10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM  10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2019

or

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

000-56090

Commission File Number

PHARMAGREEN BIOTECH INC.

(Exact name of registrant as specified in its charter)

Nevada

98-0491567

(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

2987 Blackbear Court, Coquitlam, British Columbia

 V3E 3A2

(Address of principal executive offices)

(Zip Code)

702-803-9404

(Registrant’s telephone number, including area code)

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.  

(X)Yes (_) No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

(_)Yes (_) No

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

Large accelerated filer	¨	Non-accelerated filer	¨
Accelerated filer	¨	Smaller reporting company	x
		Emerging Growth	x

 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 (X)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

(  ) Yes (X) No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

(  ) Yes (  ) No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of February 14, 2020, we had 75,646,835 shares of common stock issued and outstanding.

TABLE of CONTENTS

PART I—FINANCIAL INFORMATION

2

Item 1. Financial Statements.

2

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

14

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

16

Item 4.  Controls and Procedures.

16

PART II—OTHER INFORMATION

17

Item 1. Legal Proceedings.

17

Item 1A. Risk Factors.

17

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

17

Item 3. Defaults Upon Senior Securities.

17

Item 4. Mine Safety Disclosure.

17

Item 5. Other Information.

17

Item 6. Exhibits.

18

SIGNATURES

19

1

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

PHARMAGREEN BIOTECH INC.

Condensed Consolidated Financial Statements

For the Three Months Ended December 31, 2019

(Expressed in U.S. Dollars)

(unaudited)

2

PHARMAGREEN BIOTECH INC.

Condensed Consolidated Balance Sheets

(Expressed in U.S. dollars)

	December 31, 2019	September 30, 2019
	$	$
	(unaudited)
Assets
Current assets
Cash	35,678	62,682
Amounts receivable	1,009	10,639
Prepaid expenses and deposits	118,354	115,856
Total current assets	155,041	189,177
Property and equipment (Note 3)	450,607	441,095
Total assets	605,648	630,272
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable and accrued liabilities (Notes 4 and 8)	886,027	855,766
Advances from Alliance Growers Corp. (Note 9(a))	57,855	56,634
Due to related parties (Note 8)	419,325	475,666
Promissory note (Note 5)	40,000	–
Convertible notes – current portion, net of unamortized discount of $73,067 and $2,895, respectively (Note 6)	145,933	75,105
Derivative liability (Note 7)	107,494	–
Total current liabilities	1,656,634	1,463,171
Convertible notes, net of unamortized discount of $26,952 and $27,321, respectively (Note 6)	1,968	1,599
Total liabilities	1,658,602	1,464,770
Stockholders’ deficit
Common stock Authorized: 500,000,000 shares, $0.001 par value; 75,646,835 shares issued and outstanding, respectively	75,647	75,647
Additional paid-in capital	3,772,781	3,772,781
Accumulated other comprehensive income	35,425	47,824
Deficit	(4,935,497)	(4,729,476)
Total Pharmagreen Biotech Inc. stockholders’ deficit	(1,051,644)	(833,224)
Non-controlling interest	(1,310)	(1,274)
Total stockholders’ deficit	(1,052,954)	(834,498)
Total liabilities and stockholders’ deficit	605,648	630,272
Nature of business and continuance of operations (Note 1)
Commitments (Note 9)
Subsequent events (Note 10)

(The accompanying notes are an integral part of these condensed consolidated financial statements)

3

PHARMAGREEN BIOTECH INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Expressed in U.S. dollars)

(unaudited)

	Three months ended December 31, 2019 $	Three months ended December 31, 2018 $
Expenses
Consulting fees (Note 8)	70,816	55,502
Foreign exchange loss (gain)	(9,747)	43,187
General and administrative	24,896	27,270
License application fees	909	1,932
Professional fees	25,630	43,560
Research and development	–	29,716
Salaries and wages	4,612	4,170
Total expenses	117,116	205,337
Net loss before other expenses	(117,116)	(205,337)
Other expenses
Accretion of discount on convertible notes (Note 6)	(6,646)	(361)
Finance costs	(45,000)	(187,245)
Loss on change in fair value of derivative liability (Note 7)	(37,295)	–
Total other expenses	(88,941)	(187,606)
Net loss	(206,057)	(392,943)
Less: net loss attributable to non-controlling interest	36	–
Net loss attributable to Pharmagreen Biotech Inc.	(206,021)	(392,943)
Comprehensive income (loss)
Foreign currency translation gain (loss)	(12,399)	98,770
Comprehensive loss attributable to Pharmagreen Biotech Inc.	(218,420)	(294,173)
Basic and diluted loss per share attributable to Pharmagreen Biotech Inc. stockholders	–	(0.01)
Weighted average number of shares outstanding used in the calculation of net loss attributable to Pharmagreen Biotech Inc.	75,646,835	72,177,644

(The accompanying notes are an integral part of these condensed consolidated financial statements)

4

PHARMAGREEN BIOTECH INC.

Condensed Consolidated Statements of Stockholders’ Deficit

(Expressed in U.S. dollars)

(unaudited)

	Common stock		Additional paid-in capital $	Accumulated other comprehensive income (loss) $	Deficit $	Non-controlling interest $	Total stockholders’ deficit $
	Number of shares	Amount $
Balance, September 30, 2018	71,620,100	71,620	2,464,136	38,722	(3,961,939)	–	(1,387,461)
Issuance of common stock pursuant to conversion of convertible notes	2,000,000	2,000	(1,800)	–	–	–	200
Issuance of common stock for services	51,725	52	187,193	–	–	–	187,245
Foreign currency translation gain	–	–	–	98,770	–	–	98,770
Net loss for the period	–	–	–	–	(392,943)	–	(392,943)
Balance, December 31, 2018	73,671,825	73,672	2,649,529	137,492	(4,354,882)	–	(1,494,189)

Balance, September 30, 2019	75,646,835	75,647	3,772,781	47,824	(4,729,476)	(1,274)	(834,498)
Foreign currency translation loss	–	–	–	(12,399)	–	–	(12,399)
Net loss for the period	–	–	–	–	(206,021)	(36)	(206,057)
Balance, December 31, 2019	75,646,835	75,647	3,772,781	35,425	(4,935,497)	(1,310)	(1,054,954)

(The accompanying notes are an integral part of these condensed consolidated financial statements)

5

PHARMAGREEN BIOTECH INC.

Condensed Consolidated Statements of Cash Flows

(Expressed in U.S. dollars)

(unaudited)

	Three months ended December 31, 2019	Three months ended December 31, 2018
	$	$
OPERATING ACTIVITIES
Net loss	(206,057)	(392,943)
Adjustments to reconcile net loss to net cash used in operating activities:
Accretion of discount on convertible notes	6,646	361
Financing fees	45,000	–
Loss on change in fair value of derivative liability	37,295	–
Shares issued for services	–	187,245
Changes in non-cash operating assets and liabilities:
Accounts receivable and other receivables	9,630	(1,174)
Prepaid expenses and deposits	–	(5,115)
Accounts payable and accrued liabilities	30,261	1,682
Due to related parties	5,303	(60,608)
Net cash used in operating activities	(71,922)	(270,552)
INVESTING ACTIVITIES
Acquisition of property and equipment	–	(11,083)
Net cash used in investing activities	–	(11,083)
FINANCING ACTIVITIES
Proceeds from issuance of convertible notes	134,750	–
Proceeds from advances from Alliance Growers Corp.	–	60,797
Repayment of loans from related parties	(61,644)	–
Financing costs paid	(5,000)	–
Net cash provided by financing activities	68,106	60,797
Effect of foreign exchange rate changes on cash	(23,188)	98,770
Change in cash	(27,004)	(122,068)
Cash, beginning of period	62,682	151,869
Cash, end of period	35,678	29,801
Non-cash investing and financing activities:
Issuance of common stock pursuant to conversion of convertible notes	–	200
Issuance of promissory note as a financing fee	40,000	–
Supplemental disclosures:
Interest paid	–	–
Income taxes paid	–	–

(The accompanying notes are an integral part of these condensed consolidated financial statements)

6

PHARMAGREEN BIOTECH INC.

