Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2020

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The consolidated financial statements include the accounts of AmeriCann, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant estimates and assumptions made by management are valuation of equity instruments, deferred tax asset valuation and allowance and collectability of long-lived assets. Actual results could differ from those estimates as the current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand, demand deposit accounts and temporary cash investments with maturities of

ninety

days or less at the date of purchase.

Income Tax, Policy [Policy Text Block]

Income Taxes

In accordance with ASC Topic

740,

Income Taxes, the provision for income taxes is computed using the asset and liability method. The liability method measures deferred income taxes by applying enacted statutory rates in effect at the consolidated balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the consolidated financial statements. The resulting deferred tax assets or liabilities have been adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than

not

that a deferred tax asset will

not

be realized.

We expect to recognize the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a "more-likely-than-

not"

threshold, the amount to be recognized in the consolidated financial statements will be the benefit expected to be realized upon settlement with the tax authority. For tax positions

not

meeting the threshold,

financial statement benefit is recognized. As of

September 30, 2020

and

2019,

we had

uncertain tax positions. We recognize interest and penalties, if any, related to uncertain tax positions as general and administrative expenses. We currently have

federal or state tax examinations nor have we had any federal or state examinations since our inception. To date, we have

not

incurred any interest or tax penalties.

For federal tax purposes, our

2017

through

2019

tax years remain open for examination by the tax authorities under the normal

three

-year statute of limitations.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risks and Significant Customers

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, notes receivable, deposits tenant receviables and notes receivable. We place our cash with high credit quality financial institutions. As of

September 30, 2020,

we had outstanding notes receivable of

$119,512

and tenant receivables of

$124,617

with BASK, Inc. ("BASK"), a related party. As of

September 30, 2019,

we had outstanding notes receivables of

$148,763

with BASK and a note and a receivable in the amount of

$1,761,675

with WGP (exclusive of provision for doubtful accounts of

$1,761,675

). Balance due from Wellness Group Pharms ("WGP") was collected in full in

February 2020.

For the year ended

September 30, 2020,

all of the Company's revenue was earned from

one

customer, BASK. As of

September 30, 2020,

the BASK tenant receivable balance was

$124,617.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Financial Instruments and Fair Value of Financial Instruments

We adopted ASC Topic

820,

Fair Value Measurement, for assets and liabilities measured at fair value on a recurring basis. ASC Topic

820

establishes a common definition for fair value to be applied to existing US GAAP that requires the use of fair value measurements that establishes a framework for measuring fair value and expands disclosure of fair value measurements.

ASC Topic

820

defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Topic

820

requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:

	Level 1:	Observable inputs such as quoted market prices in active markets for identical assets or liabilities
	Level 2:	Observable market-based inputs or unobservable inputs that are corroborated by market data
	Level 3:	Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions.

The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. We had

financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. We had

financial assets or liabilities carried and measured on a recurring basis during the reporting periods. The carrying value of short-term financial instruments, including cash and cash equivalents, tenant and notes receivable, accounts payable and accrued expenses, and short-term borrowings approximate fair value due to the relatively short period to maturity for these instruments. The long-term borrowings approximate fair value since the related rates of interest approximates current market rates.

Derivatives, Policy [Policy Text Block]

Derivative Liabilities

We evaluate stock options, stock warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under the relevant sections of ASC Topic

815

40,

Derivative Instruments and Hedging: Contracts in Entity's Own Equity. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative instrument and is marked-to-market at each consolidated balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or other expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Financial instruments that are initially classified as equity that become subject to reclassification under ASC Topic

815

are reclassified to a liability account at the fair value of the instrument on the reclassification date. We determined that

none

of our financial instruments meet the criteria for derivative accounting as of

September 30, 2020

and

2019.

Lessee, Leases [Policy Text Block]

Operating leases

Effective

October 1, 2019,

we adopted Topic

842

using the effective date method. Under this method, periods prior to adoption remain unchanged. We determine if an arrangement is a lease at inception.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Variable lease payments are

not

included in the calculation of the right-of-use asset and lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. As most of our leases do

not

provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our lease terms

may

include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Under the available practical expedient, we account for the lease and non-lease components as a single lease component for all classes of underlying assets as both a lessee and lessor. Further, we elected a short-term lease exception policy on all classes of underlying assets, permitting us to

not

apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of

months or less).

