0001493152-16-009370.txt : 20160504 0001493152-16-009370.hdr.sgml : 20160504 20160504061937 ACCESSION NUMBER: 0001493152-16-009370 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 61 CONFORMED PERIOD OF REPORT: 20150630 FILED AS OF DATE: 20160504 DATE AS OF CHANGE: 20160504 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Kibush Capital Corp CENTRAL INDEX KEY: 0001614466 STANDARD INDUSTRIAL CLASSIFICATION: MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400] IRS NUMBER: 571218088 STATE OF INCORPORATION: NV FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-55256 FILM NUMBER: 161617334 BUSINESS ADDRESS: STREET 1: 5635 N. SCOTTSDALE ROAD STREET 2: SUITE 130 CITY: SCOTTSDALE STATE: AZ ZIP: 85250 BUSINESS PHONE: 516-887-8200 MAIL ADDRESS: STREET 1: 5635 N. SCOTTSDALE ROAD STREET 2: SUITE 130 CITY: SCOTTSDALE STATE: AZ ZIP: 85250 10-Q/A 1 form10-qa.htm FORM 10-Q

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q/A

Amendment No. 3

 

[X] QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2015
   
OR
   
[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number 000-55256

 

Kibush Capital Corp.

(Exact Name of Small Business Issuer as specified in its charter)

 

Nevada

(State or other Jurisdiction of Incorporation or Organization)

 

c/o McGee Law Firm, LLC

5635 N. Scottsdale Road, Ste 170

Scottsdale, Arizona 85250

(Address of principal executive offices)

 

+(61) 398464288

(Issuer’s telephone number, including area code)

 

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 last 90 days. YES [  ] NO [X] *the issuer has been subject to the filing requirements for less than 30 days.

 

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 (SS 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 [X] 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 if the Exchange Act.

 

Large Accelerated Filer [  ]   Accelerated Filer [  ]
Non-accelerated Filer (Do not check if smaller reporting company) [  ]   Smaller Reporting Company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES [  ] NO [X]

 

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 August 17, 2015, there were 77,399,187 shares of the registrant’s common stock outstanding.

 

 

 

 
 

 

EXPLANATORY NOTE:

 

Kibush Capital Corp, together with its consolidated subsidiaries, is filing this amendment (the “Amendment” or “Form 10-Q/A” to its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015, which was originally filed with the Securities and Exchange Commission (“SEC”) on August 20, 2015 (the “Original Form 10-Q”).  The purpose of this Amendment No. 3 to Form 10-Q/A is to correct an error in our balance sheet for the year ended 2014, update Item 4 regarding controls and procedures and  make related disclosures.

 

This Form 10-Q/A restates the Original Form 10-Q in its entirety. It includes both items that have been changed as a result of the amended disclosures and items that are unchanged from the Original Form 10-Q. Other than the revisions of the disclosures as discussed above and expressly set forth herein, the Form 10-Q/A speaks as of the original filing date of the Form 10-Q and has not been updated to reflect other events occurring subsequent to the original filing date.

 

 -2-
 

 

CAUTIONARY NOTE REGARDING EXPLORATION STAGE STATUS

 

We are considered an “exploration stage” company under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7, Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations (“Industry Guide 7”), because we do not have reserves as defined under Industry Guide 7. Reserves are defined in Guide 7 as that part of a mineral deposit which can be economically and legally extracted or produced at the time of the reserve determination. The establishment of reserves under Guide 7 requires, among other things, certain spacing of exploratory drill holes to establish the required continuity of mineralization and the completion of a detailed cost or feasibility study.

 

Because we have no reserves as defined in Industry Guide 7, we have not exited the exploration stage and continue to report our financial information as an exploration stage entity as required under Generally Accepted Accounting Principles (“GAAP”). Although for purposes of FASB Accounting Standards Codification Topic 915, Development Stage Entities, we have exited the development stage and no longer report inception to date results of operations, cash flows and other financial information, we will remain an exploration stage company under Industry Guide 7 until such time as we demonstrate reserves in accordance with the criteria in Industry Guide 7.

 

Because we have no reserves, we have and will continue to expense all mine construction costs, even though these expenditures are expected to have a future economic benefit in excess of one year. We also expense our reclamation and remediation costs at the time the obligation is incurred. Companies that have reserves and have exited the exploration stage typically capitalize these costs, and subsequently amortize them on a units-of-production basis as reserves are mined, with the resulting depletion charge allocated to inventory, and then to cost of sales as the inventory is sold. As a result of these and other differences, our financial statements will not be comparable to the financial statements of mining companies that have established reserves and have exited the exploration stage.

 

FORWARD LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q, Financial Statements and Notes to Financial Statements contains forward-looking statements that discuss, among other things, future expectations and projections regarding future developments, operations and financial conditions. All forward-looking statements are based on management’s existing beliefs about present and future events outside of management’s control and on assumptions that may prove to be incorrect. If any underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or intended.

 

 -3-
 

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

June 30, 2015

C O N T E N T S

 

Condensed Consolidated Balance Sheets 5
Condensed Consolidated Statements of Operations 6
Condensed Consolidated Statements of Cash Flows 7
Condensed Consolidated Statement of Stockholders’ Deficit 8
Notes to Condensed Consolidated Financial Statements 9

 

 -4-
 

 

INTERIM CONSOLIDATED BALANCE SHEETS

 

   June 30, 2015   September 30, 2014 
ASSETS          
Current assets:          
Cash  $5,763    110,152 
Prepaid expenses and other current assets   -    6,035 
Total current assets   5,763    116,187 
           
Property and equipment, net   51,131    79,594 
Investment in unconsolidated Joint Venture/Mining Rights        40,000 
Other assets   20,119    499 
Deposits Paid   10,494    - 
Goodwill on Consolidation   14,000    - 
Total assets  $101,507   $236,280 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
Current liabilities:          
Accounts payable  $12,234    2,957 
Accrued expenses   249,143    354,685 
Promissory notes payable   21,185      
Convertible notes payable, net of discounts of $80,434 and $3,099, respectively   182,166    108,292 
Loan from related party   629,269    446,799 
Derivative liabilities   514,139    752,997 
Deposits   155,300    80,000 
Shares to be Issued - Five Arrows   36,378      
Bank Overdraft   -      
Total current liabilities   1,799,813    1,745,730 
           
Stockholders’ deficit:          

Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively

   3,000    3,000 

Common stock, $0.001 par value; 500,000,000 shares authorized at June 30, 2015 and September 30, 2014, respectively; 77,399,187 and 53,837,485 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively

   77,399    53,837 
Additional paid-in capital   9,151,960    8,494,962 
Accumulated deficit   (10,876,028)   (10,225,051)
Accumulated other comprehensive income   -    55,022 
Total stockholders’ deficit, including non-controlling interest   (1,643,688)   (1,618,230)
Non-Controlling interest   (54,638)   108,780 
Total stockholders’ deficit   (1,698,306)   (1,509,450)
Total liabilities and stockholders’ deficit  $101,507   $236,280 

 

 -5-
 

 

CONSOLIDATED STATEMENT OF OPERATIONS

 

   Quarter ended   Quarter ended   9 months ended   9 months ended 
   June 30, 2015   June 30, 2014   June 30, 2015   June 30, 2014 
Net revenues  $-   $-   $-   $5,571 
Cost of sales   -    -    -    - 
Gross profit   -    -    -    5,571 
                     
Operating expenses:                    
Research and development   -    -    -    35,496 
General and administrative                    
General and administrative   644,589    150,951    1,091,094    513,779 
Total operating expenses   644,589    150,951    1,091,094    549,275 
Loss from operations   (644,589)   (150,951)   (1,091,094)   (543,704)
                     
Other income (expense):                    
Interest income   -    -    -    11 
Interest expense   (60,197)   (120,880)   (359,416)   (280,763)
Other income   -    -    -    - 
Change in fair value of derivative liabilities   205,457    -    215,911    - 
Total other expense, net   145,260    (120,880)   (143,505)   (280,752)
Loss before provision for income taxes   (499,329)   (271,831)   (1,234,600)   (824,456)
Provision for income taxes   -    -    -    - 
Net loss from operations   (499,329)   (271,831)   (1,234,600)   (824,456)
Less: Loss attributable to non-controlling interest   16,772    4,684    54,638    4,684 
Net loss attributable to Holding Company  $(482,557)  $(267,147)  $(1,179,962)  $(819,772)
                     
Basic and diluted loss per common share  $(0.01)  $(0.01)  $(0.03)  $(0.02)
Weighted average common shares outstanding                    
basic and diluted   36,026,011    36,026,011    36,026,011    36,026,011 

 

 -6-
 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

   9 months ended   9 months ended 
   June 30, 2015   June 30, 2014 
Operating Activities:          
Net loss  $(1,179,992)  $(795,812)
           
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
Depreciation and amortization   3,017    12,219 
Amortization of debt discount   319,266    120,421 
Interest expense related to fair value of derivative instruments granted        - 
Change in fair value of derivative instruments   (215,911)   - 
Stock based payments        - 
Changes in operating assets and liabilities:          
Prepaid expenses and other assets   6,035    - 
Others asset   499    - 
Accounts payable   9,277    - 
Accrued expenses   75,000    259,509 
Accrued interest   (38,287)   - 
Deposits   75,300    - 
Net cash used in operating activities   (945,766)   (403,663)
           
Investing Activities:          
Goodwill on Consolidation   14,000      
Purchase of property and equipment   41,455    - 
Net cash used in investing activities   55,455    - 
Financing Activities:          
Proceeds from issuance of convertible debt, net of debt discounts   -    - 
Repayment of loan from related party   -    - 
Proceeds from related party loans, net of debt discounts   829,435    402,849 
Effective of exchange rates on cash   64,136      
Net cash provided by financing activities   893,571    402,849 
Net change in cash   3,261    (814)
Cash, beginning of year   2,502    1,035 
Cash, end of year  $5,763   $221 

 

 -7-
 

 

KIBUSH CAPITAL CORPORATION

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

for the period SEPTEMBER 30, 2014 and JUNE 30, 2015

 

   Common Stock   Preferred Stock   Paid In   Non
Controlling
    Accumulated    Accumulated Other
Comprehensive
    Stockholders’ 
   Shares   Amount   Shares   Amount   Capital   Interest   Deficit   Income   Deficit 
                                     
Balance at September 30, 2014   53,837,485    53,837    3,000,000    3,000    8,494,962    108,780    -10,225,051    55,022    -1,509,450 
                                              
Discount on convertible promissory note                                             
                                              
Repayment of convertible loans @ 0.001 per share of common stock   2,560,000    2,560                                  2,560 
                                              
Repayment of convertible loans @ 0.001 per share of common stock   2,000,000    2,000                                  2,000 
                                              
Repayment of convertible loans @ 0.001 per share of common stock   2,000,000    2,000                                  2,000 
                                              
Common Stock issued – Warren Sheppard   3,001,702    3,002              696,998                   700,000 
                                              
Common Stock issued – Five Arrows   14,000,000    14,000                                  14,000 
                                              
Prior Period adjustment – Investment in Aqua Mining                       (40,000)                  (40,000)
                                              
 Prior Period adjustment                            3    529,486    (55,022)   474,467 
                                              
Sold subsidiary consolidated reversals                            (108,780)             (108,780)
Adjustment of sold subsidiary                                 (501)        (501)
Exchange rate variation                                             
Net loss                            (54,640)   (1,179,962)        (1,234,602)
                                              
Balance at June 30, 2015   77,399,187    77,399    3,000,000    3,000    9,151,960    -54,638    -10,876,028    -    -1,698,306 

 

 -8-
 

 

Notes to Condensed Consolidated Financial Statements

 

NOTE 1 – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2015, and for all periods presented herein, have been made.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Form 10 for the year ended September 30, 2014. The results of operations for the three-month period ended June 30, 2015 are not necessarily indicative of the operating results for the full year.

 

Basis of Presentation

 

The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

 

The consolidated financial statements of the Company include the accounts of the Company, and all entities in which a direct or indirect controlling interest exists through voting rights or qualifying variable interests. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

 

Change in Fiscal Year End

 

The Board of Directors of the Company approved on September 14, 2014, a change in the Company’s fiscal year end from December 31 to September 30 of each year.

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As at September 30, 2014, the Company has an accumulated deficit of $10,225,051 and $10,907,840 as of June 30, 2015 and has not earned sufficient revenues to cover operating costs since inception and has a working capital deficit. The Company intends to fund its mining exploration through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year.

 

The ability of the Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue mining exploration and execution of its business plan. While management intends to raise additional funds through public or private placement offerings, the Company might not be successful in its efforts to raise capital.

 

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern, as expressed by our auditor in its audit opinion for the year ended September 30, 2015. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Functional and Reporting Currency

 

The consolidated financial statements are presented in U.S. Dollars. The Company’s functional currency is the U.S. Dollar. The functional currency of Angel Jade is the Australian dollar. The functional currency of Aqua Mining is the Papua New Guinea Kina. Assets and liabilities are translated using the exchange rate on the respective balance sheet dates. Items in the income statement and cash flow statement are translated into U.S. Dollars using the average rates of exchange for the periods involved. The resulting translation adjustments are recorded as a separate component of other comprehensive income/(loss) within stockholders’ equity.

 

The functional currency of foreign entities is generally the local currency unless the primary economic environment requires the use of another currency. Gains or losses arising from the translation or settlement of foreign-currency-denominated monetary assets and liabilities into the functional currency are recognized in the income in the period in which they arise. However, currency differences on intercompany loans that have the nature of a permanent investment are accounted for as translation differences as a separate component of other comprehensive income/(loss) within stockholders’ equity.