Notes to the Condensed Consolidated Financial Statements

December 31, 2019

(Expressed in U.S. dollars)

(unaudited)

1.

Nature of Business and Continuance of Operations

Pharmagreen Biotech Inc. (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on November 26, 2007, under the name Azure International, Inc.  On October 30, 2008, and effective as of the same date, the Company filed Articles of Merger (“Articles”) with the Secretary of State of the State of Nevada, to effect a merger by and between Air Transport Group Holdings, Inc., a Nevada corporation and Azure International, Inc.  As a result of the merger, the Company changed its name to Air Transport Group Holdings, Inc.  The Company was previously in the business of providing technical advisory and appraisals to the aircraft and aviation business as well as providing sourcing for aircraft leases and parts. Pursuant to a Share Exchange Agreement with WFS Pharmagreen Inc. (“WFS”) on May 2, 2018, the Company changed its name to Pharmagreen Biotech Inc. and changed its principal business to the construction of a biotech complex in Deroche, British Columbia, Canada, for the purpose of producing a variety of starter plantlets for the Canadian and international high CBD hemp and medical cannabis industries through the application of the proprietary plant tissue culture in vitro process called “Chibafreen”. This proprietary process will produce plantlets that will be genetically identical and free of pests and disease free with consistent and certifiable constituent properties.

Going Concern

These condensed consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at December 31, 2019, the Company has not earned any revenues from operations, has a working capital deficit of $1,501,593, and has an accumulated deficit of $4,935,497. During the three months ended December 31, 2019, the Company incurred a net loss of $206,021 and used cash flows for operations of $71,922.  These factors raise substantial doubt upon the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern.   

2.

Significant Accounting Policies

(a)

Interim Financial Statements

These condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.

(b)

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and are expressed in U.S. dollars. These condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, WFS Pharmagreen Inc., and its 89.7% owned subsidiary 1155097 BC Ltd., companies incorporated in British Columbia, Canada. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is September 30.

7

PHARMAGREEN BIOTECH INC.

Notes to the Condensed Consolidated Financial Statements

December 31, 2019

(Expressed in U.S. dollars)

(unaudited)

2.

Significant Accounting Policies (continued)

(c)  Use of Estimates and Judgments

The preparation of these condensed interim consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the allowance for doubtful accounts, the recoverability of property and equipment, the equity component of convertible notes, fair value of derivative liabilities, fair value of stock-based payments, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

(d)  Recently Adopted Accounting Pronouncements

In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard became effective for the Company in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In February 2016, Topic 842, Leases, was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet 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. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Topic 842 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied. Earlier application is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.  

The Company has implemented all new accounting pronouncements that are in effect and that may impact its condensed consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

8

PHARMAGREEN BIOTECH INC.

Notes to the Condensed Consolidated Financial Statements

December 31, 2019

(Expressed in U.S. dollars)

(unaudited)

3.

Property and Equipment

	Cost $	Accumulated depreciation $	Net carrying value as at December 31, 2019 $	Net carrying value as at September 30, 2019 $
Construction in progress	450,607	–	450,607	441,095

As at December 31, 2019, costs related to the construction of cannabis production complex were capitalized as construction in progress and not depreciated. Depreciation will commence when construction is completed, and the facility is available for its intended use.

4.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consists of the following:

	December 31, 2019 $	September 30, 2019 $
Accounts payable	853,728	829,942
Accrued interest payable	32,299	25,824
	886,027	855,766

5.

Promissory Note

On November 22, 2019, the Company entered into a promissory note with an unrelated party for $40,000 in connection with an equity purchase agreement (Refer to Note 9(b)). The promissory note is unsecured, due on November 30, 2020, and bears interest on the unpaid principal balance at a rate of 10% per annum. During the period ended December 31, 2019, the Company recognized accrued interest of $427 (2018 - $nil).

6.

Convertible Notes

(a)

On April 4, 2018, the amount of $32,485 owed to related parties was converted to Series A convertible notes, which are unsecured, non-interest bearing, and due on April 4, 2023.  These notes are convertible in whole or in part, any time until maturity, to common shares of the Company at $0.0001 per share. The outstanding balance remaining at maturity shall bear interest at 12% per annum until fully paid. The Company evaluated the convertible notes for a beneficial conversion feature in accordance with ASC 470-20 “Debt with Conversion and Other Options”. The Company determined that the conversion price was below the closing stock price on the commitment date, and the convertible notes contained a beneficial conversion feature. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $32,485 as additional paid-in capital and reduced the carrying value of the convertible note to $nil. The carrying value will be accreted over the term of the convertible notes up to their face value of $32,485.

During the year ended September 30, 2018, the Company issued 31,745,000 shares of common stock upon the conversion of $3,175 of Series A convertible notes, which included 18,000,000 common shares to the President of the Company and 5,320,000 common shares to family members of the President of the Company. Upon conversion, the Company immediately recognized the related remaining debt discount of $3,112 as accretion expense.

During the year ended September 30, 2019, the Company issued 3,900,000 shares of common stock upon the conversion of $390 of Series A convertible notes. Upon conversion, the Company immediately recognized the related remaining debt discount of $375 as accretion expense.

9

PHARMAGREEN BIOTECH INC.

Notes to the Condensed Consolidated Financial Statements

December 31, 2019

(Expressed in U.S. dollars)

(unaudited)

6.

Convertible Notes (continued)

As at December 31, 2019, the carrying value of the convertible notes was $1,968 (September 30, 2019 - $1,599) and had an unamortized discount of $26,952 (September 30, 2019 - $27,321). During the three months ended December 31, 2019, the Company recorded accretion expense of $369 (2018 - $361).

(b)

On September 17, 2019, the Company entered into a convertible note with an unrelated party for $78,000, of which $3,000 was paid directly to third parties for financing costs, resulting in cash proceeds to the Company of $75,000. The note is due on September 20, 2020, and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 22% per annum upon default of the note. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 Derivatives and Hedging. As the note isn’t convertible until 180 days following issuance, no derivative liability was recognized.

The financing costs were netted against the convertible note and are being amortized over the term using the effective interest rate method. During the three months ended December 31, 2019, the Company recognized accretion of the deferred financing fees of $744 (2018 - $nil). As at December 31, 2019, the carrying value of the convertible note was $75,849 (September 30, 2019 - $75,105).

(c)

On October 1, 2019, the Company entered into a convertible note with an unrelated party for $78,000, of which $3,250 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $74,750. The note is due on October 1, 2020, and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 22% per annum upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to lower of (i) the lowest trading price during the 10-trading day period prior to the issuance date (ii) 61% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date. In connection with the issuance of the above convertible note, the Company evaluated the conversion option for derivative treatment under ASC 815-15, Embedded Derivatives, and determined the note and conversion feature qualified as derivatives. The Company classified the conversion feature as a derivative liability at fair value.

The financing costs were netted against the convertible note and are being amortized over the term using the effective interest rate method. The initial fair value of the conversion feature was determined to be $70,199, which was determined using the Black-Scholes option-pricing model and recorded as a discount on the convertible note. During the three months ended December 31, 2019, the Company recognized accretion of the debt discount of $4,462 (2018 - $nil) and accretion of the financing costs of $468 (2018 - $nil). As at December 31, 2019, the carrying value of the convertible note was $9,481 (September 30, 2019 - $nil).