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Long-Lived Assets

Our long-lived assets consisted of property, plant and equipment and are reviewed for impairment in accordance with the guidance of the Topic ASC Topic

360,

Property, Plant, and Equipment. We test for impairment losses on long-lived assets used in operations whenever events or changes in circumstances indicate that the carrying amount of the asset

may

not

be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management's estimates on asset useful lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial positions. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and

third

-party independent appraisals, as considered necessary. There were

impairment losses recognized for the years ended

September 30, 2020

and

2019.

Property, Plant and Equipment, Policy [Policy Text Block]

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment begins in the month following the month when the asset is placed into service and is provided using the straight-line method for financial reporting purposes at rates based on the estimated useful lives of the assets. Estimated useful lives range from

three

twenty

years. Property, plant and equipment consist of:

	September 30, 2020			September 30, 2019

Buildings and improvements	$	7,608,087		$	7,221,600
Computer equipment		349,576			349,576
Furniture and equipment		2,764			2,764
Total		7,960,427			7,573,940
Accumulated depreciation		(448,006	)		(1,152	)
Property, plant and equipment, net	$	7,512,421		$	7,572,788

Depreciation expense for the years ended

September 30, 2020

and

2019

amounted to

$446,854

and

$1,152,

respectively.

Commissions Expense, Policy [Policy Text Block]

Equity Instruments Issued to Non-Employees for Acquiring Goods or Services

Effective

October 1, 2019,

the Compnay adopted ASU

2018

07,

Compensation – “Stock Compensation (Topic

718

): Improvements to Nonemployee Share-based Payment Accounting”, which addresses aspects of the accounting for nonemployee share-based payment transactions. Upon adoption, all of the issuances of stock to non-employees for goods and services are treated in the same matter as share based awards to employees. The adoption did

not

have an impact on the Company's financial statements.

Business Combinations and Other Purchase of Business Transactions, Policy [Policy Text Block]

Non-Cash Equity Transactions

Shares of equity instruments issued for noncash consideration are recorded at the estimated fair market value of the consideration granted based on the estimated fair market value of the equity instrument, or at the estimated fair market value of the goods or services received, whichever is more readily determinable.

Stock-Based Compensation

The Company accounts for share-based awards to employees in accordance with ASC Topic

718,

Stock Compensation Under this guidance, stock compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the estimated service period (generally the vesting period) on the straight-line attribute method. Effective

October 1, 2019,

the Company adopted ASU

2018

07,

Compensation – “Stock Compensation (Topic

718

): Improvements to Nonemployee Share-based Payment Accounting”, which addresses aspects of the accounting for nonemployee share-based payment transactions.

Collaborative Arrangement, Accounting Policy [Policy Text Block]

Related Parties

A party is considered to be related to us if the party directly or indirectly or through

one

or more intermediaries, controls, is controlled by, or is under common control with us. Related parties also include our principal owners, our management, members of the immediate families of our principal owners and our management and other parties with which we

may

deal if

one

party controls or can significantly influence the management or operating policies of the other to an extent that

one

of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties, or if it has an ownership interest in

one

of the transacting parties and can significantly influence the other to an extent that

one

or more of the transacting parties might be prevented from fully pursuing its own separate interests, is also a related party.

Revenue [Policy Text Block]

Revenue Recognition

Effective

October 1, 2018,

we adopted ASU

2014

09,

Revenue from Contracts with Customers (Topic

606

). Under the new standard, we recognize revenues when the following criteria are met: (i) persuasive evidence of a contract with a customer exists, (ii) identifiable performance obligations under the contract exist, (iii) the transaction price is determinable for each performance obligation, (iv) the transaction price is allocated to each performance obligation, and (v) when the performance obligations are satisfied. Currently, we derive all of our revenues from property leases. Property leases are

not

within the scope of ASC

606.

Property lease revenue is earned through annual leases for facilities used in agricultural/manufacturing activities and the Company records revenues on a straight-line basis over the term of these leases. Property lease revenues from these sources are recurring on an annual basis. Unearned property lease revenues were

at both

September 30, 2020

and

2019.

The Company also receives a revenue participation fee which is considered a variable payment and thus is recorded in the period earned in accordance with ASC

842.