 

 -9-
 

  

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

A summary of the principal accounting policies are set out below:

 

Cash

 

The Company maintains its cash balances in interest and non-interest bearing accounts which do not exceed Federal Deposit Insurance Corporation limits.

 

Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of Kibush Capital, Angel Jade and Aqua Mining. All intercompany accounts and transactions have been eliminated.

 

Other Comprehensive Income and Foreign Currency Translation

 

FASB ASC 220-10-05, Comprehensive Income, establishes standards for the reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distribution to owners.

 

The accompanying consolidated financial statements are presented in United States dollars.

 

Reclassifications

 

Reclassifications have been made to prior year consolidated financial statements in order to conform the presentation to the statements as of and for the period ended September 30, 2014.

 

Use of Estimates

 

The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires management to make certain 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. Significant estimates made by management are, recoverability of long-lived assets, valuation and useful lives of intangible assets, valuation of derivative liabilities, and valuation of common stock, options, warrants and deferred tax assets. Actual results could differ from those estimates.

 

Non-Controlling Interests

 

Investments in associated companies over which the Company has the ability to exercise significant influence are accounted for under the consolidation method, after appropriate adjustments for intercompany profits and dividends.

 

In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations.” It requires an acquirer to recognize, at the acquisition date, the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their full fair values as of that date. In a business combination achieved in stages (step acquisitions), the acquirer will be required to re-measure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in earnings. The acquisition-related transaction and restructuring costs will no longer be included as part of the capitalized cost of the acquired entity but will be required to be accounted for separately in accordance with applicable generally accepted accounting principles. U.S. SFAS No. 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.

 

A non-controlling interest in a subsidiary is an ownership interest in a consolidated entity that is reported as equity in the consolidated financial statements and separate from the Company’s equity. In addition, net income/(loss) attributable to non-controlling interests is reported separately from net income attributable to the Company in the consolidated financial statements. The Company’s consolidated statements present the full amount of assets, liabilities, income and expenses of all of our consolidated subsidiaries, with a partially offsetting amount shown in non-controlling interests for the portion of these assets and liabilities that are not controlled by us.

 

For our investments in affiliated entities that are included in the consolidation, the excess cost over underlying fair value of net assets is referred to as goodwill and reported separately as “Goodwill” in our accompanying consolidated balance sheets. Goodwill may only arise where consideration has been paid.

 

 -10-
 

  

Property and Equipment

 

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over estimated useful lives as follows:

 

Plant equipment   2 to 15 years
Computer and software   1 to 2 years
Office equipment   3 to 10 years
Building improvements   20 years

 

Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected in the consolidated statement of operations.

 

Impairment of Long-Lived Assets

 

In accordance with FASB ASC 360-10-5, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company evaluates the carrying value of its long-lived assets for impairment whenever events or changes in circumstances indicate that such carrying values may not be recoverable. The Company uses its best judgment based on the current facts and circumstances relating to its business when determining whether any significant impairment factors exist. The Company considers the following factors or conditions, among others, that could indicate the need for an impairment review:

 

  Significant under performance relative to expected historical or projected future operating results;
     
  Significant changes in its strategic business objectives and utilization of the assets;
     
  Significant negative industry or economic trends, including legal factors;

 

If the Company determines that the carrying values of long-lived assets may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company’s management performs an undiscounted cash flow analysis to determine if impairment exists. If impairment exists, the Company measures the impairment based on the difference between the asset’s carrying amount and its fair value, and the impairment is charged to operations in the period in which the long-lived asset impairment is determined by management.

 

The carrying value of the Company’s investment in Joint Venture contract with leaseholders of certain Mining Leases in Papua New Guinea represents its ownership, accounted for under the equity method. The ownership interest is not adjusted to fair value on a recurring basis. Each reporting period the Company assesses the fair value of the Company’s ownership interest in Joint Venture in accordance with FASB ASC 325-20-35. Each year the Company conducts an impairment analysis in accordance with the provisions within FASB ASC 320-10-35 paragraphs 25 through 32.

 

Fair Value of Financial Instruments

 

The carrying amounts of the Company’s cash, accounts payable and accrued expenses approximate their estimated fair values due to the short-term maturities of those financial instruments. The Company believes the carrying amount of its notes payable approximates its fair value based on rates and other terms currently available to the Company for similar debt instruments

 

Beneficial Conversion Features of Debentures

 

In accordance with FASB ASC 470-20, Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios, we recognize the advantageous value of conversion rights attached to convertible debt. Such rights give the debt holder the ability to convert debt into common stock at a price per share that is less than the trading price to the public on the day the loan is made to us. The beneficial value is calculated as the intrinsic value (the market price of the stock at the commitment date in excess of the conversion rate) of the beneficial conversion feature of debentures and related accruing interest is recorded as a discount to the related debt and an addition to additional paid in capital. The discount is amortized over the remaining outstanding period of related debt using the interest method.

 

Derivative Financial Instruments

 

We apply the provisions of FASB ASC 815-10, Derivatives and Hedging (“ASC 815-10”). Derivatives within the scope of ASC 815-10 must be recorded on the balance sheet at fair value. During the year ended September 30, 2014, the Company issued convertible debt and recorded derivative liabilities related to a reset provision associated with the embedded conversion feature of the convertible debt. The Company computed the fair value of these derivative liabilities on the grant date and various measurement dates using the Black-Scholes pricing model. Due to the reset provisions within the embedded conversion feature, the Company determined that the Black-Scholes pricing model was the most appropriate for valuing these instruments.

 

 -11-
 

 

In applying the Black-Scholes valuation model, the Company used the following assumptions during the year ended September 30, 2014:

 

    For the year ended 
    September 30, 2014 
Annual dividend yield   - 
Expected life (years)   0.50 — 1.00 
Risk-free interest rate   0.03% — 0.13%
Expected volatility   210.12.% — 400.48%

 

The inputs used to measure fair value fall in different levels of the fair value hierarchy, a financial security’s hierarchy level is based upon the lowest level of input that is significant to the fair value measurement.

 

The Company determines the fair value of its derivative instruments using a three-level hierarchy for fair value measurements which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair-value hierarchy:

 

Level 1 — Valuation based on unadjusted quoted market prices in active markets for identical securities. Currently, the Company does not have any items as Level 1.

 

Level 2 — Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. Currently, the Company does not have any items classified as Level 2.

 

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. The Company used the Black-Scholes option pricing models to determine the fair value of the instruments.

 

The following table presents the Company’s embedded conversion features of its convertible debt measured at fair value on a recurring basis as of September 30, 2014 and as of June 30, 2015:

 

   Carry Value at   Carry Value at 
   June 30, 2015   September 30, 2014   September 30, 2013 
             
Derivative liabilities:               
Embedded conversion features - notes  $514,139   $752,997   $- 
              - 
Total derivative liability  $514,139   $752,997   $- 

 

       For the year ended 
   June 30, 2015   September 30, 2014   September 30, 2013 
Change in fair value included in other income (expense), net   99,587    -92,382   $- 

 

 -12-
 

 

The following table provides a reconciliation of the beginning and ending balances for the Company’s derivative liabilities measured at fair value using Level 3 inputs:

 

      For the year ended 
   For the year ended   September 30, 
   June 30, 2015   2014   2013 
Embedded Conversion               
Features - Notes:               
Balance at beginning of year  $673,788   $-   $- 
Change in derivative liabilities  $(259,506)  $845,379      
Net change in fair value included in net loss   99,857    -92,382    - 
Ending balance  $514,139   $752,997   $- 

 

The Company re-measures the fair values of all of its derivative liabilities as of each period end and records the net aggregate gain/loss due to the change in the fair value of the derivative liabilities as a component of other expense, net in the accompanying consolidated statement of operations. During the years ended September 30, 2014 and 2013, the Company recorded a net increase (decrease) to the fair value of derivative liabilities balance of $(92,382) and $0, respectively.

 

Loss per Share

 

The Company applies FASB ASC 260, “Earnings per Share.” Basic earnings (loss) per share is computed by dividing earnings (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive.

 

Income Taxes

 

Income taxes are accounted for in accordance with ASC Topic 740, “Income Taxes.” Under the asset and liability method, deferred tax assets and liabilities are recognized for the future consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for deferred tax assets are established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

Mineral Property, Mineral Rights (Claims) Payments and Exploration Costs

 

Pursuant to EITF 04-02, “Whether Mineral Rights are Tangible or Intangible Assets and Related Issues”, the Company has an accounting policy to capitalize the direct costs to acquire or lease mineral properties and mineral rights as tangible assets. The direct costs include the costs of signature (lease) bonuses, options to purchase or lease properties, and brokers’ and legal fees. If the acquired mineral rights relate to unproven properties, the Company does not amortize the capitalized mineral costs, but evaluates the capitalized mineral costs periodically for impairment. The Company expenses all costs related to the exploration of mineral claims in which it had secured exploration rights prior to establishment of proven and probable reserves.

 

Accounting Treatment of Mining Interests

 

At this time, the Company does not directly own or directly lease mining properties. However, the Company does have contractual rights and governmental permits which allow the Company to conduct mining exploration on such properties. These contractual relationships, coupled with the government permits issued to the Company (or a subsidiary), are substantially similar in nature to a mining lease. Therefore, we have treated these contracts as lease agreements for accounting purposes.

 

Research and Development

 

Research and development costs are recognized as an expense in the period in which they are incurred. The Company incurred research and development costs expensed for the year ended September 30, 2014 and 2013 of $0 and $31,408, respectively. Research and development costs included market research for the supply and distribution of Australian Single Malt Whiskey in the United States, research into South Africa diamond tailing dumps and research into gold mining exploration in Papua New Guinea.

 

 -13-
 

 

Recent Accounting Pronouncements

 

New accounting standards

 

Development State Entities. In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-10 – Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”). The amendments in this update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. For other entities, the amendments are effective for annual reporting periods beginning after December 15, 2014, and interim reporting periods beginning after December 15, 2015.

 

Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.

 

The Company has early adopted ASU 2014-10 commencing with its financial statements for the year ended September 30, 2014 and subsequent periods.

 

Accounting standards to be adopted in future periods

 

In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance for accounting for revenue from contracts with customers. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services.

 

To achieve that core principle, an entity would be required to apply the following five steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted.

 

Entities will have the option to apply the final standard retrospectively or use a modified retrospective method, recognizing the cumulative effect of the ASU in retained earnings at the date of initial application. An entity will not restate prior periods if it uses the modified retrospective method, but will be required to disclose the amount by which each financial statement line item is affected in the current reporting period by the application of the ASU as compared to the guidance in effect prior to the change, as well as reasons for significant changes. The Company will adopt the updated standard in the first quarter of 2017. The Company is currently evaluating the impact that implementing this ASU will have on its financial statements and disclosures, as well as whether it will use the retrospective or modified retrospective method of adoption.

 

Recognition of Revenue

 

Revenue is realized from product sales. Recognition occurs upon shipment to customers, and where the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Additional revenue from royalties is recognized when persuasive evidence of an arrangement exits; the amount due is fixed or determinable; and collectability is reasonably assured.

 

Company management do not believe that the adoption of recently issued accounting pronouncements will have a significant impact on the Company’s financial position, results of operations, or cash flows.

 

 -14-
 

  

NOTE 3 – MINERAL RIGHTS

 

The Company owns interests in the following entities which was recorded at our direct cost measured at fair market value to acquire our interest in these properties.

 

   Investment    Ownership % 
         
Aqua Mining (PNG)   34    90%
Angel Jade Pty Ltd   104,000    70%

 

NOTE 4 – PROPERTY AND EQUIPMENT

 

      September 30, 
   June 30, 2015   2014   2013 
             
Building and Improvements  $-   $70,665   $- 
Plant Equipment   3,724    19,133    - 
Computer Equipment   -    6,274    3,990 
Office Equipment   -    504    - 
Motor Vehicle   50,424    -    - 
    54,148    96,576    3,990 
Less accumulated depreciation   -3,017    -16,982    -3,990 
   $51,131   $79,594   $- 

 

Depreciation expense was approximately $12,992 and $3,990 for the years ended September 30, 2014 and 2013 respectively and $3,017 for the year ended June 30, 2015.

 

 -15-
 

 

NOTE 5 – CONVERTIBLE NOTES PAYABLE

 

    June 30, 2015 
    Note Face Amount   Debt Discount   Net Amount of Note 
              
2011 Note   $22,166   $-   $22,166 
2012 Note    48,000    -    48,000 
2013 Note    12,000    -    12,000 
2014 Note    100,000    -    100,000 
Total   $182,166   $-   $182,166 

 

    September 30, 2014 
    Note Face Amount   Debt Discount   Net Amount of Note 
2011 Note   $28,726   $-   $28,726 
2012 Note    48,000    -    48,000 
2013 Note    12,000    -    12,000 
2014 Note    100,000   -80,434    19,566 
Total   $188,726   $-80,434  $108,292 

 

2011 Note

 

On May 1, 2011, the Company issued a 2.00% Convertible Note due April 30, 2012 with a principal amount of $32,000 (the “2011 Note”) for cash. Interest on the 2011 Note is accrued annually effective from May 1, 2011 forward. The 2011 Note is unsecured and repayable on demand. The 2011 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

 

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of September 30, 2014 and September 30, 2013 is $28,726 and $32,000 respectively. As of September 30, 2014 and September 30, 2013, the note has been discounted by $0. The face amount of the outstanding note as of June 30, 2015 is $22,166. As of June 30, 2015, the note has been discounted by $0.

 

2012 Note

 

On January 2, 2012, the Company issued a 2.00% Convertible Note due January 1, 2013 with a principal amount of $48,000 (the “2012 Note”) for cash. Interest on the 2012 Note is accrued annually effective from January 2, 2012 forward. The 2012 Note is unsecured and repayable on demand. The 2012 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

 

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2015 is $48,000 respectively. As of June 30, 2015, the note has been discounted by $0.