10

PHARMAGREEN BIOTECH INC.

Notes to the Condensed Consolidated Financial Statements

December 31, 2019

(Expressed in U.S. dollars)

(unaudited)

6.

Convertible Notes (continued)

(d)

On October 17, 2019, the Company entered into a convertible note with an unrelated party for $63,000, of which $3,000 was paid directly to third parties for financing costs, resulting in cash proceeds to the Company of $60,000. The note is due on October 17, 2020, and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 22% per annum upon default of the note. Stringent pre-payment terms apply (from 20% to 30% to 33%, dependent upon the timeframe of repayment during the note’s term) and any part of the notice which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date. In December 2019, the conversion price was amended to 46%. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 Derivatives and Hedging. As the note isn’t convertible until 180 days following issuance, no derivative liability was recognized as of December 31, 2019.

The financing costs were netted against the convertible note and are being amortized over the term using the effective interest rate method. During the three months ended December 31, 2019, the Company recognized accretion of the deferred financing fees of $603 (2018 - $nil). As at December 31, 2019, the carrying value of the convertible note was $60,603 (September 30, 2019 - $nil).

7.

Derivative Liability

The embedded conversion option of the Company’s convertible debentures described in Note 6(c) contain a conversion feature that qualifies for embedded derivative classification.  The fair value of this liability will be re-measured at the end of every reporting period and the change in fair value will be reported in the statement of operations and comprehensive loss as a gain or loss on derivative financial instruments. The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities:

	December 31, 2019 $
Balance, September 30, 2019	–
Addition of new derivative liabilities	70,199
Change in fair value of embedded conversion option	37,295
Balance, December 31, 2019	107,494

The Company uses Level 3 inputs for its valuation methodology for the embedded conversion option liabilities as their fair values were determined by using the Black-Scholes option pricing model or a Binomial Model based on various assumptions. The model incorporates the price of a share of the Company’s common stock (as quoted on the Over the Counter Bulletin Board), volatility, risk free rate, dividend rate and estimated life. Significant changes in any of these inputs in isolation would result in a significant change in the fair value measurement. As required, these are classified based on the lowest level of input that is significant to the fair value measurement. The following table shows the assumptions used in the calculations:

	Expected volatility	Risk-free interest rate	Expected dividend yield	Expected life (in years)
As at date of issuance	123.84%	1.73%	0%	1.00
As at December 31, 2019	134.86%	1.59%	0%	0.75

11

PHARMAGREEN BIOTECH INC.

Notes to the Condensed Consolidated Financial Statements

December 31, 2019

(Expressed in U.S. dollars)

(unaudited)

8.

Related Party Transactions

(a)

As at December 31, 2019, the Company owed $362,628 (Cdn$470,090) (September 30, 2019 - $372,799 (Cdn$493,694)) to the President of the Company, which is non-interest bearing, unsecured, and due on demand. During the three months ended December 31, 2019, the Company incurred consulting fees of $26,520 (2018 - $22,726) to the President of the Company.

(b)

As at December 31, 2019, the Company owed $nil (September 30, 2019 - $47,367 (Cdn$62,730)) to a company controlled by the President of the Company, which is non-interest bearing, unsecured, and due on demand.

(c)

As at December 31, 2019, the Company owed $56,697 (Cdn$73,500) (September 30, 2019 - $55,500 (Cdn$73,500)) to the father of the President of the Company, which is non-interest bearing, unsecured, and due on demand.

(d)

As at December 31, 2019, the Company owed $305,188 (Cdn$395,629) (September 30, 2019 – $291,504 (Cdn$386,039)) to a company controlled by the Chief Financial Officer of the Company, which is included in accounts payable and accrued liabilities. The amount due is non-interest bearing, unsecured, and due on demand. During the three months ended December 31, 2019, the Company incurred consulting fees of $26,520 (2018 - $22,726) to the company controlled by the Chief Financial Officer of the Company.

9.

Commitments

(a)

Effective December 11, 2017, the Company entered into a binding Letter of Intent (“LOI”) with Alliance Growers Corp. (“Alliance”), whereby the Company will build a new cannabis biotech complex (the “Biotech Complex”) located in British Columbia, through their subsidiary, 1155097 BC Ltd. (“115BC”). On January 25, 2019, the Company’s wholly owned subsidiaries WFS Pharmagreen Inc. and 115BC entered into an Option Agreement with Alliance Growers Corp, which superseded the LOI entered into on December 11, 2017. The Option Agreement grants an option to Alliance to purchase 10% equity interest in 115BC for Cdn$1,350,000 and previously granted a second option to purchase an additional 20% equity interest in 115BC for funding of 30% of the total construction and equipment costs for the biotech complex less Cdn$1,350,000. The second option expired during the year ended September 30, 2019. On January 25, 2019, 115BC issued 8 shares of common stock to Alliance Growers Corp. upon exercise of the first option for consideration of $1,018,182 (Cdn$1,350,008), which was recognized as additional paid-in capital. As at December 31, 2019, the Company received advances of $57,855 (Cdn$75,000) (September 30, 2019 - $56,634(Cdn$75,000)) from Alliance.

(b)

On November 22, 2019, the Company entered into an equity purchase agreement with an unrelated party, whereby the third party is to purchase up to $10,000,000 of the Company’s common stock. The equity purchase agreement is effective for a term of 2 years from the effective date of the registration statement. The purchase price would be 85% of the market price. In return, the Company issued a promissory note of $40,000 (Refer to Note 5). In addition, the third party is required to pay an additional commitment fee of $10,000, of which $5,000 is payable upon signing the term sheet and the remaining $5,000 (paid) due upon completion of the first tranche of the financing.

12

PHARMAGREEN BIOTECH INC.

Notes to the Condensed Consolidated Financial Statements

December 31, 2019

(Expressed in U.S. dollars)

(unaudited)

10.

Subsequent Events

(a)

On January 2, 2020, the Company entered into a convertible note with an unrelated party for $53,000, of which $3,000 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $50,000. The note is due on January 2, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date.

(b)

On January 15, 2020, the Company entered into a convertible note with an unrelated party for $61,000, of which $3,000 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $58,000. The note is due on January 15, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to 65% of the lowest trading prices during the 20-trading day period prior to, and including, the conversion date.

(c)

On January 21, 2020, the Company entered into a convertible note with an unrelated party for $66,150, of which $3,000 was paid directly to third parties for financing costs and $150 was an original issue discount, resulting in proceeds to the Company of $63,000. The note is due on January 21, 2021 and bears interest on the unpaid principal balance at a rate of 8% per annum, which increases to 24% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to 60% of the lowest trading prices during the 20-trading day period prior to, and including, the conversion date.

(d)

On January 22, 2020, the Company entered into a convertible note with an unrelated party for $78,750, of which $3,750 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $75,000. The note is due on January 22, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to 65% of the lowest trading prices during the 20-trading day period prior to, and including, the conversion date.

(e)

On January 15, 2020, the Company entered into a convertible note with an unrelated party for $55,000, of which $2,500 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $52,500. The note is due on January 15, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to lower of (i) the lowest trading price during the 20-trading day period prior to the issuance date (ii) 65% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date.

