Related Party Transactions with Initial Shareholder Group

12 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Note 7 - Related Party Transactions with Initial Shareholder Group

Consulting fees payable to officers and shareholder

During the years ended September 30, 2017 and 2016, the Company incurred $279,850 and $92,155 of consulting fees which are payable to two officers and to two shareholders of the Company. Consulting fees payable to these officers and shareholder at September 30, 2017 and 2016 were $112,315 and $99,865, respectively.  

During the year ended September 30, 2017 the Company made cash payments against the balances due of $13,400 and converted an additional $254,500 by issuances of an aggregate of 70,000,000 shares of common stock to the officers.

The fair value of the shares based on the closing prices for the Company’s common stock on the dates the issuances were approved by the Board of Directors amounted to $6,482,000. The Company has recorded additional stock based compensation of $6,252,500 as a result of the stock issuances.

Payable to shareholder

During the year ended September 30, 2015, a shareholder paid for certain professional fees incurred by Company which totaled $49,110. Payable to the shareholder totaled $67,860 and $74,110 at September 30, 2017 and 2016, respectively.

Short-term loan payable to officer

During the years ended September 30, 2017 and 2016, an officer advanced the Company $3,820 (net of $2,000 repayment) and $27,253, respectively. The payable to the officer totaled $56,974 and $53,154 at September 30, 2017 and 2016 respectively.