 

2013 Note

 

On January 3, 2013, the Company issued a 2.00% Convertible Note due January 2, 2014 with a principal amount of $12,000 (the “2013 Note”) for cash. Interest on the 2013 Note is accrued annually effective from January 3, 2013 forward. The 2013 Note is unsecured and repayable on demand. The 2013 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

 

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2015 is $12,000. As of June 30, 2015 the note has been discounted by $0.

 

 -16-
 

 

2014 Note

 

On August 25, 2014, the Company issued two 12.00% Convertible Promissory Note due February 25, 2015 with a principal amount of $50,000 each (the “2014 Note”) for cash. Interest on the 2014 Note is accrued annually effective from August 25, 2014 forward. The 2014 Note is unsecured.

 

The notes are convertible at a conversion price the lesser of (a) $0.25 per share, or (b) the price per share as reported on the Over-the-Counter Bulletin Board on the conversion date. The Note Holders also received Warrants to purchase an aggregate of 800,000 shares of our common stock at an initial exercise price of $0.25 per share. Each of the Warrants has a term of five (5) years.

 

The embedded conversion feature of the 2014 Notes and Warrants were recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the 2014 Notes. The fair value on the grant date of the embedded conversion feature of the convertible debt was $145,362 as computed using the Black-Scholes option pricing model.

 

The Company established a debt discount of $100,000, representing the value of the embedded conversion feature inherent in the convertible debt and warrant, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2014, the Company recorded amortization of the debt discount of $19,566. The balance of the debt discount was $80,434 at September 30, 2014. For the year ended June 30, 2015, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $15,465 at June 30, 2015.

 

NOTE 6 – LOAN FROM RELATED PARTY

 

Convertible Notes Issued to the President and Director of Kibush Capital Corporation:

 

   September 30, 2014 
   Note face amount   Debt Discount   Net amount of note 
             
Loan from related party  $366,816   $(259,937)  $106,879 
Total  $366,816   $(259,937)  $106,879 

 

On March 31, 2014, the Company issued a 12.50% Convertible Promissory Note due March 31, 2015 with a principal amount of $157,500 (the “March 2014 Note”) for cash. Interest on the March 2014 Note is accrued annually effective from March 31, 2014 forward. The March 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

 

The embedded conversion feature of the March 2014 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the March 2014 Notes. The fair value on the grant date of the embedded conversion feature of the convertible debt was $305,039 as computed using the Black-Scholes option pricing model.

 

The Company established a debt discount of $157,500, representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2014, the Company recorded amortization of the debt discount of $78,966. The balance of the debt discount was $78,534 at September 30, 2014. As of June 30, 2015, the balance of the debt discount was $0.

 

On June 30, 2014, the Company issued a 12.50% Convertible Promissory Note due June 30, 2015 with a principal amount of $110,741 (the “June 2014 Note”) for cash. Interest on the June 2014 Note is accrued annually effective from June 30, 2014 forward. The June 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

 

The embedded conversion feature of the June 2014 Note was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the June 2014 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $213,207 as computed using the Black-Scholes option pricing model.

 

 -17-
 

 

The Company established a debt discount of $110,741 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2014, the Company recorded amortization of the debt discount of $27,913. The balance of the debt discount was $82,828 at September 30, 2014. As of June 30, 2015, the balance of the debt discount was $0.

 

On September 30, 2014, the Company issued a 12.50% Convertible Promissory Note due September 30, 2015 with a principal amount of $98,575 (the “September 2014 Note”) for cash. Interest on the September 2014 Note is accrued annually effective from September 30, 2014 forward. The September 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

 

The embedded conversion feature of the September 2014 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the September 2014 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $181,771 as computed using the Black-Scholes option pricing model.

 

The Company established a debt discount of $98,575 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2014, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $98,575 at September 30, 2014. As of June 30, 2015, the balance of the debt discount was $15,465.

 

As of September 30, 2014 and 2013, cumulative interest of $96,579 and $0 respectively, has been accrued on these notes.

 

The Company established a debt discount of $61,273 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the quarter ended June 30, 2015, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $15,465 at June 30, 2015.

 

NOTE 7 – STOCKHOLDER’S DEFICIT

 

Common Stock

 

On August 22, 2013, the Company’s Board authorized a 225:1 reverse stock split. All share and per share data in the accompanying financial statements and footnotes has been adjusted retrospectively for the effects of the stock split.

 

On October 12, 2013, the Company issued by directors resolution, 10,000,000 shares of newly issued common stock for the purchase of a Memorandum of Understanding (dated September 2, 2013) from a related company (Five Arrows Limited); which gave Kibush Capital Corporation the right to acquire 80% ownership in Instacash Pty Ltd, an Australian Currency Services provider, and corporate trustee of the Instacash Trust. As this transaction was with a related party, the value was recorded at the par value of the stock i.e. $0.001 per share of common stock.

 

Between October 23, 2013 and September 30, 2014, the Company issued a total of 3,274,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $3,274 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

 

On February 28, 2014, the Company issued by director’s resolution, 40,000,000 shares of newly issued common stock to conclude a Assignment and Bill of Sale (dated February 14, 2014) from a related company (Five Arrows Limited); which gave Kibush Capital Corporation the right to enter into a Joint Venture contract with the leaseholders of certain Mining Leases in Papua New Guinea. As this transaction was with a related party, the value was recorded at par value of the stock i.e. $0.001 per share of common stock.

 

Between November 1, 2014 and March 31, 2015, the Company issued a total of 4,560,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $3,274 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

 

 -18-
 

 

Preferred Stock

 

Preferred stock includes 50,000,000 shares authorized at $0.001 par value, of which 10,000,000 have been designated Series A. 3,000,000 Series A are issued and outstanding as of September 30, 2014 and June 30, 2015.

 

NOTE 8 – RELATED PARTY TRANSACTIONS

 

Details of transactions between the Corporation and related parties are disclosed below.

 

The following transactions were carried out with related parties:

 

   June 30, 2015   September 30, 2014   September 30, 2013 
             
Loan from related party - unsecured loan (a)  $629,269   $339,920   $- 
Convertible loans (b)   182,166    366,816    - 
Loan from related party  $811,435   $706,736   $- 

 

(a) From time to time, the president and stockholder of the Company provides advances to the Company for its working capital purposes. These advances bear no interest and are due on demand.

 

(b) See Note 6 for details of Convertible notes.

 

(c) On April 29, 2015, the Company issued 3,001,702 shares of its common stock to Warren Sheppard (previously authorized by for issuance by the company on December 10, 2014) pursuant to his employment agreement.

 

(d) Between April 1, 2015 and June 24, 2015, the Company issued a total of 4,000,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $4,000 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

 

NOTE 9 – BUSINESS COMBINATIONS

 

Set out below are the controlled and non-controlled members of the group as of June 30, 2015, which, in the opinion of the directors, are material to the group. The subsidiaries as listed below have share capital consisting solely of ordinary shares, which are held directly by the Company; the country of incorporation is also their principal place of business.

 

Name of Entity  Country of
Incorporation
  Acquisition Date  Voting Equity Interests   Nature of Relationship 
               
Aqua Mining (PNG) Ltd  Papua New Guinea  28-Feb-2014   90%   Note 1 
                 
Angel Jade Pty Ltd  Australia  10-Dec 2014   70%   Note 2 

 

Note 1: On February 14, 2014, the Company entered into an Assignment and Bill of Sale with Five Arrows Limited (“Five Arrows”) pursuant to which Five Arrows agreed to assign to the Company all of its right, title and interest in two 50 ton per hour trammels, one 35 ton excavator, a warehouse/office, a concrete processing apron and four 35 ton per hour particle concentrators for use in our mining exploration. In consideration, the Company issued 40,000,000 shares of its common stock to Five Arrows. On February 28, 2014, the Company entered into a joint venture agreement with the holders of alluvial gold mining leases (“Leaseholders”) of Mining Leases covering approximately 26 hectares located at Koranga in Wau, Morobe Province, Papua, New Guinea for gold mining exploration (“Joint Venture Agreement”). The Joint Venture Agreement entitles the leaseholders to 30% and the Company to 70% of net profits from the joint venture. The Company will manage and carry out mining exploration at the site, including entering into contracts with third parties and subcontractors (giving priority to the Leaseholders and their relatives and the local community for employment opportunities and spin-off business) at its cost, and all assets, including equipment and structures built on the site, will be the property of the Company. The Leaseholders and the Company will each contribute 1% from their share of net profits to a trust account for landowner and government requirements.

 

Note 2: On December 10, 2014, the Company entered into an Assignment and Bill of Sale with Five Arrows Limited, a related party, pursuant to which Five Arrows agreed to assign to the Company all of its right, title and interest in 90,000,000 shares in Angel Jade Pty Ltd. In consideration, the Company issued 14,000,000 shares of its common stock to Five Arrows.

 

The Company owns 70% of the ordinary shares of Angel Jade Pty Ltd, an Australian company. The assets of Angel Jade are comprised of Exploration License 8104, the area covered is 35 km SE of Tamworth, 300 sq. km in size, 250 km from the port of Newcastle, NSW and accessible by sealed road. Nephrite jade occurs in the New England Fold Belt, which extends from northeast New South Wales into southeast Queensland. The target mineral in this tenement is jade, but we will also explore for rhodonite.

 

NOTE 10 – SUBSEQUENT EVENTS

 

On July 27, 2015, we recently received a 5-year extension for our Mining Lease of ML 296-301 from the Mining Resource Authority in Papua New Guinea. ML 296-301 is part of the Koranga Joint Venture and is controlled by our subsidiary Aqua Mining.

 

 -19-
 

 

NOTE 11 – RESTATEMENT OF SEPTEMBER 30, 2014 BALANCE SHEET

 

In the Company’s 10-K for the period ended September 30, 2015, the Company indicated that it restated its September 30, 2014 financial statements contained in the Form 10 after reevaluating its interpretation of ASC 805-50-30-5 regarding the carrying cost of an asset in a related party transaction. This caused the Company to restate its balance sheet for the year ended September 30, 2014. The Company reached the determination to restate the 2014 financial statements following the receipt of a comment letter dated December 22, 2015 from Securities and Exchange Commission stating concerns on the above issue. We have restated all prior reports containing 2014-year end data.

 

The following summarizes the effects of restatement: 

 

Consolidated Balance Sheet
September 30, 2014

 

    Previously              
    Reported     Adjustment     Restated  
ASSETS                        
CURRENT ASSETS                        
Cash   $ 110,152             $ 110,152  
Prepaid expenses     6,035               6,035  
TOTAL CURRENT ASSETS   $ 116,187             $ 116,187  
Property and equipment, net     79,594               79,594  
Investment in unconsolidated Joint Venture/Mining Rights     8,000,000       (7,960,000 )     40,000  
OTHER ASSETS     499               499  
Deposits Paid     499               499  
Goodwill     0                  
TOTAL CURRENT ASSETS AND TOTAL ASSETS     8,196,280       (7,960,000 )     236,280  
                         
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)                        
CURRENT LIABILITIES:                        
Accounts Payable     2,957               2,957  
Accrued Expenses     354,685               354,685  
Promissory Notes Payable                        
Convertible notes payable, net of discounts of $80,434     108,292               108,292  
Loans from Related Parties     446,799               446,799  
Derivative Liabilities     752,997               752,997  
Deposits     80,000               80,000  
Shares to be Issued - Five Arrows                        
TOTAL CURRENT LIABILITIES   $ 1,745,730               1,745,730  
TOTAL CURRENT LIABILITIES   $ 1,745,730               1,745,730  
                         
STOCKHOLDERS’ EQUITY (DEFICIENCY)                        
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at September 30, 2014.   $ 3,000             $ 3,000  
Common stock, $0.001 par value; 500,000,000 shares authorized and 53,837,485 shares issued and outstanding at September 30, 2014.     53,837               53,837  
Additional paid-in capital     16,454,962       (7,960,000 )     8,494,962  
Accumulated deficit     (10,225,051 )             (10,225,051 )
Accumulated other comprehensive income     55,022               55,022  
Total stockholders’ deficit, including non-controlling interest   $ (6,341,770 )     7,960,000     $ 1,618,230
Non-Controlling interest   $ 108,780             $ 108,780  
Total stockholders’ deficit     (6,450,550 )     7,960,000       1,509,450  
Total liabilities and stockholders’ deficit     8,196,280       (7,960,000 )     236,280  

 

  -20- 
 

 

In addition to the restatement set forth above, the Company has corrected an error that appears in our June 30, 2015 Form 10-Q/A filed March 24, 2016. The $40,000 attributable to “Investment in unconsolidated Joint Venture/Mining Rights” as of September 30, 2014 was inadvertently deleted from the balance sheet for the above referenced period. This Amendment corrects that error and is consistent with the audited balance sheet for the year ended September 30, 2014. This error did not appear in any other periods and does not impact any other periodic or annual reports of the Company. Correction of the error had the following effects on the Company’s balance sheet presented in its Form 10-Q/A for the period ended June 30, 2015:

 

Consolidated Balance Sheet

 

   June 30, 2015   September 30, 2014
(per 6/30/15 10-Q/A filed on 3/24/16)
   Adjustment   September 30, 2014
(as corrected and restated)
 
ASSETS                    
CURRENT ASSETS                    
Cash  $5,763   $110,152        $110,152 
Prepaid expenses   0    6,035         6,035 
TOTAL CURRENT ASSETS  $5,763   $116,187        $116,187 
Property and equipment, net   51,131    79,594         79,594 
Investment in unconsolidated Joint Venture/Mining Rights   0    0    40,000    40,000 
OTHER ASSETS   20119    499         499 
Deposits Paid   10494                
Goodwill   14000    0         0 
TOTAL CURRENT ASSETS AND TOTAL ASSETS   101,507    196,280    40,000    236,280 
                     