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

Forward-Looking Statements

This section of the Form 10-Q includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

Company History Overview

Pharmagreen Biotech Inc. (“the Company”) was incorporated under the laws of Nevada, U.S. on November 26, 2007 under the name Azure International, Inc. On October 30, 2008 and effective as of the same date, the Company filed Articles of Merger with the Secretary of the State of Nevada, to effect a merger by and between Air Transport Group Holdings, Inc., a Nevada corporation incorporated on October 16, 2008, and Azure International, Inc. As a result of the merger, the Company changed its name to Air Transport Group Holdings, Inc.

Air Transport Group Holdings, Inc. was originally set up to be in the business of acquiring aviation, travel and leisure companies.  During February 2018, change of control of the Company was effected and on February 21, 2018 new management took over.

On April 12, 2018, the Company entered into a share exchange agreement with WFS Pharmagreen Inc., a private company incorporated under the laws of British Columbia, Canada, whereby the Company acquired all of the issued and outstanding shares of WFS Pharmagreen Inc. in exchange for 37,704,500 shares of common stock of the Company. Upon completion of this transaction, the shareholders of WFS Pharmagreen hold 95.5% of voting control of the Company.

Immediately prior to closing of the Agreement, the majority shareholder of the Company was also the majority shareholder of WFS. As a result of the common ownership upon closing of the transaction, the acquisition was considered a common-control transaction and was outside the scope of the business combination guidance in ASC 805-50. The entities are deemed to be under common control as of February 27, 2018, which was the date that the majority shareholder acquired control of the Company and, therefore, held control over both companies. On May 2, 2018, the Share Exchange Agreement was effected. In connection with this transaction, the Company changed its name on May 8, 2018 to Pharmagreen Biotech Inc. and changed its year end from April 30th to September 30th.

Our principal executive offices are temporarily located at 2987 Blackbear Court, Coquitlam, British Columbia, Canada. Our telephone number is (702-803-9404). Our internet address is www.pharmagreen.ca.

We expect to continue to incur losses for at least the next 12 months. We do not expect to generate revenue that is sufficient to cover our expenses, and we do not have sufficient cash and cash equivalents to execute our plan of operations for at least the next twelve months. We will need to obtain additional financing, through equity security sales, debt instruments and private financing, to conduct our day-to-day operations, and to fully execute our business plan. We plan to raise the capital necessary to fund our business through the sale of equity securities, debt instruments or private financing.

Our Current Business

Pharmagreen Biotech Inc. (the “Company”) was incorporated under the laws of the State of Nevada on November 26, 2007. The Company is headquartered in Coquitlam, British Columbia.  The Company’s mission is to advance the technology of tissue culture science and to provide the highest quality 100% germ free, disease free and all genetically the same plantlets of high CBD hemp and other flora and offering full spectrum DNA testing for plant identification, live genetics preservation using  low temperature storage for various cannabis and horticulture plants; extraction of botanical oils mainly CBD oil, and to deliver laboratory based services to the North American high CBD hemp, Cannabis and agriculture sectors.

Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. However, if the Company is unable to raise additional capital in the near future, due to the Company’s liquidity problems, management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. These consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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Its immediate focus will be on producing tissue cultured high CBD hemp starter plantlets.  The Company has applied to Health Canada for a license to produce and sell tissue culture plantlets and cannabis oil.  On February 7, 2019, The Company’s, wholly owned Canadian subsidiary, WFS Pharmagreen Inc., received notification from Health Canada that its cannabis licensing application under the Cannabis Act and the Cannabis Regulations to obtain a license at the proposed site in Deroche, British Columbia, Canada has advanced from the first stage, “Intake and Screening” to the second stage, “Detailed Review and Initiation of Security Clearance Process,” of a three stage approval process. On May 10, 2019, the Company received confirmation from Health Canada that the second stage review was completed and that the Company can proceed to the third and final stage, construction of the biotech complex for final inspection and licensing.

Detailed Review and Initiation of Security Clearance Process means applications are reviewed against the licensing and personnel security requirements of the regulations.

The third stage is Confirmation of Readiness: Confirmation is provided to the applicant that the application substantively meets the requirements and asks for confirmation that the site is ready for licensing or inspection. This stage will be dependent on the timing of completing the development of its site.in Deroche, British Columbia Canada. The Company does not anticipate any additional costs related to this stage.

The Company is currently completing its engineering stage and has begun site development work for the building process of a 63,000 square foot biotech complex.

Capital Resources and Liquidity

Our auditors have issued a “going concern” opinion for our year ended September 30, 2019, meaning that there is substantial doubt if we can continue as an on-going business unless we obtain additional capital. No substantial revenues from our planned business model are anticipated until we have completed financing the Company. As at December 31, 2019, the Company has a working capital deficit of $1,501,593 and an accumulated deficit of $4,935,497. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

We need to seek capital from resources such as the sale of private placements in the Company’s common stock or debt financing, which may not even be available to the Company. However, if such financing were available, because we are a, early stage company with no or limited operations to date, it would likely have to pay additional costs associated with such financing and in the case of high risk loans be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such financing. If the company cannot raise additional proceeds via such financing, it may be required to cease business operations.

As of December 31, 2019, we had $35,678 in cash, accounts receivable and other receivables of $1,009 and prepaid expenses and deposits of $118,354 as compared to $62,682 in cash, accounts receivable and other receivables of $10,639 and prepaid expenses and deposits of $115,856 as of September 30, 2019.  Overall, our cash position is lower and our prepaid expenses and deposits are higher as we have spent more funding on the planned build-out of our biotech complex, of which $107,782 was prepaid as at December 31, 2019.  As of the date of this Form 10-Q, the current funds available to the Company will not be sufficient to fund the expenses related to maintaining our planned operations. We are in the process of seeking additional equity financing in the form of private placements, loans and registration statements to fund our intended business operations.

Management believes that if subsequent private placements are successful or we are successful in raising funds from registered securities, we will generate sales revenue within twelve months thereof. However, additional equity financing may not be available to us on acceptable terms or at all, and thus we could fail to satisfy our future cash requirements.

We do not anticipate researching any further products nor the purchase or sale of any significant equipment. We also do not expect any significant additions to the number of employees.

Results of Operations

We had $nil in revenue for the three months ended December 31, 2019 and 2018 and have not generated any revenues since our inception.  

Total expenses in the three months ended December 31, 2019 were $117,116 as compared to total expenses for the three months ended December 31, 2018 of $205,337. The net decrease in expenses during the current period is mainly due to a change in foreign exchange gain/loss from a loss of $43,187 in 2018 to a gain of $9,747 in 2019, due to fluctuations in the Canadian dollar exchange rate and changes in the Company’s Canadian dollar assets and liabilities, and a decrease in professional fees from $43,560 in 2018 to $25,630 in 2019, which were due to higher audit and accounting costs in 2018 in connection with the S-1 registration process. The decrease was also attributable to a decrease in research and development costs of $29,716 related to the

15

Company’s planned biotech complex. The decrease in overall expenses during the year was reduced by the increase in consulting fees of $15,314 from $55,502 in 2018 to $70,816 in 2019.  This increase is due to engagement of advisory services with unrelated parties.

We incurred a comprehensive loss of $218,420 during the three months ended December 31, 2019, compared to a comprehensive loss of $294,173 during the three months ended December 31, 2018.  In addition to operating expenses, we incurred finance costs of $45,000 relating to commitment fees paid pursuant to an Equity Purchase Agreement dated November 22, 2019, with Oscaleta Partners LLC. The term of the Equity Purchase Agreement is for a period that expires 2 years after the effective date of the related registration statement. The Company also incurred accretion expenses of $6,646 and a loss on change in fair value of derivative liability of $37,295 related to the Company’s convertible debentures. For the three months ended December 31, 2018, the Company incurred finance costs of $187,245 relating to the fair value of common stock issued as commitment fees related to an Equity Purchase Agreement entered into on November 9, 2018, with L2 Capital LLC.

