loop closure, and biological fuel cells.  Collaborations with leading research institutes, such as University of Colorado, University of Wyoming, and Peking University will allow the Company to focus on identifying and acquiring or developing a portfolio of growth opportunities with compelling market values and clean energy and environmental stewardship.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">We are a technology provider and service company that assist owners of natural gas production resources to increase the efficiency of their operations by providing CTG technology and technical support services utilizing our CTG technology.  We do not plan to own or develop natural gas production projects.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(B) Use of Estimates</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period, as well as assumptions used in our multiple element revenue arrangements. Significant estimates include the allowance for doubtful accounts, valuation of inventory, valuation of equity based compensation and valuation of deferred tax assets.  Actual results could differ from those estimates.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(C) Cash and Cash Equivalents</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company considers all highly liquid temporary cash
investments with an original maturity of three months or less to be cash equivalents.  At June 30, 2013 and September 30, 2012, respectively, the Company had no cash equivalents.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(D) Loss Per Share</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Basic earnings (loss) per share is calculated by dividing the income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Diluted earnings (loss) per share reflects the potential dilutive effects of stock options, warrants, and stock equivalents.  To the extent stock options, stock equivalents and warrants are anti-dilutive; they are excluded from the calculation of diluted loss per share.  For the nine months ended June 30, 2013 and 2012 respectively, 0 and 575,000, shares issuable upon the exercise of warrants were not included in the computation of loss per share because their inclusion is anti-dilutive.  For the nine months ended June 30, 2013 and 2012 respectively, 2,540,000 and 3,720,000 shares issuable upon the exercise of stock options were not included in the computation of loss per share because their inclusion is anti-dilutive. </font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(E) Equipment</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company values property and equipment at cost and depreciates these assets using the straight-line method over their expected useful life. The Company uses a five year life for furniture and equipment.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(F) Intangible Assets</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company amortizes intangible assets with a finite life over their life and reviews goodwill and intangible assets for impairment annually or more frequently if impairment indicators arise.  Any other intangible assets deemed to have indefinite lives are not subject to amortization (See Note 2(B)).</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(G) Inventory</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Inventory is valued at the lower of cost or market value. Cost is determined using the first in first out (FIFO) method. Provision for potentially obsolete or slow moving inventory is made based on management analysis or inventory levels and future sales forecasts.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(H) Stock-Based Compensation</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company measures the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognizes the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans.  Compensation cost is measured on the date of grant at their fair value.  Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Equity instruments
(“instruments”) issued to persons other than employees are recorded on the basis of the fair value of the instruments.  In general, the measurement date for shares issued to non-employees is (a) when a performance commitment, as defined, is reached or (b) when the earlier of (i) the non-employee performance is complete or (ii) the instruments are vested. The measured value related to the instruments is recognized over a period based on the facts and circumstances of each particular grant.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(I) Income Taxes</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards 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 the changes in tax laws and rates as of the date of enactment.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company has no significant uncertain tax positions as of any date in the nine months ended June 30, 2013 or the year ending September 30, 2012, respectively.  The Company’s policy is to recognize accrued interest related to uncertain tax positions in interest expense, and to recognize tax penalties in operating expense.  The Company made no provision for interest or penalties related to uncertain tax positions as of June 30, 2013.  The Company files income tax returns in the U.S. federal jurisdiction.  There are currently no federal or state income tax examinations underway, including all open tax years (2009 – 2012) for these jurisdictions.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(J) Revenue Recognition</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Revenue is recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company's revenue transactions include the following: additives, consulting services, royalties, and intellectual property licensing.  The Company recognizes revenue when it is realized or realizable and earned.  The timing and the amount of revenue recognized from the licensing of intellectual property depend upon a variety of factors, including the specific terms of each agreement and the nature of the deliverables and obligations.  For the sale of multiple-element arrangements, including whereby additives, consulting or intellectual property is combined in a revenue generating transaction with other elements, the Company allocates to, and recognizes revenue from, the various elements based on their relative selling price. The Company allocates to, and recognizes revenue from, the various elements of multiple-element arrangements based on relative selling price of a deliverable, using: vendor-specific objective evidence, third-party evidence, and best estimated selling price in accordance with the selling price hierarchy.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(K) Fair Value of Financial Instruments</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The carrying amounts reported in the balance sheet for prepaid expenses and accounts payable approximate fair value based on the short-term maturity of these instruments as of June 30, 2013 and September 30, 2012.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(L) Concentration of Credit Risk</font></font></div>
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display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Although all of the Company’s assets are in the United States of America, substantially all of the revenue for the year ended September 30, 2012 and the nine months ended June 30, 2013 was from one related party licensee in the People’s Republic of China and two unrelated parties in Indonesia and India.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; text-decoration: underline;">(M) Recent Accounting Pronouncements</font></font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 63pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">There are no current pronouncements that affect the Company.</font></div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6003-108592
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