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)                    
CURRENT LIABILITIES:                    
Accounts Payable   12,234    2,957         2,957 
Accrued Expenses   249,143    354,685         354,685 
Promissory Notes Payable   21185                
Convertible notes payable, net of discounts of $80,434   182,166    108,292         108,292 
Loans from Related Parties   629,269    446,799         446,799 
Derivative Liabilities   514,139    752,997         752,997 
Deposits   155,300    80,000         80,000 
Shares to be Issued - Five Arrows   36,378                
TOTAL CURRENT LIABILITIES  $1,799,813   $1,745,730         1,745,730 
TOTAL CURRENT LIABILITIES  $1,799,813   $1,745,730         1,745,730 
                     
STOCKHOLDERS’ EQUITY (DEFICIENCY)                    
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at September 30, 2014.  $3,000   $3,000        $3,000 
Common stock, $0.001 par value; 500,000,000 shares authorized and 53,837,485 shares issued and outstanding at September 30, 2014.   77,399    53,837         53,837 
Additional paid-in capital   9,151,960    8,494,962    40,000    8,534,962 
Accumulated deficit   -10,876,028    -10,225,051         -10,225,051 
Accumulated other comprehensive income   0    55,022         55,022 
Total stockholders’ deficit, including non-controlling interest  $-1,643,669   $-1,658,230    -40,000   $-1,618,230 
Non-Controlling interest  $-54,638   $108,780        $108,780 
TOTAL STOCKHOLDERS’ DEFICIT   -1,698,306    -1,549,450    -40,000    -1,509,450 
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT   101,507    196,280    40,000    236,280 

 

 -21-
 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

 

Cautionary Notice Regarding Forward Looking Statements

 

The information contained in Item 2 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

 

This filing contains a number of forward-looking statements which reflect management’s current views and expectations with respect to our business, strategies, products, future results and events, and financial performance. All statements made in this filing other than statements of historical fact, including statements addressing operating performance, events, or developments which management expects or anticipates will or may occur in the future, including statements related to distributor channels, volume growth, revenues, profitability, new products, adequacy of funds from operations, statements expressing general optimism about future operating results, and non-historical information, are forward looking statements. In particular, the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “may,” variations of such words, and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements, and their absence does not mean that the statement is not forward-looking. These forward-looking statements are subject to certain risks and uncertainties, including those discussed below. Our actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated, or implied by these forward-looking statements. We do not undertake any obligation to revise these forward-looking statements to reflect any future events or circumstances.

 

Readers should not place undue reliance on these forward-looking statements, which are based on management’s current expectations and projections about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below), and apply only as of the date of this filing. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, the risks to be discussed in our Annual Report on Form 10-K and in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

Overview

 

Kibush Capital Corp. (the “Company”, “We”, or “Us”) is an exploration stage company as defined by the Security and Exchange Commission’s (“SEC”) Industry Guide 7 as the Company has no established reserves as required under the Industry Guide 7. The Company is undertaking mineral exploration activities in Australia and Papua New Guinea. Our business is currently comprised two subsidiaries Aqua Mining and Angel Jade. Our Aqua Mining subsidiary is active in mineral exploration in Papua New Guinea were we are primarily targeting gold exploration. Our Angel Jade subsidiary is active in mineral exploration in New South Wales, Australia where we are primarily targeting jade exploration. In addition, on June 12, 2015, the Company agreed to takeover management of Paradise Gardens (PNG) Ltd., a timber logging and processing company in Papua New Guinea, as discussed further in Part II, Item 5.

 

Plan of Operations

 

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

 

Presently, the Company does not have sufficient funds, without additional equity or debt financing to support operations for the next fiscal year. There is presently no commitment to provide any further funding to the Company. Given our current lack of liquidity and difficulty in obtaining debt from traditional banking sources, we will focus future fund raising on the sale of our equity securities. There can be no assurance that we will be successful at raising additional capital and without additional capital, we will not be able to expand operations and reach long term profitability.

 

 -22-
 

  

Results of Operations

 

Three Months Ended June 30, 2015 Compared to Three Months Ended June 30, 2014

 

During the three months ended June 30, 2015, we recognized no revenue. Likewise, we recognized no revenue during the three months ended June 30, 2014. Our ability to generate income in the future will greatly depend on the success of our mineral exploration activities.

 

We had a net loss for the three months ended June 30, 2015, of $482,557 and a net loss of $267,147 for the three months ended June 30, 2014. The loss for the quarter ended June 30, 2015 was more than the loss which occurred during the same quarter in 2014, primarily due to increases in our general and administrative expenses for the quarter ended June 30, 2015.

 

We will need additional capital to expand operations and anticipate seeking both debt and equity capital in 2015. Additionally, as our exploration activities are in their infancy and since such activity may be speculative in nature, it is difficult to predict our ability to generate sufficient revenue to generate positive cash flows. Currently our biggest expenses are related to general and administrative costs are Wages for Personnel. We anticipate these expenses will remaining constant during 2015; however, that could change based upon market conditions.

 

Nine Months Ended June 30, 2015 Compared to Nine Months Ended June 30, 2014

 

During the nine months ended June 30, 2015, we recognized no revenues. We recognized $5,571 in revenue during the nine months ended June 30, 2014. Our income associated with the nine months ended June 30, 2014 is attributable to our former subsidiary Instacash which was sold by the Company on February 28, 2015. The Company is exclusively focused on mining exploration. As such, our ability to generate income in the future will greatly depend on the success of our mineral exploration activities.

 

We had a net loss for the nine months ended June 30, 2015, of $1,179,962 and a net loss of $819,772 for the nine months ended June 30, 2014. Our loss for the nine months ended June 30, 2015 was more than our loss which occurred during the same period in 2014, primarily due to costs associated with the Site Surveys and Testing at Koranga have been completed in 2014, no further testing work was required to lodge the 296-301 Application.

 

Liquidity and Capital Resources

 

As of June 30, 2015, the Company had only $5,763 cash or cash equivalents on hand, total current assets of $5,763, and current liabilities of $1,799,813 resulting in a working capital deficit of $1,794,050. As of September 30, 2014, the Company had total current assets of $116,187 and total current liabilities of $1,745,730 resulting in a working capital deficit of $1,629,543. The decrease in working capital arose mainly due to a decrease in of $110,424 in cash and other current assets. The Company intends to fund its exploration through the sale of its equity securities. However, there can be no assurance that the Company will be successful doing so. We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources. We currently believe that the Company will need approximately $2,000,000 over the next 12 months to cover our planned mining exploration.

 

Factors Affecting Future Mineral Exploration Results

 

We have generated no revenues from mining exploration, since inception. As a result, we have only a limited history upon which to evaluate our future potential performance. Our potential must be considered by evaluation of all risks and difficulties encountered by exploration companies which have not yet established business operations and anticipated results and situations of entering active exploration activities.

 

The price of gold and silver has experienced an increase in value over the past five years. Beginning in April 2013, the price of gold and silver has experienced a downward swing. A significant permanent drop in the price of gold, silver or other precious metals may have a materially adverse effect on the future results of potential exploration activities of the Company. The costs associated with the recovery of precious metals may also cause a material adverse effect on the financial success of the Company.

 

 -23-
 

  

Off-Balance Sheet Arrangements

 

We had no Off-Balance Sheet arrangements during the quarter ended June 30, 2015.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

Our Principal Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the period covered by this Report. Based on that evaluation, it was concluded that our disclosure controls and procedures are not effective to provide reasonable assurance that information we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

We do not have an Audit Committee; our board of directors currently acts as our Audit Committee. We do not have an independent director and our sole director is not considered a “Financial Expert,” within the meaning of Section 407 of the Sarbanes-Oxley Act.

 

Changes in internal controls over financial reporting

 

There were no changes in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

 

Limitations on Effectiveness of Controls and Procedures

 

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS.

 

None.

 

ITEM 1A. RISK FACTORS.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES.

 

On April 29, 2015, the Company issued 3,001,702 shares of its common stock to Warren Sheppard (previously authorized by for issuance by the company on December 10, 2014) pursuant to his employment agreement.

 

Between April 1, 2015 and June 24, 2015, the Company issued a total of 4,000,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $4,000 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES.

 

None.

 

ITEM 5. OTHER INFORMATION.

 

On June 12, 2015, the Company entered into a Management Agreement to undertake the Day to Day Operations of Paradise Gardens (PNG) Ltd., a Timber Logging and Processing company in Port Moresby PNG (“Paradise Gardens”). See Exhibit 10.1 to this Form 10-Q. The Management Agreement was entered into in contemplation of the completion of a Share Sale Agreement whereby the Company would acquire a 90% interest in Paradise Gardens. The Management Agreement allows the Company manage the timber logging operations of Paradise Gardens until the Share Sale Agreement can be completed. A Share Sale Agreement has not yet been consummated by the parties. The Management Agreement may be terminated by either party, but remains in effect at this time. Should the Company enter in to a Share Sale Agreement with Paradise Gardens, it will report the transaction on Form 8-K.

 

 -24-
 

 

ITEM 6. EXHIBITS.

 

The following documents are included herein:

 

Exhibit       Incorporated by reference   Filed
Number   Document Description   Form   Date   Number   herewith
3.1   Articles of Incorporation   10/A   08/05/15   3.1    
                     
3.2   Certificate of Amendment dated 2/4/2005   10/A   08/05/15   3.2    
                     
3.3   Articles of Merger   10/A   08/05/15   3.3    
                     
3.4   Certificate of Amendment dated 8/22/2013   10/A   08/05/15   3.4    
                     
3.5   Amended and Restated Articles dated 7/7/2010   10/A   08/05/15   3.5    
                     
3.6   Certificate of Amendment dated 8/22/2013   10/A   08/05/15   3.6    
                     
3.7   By-laws   10/A   08/05/15   3.7    
                     
4.1   Certificate of Designation dated 4/19/2011   10/A   08/05/15   4.1    
                     
10.1  

Management Agreement for Paradise Gardens (PNG)

 

              X
21   List of Subsidiaries   10/A   08/05/15   21    
                     
31.1   Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002               X
                     
32.1   Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the Chief Executive Officer               X
                     
101.INS   XBRL Instance Document               X
                     
101.DEF   XBRL Taxonomy Extension – Definitions               X
                     
101.LAB   XBRL Taxonomy Extension – Labels               X
                     
101.PRE   XBRL Taxonomy Extension – Presentation               X

 

 -25-
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities on this 4th day of May, 2016.

 

  KIBUSH CAPITAL CORP.
     
  BY: /s/ WARREN SHEPPARD
    Warren Sheppard
    President, Chief Executive Officer,
Chief Financial and Director

 

 -26-
 

  

EX-31.1 2 ex31-1.htm EXHIBIT 31.1

 

EXHIBIT 31.1

 

CERTIFICATION

 

I, Warren Sheppard, certify that:

 

1. I have reviewed this report on Form 10-Q of Kibush Capital Corp.

 

2. Based on my knowledge, this 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 report;

 

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

 

4. The registrant’s other certifying officer(s) and I are 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; and

 

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 officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, 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 control over financial reporting.

 

Date: May 4, 2016   /s/ Warren Sheppard
    Warren Sheppard
    Chief Executive Officers, Principal Accounting Officer, Director

 

 
 
EX-32.1 3 ex32-1.htm EXHIBIT 32.1

 

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Kibush Capital Corp. (the “Company”) on Form 10-Q for the period ending June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Warren Sheppard, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §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 result of operations of the Company.

 

IN WITNESS WHEREOF, the undersigned has executed this certification as of the 4th day of May, 2016.

 

/s/ Warren Sheppard  
Warren Sheppard  
President, Chief Executive Officer & Chief Financial Officer  

 

 
 