During the three months ended December 31, 2019, and 2018, we incurred a net loss of $0.00 and $0.01 per share, respectively.

Off-balance Sheet Arrangements

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change on the company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with the company is a party, under which the company has (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets.

Subsequent Events

On January 2, 2020, the Company entered into a convertible note with an unrelated party for $53,000, of which $3,000 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $50,000. The note is due on January 2, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date.

On January 15, 2020, the Company entered into a convertible note with an unrelated party for $61,000, of which $3,000 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $58,000. The note is due on January 15, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to 65% of the lowest trading prices during the 20-trading day period prior to, and including, the conversion date.

On January 21, 2020, the Company entered into a convertible note with an unrelated party for $66,150, of which $3,000 was paid directly to third parties for financing costs and $150 was an original issue discount, resulting in proceeds to the Company of $63,000. The note is due on January 21, 2021 and bears interest on the unpaid principal balance at a rate of 8% per annum, which increases to 24% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to 60% of the lowest trading prices during the 20-trading day period prior to, and including, the conversion date.

On January 22, 2020, the Company entered into a convertible note with an unrelated party for $78,750, of which $3,750 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $75,000. The note is due on January 22, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to 65% of the lowest trading prices during the 20-trading day period prior to, and including, the conversion date.

On January 15, 2020, the Company entered into a convertible note with an unrelated party for $55,000, of which $2,500 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $52,500. The note is due on January 15, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to lower of (i) the lowest trading price during the 20-trading day period prior to the issuance date (ii) 65% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date.

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Item 4.  Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is accumulated and communicated to management including our principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure.

In connection with this quarterly report, as required by Rule 15d-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of the design and operation of our company's disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our company's management, including our company's principal executive officer and principal financial officer. Based upon that evaluation, our company's principal executive officer and principal financial officer concluded that as of December 31, 2019 our disclosure controls and procedures were not effective due to the existence of material weaknesses in our internal controls over financial reporting.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f)) during the quarter ended December 31, 2019 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

17

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

There are no pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or stockholder is a party adverse to the Company or has a material interest adverse to the Company.

Item 1A. Risk Factors.

As a “smaller reporting company,” as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.

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

None

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosure.

N/A

Item 5. Other Information.

None

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Item 6. Exhibits.

The following documents are filed as a part of this report or are incorporated by reference to previous filings, if so indicated:

Exhibit Number	Description
2.1	Articles of Incorporation and Bylaws dated November 26, 2007 as previously filed with the SEC on March 20, 2019
2.2	Articles of Merger dated, October 30, 2008 (Azure International, Inc./ Air Transport Group Holding, Inc. as previously filed with the SEC on March 20, 2019
2.10	Equity Purchase Agreement with Oscaleta Partners LLC as previously filed with the SEC on December 2, 2019
2.11	Registration Rights Agreement with Oscaleta Partners LLC as previously filed with the SEC on December 2, 2019
31.1	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934*
31.2	Certification of Chief Executive Officer Pursuant to Rule 13a–14(a) or 15d-14(a) of the Securities Exchange Act of 1934**
32.1	Certification of Chief Executive Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Principal Financial Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

*     Included in Exhibit 31.1

**   Included in Exhibit 32.1

19

SIGNATURES*

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Pharmagreen Biotech Inc.
By:	/s/  Peter Wojcik
	Peter Wojcik
	President and Director Principal Executive Officer

By:	/s/  Terry Kwan
	Terry Kwan
	Principal Accounting Officer

Dated February 14, 2020

20

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Terry Kwan, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Pharmagreen Biotech Inc.;

2.     Based on my knowledge, this quarterly 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 quarterly report;

3.     Based on my knowledge, the financial statements, and other financial information included in 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 quarterly 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;

(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 officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of 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 controls over financial reporting. 

February 14, 2020
By:	/s/ Terry Kwan
	Terry Kwan
	Director, Principal Accounting Officer

1

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. 1350 AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Pharmagreen Biotech Inc. (the “Company”) for the quarter ended December 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned Chief Executive Officer and President and the principal accounting and financial officer of the Company hereby certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects the financial condition and results of operations of the Company.

February 14, 2020 

/s/ Peter Wojcik

Peter Wojcik

Director, Chief Executive Officer, President, Treasurer,

1

XML

Property and Equipment (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Construction in progress	$ 450,607	$ 441,095
Accumulated depreciation
Net Carrying Value	$ 450,607	$ 441,095

XML

Derivative Liability (Details)	3 Months Ended
	Dec. 31, 2019 USD ($)
Disclosure Derivative Liability Details Abstract
Derivative Liability
Addition of new derivative liabilities	70,199
Change in fair value of embedded conversion option	37,295
Derivative Liability	$ 107,494

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Statement of Financial Position [Abstract]
Convertible Notes, Unamortized Discount	$ 26,952	$ 27,321
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares Issued	75,646,835	75,646,835
Common Stock, Shares Outstanding	75,646,835	75,646,835

XML

Nature of Business and Continuance of Operations

3 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business and Continuance of Operations

1. Nature of Business and Continuance of Operations

Pharmagreen Biotech Inc. (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on November 26, 2007, under the name Azure International, Inc.  On October 30, 2008, and effective as of the same date, the Company filed Articles of Merger (“Articles”) with the Secretary of State of the State of Nevada, to effect a merger by and between Air Transport Group Holdings, Inc., a Nevada corporation and Azure International, Inc.  As a result of the merger, the Company changed its name to Air Transport Group Holdings, Inc.  The Company was previously in the business of providing technical advisory and appraisals to the aircraft and aviation business as well as providing sourcing for aircraft leases and parts. Pursuant to a Share Exchange Agreement with WFS Pharmagreen Inc. (“WFS”) on May 2, 2018, the Company changed its name to Pharmagreen Biotech Inc. and changed its principal business to the construction of a biotech complex in Deroche, British Columbia, Canada, for the purpose of producing a variety of starter plantlets for the Canadian and international high CBD hemp and medical cannabis industries through the application of the proprietary plant tissue culture in vitro process called “Chibafreen”. This proprietary process will produce plantlets that will be genetically identical and free of pests and disease free with consistent and certifiable constituent properties.

Going Concern

These condensed consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at December 31, 2019, the Company has not earned any revenues from operations, has a working capital deficit of $1,501,593, and has an accumulated deficit of $4,935,497. During the three months ended December 31, 2019, the Company incurred a net loss of $206,021 and used cash flows for operations of $71,922.  These factors raise substantial doubt upon the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern.

XML

Property and Equipment (Tables)

3 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

	Cost $		Accumulated depreciation $		Net carrying value as at December 31, 2019 $		Net carrying value as at September 30, 2019 $
Construction in progress		450,607		—		450,607		441,095

XML

Accounts Payable and Accrued Liabilities

3 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities

4. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consists of the following:

	December 31, 2019 $		September 30, 2019 $
Accounts payable		853,728		829,942
Accrued interest payable		32,299		25,824
		886,027		855,766

XML

Related Party Transactions

3 Months Ended

Dec. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

8. Related Party Transactions

(a) As at December 31, 2019, the Company owed $362,628 (Cdn$470,090) (September 30, 2019 - $372,799 (Cdn$493,694)) to the President of the Company, which is non-interest bearing, unsecured, and due on demand. During the three months ended December 31, 2019, the Company incurred consulting fees of $26,520 (2018 - $22,726) to the President of the Company.

(b) As at December 31, 2019, the Company owed $nil (September 30, 2019 - $47,367 (Cdn$62,730)) to a company controlled by the President of the Company, which is non-interest bearing, unsecured, and due on demand.

