Convertible Notes Payable and Advances

12 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Convertible Notes Payable and Advances

Note 5. Convertible Notes Payable and Advances

Convertible notes payable consisted of the following at September 30, 2022 and 2021:

	September 30, 2022		September 30, 2021
Convertible note dated April 13, 2017 in the original principal amount of $20,000, no stated maturity date, bearing interest at 3% per year, convertible into common stock at a rate of $0.01 per share.	$	20,000	$	20,000
Total current convertible notes payable, net of discount	$	20,000	$	20,000

All principal along with accrued interest is payable on the maturity date. The notes are convertible into common stock at the option of the holder. The holder of the notes cannot convert the notes into shares of common stock if that conversion would result in the holder owning more than 4.9% of the outstanding stock of the Company.

During the year ended September 30, 2021, the Company recognized $10,000 of deferred finance costs from its new convertible note payable and $225,000 of new discount related to the beneficial conversion features of convertible notes payable. During the year ended September 30, 2021, the Company recognized interest expense on convertible notes of $11,415 and amortization of discount on convertible notes payable of $269,923, respectively.

As of September 30, 2022 and September 30, 2021, accrued interest on convertible notes payable was $225,953 and $222,287, respectively.

Conversions to Common Stock

During the year ended September 30, 2021, the holders of the convertible notes payable elected to convert principal of $275,000 and accrued interest of $16,502 into 40,817,050 shares of common stock. There was no gain or loss recognized as the conversion occurred in accordance with the original terms of the agreement.

Advances

As of September 30, 2022 and 2021, the Company had non-interest bearing advances payable to third parties of $59,650. These advances are payable on demand.