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Accounting Treatment of Mining Interests [Policy Text Block] Convertible Loans One [Member] Convertible Loans Two [Member] Convertible Loans Three [Member] President And Director [Member] Adjustments To Additional Paid In Capital Discount On Convertible Promissory Note. Five Arrows Limited [Member] Per 06/30/2015 10-Q/A [Member] Schedule of Restatement of Balance Sheet[Table Text Block] Gross Profit General and Administrative Expense Operating Expenses Interest Expense, Other Other Nonoperating Income (Expense) Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest Income Tax Expense (Benefit) Net Income (Loss), Including Portion Attributable to Noncontrolling Interest Net Income (Loss) Attributable to Noncontrolling Interest Increase (Decrease) in Prepaid Expense and Other Assets Increase (Decrease) in Other Current Assets Increase (Decrease) in Accounts Payable Increase (Decrease) in Accrued Liabilities Increase (Decrease) in Deposits Net Cash Provided by (Used in) Operating Activities Goodwill, Period Increase (Decrease) Payments to Acquire Property, Plant, and Equipment Net Cash Provided by (Used in) Investing Activities Repayments of Related Party Debt Net Cash Provided by (Used in) Financing Activities Cash and Cash Equivalents, Period Increase (Decrease) Cash and Cash Equivalents, at Carrying Value Shares, Outstanding RepaymentOfConvertibleLoans0.001PerShareOfCommonStockOne StockIssuedDuringPeriodSharesConversionOfConvertibleSecuritiesOne StockIssuedDuringPeriodValueConversionOfConvertibleSecuritiesTwo StockIssuedDuringPeriodSharesConversionOfConvertibleSecuritiesTwo Cash and Cash Equivalents, Policy [Policy Text Block] Property, Plant and Equipment, Policy [Policy Text Block] Property, Plant and Equipment [Table Text Block] Schedule of Related Party Transactions [Table Text Block] Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment Debt Instrument, Fair Value Disclosure Due to Related Parties, Noncurrent Deposits [Default Label] EX-101.PRE 9 dlcr-20150630_pre.xml XBRL PRESENTATION FILE XML 10 R1.htm IDEA: XBRL DOCUMENT v3.4.0.3
Document and Entity Information - shares
9 Months Ended
Jun. 30, 2015
Aug. 17, 2015
Document And Entity Information    
Entity Registrant Name Kibush Capital Corp  
Entity Central Index Key 0001614466  
Document Type 10-Q/A  
Document Period End Date Jun. 30, 2015  
Amendment Flag true  
Amendment Description Kibush Capital Corp, together with its consolidated subsidiaries, is filing this amendment (the “Amendment” or “Form 10-Q/A” to its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015, which was originally filed with the Securities and Exchange Commission (“SEC”) on August 20, 2015 (the “Original Form 10-Q”). The purpose of this Amendment No. 3 to Form 10-Q/A is to correct an error in our balance sheet for the year ended 2014, update Item 4 regarding controls and procedures and make related disclosures. This Form 10-Q/A restates the Original Form 10-Q in its entirety. It includes both items that have been changed as a result of the amended disclosures and items that are unchanged from the Original Form 10-Q. Other than the revisions of the disclosures as discussed above and expressly set forth herein, the Form 10-Q/A speaks as of the original filing date of the Form 10-Q and has not been updated to reflect other events occurring subsequent to the original filing date.  
Current Fiscal Year End Date --09-30  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   77,399,187
Trading Symbol DLCR  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2015  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.4.0.3
Interim Consolidated Balance Sheets - USD ($)
Jun. 30, 2015
Sep. 30, 2014
Current assets:    
Cash $ 5,763 $ 110,152
Prepaid expenses and other current assets 6,035
Total current assets $ 5,763 116,187
Property and equipment, net $ 51,131 79,594
Investment in unconsolidated Joint Venture/Mining Rights 40,000
Other assets $ 20,119 $ 499
Deposits Paid 10,494
Goodwill on Consolidation 14,000
Total assets 101,507 $ 236,280
Current liabilities:    
Accounts payable 12,234 2,957
Accrued expenses 249,143 $ 354,685
Promissory notes payable 21,185
Convertible notes payable, net of discounts of $80,434 and $3,099, respectively 182,166 $ 108,292
Loan from related party 629,269 446,799
Derivative liabilities 514,139 752,997
Deposits 155,300 $ 80,000
Shares to be Issued - Five Arrows $ 36,378
Bank Overdraft
Total current liabilities $ 1,799,813 $ 1,745,730
Stockholders' deficit:    
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively 3,000 3,000
Common stock, $0.001 par value; 500,000,000 shares authorized at June 30, 2015 and September 30, 2014, respectively; 77,399,187 and 53,837,485 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively 77,399 53,837
Additional paid-in capital 9,151,960 8,494,962
Accumulated deficit $ (10,876,028) (10,225,051)
Accumulated other comprehensive income 55,022
Total stockholders' deficit, including non-controlling interest $ (1,643,688) (1,618,230)
Non-Controlling interest (54,638) 108,780
Total stockholders' deficit (1,698,306) (1,509,450)
Total liabilities and stockholders' deficit $ 101,507 $ 236,280
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.4.0.3
Interim Consolidated Balance Sheets (Parenthetical) - USD ($)
Jun. 30, 2015
Sep. 30, 2014
Statement of Financial Position [Abstract]    
Convertible notes payable, net of discounts $ 80,434 $ 3,099
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 50,000,000 50,000,000
Series A Preferred Stock, shares issued 3,000,000 3,000,000
Series A Preferred Stock, shares outstanding 3,000,000 3,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 500,000,000 500,000,000
Common stock, shares issued 77,399,187 53,837,485
Common stock, shares outstanding 77,399,187 53,837,485
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.4.0.3
Consolidated Statement of Operations - USD ($)
3 Months Ended 9 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Statement [Abstract]        
Net revenues $ 5,571
Cost of sales
Gross profit $ 5,571
Operating expenses:        
Research and development 35,496
General and administrative        
General and administrative $ 644,589 $ 150,951 $ 1,091,094 513,779
Total operating expenses 644,589 150,951 1,091,094 549,275
Loss from operations $ (644,589) $ (150,951) $ (1,091,094) (543,704)
Other income (expense):        
Interest income 11
Interest expense $ (60,197) $ (120,880) $ (359,416) $ (280,763)
Other income
Change in fair value of derivative liabilities $ 205,457 $ 215,911
Total other expense, net 145,260 $ (120,880) (143,505) $ (280,752)
Loss before provision for income taxes $ (499,329) $ (271,831) $ (1,234,600) $ (824,456)
Provision for income taxes
Net loss from operations $ (499,329) $ (271,831) $ (1,234,600) $ (824,456)
Less: Loss attributable to non-controlling interest 16,772 4,684 54,638 4,684
Net loss attributable to Holding Company $ (482,557) $ (267,147) $ (1,179,962) $ (819,772)
Basic and diluted loss per common share $ (0.01) $ (0.01) $ (0.03) $ (0.02)
Weighted average common shares outstanding basic and diluted 36,026,011 36,026,011 36,026,011 36,026,011
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.4.0.3
Consolidated Statement of Cash Flows - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Sep. 30, 2014
Operating Activities:          
Net loss $ (482,557) $ (267,147) $ (1,179,962) $ (819,772)  
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
Depreciation and amortization     3,017 12,219  
Amortization of debt discount     $ 319,266 $ 120,421  
Interest expense related to fair value of derivative instruments granted      
Change in fair value of derivative instruments (205,457) $ (215,911)  
Stock based payments      
Changes in operating assets and liabilities:          
Prepaid expenses and other assets     $ 6,035  
Others asset     499  
Accounts payable     9,277  
Accrued expenses     75,000 $ 259,509  
Accrued interest     (38,287)  
Deposits     75,300  
Net cash used in operating activities     (945,766) $ (403,663)  
Investing Activities:          
Goodwill on Consolidation     14,000    
Purchase of property and equipment     41,455  
Net cash used in investing activities     $ 55,455  
Financing Activities:          
Proceeds from issuance of convertible debt, net of debt discounts      
Repayment of loan from related party      
Proceeds from related party loans, net of debt discounts     $ 829,435 $ 402,849  
Effective of exchange rates on cash     64,136  
Net cash provided by financing activities     893,571 $ 402,849  
Net change in cash     3,261 (814)  
Cash, beginning of year     2,502 1,035 $ 1,035
Cash, end of year $ 5,763 $ 221 $ 5,763 $ 221 $ 2,502
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.4.0.3
Consolidated Statement of Shareholders' Deficit - 9 months ended Jun. 30, 2015 - USD ($)
Common Stock [Member]
Preferred Stock [Member]
Paid In Capital [Member]
Non Controlling Interest [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Income [Member]
Total
Balance at Sep. 30, 2014 $ 53,837 $ 3,000 $ 8,494,962 $ 108,780 $ (10,225,051) $ 55,022 $ (1,509,450)
Balance, Shares at Sep. 30, 2014 53,837,485 3,000,000          
Repayment of convertible loans @ 0.001 per share of common stock $ 2,560           2,560
Repayment of convertible loans @ 0.001 per share of common stock, Shares 2,560,000            
Repayment of convertible loans @ 0.001 per share of common stock $ 2,000           2,000
Repayment of convertible loans @ 0.001 per share of common stock, Shares 2,000,000            
Repayment of convertible loans @ 0.001 per share of common stock $ 2,000           2,000
Repayment of convertible loans @ 0.001 per share of common stock, Shares 2,000,000            
Common Stock issued - Warren Sheppard $ 3,002   696,998       700,000
Common Stock issued - Warren Sheppard, Shares 3,001,702            
Common Stock issued - Five Arrows $ 14,000           14,000
Common Stock issued - Five Arrows, Shares 14,000,000            
Prior Period adjustment - Investment in Aqua Mining     (40,000)       (40,000)
Prior Period adjustment       3 529,486 $ (55,022) 474,467
Sold subsidiary consolidated reversals       (108,780)     (108,780)
Adjustment of sold subsidiary         (501)   (501)
Exchange rate variation             64,136
Net loss       (54,640) (1,179,962)   (1,234,600)
Balance at Jun. 30, 2015 $ 77,399 $ 3,000 $ 9,151,960 $ (54,638) $ (10,876,028) $ (1,698,306)
Balance, Shares at Jun. 30, 2015 77,399,187 3,000,000          
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.4.0.3
Consolidated Statement of Shareholders' Deficit (Parenthetical)
Jun. 30, 2015
$ / shares
Convertible Loans One [Member]  
Conversion price per share $ 0.001
Convertible Loans Two [Member]  
Conversion price per share 0.001
Convertible Loans Three [Member]  
Conversion price per share $ 0.001
XML 17 R8.htm IDEA: XBRL DOCUMENT v3.4.0.3
Condensed Consolidated Financial Statements
9 Months Ended
Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidated Financial Statements

NOTE 1 – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2015, and for all periods presented herein, have been made.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Form 10 for the year ended September 30, 2014. The results of operations for the three-month period ended June 30, 2015 are not necessarily indicative of the operating results for the full year.

 

Basis of Presentation

 

The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

 

The consolidated financial statements of the Company include the accounts of the Company, and all entities in which a direct or indirect controlling interest exists through voting rights or qualifying variable interests. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

 

Change in Fiscal Year End

 

The Board of Directors of the Company approved on September 14, 2014, a change in the Company’s fiscal year end from December 31 to September 30 of each year.

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As at September 30, 2014, the Company has an accumulated deficit of $10,225,051 and $10,907,840 as of June 30, 2015 and has not earned sufficient revenues to cover operating costs since inception and has a working capital deficit. The Company intends to fund its mining exploration through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year.

 

The ability of the Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue mining exploration and execution of its business plan. While management intends to raise additional funds through public or private placement offerings, the Company might not be successful in its efforts to raise capital.

 

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern, as expressed by our auditor in its audit opinion for the year ended September 30, 2015. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Functional and Reporting Currency

 

The consolidated financial statements are presented in U.S. Dollars. The Company’s functional currency is the U.S. Dollar. The functional currency of Angel Jade is the Australian dollar. The functional currency of Aqua Mining is the Papua New Guinea Kina. Assets and liabilities are translated using the exchange rate on the respective balance sheet dates. Items in the income statement and cash flow statement are translated into U.S. Dollars using the average rates of exchange for the periods involved. The resulting translation adjustments are recorded as a separate component of other comprehensive income/(loss) within stockholders’ equity.

 

The functional currency of foreign entities is generally the local currency unless the primary economic environment requires the use of another currency. Gains or losses arising from the translation or settlement of foreign-currency-denominated monetary assets and liabilities into the functional currency are recognized in the income in the period in which they arise. However, currency differences on intercompany loans that have the nature of a permanent investment are accounted for as translation differences as a separate component of other comprehensive income/(loss) within stockholders’ equity.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.4.0.3
Summary of Significant Accounting Policies
9 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

A summary of the principal accounting policies are set out below:

 

Cash

 

The Company maintains its cash balances in interest and non-interest bearing accounts which do not exceed Federal Deposit Insurance Corporation limits.

 

Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of Kibush Capital, Angel Jade and Aqua Mining. All intercompany accounts and transactions have been eliminated.

 

Other Comprehensive Income and Foreign Currency Translation

 

FASB ASC 220-10-05, Comprehensive Income, establishes standards for the reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distribution to owners.

 

The accompanying consolidated financial statements are presented in United States dollars.

 

Reclassifications

 

Reclassifications have been made to prior year consolidated financial statements in order to conform the presentation to the statements as of and for the period ended September 30, 2014.

 

Use of Estimates

 

The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires management to make certain 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. Significant estimates made by management are, recoverability of long-lived assets, valuation and useful lives of intangible assets, valuation of derivative liabilities, and valuation of common stock, options, warrants and deferred tax assets. Actual results could differ from those estimates.

 

Non-Controlling Interests

 

Investments in associated companies over which the Company has the ability to exercise significant influence are accounted for under the consolidation method, after appropriate adjustments for intercompany profits and dividends.

 

In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations.” It requires an acquirer to recognize, at the acquisition date, the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their full fair values as of that date. In a business combination achieved in stages (step acquisitions), the acquirer will be required to re-measure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in earnings. The acquisition-related transaction and restructuring costs will no longer be included as part of the capitalized cost of the acquired entity but will be required to be accounted for separately in accordance with applicable generally accepted accounting principles. U.S. SFAS No. 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.

 

A non-controlling interest in a subsidiary is an ownership interest in a consolidated entity that is reported as equity in the consolidated financial statements and separate from the Company’s equity. In addition, net income/(loss) attributable to non-controlling interests is reported separately from net income attributable to the Company in the consolidated financial statements. The Company’s consolidated statements present the full amount of assets, liabilities, income and expenses of all of our consolidated subsidiaries, with a partially offsetting amount shown in non-controlling interests for the portion of these assets and liabilities that are not controlled by us.

 

For our investments in affiliated entities that are included in the consolidation, the excess cost over underlying fair value of net assets is referred to as goodwill and reported separately as “Goodwill” in our accompanying consolidated balance sheets. Goodwill may only arise where consideration has been paid.

 

Property and Equipment

 

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over estimated useful lives as follows:

 

Plant equipment   2 to 15 years
Computer and software   1 to 2 years
Office equipment   3 to 10 years
Building improvements   20 years

 

Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected in the consolidated statement of operations.