(c) As at December 31, 2019, the Company owed $56,697 (Cdn$73,500) (September 30, 2019 - $55,500 (Cdn$73,500)) to the father of the President of the Company, which is non-interest bearing, unsecured, and due on demand.

(d) As at December 31, 2019, the Company owed $305,188 (Cdn$395,629) (September 30, 2019 – $291,504 (Cdn$386,039)) to a company controlled by the Chief Financial Officer of the Company, which is included in accounts payable and accrued liabilities. The amount due is non-interest bearing, unsecured, and due on demand. During the three months ended December 31, 2019, the Company incurred consulting fees of $26,520 (2018 - $22,726) to the company controlled by the Chief Financial Officer of the Company.

XML

Promissory Note

3 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Promissory Note

5. Promissory Note

On November 22, 2019, the Company entered into a promissory note with an unrelated party for $40,000 in connection with an equity purchase agreement (Refer to Note 9(b)). The promissory note is unsecured, due on November 30, 2020, and bears interest on the unpaid principal balance at a rate of 10% per annum. During the period ended December 31, 2019, the Company recognized accrued interest of $427 (2018 - $nil).

XML

Commitment

3 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitment

9. Commitments

(a) Effective December 11, 2017, the Company entered into a binding Letter of Intent (“LOI”) with Alliance Growers Corp. (“Alliance”), whereby the Company will build a new cannabis biotech complex (the “Biotech Complex”) located in British Columbia, through their subsidiary, 1155097 BC Ltd. (“115BC”). On January 25, 2019, the Company’s wholly owned subsidiaries WFS Pharmagreen Inc. and 115BC entered into an Option Agreement with Alliance Growers Corp, which superseded the LOI entered into on December 11, 2017. The Option Agreement grants an option to Alliance to purchase 10% equity interest in 115BC for Cdn$1,350,000 and previously granted a second option to purchase an additional 20% equity interest in 115BC for funding of 30% of the total construction and equipment costs for the biotech complex less Cdn$1,350,000. The second option expired during the year ended September 30, 2019. On January 25, 2019, 115BC issued 8 shares of common stock to Alliance Growers Corp. upon exercise of the first option for consideration of $1,018,182 (Cdn$1,350,008), which was recognized as additional paid-in capital. As at December 31, 2019, the Company received advances of $57,855 (Cdn$75,000) (September 30, 2019 - $56,634(Cdn$75,000)) from Alliance.

(b) On November 22, 2019, the Company entered into an equity purchase agreement with an unrelated party, whereby the third party is to purchase up to $10,000,000 of the Company’s common stock. The equity purchase agreement is effective for a term of 2 years from the effective date of the registration statement. The purchase price would be 85% of the market price. In return, the Company issued a promissory note of $40,000 (Refer to Note 5). In addition, the third party is required to pay an additional commitment fee of $10,000, of which $5,000 is payable upon signing the term sheet and the remaining $5,000 (paid) due upon completion of the first tranche of the financing.

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Accounts Payable and Accrued Liabilities (Tables)

3 Months Ended

Dec. 31, 2019

Accounts Payable And Accrued Liabilities

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consists of the following:

	December 31, 2019 $		September 30, 2019 $
Accounts payable		853,728		829,942
Accrued interest payable		32,299		25,824
		886,027		855,766

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Accounts Payable and Accrued Liabilities (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Disclosure Accounts Payable And Accrued Liabilities Details Abstract
Accounts payable	$ 853,728	$ 829,942
Accrued interest payable	32,299	25,824
Accounts Payable and Accrued Liabilities	$ 886,027	$ 855,766

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Derivative Liability (Details 2) - Derivative Liability [Member]	3 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019
Expected volatility	134.86%	123.84%
Risk-free interest rate	1.59%	1.73%
Expected dividend yield	0.00%	0.00%
Expected life	9 months	1 year

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Current assets
Cash	$ 35,678	$ 62,682
Amounts receivable	1,009	10,639
Prepaid expenses and deposits	118,354	115,856
Total current assets	155,041	189,177
Property, plant, and equipment	450,607	441,095
Total assets	605,648	630,272
Current liabilities
Accounts payable and accrued liabilities	886,027	855,766
Advance from Alliance Growers Corp.	57,855	56,634
Due to related parties	419,325	475,666
Promissory note	40,000
Convertible notes - current portion, net of unamortized discount of $73,067 and $2,895, respectively	145,933	75,105
Derivative liability	107,494
Total current liabilities	1,656,634	1,463,171
Convertible notes, net of unamortized discount of $26,952 and $27,321, respectively	1,968	1,599
Total liabilities	1,658,602	1,464,770
Stockholders' deficit
Common stock Authorized: 500,000,000 shares, $0.001 par value; 75,646,835 shares issued and outstanding, respectively	75,647	75,647
Additional paid-in capital	3,772,781	3,772,781
Accumulated other comprehensive income (loss)	35,425	47,824
Deficit	(4,935,497)	(4,729,476)
Total Pharmagreen Biotech Inc. stockholders' deficit	(1,051,644)	(833,224)
Non-controlling interest	(1,310)	(1,274)
Total stockholders' deficit	(1,052,954)	(834,498)
Total liabilities and stockholders' deficit	$ 605,648	$ 630,272

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
OPERATING ACTIVITIES
Net loss	$ (206,057)	$ (392,943)
Adjustments to reconcile net loss to net cash used in operating activities
Accretion of discount on convertible notes	6,646	361
Financing fees	45,000
Loss on change in fair value of derivative liability	37,295
Shares issued for services		187,245
Changes in non-cash operating working capital
Accounts receivable and other receivables	9,630	(1,174)
Prepaid expenses and deposits		(5,115)
Accounts payable and accrued liabilities	30,261	1,682
Due to related parties	5,303	(60,608)
Net cash used in operating activities	(71,922)	(270,552)
INVESTING ACTIVITIES
Acquisition of property and equipment		(11,083)
Net cash used in investing activities		(11,083)
FINANCING ACTIVITIES
Proceeds from the issuance of convertible notes	134,750
Proceeds from advances from Alliance Growers Corp.		60,797
Repayment of loans from related parties	(61,644)
Financing costs paid	(5,000)
Net cash provided by financing activities	68,106	60,797
Effect of foreign exchange rate changes on cash	(23,188)	98,770
Increase in cash	(27,004)	(122,068)
Cash, beginning of year	62,682	151,869
Cash, end of year	35,678	29,801
Non-cash investing and financing activities:
Issuance of common stock pursuant to the conversion of convertible notes		200
Issuance of promissory note as a financing fee	40,000
Supplemental disclosures:
Interest paid
Income taxes paid

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Derivative Liability

3 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Liability

7. Derivative Liability

The embedded conversion option of the Company’s convertible debentures described in Note 6(c) contain a conversion feature that qualifies for embedded derivative classification.  The fair value of this liability will be re-measured at the end of every reporting period and the change in fair value will be reported in the statement of operations and comprehensive loss as a gain or loss on derivative financial instruments. The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities:

	December 31, 2019 $
Balance, September 30, 2019		—
Addition of new derivative liabilities		70,199
Change in fair value of embedded conversion option		37,295
Balance, December 31, 2019		107,494

The Company uses Level 3 inputs for its valuation methodology for the embedded conversion option liabilities as their fair values were determined by using the Black-Scholes option pricing model or a Binomial Model based on various assumptions. The model incorporates the price of a share of the Company’s common stock (as quoted on the Over the Counter Bulletin Board), volatility, risk free rate, dividend rate and estimated life. Significant changes in any of these inputs in isolation would result in a significant change in the fair value measurement. As required, these are classified based on the lowest level of input that is significant to the fair value measurement. The following table shows the assumptions used in the calculations:

	Expected volatility		Risk-free interest rate		Expected dividend yield		Expected life (in years)
As at date of issuance	123.84	%	1.73	%	0	%	1.00
As at December 31, 2019	134.86	%	1.59	%	0	%	0.75

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Interim Financial Statements

(a) Interim Financial Statements

These condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.

