Related Party Transactions

6 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 9 – RELATED PARTY TRANSACTIONS

Services provided by related parties

The Company uses affiliate employees for various services such as the use of accountants to record the books and accounts of the Company at no charge to the Company, which are considered immaterial.

Office space from related parties

The Company uses office space of affiliate companies, free of rent, which is considered immaterial.

Revenue from related party and cost of revenue from related party

The Company’s general support services operate under a GSA with TCM providing personnel and technical support, marketing, accounting, risk monitoring, documentation processing and customer care and support. The minimum monthly amount received is $1,600,000.

The Company’s general support services operate under a GSA with FXDIRECT receiving personnel and technical support, marketing, accounting, risk monitoring, documentation processing and customer care and support. The minimum monthly amount payable is $1,575,000.

Both of the above entities are affiliates through common ownership.

During the three and six months ended March 31, 2022 and 2021, general support services provided to the related party, which was recorded as revenue – general support services - related party on the accompanying unaudited condensed consolidated statements of operations and comprehensive (loss) income were as follows:

	Three Months Ended March 31, 2022		Three Months Ended March 31, 2021		Six Months Ended March 31, 2022		Six Months Ended March 31, 2021
Service provided to:
TCM	$	4,800,000	$	4,800,000	$	9,600,000	$	9,600,000
	$	4,800,000	$	4,800,000	$	9,600,000	$	9,600,000

During the three and six months ended March 31, 2022 and 2021, services received from the related party, which was recorded as cost of revenue – general support services - related party on the accompanying unaudited condensed consolidated statements of operations and comprehensive (loss) income were as follows:

	Three Months Ended March 31, 2022		Three Months Ended March 31, 2021		Six Months Ended March 31, 2022		Six Months Ended March 31, 2021
Service received from:
FXDIRECT	$	4,725,000	$	4,725,000	$	9,450,000	$	9,450,000
	$	4,725,000	$	4,725,000	$	9,450,000	$	9,450,000

Due from affiliates

At March 31, 2022 and September 30, 2021, due from related parties consisted of the following:

	March 31, 2022		September 30, 2021
NUKK Capital (*)	$	-	$	144,696
TCM		1,479,413		2,473,177
Total	$	1,479,413	$	2,617,873

(*) An entity controlled by Emil Assentato, the Company’s chief executive officer, chief financial officer and chairman.

The balance of due from NUKK Capital represent the Company’s prior investment in digital currency that was transferred to NUKK Capital in March 2019. The balance of due from TCM represent unsettled funds due related to the General Services Agreement and monies that the Company paid on behalf of TCM.

Management believes that the related parties’ receivables are fully collectable. Therefore, no allowance for doubtful account is deemed to be required on its due from related parties at March 31, 2022 and September 30, 2021. The Company historically has not experienced uncollectible receivable from the related parties.

Due to affiliates

At March 31, 2022 and September 30, 2021, due to related parties consisted of the following:

	March 31, 2022		September 30, 2021
Forexware LLC (*)	$	924,229	$	579,229
FXDIRECT		2,772,606		3,341,893
CMH		42,000		42,000
FXDD Trading (*)		287,519		294,670
Total	$	4,026,354	$	4,257,792

(*) Forexware LLC and FXDD Trading are both controlled by Emil Assentato, the Company’s chief executive officer, chief financial officer and chairman.

The balances of due to related parties represent expenses paid by Forexware LLC, FXDIRECT, and FXDD Trading on behalf of the Company and advances from CMH. The balance due to FXDIRECT may also include unsettled funds due related to the General Service Agreement.

The related parties’ payables are short-term in nature, non-interest bearing, unsecured and repayable on demand.