 

Impairment of Long-Lived Assets

 

In accordance with FASB ASC 360-10-5, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company evaluates the carrying value of its long-lived assets for impairment whenever events or changes in circumstances indicate that such carrying values may not be recoverable. The Company uses its best judgment based on the current facts and circumstances relating to its business when determining whether any significant impairment factors exist. The Company considers the following factors or conditions, among others, that could indicate the need for an impairment review:

 

  Significant under performance relative to expected historical or projected future operating results;
     
  Significant changes in its strategic business objectives and utilization of the assets;
     
  Significant negative industry or economic trends, including legal factors;

 

If the Company determines that the carrying values of long-lived assets may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company’s management performs an undiscounted cash flow analysis to determine if impairment exists. If impairment exists, the Company measures the impairment based on the difference between the asset’s carrying amount and its fair value, and the impairment is charged to operations in the period in which the long-lived asset impairment is determined by management.

 

The carrying value of the Company’s investment in Joint Venture contract with leaseholders of certain Mining Leases in Papua New Guinea represents its ownership, accounted for under the equity method. The ownership interest is not adjusted to fair value on a recurring basis. Each reporting period the Company assesses the fair value of the Company’s ownership interest in Joint Venture in accordance with FASB ASC 325-20-35. Each year the Company conducts an impairment analysis in accordance with the provisions within FASB ASC 320-10-35 paragraphs 25 through 32.

 

Fair Value of Financial Instruments

 

The carrying amounts of the Company’s cash, accounts payable and accrued expenses approximate their estimated fair values due to the short-term maturities of those financial instruments. The Company believes the carrying amount of its notes payable approximates its fair value based on rates and other terms currently available to the Company for similar debt instruments

 

Beneficial Conversion Features of Debentures

 

In accordance with FASB ASC 470-20, Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios, we recognize the advantageous value of conversion rights attached to convertible debt. Such rights give the debt holder the ability to convert debt into common stock at a price per share that is less than the trading price to the public on the day the loan is made to us. The beneficial value is calculated as the intrinsic value (the market price of the stock at the commitment date in excess of the conversion rate) of the beneficial conversion feature of debentures and related accruing interest is recorded as a discount to the related debt and an addition to additional paid in capital. The discount is amortized over the remaining outstanding period of related debt using the interest method.

 

Derivative Financial Instruments

 

We apply the provisions of FASB ASC 815-10, Derivatives and Hedging (“ASC 815-10”). Derivatives within the scope of ASC 815-10 must be recorded on the balance sheet at fair value. During the year ended September 30, 2014, the Company issued convertible debt and recorded derivative liabilities related to a reset provision associated with the embedded conversion feature of the convertible debt. The Company computed the fair value of these derivative liabilities on the grant date and various measurement dates using the Black-Scholes pricing model. Due to the reset provisions within the embedded conversion feature, the Company determined that the Black-Scholes pricing model was the most appropriate for valuing these instruments.

 

In applying the Black-Scholes valuation model, the Company used the following assumptions during the year ended September 30, 2014:

 

      For the year ended  
      September 30, 2014  
Annual dividend yield     -  
Expected life (years)     0.50 — 1.00  
Risk-free interest rate     0.03% — 0.13 %
Expected volatility     210.12.% — 400.48 %

 

The inputs used to measure fair value fall in different levels of the fair value hierarchy, a financial security’s hierarchy level is based upon the lowest level of input that is significant to the fair value measurement.

 

The Company determines the fair value of its derivative instruments using a three-level hierarchy for fair value measurements which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair-value hierarchy:

 

Level 1 — Valuation based on unadjusted quoted market prices in active markets for identical securities. Currently, the Company does not have any items as Level 1.

 

Level 2 — Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. Currently, the Company does not have any items classified as Level 2.

 

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. The Company used the Black-Scholes option pricing models to determine the fair value of the instruments.

 

The following table presents the Company’s embedded conversion features of its convertible debt measured at fair value on a recurring basis as of September 30, 2014 and as of June 30, 2015:

 

    Carry Value at     Carry Value at  
    June 30, 2015     September 30, 2014     September 30, 2013  
                   
Derivative liabilities:                        
Embedded conversion features - notes   $ 514,139     $ 752,997     $ -  
                      -  
Total derivative liability   $ 514,139     $ 752,997     $ -  

 

          For the year ended  
    June 30, 2015     September 30, 2014     September 30, 2013  
Change in fair value included in other income (expense), net     99,587       -92,382     $ -  
                         

 

The following table provides a reconciliation of the beginning and ending balances for the Company’s derivative liabilities measured at fair value using Level 3 inputs:

 

          For the year ended  
    For the year ended     September 30,  
    June 30, 2015     2014     2013  
Embedded Conversion                        
Features - Notes:                        
Balance at beginning of year   $ 673,788     $ -     $ -  
Change in derivative liabilities   $ (259,506 )   $ 845,379          
Net change in fair value included in net loss     99,857       -92,382       -  
Ending balance   $ 514,139     $ 752,997     $ -  

 

The Company re-measures the fair values of all of its derivative liabilities as of each period end and records the net aggregate gain/loss due to the change in the fair value of the derivative liabilities as a component of other expense, net in the accompanying consolidated statement of operations. During the years ended September 30, 2014 and 2013, the Company recorded a net increase (decrease) to the fair value of derivative liabilities balance of $(92,382) and $0, respectively.

 

Loss per Share

 

The Company applies FASB ASC 260, “Earnings per Share.” Basic earnings (loss) per share is computed by dividing earnings (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive.

 

Income Taxes

 

Income taxes are accounted for in accordance with ASC Topic 740, “Income Taxes.” Under the asset and liability method, deferred tax assets and liabilities are recognized for the future consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for deferred tax assets are established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

Mineral Property, Mineral Rights (Claims) Payments and Exploration Costs

 

Pursuant to EITF 04-02, “Whether Mineral Rights are Tangible or Intangible Assets and Related Issues”, the Company has an accounting policy to capitalize the direct costs to acquire or lease mineral properties and mineral rights as tangible assets. The direct costs include the costs of signature (lease) bonuses, options to purchase or lease properties, and brokers’ and legal fees. If the acquired mineral rights relate to unproven properties, the Company does not amortize the capitalized mineral costs, but evaluates the capitalized mineral costs periodically for impairment. The Company expenses all costs related to the exploration of mineral claims in which it had secured exploration rights prior to establishment of proven and probable reserves.

 

Accounting Treatment of Mining Interests

 

At this time, the Company does not directly own or directly lease mining properties. However, the Company does have contractual rights and governmental permits which allow the Company to conduct mining exploration on such properties. These contractual relationships, coupled with the government permits issued to the Company (or a subsidiary), are substantially similar in nature to a mining lease. Therefore, we have treated these contracts as lease agreements for accounting purposes.

 

Research and Development

 

Research and development costs are recognized as an expense in the period in which they are incurred. The Company incurred research and development costs expensed for the year ended September 30, 2014 and 2013 of $0 and $31,408, respectively. Research and development costs included market research for the supply and distribution of Australian Single Malt Whiskey in the United States, research into South Africa diamond tailing dumps and research into gold mining exploration in Papua New Guinea.

 

Recent Accounting Pronouncements

 

New accounting standards

 

Development State Entities. In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-10 – Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”). The amendments in this update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. For other entities, the amendments are effective for annual reporting periods beginning after December 15, 2014, and interim reporting periods beginning after December 15, 2015.

 

Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.

 

The Company has early adopted ASU 2014-10 commencing with its financial statements for the year ended September 30, 2014 and subsequent periods.

 

Accounting standards to be adopted in future periods

 

In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance for accounting for revenue from contracts with customers. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services.

 

To achieve that core principle, an entity would be required to apply the following five steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted.

 

Entities will have the option to apply the final standard retrospectively or use a modified retrospective method, recognizing the cumulative effect of the ASU in retained earnings at the date of initial application. An entity will not restate prior periods if it uses the modified retrospective method, but will be required to disclose the amount by which each financial statement line item is affected in the current reporting period by the application of the ASU as compared to the guidance in effect prior to the change, as well as reasons for significant changes. The Company will adopt the updated standard in the first quarter of 2017. The Company is currently evaluating the impact that implementing this ASU will have on its financial statements and disclosures, as well as whether it will use the retrospective or modified retrospective method of adoption.

 

Recognition of Revenue

 

Revenue is realized from product sales. Recognition occurs upon shipment to customers, and where the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Additional revenue from royalties is recognized when persuasive evidence of an arrangement exits; the amount due is fixed or determinable; and collectability is reasonably assured.

 

Company management do not believe that the adoption of recently issued accounting pronouncements will have a significant impact on the Company’s financial position, results of operations, or cash flows.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.4.0.3
Mineral Rights
9 Months Ended
Jun. 30, 2015
Mineral Industries Disclosures [Abstract]  
Mineral Rights

NOTE 3 – MINERAL RIGHTS

 

The Company owns interests in the following entities which was recorded at our direct cost measured at fair market value to acquire our interest in these properties.

 

    Investment     Ownership %  
             
Aqua Mining (PNG)     34       90 %
Angel Jade Pty Ltd     104,000       70 %

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.4.0.3
Property and Equipment
9 Months Ended
Jun. 30, 2015
Property, Plant and Equipment [Abstract]  
Property and Equipment

NOTE 4 – PROPERTY AND EQUIPMENT

 

          September 30,  
    June 30, 2015     2014     2013  
                   
Building and Improvements   $ -     $ 70,665     $ -  
Plant Equipment     3,724       19,133       -  
Computer Equipment     -       6,274       3,990  
Office Equipment     -       504       -  
Motor Vehicle     50,424       -       -  
      54,148       96,576       3,990  
Less accumulated depreciation     -3,017       -16,982       -3,990  
    $ 51,131     $ 79,594     $ -  

 

Depreciation expense was approximately $12,992 and $3,990 for the years ended September 30, 2014 and 2013 respectively and $3,017 for the year ended June 30, 2015.

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.4.0.3
Convertible Notes Payable
9 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
Convertible Notes Payable

NOTE 5 – CONVERTIBLE NOTES PAYABLE

 

      June 30, 2015  
      Note Face Amount     Debt Discount     Net Amount of Note  
                     
2011 Note     $ 22,166     $ -     $ 22,166  
2012 Note       48,000       -       48,000  
2013 Note       12,000       -       12,000  
2014 Note       100,000       -       100,000  
Total     $ 182,166     $ -     $ 182,166  

 

      September 30, 2014  
      Note Face Amount     Debt Discount     Net Amount of Note  
2011 Note     $ 28,726     $ -     $ 28,726  
2012 Note       48,000       -       48,000  
2013 Note       12,000       -       12,000  
2014 Note       100,000       -80,434       19,566  
Total     $ 188,726     $ -80,434     $ 108,292  

 

2011 Note

 

On May 1, 2011, the Company issued a 2.00% Convertible Note due April 30, 2012 with a principal amount of $32,000 (the “2011 Note”) for cash. Interest on the 2011 Note is accrued annually effective from May 1, 2011 forward. The 2011 Note is unsecured and repayable on demand. The 2011 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

 

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of September 30, 2014 and September 30, 2013 is $28,726 and $32,000 respectively. As of September 30, 2014 and September 30, 2013, the note has been discounted by $0. The face amount of the outstanding note as of June 30, 2015 is $22,166. As of June 30, 2015, the note has been discounted by $0.

 

2012 Note

 

On January 2, 2012, the Company issued a 2.00% Convertible Note due January 1, 2013 with a principal amount of $48,000 (the “2012 Note”) for cash. Interest on the 2012 Note is accrued annually effective from January 2, 2012 forward. The 2012 Note is unsecured and repayable on demand. The 2012 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

 

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2015 is $48,000 respectively. As of June 30, 2015, the note has been discounted by $0.

 

2013 Note

 

On January 3, 2013, the Company issued a 2.00% Convertible Note due January 2, 2014 with a principal amount of $12,000 (the “2013 Note”) for cash. Interest on the 2013 Note is accrued annually effective from January 3, 2013 forward. The 2013 Note is unsecured and repayable on demand. The 2013 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

 

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2015 is $12,000. As of June 30, 2015 the note has been discounted by $0.

 

2014 Note

 

On August 25, 2014, the Company issued two 12.00% Convertible Promissory Note due February 25, 2015 with a principal amount of $50,000 each (the “2014 Note”) for cash. Interest on the 2014 Note is accrued annually effective from August 25, 2014 forward. The 2014 Note is unsecured.

 

The notes are convertible at a conversion price the lesser of (a) $0.25 per share, or (b) the price per share as reported on the Over-the-Counter Bulletin Board on the conversion date. The Note Holders also received Warrants to purchase an aggregate of 800,000 shares of our common stock at an initial exercise price of $0.25 per share. Each of the Warrants has a term of five (5) years.

 

The embedded conversion feature of the 2014 Notes and Warrants were recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the 2014 Notes. The fair value on the grant date of the embedded conversion feature of the convertible debt was $145,362 as computed using the Black-Scholes option pricing model.

 

The Company established a debt discount of $100,000, representing the value of the embedded conversion feature inherent in the convertible debt and warrant, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2014, the Company recorded amortization of the debt discount of $19,566. The balance of the debt discount was $80,434 at September 30, 2014. For the year ended June 30, 2015, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $15,465 at June 30, 2015.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.4.0.3
Loan from Related Party
9 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
Loan from Related Party

NOTE 6 – LOAN FROM RELATED PARTY

 

Convertible Notes Issued to the President and Director of Kibush Capital Corporation:

 

    September 30, 2014  
    Note face amount     Debt Discount     Net amount of note  
                   
Loan from related party   $ 366,816     $ (259,937 )   $ 106,879  
Total   $ 366,816     $ (259,937 )   $ 106,879  

 

On March 31, 2014, the Company issued a 12.50% Convertible Promissory Note due March 31, 2015 with a principal amount of $157,500 (the “March 2014 Note”) for cash. Interest on the March 2014 Note is accrued annually effective from March 31, 2014 forward. The March 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

 

The embedded conversion feature of the March 2014 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the March 2014 Notes. The fair value on the grant date of the embedded conversion feature of the convertible debt was $305,039 as computed using the Black-Scholes option pricing model.