Basis of Presentation

(b) Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and are expressed in U.S. dollars. These condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, WFS Pharmagreen Inc., and its 89.7% owned subsidiary 1155097 BC Ltd., companies incorporated in British Columbia, Canada. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is September 30.

Use of Estimates and Judgments

(c) Use of Estimates and Judgments

The preparation of these condensed interim consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the allowance for doubtful accounts, the recoverability of property and equipment, the equity component of convertible notes, fair value of derivative liabilities, fair value of stock-based payments, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Recently Adopted Accounting Pronouncements

(d) Recently Adopted Accounting Pronouncements

In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard became effective for the Company in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In February 2016, Topic 842, Leases, was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet 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. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Topic 842 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied. Earlier application is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.  

The Company has implemented all new accounting pronouncements that are in effect and that may impact its condensed consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

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Commitments (Details Narrative)			3 Months Ended
	Jan. 25, 2019 USD ($) shares	Jan. 25, 2019 CAD ($) shares	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Common Stock Issued upon exercise of the option				$ 200
Alliance Growers Corp. [Member]
Common Stock Issued upon exercise of the option	$ 1,018,182
Common Stock Issued upon exercise of the option (in Shares) | shares	8	8
Alliance Growers Corp. [Member] | CANADA
Common Stock Issued upon exercise of the option		$ 1,350,008

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Nature of Business and Continuance of Operations (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working Capital Deficit	$ 1,501,593
Accumulated Deficit	4,935,497		$ 4,729,476
Net Loss	206,021	$ 392,943
Net cash used in operating activities	$ 71,922	$ 270,552

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Convertible Notes (Details Narrative)	3 Months Ended		12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($)	Sep. 30, 2019 USD ($) $ / shares shares	Sep. 30, 2018 USD ($) shares	Apr. 04, 2018 USD ($)	Apr. 04, 2018 $ / shares
Common Stock, Par Value | $ / shares	$ 0.001		$ 0.001
Unamortized Discount	$ 26,952		$ 27,321
Convertible Note [Member] | NotesIssued April 04, 2018
Amount Owed to Related Party					$ 32,485
Common Stock, Par Value | $ / shares						$ .0001
Common Stock Share Issued | shares			3,900,000
Accretion Expense	369	$ 361	$ 375	$ 3,112
Carrying Value of Convertible Notes	1,968	1,599
Unamortized Discount	$ 26,952	$ 27,321
Convertible Note [Member] | NotesIssued April 04, 2018 | President [Member]
Common Stock Share Issued | shares				31,745,000
Convertible Note [Member] | NotesIssued April 04, 2018 | Family of President [Member]
Common Stock Share Issued | shares				5,320,000

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Summary of Significant Accounting Policies

3 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Significant Accounting Policies

(a) Interim Financial Statements

These condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.

(b) Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and are expressed in U.S. dollars. These condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, WFS Pharmagreen Inc., and its 89.7% owned subsidiary 1155097 BC Ltd., companies incorporated in British Columbia, Canada. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is September 30.

(c) Use of Estimates and Judgments

The preparation of these condensed interim consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the allowance for doubtful accounts, the recoverability of property and equipment, the equity component of convertible notes, fair value of derivative liabilities, fair value of stock-based payments, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

(d) Recently Adopted Accounting Pronouncements

In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard became effective for the Company in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In February 2016, Topic 842, Leases, was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet 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. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Topic 842 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied. Earlier application is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.  

The Company has implemented all new accounting pronouncements that are in effect and that may impact its condensed consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

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Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Expenses
Consulting fees	$ 70,816	$ 55,502
Foreign exchange loss	(9,747)	43,187
General and administrative	24,896	27,270
License application fees	909	1,932
Professional fees	25,630	43,560
Research and development (recovery)		29,716
Salaries and wages	4,612	4,170
Total expenses	117,116	205,337
Net loss before other income (expense)	(117,116)	(205,337)
Other income (expense)
Accretion of discount on convertible notes	(6,646)	(361)
Finance costs	(45,000)	(187,245)
Loss on disposal of the net assets of Canna Companion Products, Inc.	(37,295)
Total other income (expense)	(88,941)	(187,606)
Net loss	(206,057)	(392,943)
Less: net loss attributable to non-controlling interest	36
Net loss attributable to Pharmagreen Biotech Inc.	(206,021)	(392,943)
Comprehensive income (loss)
Foreign currency translation gain (loss)	(12,399)	98,770
Comprehensive loss	$ (218,420)	$ (294,173)
Basic and diluted loss per share		$ (0.01)
Weighted average number of shares outstanding	75,646,835	72,177,644

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Derivative Liability (Tables)

3 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Liability

The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities:

	December 31, 2019 $
Balance, September 30, 2019		—
Addition of new derivative liabilities		70,199
Change in fair value of embedded conversion option		37,295
Balance, December 31, 2019		107,494

The following table shows the assumptions used in the calculations:

	Expected volatility		Risk-free interest rate		Expected dividend yield		Expected life (in years)
As at date of issuance	123.84	%	1.73	%	0	%	1.00
As at December 31, 2019	134.86	%	1.59	%	0	%	0.75

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Promissory Note (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Nov. 22, 2019	Sep. 30, 2019
Disclosure Promissory Note Details Narrative Abstract
Promissory Note with unrelated party	$ 40,000		$ 40,000
Accured Interest	$ 427

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Related Party Transactions (Details Narrative)	3 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2019 CAD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2019 CAD ($)
Due to Related Parties	$ 419,325			$ 475,666
Consulting Fees	70,816	$ 55,502
President [Member]
Due to Related Parties	362,628			470,090
Consulting Fees	26,520	22,726
President [Member] | CANADA
Due to Related Parties			$ 289,193		$ 493,694
Company Controller By President [Member]
Due to Related Parties				47,367
Company Controller By President [Member] | CANADA
Due to Related Parties					62,730
Mother of President [Member]
Due to Related Parties	56,697			55,500
Mother of President [Member] | CANADA
Due to Related Parties			73,500		73,500
Company Controller By Chief Financial Officer [Member]
Due to Related Parties	305,188			$ 291,504
Consulting Fees	$ 26,520	$ 22,726
Company Controller By Chief Financial Officer [Member] | CANADA
Due to Related Parties			$ 395,629		$ 386,039

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Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2019	Feb. 14, 2020
Document And Entity Information
Entity Registrant Name	Pharmagreen Biotech Inc.
Entity Central Index Key	0001435181
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity's Reporting Status Current?	No
Is Entity Emerging Growth Company?	true
Elected Not To Use the Extended Transition Period	true
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		75,646,835
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Interactive Data Current	No
Entity Incorporation, State or Country Code	NV
Entity File Number	333-151350
Entity Shell Company	false