Advertising Cost [Policy Text Block]

Advertising Expense

Advertising, promotional and selling expenses consist of sales and marketing expenses, and promotional activity expenses. Expenses are recognized when incurred.

Selling, General and Administrative Expenses, Policy [Policy Text Block]

General and Administrative Expense

General and administrative expenses consist of professional service fees, rent and utility expenses, meals, travel and entertainment expenses, and other general and administrative overhead costs. Expenses are recognized when incurred.

Earnings Per Share, Policy [Policy Text Block]

Loss per Share

We compute net loss per share in accordance with the ASC Topic

260.

The ASC specifies the computation, presentation and disclosure requirements for loss per share for entities with publicly held common stock.

Basic loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Shares issuable upon the exercise of equity instruments such as warrants and options were

not

included in the loss per share calculations for

2020

and

2019

because the inclusion would have been anti-dilutive.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Pronouncements

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

) ("ASU

2016

02"

), which provides guidance requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for substantially all leases, with the exception of short-term leases. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the statement of income. The Company adopted Topic

842

effective

October 1, 2019

and elected the package of transition practical expedients for expired or existing contracts, which does

not

require reassessment of: (

) whether any of the Company's contracts are or contain leases, (

) lease classification and (

) initial direct costs. In

July 2018,

the FASB issued ASU

No.

2018

11,

"Targeted Improvements - Leases (Topic

842

)." The Company did

not

elect the hindsight practical expedient. This update provides an optional transition method that allows entities to elect to apply the standard using the modified retrospective approach at its effective date, versus recasting the prior years presented. If this adoption method is elected, an entity would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. The Company elected this adoption method on

October 1, 2019

and the adoption did

not

result in any cumulative impact to retained earnings.

Additionally, the Company's adoption of Topic

842

did

not

have a significant impact on the recognition, measurement or presentation of lease revenue and lease expenses within the consolidated statements of operations or the consolidated statements of cash flows. The Company's adoption of Topic

842

did

not

have a material impact on the timing or amount of the Company's lease revenue as a lessor in its sublease agreement. The Company's prepaid land lease balance that was recorded in current and other assets in the Company's

September 30, 2019

balance sheet has been classified as a component of the Company's right-of-use assets effective

October 1, 2019.

The consolidated financial statements for the year ended

September 30, 2020

are presented under the new standard, while comparative years presented are

not

adjusted and continue to be reported in accordance with the Company's historical accounting policy. See Note

10,

Commitments and Contingencies, for more information.

Recently Issued Accounting Pronouncements

August

2020,

the FASB issued ASU

No.

2020

06,

“Debt—Debt with Conversion and Other Options (Subtopic

470

) and Derivatives and Hedging— Contracts in Entity's Own Equity (Subtopic

815

).” The objective of this update is to simplify the accounting for convertible preferred stock by removing the existing guidance in ASC

470

20,

“Debt: Debt with Conversion and Other Options,”, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. The guidance in ASC

470

applies to convertible instruments for which the embedded conversion features are

not

required to be bifurcated from the host contract and accounted for as derivatives. In addition, the amendments revise the scope exception from derivative accounting in ASC

815

for freestanding financial instruments and embedded features that are both indexed to the issuer's own stock and classified in stockholders' equity, by removing certain criteria required for equity classification. These amendments are expected to result in more freestanding financial instruments qualifying for equity classification (and, therefore,

not

accounted for as derivatives), as well as fewer embedded features requiring separate accounting from the host contract. This amendment also further revises the guidance in ASU

260,

“Earnings per Share,” to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument

may

be settled in cash or shares. The amendments in ASU

2020

are effective for fiscal years beginning after

December

15,

2023,

with early adoption permitted. The Company is currently evaluating the timing of adoption and impact of the updated guidance on its financial statements.

December 2019,

the FASB issued ASU

2019

“Income Taxes (Topic

740

): Simplifying the Accounting for Income Taxes.” This guidance removes certain exceptions to the general principles in Topic

740

and provides consistent application of U.S. GAAP by clarifying and amending existing guidance. The effective date of the new guidance for public companies is for fiscal years beginning after

December

15,

2020

and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the timing of adoption and impact of the updated guidance on its financial statements.