 

The Company established a debt discount of $157,500, representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2014, the Company recorded amortization of the debt discount of $78,966. The balance of the debt discount was $78,534 at September 30, 2014. As of June 30, 2015, the balance of the debt discount was $0.

 

On June 30, 2014, the Company issued a 12.50% Convertible Promissory Note due June 30, 2015 with a principal amount of $110,741 (the “June 2014 Note”) for cash. Interest on the June 2014 Note is accrued annually effective from June 30, 2014 forward. The June 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

 

The embedded conversion feature of the June 2014 Note was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the June 2014 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $213,207 as computed using the Black-Scholes option pricing model.

 

The Company established a debt discount of $110,741 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2014, the Company recorded amortization of the debt discount of $27,913. The balance of the debt discount was $82,828 at September 30, 2014. As of June 30, 2015, the balance of the debt discount was $0.

 

On September 30, 2014, the Company issued a 12.50% Convertible Promissory Note due September 30, 2015 with a principal amount of $98,575 (the “September 2014 Note”) for cash. Interest on the September 2014 Note is accrued annually effective from September 30, 2014 forward. The September 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

 

The embedded conversion feature of the September 2014 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the September 2014 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $181,771 as computed using the Black-Scholes option pricing model.

 

The Company established a debt discount of $98,575 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2014, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $98,575 at September 30, 2014. As of June 30, 2015, the balance of the debt discount was $15,465.

 

As of September 30, 2014 and 2013, cumulative interest of $96,579 and $0 respectively, has been accrued on these notes.

 

The Company established a debt discount of $61,273 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the quarter ended June 30, 2015, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $15,465 at June 30, 2015.

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.4.0.3
Stockholder's Deficit
9 Months Ended
Jun. 30, 2015
Equity [Abstract]  
Stockholder's Deficit

NOTE 7 – STOCKHOLDER’S DEFICIT

 

Common Stock

 

On August 22, 2013, the Company’s Board authorized a 225:1 reverse stock split. All share and per share data in the accompanying financial statements and footnotes has been adjusted retrospectively for the effects of the stock split.

 

On October 12, 2013, the Company issued by directors resolution, 10,000,000 shares of newly issued common stock for the purchase of a Memorandum of Understanding (dated September 2, 2013) from a related company (Five Arrows Limited); which gave Kibush Capital Corporation the right to acquire 80% ownership in Instacash Pty Ltd, an Australian Currency Services provider, and corporate trustee of the Instacash Trust. As this transaction was with a related party, the value was recorded at the par value of the stock i.e. $0.001 per share of common stock.

 

Between October 23, 2013 and September 30, 2014, the Company issued a total of 3,274,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $3,274 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

 

On February 28, 2014, the Company issued by director’s resolution, 40,000,000 shares of newly issued common stock to conclude a Assignment and Bill of Sale (dated February 14, 2014) from a related company (Five Arrows Limited); which gave Kibush Capital Corporation the right to enter into a Joint Venture contract with the leaseholders of certain Mining Leases in Papua New Guinea. As this transaction was with a related party, the value was recorded at par value of the stock i.e. $0.001 per share of common stock.

 

Between November 1, 2014 and March 31, 2015, the Company issued a total of 4,560,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $3,274 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

 

Preferred Stock

 

Preferred stock includes 50,000,000 shares authorized at $0.001 par value, of which 10,000,000 have been designated Series A. 3,000,000 Series A are issued and outstanding as of September 30, 2014 and June 30, 2015.

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.4.0.3
Related Party Transactions
9 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 8 – RELATED PARTY TRANSACTIONS

 

Details of transactions between the Corporation and related parties are disclosed below.

 

The following transactions were carried out with related parties:

 

    June 30, 2015     September 30, 2014     September 30, 2013  
                   
Loan from related party - unsecured loan (a)   $ 629,269     $ 339,920     $ -  
Convertible loans (b)     182,166       366,816       -  
Loan from related party   $ 811,435     $ 706,736     $ -  

 

(a) From time to time, the president and stockholder of the Company provides advances to the Company for its working capital purposes. These advances bear no interest and are due on demand.

 

(b) See Note 6 for details of Convertible notes.

 

(c) On April 29, 2015, the Company issued 3,001,702 shares of its common stock to Warren Sheppard (previously authorized by for issuance by the company on December 10, 2014) pursuant to his employment agreement.

 

(d) Between April 1, 2015 and June 24, 2015, the Company issued a total of 4,000,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $4,000 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

XML 25 R16.htm IDEA: XBRL DOCUMENT v3.4.0.3
Business Combinations
9 Months Ended
Jun. 30, 2015
Business Combinations [Abstract]  
Business Combinations

NOTE 9 – BUSINESS COMBINATIONS

 

Set out below are the controlled and non-controlled members of the group as of June 30, 2015, which, in the opinion of the directors, are material to the group. The subsidiaries as listed below have share capital consisting solely of ordinary shares, which are held directly by the Company; the country of incorporation is also their principal place of business.

 

Name of Entity   Country of
Incorporation
  Acquisition Date   Voting Equity Interests     Nature of Relationship  
                     
Aqua Mining (PNG) Ltd   Papua New Guinea   28-Feb-2014     90 %     Note 1  
                         
Angel Jade Pty Ltd   Australia   10-Dec 2014     70 %     Note 2  

 

Note 1: On February 14, 2014, the Company entered into an Assignment and Bill of Sale with Five Arrows Limited (“Five Arrows”) pursuant to which Five Arrows agreed to assign to the Company all of its right, title and interest in two 50 ton per hour trammels, one 35 ton excavator, a warehouse/office, a concrete processing apron and four 35 ton per hour particle concentrators for use in our mining exploration. In consideration, the Company issued 40,000,000 shares of its common stock to Five Arrows. On February 28, 2014, the Company entered into a joint venture agreement with the holders of alluvial gold mining leases (“Leaseholders”) of Mining Leases covering approximately 26 hectares located at Koranga in Wau, Morobe Province, Papua, New Guinea for gold mining exploration (“Joint Venture Agreement”). The Joint Venture Agreement entitles the leaseholders to 30% and the Company to 70% of net profits from the joint venture. The Company will manage and carry out mining exploration at the site, including entering into contracts with third parties and subcontractors (giving priority to the Leaseholders and their relatives and the local community for employment opportunities and spin-off business) at its cost, and all assets, including equipment and structures built on the site, will be the property of the Company. The Leaseholders and the Company will each contribute 1% from their share of net profits to a trust account for landowner and government requirements.

 

Note 2: On December 10, 2014, the Company entered into an Assignment and Bill of Sale with Five Arrows Limited, a related party, pursuant to which Five Arrows agreed to assign to the Company all of its right, title and interest in 90,000,000 shares in Angel Jade Pty Ltd. In consideration, the Company issued 14,000,000 shares of its common stock to Five Arrows.

 

The Company owns 70% of the ordinary shares of Angel Jade Pty Ltd, an Australian company. The assets of Angel Jade are comprised of Exploration License 8104, the area covered is 35 km SE of Tamworth, 300 sq. km in size, 250 km from the port of Newcastle, NSW and accessible by sealed road. Nephrite jade occurs in the New England Fold Belt, which extends from northeast New South Wales into southeast Queensland. The target mineral in this tenement is jade, but we will also explore for rhodonite.

XML 26 R17.htm IDEA: XBRL DOCUMENT v3.4.0.3
Subsequent Events
9 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]  
Subsequent Events

NOTE 10 – SUBSEQUENT EVENTS

 

On July 27, 2015, we recently received a 5-year extension for our Mining Lease of ML 296-301 from the Mining Resource Authority in Papua New Guinea. ML 296-301 is part of the Koranga Joint Venture and is controlled by our subsidiary Aqua Mining.

XML 27 R18.htm IDEA: XBRL DOCUMENT v3.4.0.3
Restatement of September 30, 2014 Balance Sheet
9 Months Ended
Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summarizes of Effects of Restatement Balance Sheet

NOTE 11 – RESTATEMENT OF SEPTEMBER 30, 2014 BALANCE SHEET

In the Company’s 10-K for the period ended September 30, 2015, the Company indicated that it restated its September 30, 2014 financial statements contained in the Form 10 after reevaluating its interpretation of ASC 805-50-30-5 regarding the carrying cost of an asset in a related party transaction. This caused the Company to restate its balance sheet for the year ended September 30, 2014. The Company reached the determination to restate the 2014 financial statements following the receipt of a comment letter dated December 22, 2015 from Securities and Exchange Commission stating concerns on the above issue. We have restated all prior reports containing 2014-year end data.

The following summarizes the effects of restatement: 

Consolidated Balance Sheet
September 30, 2014

    Previously              
    Reported     Adjustment     Restated  
ASSETS                        
CURRENT ASSETS                        
Cash   $ 110,152             $ 110,152  
Prepaid expenses     6,035               6,035  
TOTAL CURRENT ASSETS   $ 116,187             $ 116,187  
Property and equipment, net     79,594               79,594  
Investment in unconsolidated Joint Venture/Mining Rights     8,000,000       (7,960,000 )     40,000  
OTHER ASSETS     499               499  
Deposits Paid     499               499  
Goodwill     0                  
TOTAL CURRENT ASSETS AND TOTAL ASSETS     8,196,280       (7,960,000 )     236,280  
                         
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)                        
CURRENT LIABILITIES:                        
Accounts Payable     2,957               2,957  
Accrued Expenses     354,685               354,685  
Promissory Notes Payable                        
Convertible notes payable, net of discounts of $80,434     108,292               108,292  
Loans from Related Parties     446,799               446,799  
Derivative Liabilities     752,997               752,997  
Deposits     80,000               80,000  
Shares to be Issued - Five Arrows                        
TOTAL CURRENT LIABILITIES   $ 1,745,730               1,745,730  
TOTAL CURRENT LIABILITIES   $ 1,745,730               1,745,730  
                         
STOCKHOLDERS’ EQUITY (DEFICIENCY)                        
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at September 30, 2014.   $ 3,000             $ 3,000  
Common stock, $0.001 par value; 500,000,000 shares authorized and 53,837,485 shares issued and outstanding at September 30, 2014.     53,837               53,837  
Additional paid-in capital     16,454,962       (7,960,000 )     8,494,962  
Accumulated deficit     (10,225,051 )             (10,225,051 )
Accumulated other comprehensive income     55,022               55,022  
Total stockholders’ deficit, including non-controlling interest   $ (6,341,770 )     7,960,000     $ 1,618,230  
Non-Controlling interest   $ 108,780             $ 108,780  
Total stockholders’ deficit     (6,450,550 )     7,960,000       1,509,450  
Total liabilities and stockholders’ deficit     8,196,280       (7,960,000 )     236,280  

In addition to the restatement set forth above, the Company has corrected an error that appears in our June 30, 2015 Form 10-Q/A filed March 24, 2016. The $40,000 attributable to “Investment in unconsolidated Joint Venture/Mining Rights” as of September 30, 2014 was inadvertently deleted from the balance sheet for the above referenced period. This Amendment corrects that error and is consistent with the audited balance sheet for the year ended September 30, 2014. This error did not appear in any other periods and does not impact any other periodic or annual reports of the Company. Correction of the error had the following effects on the Company’s balance sheet presented in its Form 10-Q/A for the period ended June 30, 2015:

Consolidated Balance Sheet

    June 30, 2015     September 30, 2014
(per 6/30/15 10-Q/A filed on 3/24/16)
    Adjustment     September 30, 2014
(as corrected and restated)
 
ASSETS                                
CURRENT ASSETS                                
Cash   $ 5,763     $ 110,152             $ 110,152  
Prepaid expenses     0       6,035               6,035  
TOTAL CURRENT ASSETS   $ 5,763     $ 116,187             $ 116,187  
Property and equipment, net     51,131       79,594               79,594  
Investment in unconsolidated Joint Venture/Mining Rights     0       0       40,000       40,000  
OTHER ASSETS     20119       499               499  
Deposits Paid     10494                          
Goodwill     14000       0               0  
TOTAL CURRENT ASSETS AND TOTAL ASSETS     101,507       196,280       40,000       236,280  
                                 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)                                
CURRENT LIABILITIES:                                
Accounts Payable     12,234       2,957               2,957  
Accrued Expenses     249,143       354,685               354,685  
Promissory Notes Payable     21185                          
Convertible notes payable, net of discounts of $80,434     182,166       108,292               108,292  
Loans from Related Parties     629,269       446,799               446,799  
Derivative Liabilities     514,139       752,997               752,997  
Deposits     155,300       80,000               80,000  
Shares to be Issued - Five Arrows     36,378                          
TOTAL CURRENT LIABILITIES   $ 1,799,813     $ 1,745,730               1,745,730  
TOTAL CURRENT LIABILITIES   $ 1,799,813     $ 1,745,730               1,745,730  
                                 
STOCKHOLDERS’ EQUITY (DEFICIENCY)                                
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at September 30, 2014.   $ 3,000     $ 3,000             $ 3,000  
Common stock, $0.001 par value; 500,000,000 shares authorized and 53,837,485 shares issued and outstanding at September 30, 2014.     77,399       53,837               53,837  
Additional paid-in capital     9,151,960       8,494,962       40,000       8,534,962  
Accumulated deficit     -10,876,028       -10,225,051               -10,225,051  
Accumulated other comprehensive income     0       55,022               55,022  
Total stockholders’ deficit, including non-controlling interest   $ -1,643,669     $ -1,658,230       -40,000     $ -1,618,230  
Non-Controlling interest   $ -54,638     $ 108,780             $ 108,780  
TOTAL STOCKHOLDERS’ DEFICIT     -1,698,306       -1,549,450       -40,000       -1,509,450  
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT     101,507       196,280       40,000       236,280  

XML 28 R19.htm IDEA: XBRL DOCUMENT v3.4.0.3
Summary of Significant Accounting Policies (Policies)
9 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Cash

Cash

 

The Company maintains its cash balances in interest and non-interest bearing accounts which do not exceed Federal Deposit Insurance Corporation limits.