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Condensed Consolidated Statements of Stockholders' Deficit (Undudited) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Noncontrolling Interest	Total
Beginning Balance at Sep. 30, 2018	$ 71,620	$ 2,464,136	$ 38,722	$ (3,961,939)		$ (1,387,461)
Beginning Balance (in Shares) at Sep. 30, 2018	71,620,100
Issuance of common stock pursuant to the conversion of convertible notes	$ 2,000	(1,800)				200
Issuance of common stock pursuant to the conversion of convertible notes (in Shares)	2,000,000
Issuance of common stock for financing services	$ 52	187,193				187,245
Issuance of common stock for financing services (in Shares)	51,725
Foreign currency translation gain			98,770			98,770
Net loss for the period				(392,943)		(392,943)
Ending Balance at Dec. 31, 2018	$ 73,672	2,649,529	137,492	(4,354,882)		(1,494,189)
Ending Balance (in Shares) at Dec. 31, 2018	73,671,825
Beginning Balance at Sep. 30, 2019	$ 75,647	3,772,781	47,824	(4,729,476)	(1,274)	(834,498)
Beginning Balance (in Shares) at Sep. 30, 2019	75,646,835
Issuance of common stock pursuant to the conversion of convertible notes
Issuance of common stock for financing services
Foreign currency translation gain			(12,399)			(12,399)
Net loss for the period				(206,021)	(36)	(206,057)
Ending Balance at Dec. 31, 2019	$ 75,647	$ 3,772,781	$ 35,425	$ (4,935,497)	$ (1,310)	$ (1,052,954)
Ending Balance (in Shares) at Dec. 31, 2019	75,646,835

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Property and Equipment

3 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

3. Property and Equipment

	Cost $		Accumulated depreciation $		Net carrying value as at December 31, 2019 $		Net carrying value as at September 30, 2019 $
Construction in progress		450,607		—		450,607		441,095

As at December 31, 2019, costs related to the construction of cannabis production complex were capitalized as construction in progress and not depreciated. Depreciation will commence when construction is completed, and the facility is available for its intended use.

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Convertible Notes

3 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Convertible Notes

6. Convertible Notes

(a) On April 4, 2018, the amount of $32,485 owed to related parties was converted to Series A convertible notes, which are unsecured, non-interest bearing, and due on April 4, 2023.  These notes are convertible in whole or in part, any time until maturity, to common shares of the Company at $0.0001 per share. The outstanding balance remaining at maturity shall bear interest at 12% per annum until fully paid. The Company evaluated the convertible notes for a beneficial conversion feature in accordance with ASC 470-20 “Debt with Conversion and Other Options”. The Company determined that the conversion price was below the closing stock price on the commitment date, and the convertible notes contained a beneficial conversion feature. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $32,485 as additional paid-in capital and reduced the carrying value of the convertible note to $nil. The carrying value will be accreted over the term of the convertible notes up to their face value of $32,485.

During the year ended September 30, 2018, the Company issued 31,745,000 shares of common stock upon the conversion of $3,175 of Series A convertible notes, which included 18,000,000 common shares to the President of the Company and 5,320,000 common shares to family members of the President of the Company. Upon conversion, the Company immediately recognized the related remaining debt discount of $3,112 as accretion expense.

During the year ended September 30, 2019, the Company issued 3,900,000 shares of common stock upon the conversion of $390 of Series A convertible notes. Upon conversion, the Company immediately recognized the related remaining debt discount of $375 as accretion expense.

As at December 31, 2019, the carrying value of the convertible notes was $1,968 (September 30, 2019 - $1,599) and had an unamortized discount of $26,952 (September 30, 2019 - $27,321). During the three months ended December 31, 2019, the Company recorded accretion expense of $369 (2018 - $361).

(b) On September 17, 2019, the Company entered into a convertible note with an unrelated party for $78,000, of which $3,000 was paid directly to third parties for financing costs, resulting in cash proceeds to the Company of $75,000. The note is due on September 20, 2020, and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 22% per annum upon default of the note. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 Derivatives and Hedging. As the note isn’t convertible until 180 days following issuance, no derivative liability was recognized.

The financing costs were netted against the convertible note and are being amortized over the term using the effective interest rate method. During the three months ended December 31, 2019, the Company recognized accretion of the deferred financing fees of $744 (2018 - $nil). As at December 31, 2019, the carrying value of the convertible note was $75,849 (September 30, 2019 - $75,105).

(c) On October 1, 2019, the Company entered into a convertible note with an unrelated party for $78,000, of which $3,250 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $74,750. The note is due on October 1, 2020, and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 22% per annum upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to lower of (i) the lowest trading price during the 10-trading day period prior to the issuance date (ii) 61% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date. In connection with the issuance of the above convertible note, the Company evaluated the conversion option for derivative treatment under ASC 815-15, Embedded Derivatives, and determined the note and conversion feature qualified as derivatives. The Company classified the conversion feature as a derivative liability at fair value.

The financing costs were netted against the convertible note and are being amortized over the term using the effective interest rate method. The initial fair value of the conversion feature was determined to be $70,199, which was determined using the Black-Scholes option-pricing model and recorded as a discount on the convertible note. During the three months ended December 31, 2019, the Company recognized accretion of the debt discount of $4,462 (2018 - $nil) and accretion of the financing costs of $468 (2018 - $nil). As at December 31, 2019, the carrying value of the convertible note was $9,481 (September 30, 2019 - $nil).

(d) On October 17, 2019, the Company entered into a convertible note with an unrelated party for $63,000, of which $3,000 was paid directly to third parties for financing costs, resulting in cash proceeds to the Company of $60,000. The note is due on October 17, 2020, and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 22% per annum upon default of the note. Stringent pre-payment terms apply (from 20% to 30% to 33%, dependent upon the timeframe of repayment during the note’s term) and any part of the notice which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date. In December 2019, the conversion price was amended to 46%. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 Derivatives and Hedging. As the note isn’t convertible until 180 days following issuance, no derivative liability was recognized as of December 31, 2019.

The financing costs were netted against the convertible note and are being amortized over the term using the effective interest rate method. During the three months ended December 31, 2019, the Company recognized accretion of the deferred financing fees of $603 (2018 - $nil). As at December 31, 2019, the carrying value of the convertible note was $60,603 (September 30, 2019 - $nil).

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Subsequent Events

3 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

10. Subsequent Events

(a) On January 2, 2020, the Company entered into a convertible note with an unrelated party for $53,000, of which $3,000 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $50,000. The note is due on January 2, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date.

(b) On January 15, 2020, the Company entered into a convertible note with an unrelated party for $61,000, of which $3,000 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $58,000. The note is due on January 15, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to 65% of the lowest trading prices during the 20-trading day period prior to, and including, the conversion date.

(c) On January 21, 2020, the Company entered into a convertible note with an unrelated party for $66,150, of which $3,000 was paid directly to third parties for financing costs and $150 was an original issue discount, resulting in proceeds to the Company of $63,000. The note is due on January 21, 2021 and bears interest on the unpaid principal balance at a rate of 8% per annum, which increases to 24% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to 60% of the lowest trading prices during the 20-trading day period prior to, and including, the conversion date.

(d) On January 22, 2020, the Company entered into a convertible note with an unrelated party for $78,750, of which $3,750 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $75,000. The note is due on January 22, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to 65% of the lowest trading prices during the 20-trading day period prior to, and including, the conversion date.

(e) On January 15, 2020, the Company entered into a convertible note with an unrelated party for $55,000, of which $2,500 was paid directly to third parties for financing costs, resulting in proceeds to the Company of $52,500. The note is due on January 15, 2021 and bears interest on the unpaid principal balance at a rate of 10% per annum, which increases to 20% upon default of the note. The Note may be converted by the Lender at any time after the date of issuance into shares of Company’s common stock at a conversion price equal to lower of (i) the lowest trading price during the 20-trading day period prior to the issuance date (ii) 65% of the average 2 lowest trading prices during the 10-trading day period prior to the conversion date.