Principles of Consolidation

Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of Kibush Capital, Angel Jade and Aqua Mining. All intercompany accounts and transactions have been eliminated.

Other Comprehensive Income and Foreign Currency Translation

Other Comprehensive Income and Foreign Currency Translation

 

FASB ASC 220-10-05, Comprehensive Income, establishes standards for the reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distribution to owners.

 

The accompanying consolidated financial statements are presented in United States dollars.

Reclassifications

Reclassifications

 

Reclassifications have been made to prior year consolidated financial statements in order to conform the presentation to the statements as of and for the period ended September 30, 2014.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires management to make certain 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. Significant estimates made by management are, recoverability of long-lived assets, valuation and useful lives of intangible assets, valuation of derivative liabilities, and valuation of common stock, options, warrants and deferred tax assets. Actual results could differ from those estimates.

Non-Controlling Interests

Non-Controlling Interests

 

Investments in associated companies over which the Company has the ability to exercise significant influence are accounted for under the consolidation method, after appropriate adjustments for intercompany profits and dividends.

 

In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations.” It requires an acquirer to recognize, at the acquisition date, the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their full fair values as of that date. In a business combination achieved in stages (step acquisitions), the acquirer will be required to re-measure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in earnings. The acquisition-related transaction and restructuring costs will no longer be included as part of the capitalized cost of the acquired entity but will be required to be accounted for separately in accordance with applicable generally accepted accounting principles. U.S. SFAS No. 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.

 

A non-controlling interest in a subsidiary is an ownership interest in a consolidated entity that is reported as equity in the consolidated financial statements and separate from the Company’s equity. In addition, net income/(loss) attributable to non-controlling interests is reported separately from net income attributable to the Company in the consolidated financial statements. The Company’s consolidated statements present the full amount of assets, liabilities, income and expenses of all of our consolidated subsidiaries, with a partially offsetting amount shown in non-controlling interests for the portion of these assets and liabilities that are not controlled by us.

 

For our investments in affiliated entities that are included in the consolidation, the excess cost over underlying fair value of net assets is referred to as goodwill and reported separately as “Goodwill” in our accompanying consolidated balance sheets. Goodwill may only arise where consideration has been paid.

Property and Equipment

Property and Equipment

 

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over estimated useful lives as follows:

 

Plant equipment   2 to 15 years
Computer and software   1 to 2 years
Office equipment   3 to 10 years
Building improvements   20 years

 

Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected in the consolidated statement of operations.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

 

In accordance with FASB ASC 360-10-5, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company evaluates the carrying value of its long-lived assets for impairment whenever events or changes in circumstances indicate that such carrying values may not be recoverable. The Company uses its best judgment based on the current facts and circumstances relating to its business when determining whether any significant impairment factors exist. The Company considers the following factors or conditions, among others, that could indicate the need for an impairment review:

 

  Significant under performance relative to expected historical or projected future operating results;
     
  Significant changes in its strategic business objectives and utilization of the assets;
     
  Significant negative industry or economic trends, including legal factors;

 

If the Company determines that the carrying values of long-lived assets may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company’s management performs an undiscounted cash flow analysis to determine if impairment exists. If impairment exists, the Company measures the impairment based on the difference between the asset’s carrying amount and its fair value, and the impairment is charged to operations in the period in which the long-lived asset impairment is determined by management.

 

The carrying value of the Company’s investment in Joint Venture contract with leaseholders of certain Mining Leases in Papua New Guinea represents its ownership, accounted for under the equity method. The ownership interest is not adjusted to fair value on a recurring basis. Each reporting period the Company assesses the fair value of the Company’s ownership interest in Joint Venture in accordance with FASB ASC 325-20-35. Each year the Company conducts an impairment analysis in accordance with the provisions within FASB ASC 320-10-35 paragraphs 25 through 32.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The carrying amounts of the Company’s cash, accounts payable and accrued expenses approximate their estimated fair values due to the short-term maturities of those financial instruments. The Company believes the carrying amount of its notes payable approximates its fair value based on rates and other terms currently available to the Company for similar debt instruments

Beneficial Conversion Features of Debentures

Beneficial Conversion Features of Debentures

 

In accordance with FASB ASC 470-20, Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios, we recognize the advantageous value of conversion rights attached to convertible debt. Such rights give the debt holder the ability to convert debt into common stock at a price per share that is less than the trading price to the public on the day the loan is made to us. The beneficial value is calculated as the intrinsic value (the market price of the stock at the commitment date in excess of the conversion rate) of the beneficial conversion feature of debentures and related accruing interest is recorded as a discount to the related debt and an addition to additional paid in capital. The discount is amortized over the remaining outstanding period of related debt using the interest method.

Derivative Financial Instruments

Derivative Financial Instruments

 

We apply the provisions of FASB ASC 815-10, Derivatives and Hedging (“ASC 815-10”). Derivatives within the scope of ASC 815-10 must be recorded on the balance sheet at fair value. During the year ended September 30, 2014, the Company issued convertible debt and recorded derivative liabilities related to a reset provision associated with the embedded conversion feature of the convertible debt. The Company computed the fair value of these derivative liabilities on the grant date and various measurement dates using the Black-Scholes pricing model. Due to the reset provisions within the embedded conversion feature, the Company determined that the Black-Scholes pricing model was the most appropriate for valuing these instruments.

 

In applying the Black-Scholes valuation model, the Company used the following assumptions during the year ended September 30, 2014:

 

      For the year ended  
      September 30, 2014  
Annual dividend yield     -  
Expected life (years)     0.50 — 1.00  
Risk-free interest rate     0.03% — 0.13 %
Expected volatility     210.12.% — 400.48 %

 

The inputs used to measure fair value fall in different levels of the fair value hierarchy, a financial security’s hierarchy level is based upon the lowest level of input that is significant to the fair value measurement.

 

The Company determines the fair value of its derivative instruments using a three-level hierarchy for fair value measurements which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair-value hierarchy:

 

Level 1 — Valuation based on unadjusted quoted market prices in active markets for identical securities. Currently, the Company does not have any items as Level 1.

 

Level 2 — Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. Currently, the Company does not have any items classified as Level 2.

 

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. The Company used the Black-Scholes option pricing models to determine the fair value of the instruments.

 

The following table presents the Company’s embedded conversion features of its convertible debt measured at fair value on a recurring basis as of September 30, 2014 and as of June 30, 2015:

 

    Carry Value at     Carry Value at  
    June 30, 2015     September 30, 2014     September 30, 2013  
                   
Derivative liabilities:                        
Embedded conversion features - notes   $ 514,139     $ 752,997     $ -  
                      -  
Total derivative liability   $ 514,139     $ 752,997     $ -  

 

          For the year ended  
    June 30, 2015     September 30, 2014     September 30, 2013  
Change in fair value included in other income (expense), net     99,587       -92,382     $ -  
                         

 

The following table provides a reconciliation of the beginning and ending balances for the Company’s derivative liabilities measured at fair value using Level 3 inputs:

 

          For the year ended  
    For the year ended     September 30,  
    June 30, 2015     2014     2013  
Embedded Conversion                        
Features - Notes:                        
Balance at beginning of year   $ 673,788     $ -     $ -  
Change in derivative liabilities   $ (259,506 )   $ 845,379          
Net change in fair value included in net loss     99,857       -92,382       -  
Ending balance   $ 514,139     $ 752,997     $ -  

 

The Company re-measures the fair values of all of its derivative liabilities as of each period end and records the net aggregate gain/loss due to the change in the fair value of the derivative liabilities as a component of other expense, net in the accompanying consolidated statement of operations. During the years ended September 30, 2014 and 2013, the Company recorded a net increase (decrease) to the fair value of derivative liabilities balance of $(92,382) and $0, respectively.

Loss per Share

Loss per Share

 

The Company applies FASB ASC 260, “Earnings per Share.” Basic earnings (loss) per share is computed by dividing earnings (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive.

Income Taxes

Income Taxes

 

Income taxes are accounted for in accordance with ASC Topic 740, “Income Taxes.” Under the asset and liability method, deferred tax assets and liabilities are recognized for the future consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for deferred tax assets are established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Mineral Property, Mineral Rights (Claims) Payments and Exploration Costs

Mineral Property, Mineral Rights (Claims) Payments and Exploration Costs

 

Pursuant to EITF 04-02, “Whether Mineral Rights are Tangible or Intangible Assets and Related Issues”, the Company has an accounting policy to capitalize the direct costs to acquire or lease mineral properties and mineral rights as tangible assets. The direct costs include the costs of signature (lease) bonuses, options to purchase or lease properties, and brokers’ and legal fees. If the acquired mineral rights relate to unproven properties, the Company does not amortize the capitalized mineral costs, but evaluates the capitalized mineral costs periodically for impairment. The Company expenses all costs related to the exploration of mineral claims in which it had secured exploration rights prior to establishment of proven and probable reserves.

Accounting Treatment of Mining Interests

Accounting Treatment of Mining Interests

 

At this time, the Company does not directly own or directly lease mining properties. However, the Company does have contractual rights and governmental permits which allow the Company to conduct mining exploration on such properties. These contractual relationships, coupled with the government permits issued to the Company (or a subsidiary), are substantially similar in nature to a mining lease. Therefore, we have treated these contracts as lease agreements for accounting purposes.

Research and Development

Research and Development

 

Research and development costs are recognized as an expense in the period in which they are incurred. The Company incurred research and development costs expensed for the year ended September 30, 2014 and 2013 of $0 and $31,408, respectively. Research and development costs included market research for the supply and distribution of Australian Single Malt Whiskey in the United States, research into South Africa diamond tailing dumps and research into gold mining exploration in Papua New Guinea.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

New accounting standards

 

Development State Entities. In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-10 – Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”). The amendments in this update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. For other entities, the amendments are effective for annual reporting periods beginning after December 15, 2014, and interim reporting periods beginning after December 15, 2015.

 

Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.

 

The Company has early adopted ASU 2014-10 commencing with its financial statements for the year ended September 30, 2014 and subsequent periods.

 

Accounting standards to be adopted in future periods

 

In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance for accounting for revenue from contracts with customers. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services.

 

To achieve that core principle, an entity would be required to apply the following five steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted.

 

Entities will have the option to apply the final standard retrospectively or use a modified retrospective method, recognizing the cumulative effect of the ASU in retained earnings at the date of initial application. An entity will not restate prior periods if it uses the modified retrospective method, but will be required to disclose the amount by which each financial statement line item is affected in the current reporting period by the application of the ASU as compared to the guidance in effect prior to the change, as well as reasons for significant changes. The Company will adopt the updated standard in the first quarter of 2017. The Company is currently evaluating the impact that implementing this ASU will have on its financial statements and disclosures, as well as whether it will use the retrospective or modified retrospective method of adoption.

Recognition of Revenue

Recognition of Revenue

 

Revenue is realized from product sales. Recognition occurs upon shipment to customers, and where the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Additional revenue from royalties is recognized when persuasive evidence of an arrangement exits; the amount due is fixed or determinable; and collectability is reasonably assured.

 

Company management do not believe that the adoption of recently issued accounting pronouncements will have a significant impact on the Company’s financial position, results of operations, or cash flows.

XML 29 R20.htm IDEA: XBRL DOCUMENT v3.4.0.3
Summary of Significant Accounting Policies (Tables)
9 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Schedule of Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over estimated useful lives as follows:

 

Plant equipment   2 to 15 years
Computer and software   1 to 2 years
Office equipment   3 to 10 years
Building improvements   20 years

Schedule of Derivative Financial Instruments

In applying the Black-Scholes valuation model, the Company used the following assumptions during the year ended September 30, 2014:

 

      For the year ended  
      September 30, 2014  
Annual dividend yield     -  
Expected life (years)     0.50 — 1.00  
Risk-free interest rate     0.03% — 0.13 %
Expected volatility     210.12.% — 400.48 %

Schedule of Convertible Debt Measured at Fair Value

The following table presents the Company’s embedded conversion features of its convertible debt measured at fair value on a recurring basis as of September 30, 2014 and as of June 30, 2015:

 

    Carry Value at     Carry Value at  
    June 30, 2015     September 30, 2014     September 30, 2013  
                   
Derivative liabilities:                        
Embedded conversion features - notes   $ 514,139     $ 752,997     $ -  
                      -  
Total derivative liability   $ 514,139     $ 752,997     $ -  

 

          For the year ended  
    June 30, 2015     September 30, 2014     September 30, 2013  
Change in fair value included in other income (expense), net     99,587       -92,382     $ -  

Derivative Liabilities Measured at Fair Value

The following table provides a reconciliation of the beginning and ending balances for the Company’s derivative liabilities measured at fair value using Level 3 inputs:

 

          For the year ended  
    For the year ended     September 30,  
    June 30, 2015     2014     2013  
Embedded Conversion                        
Features - Notes:                        
Balance at beginning of year   $ 673,788     $ -     $ -  
Change in derivative liabilities   $ (259,506 )   $ 845,379          
Net change in fair value included in net loss     99,857       -92,382       -  
Ending balance   $ 514,139     $ 752,997     $ -  

XML 30 R21.htm IDEA: XBRL DOCUMENT v3.4.0.3
Mineral Rights (Tables)
9 Months Ended
Jun. 30, 2015
Mineral Industries Disclosures [Abstract]  
Schedule of Direct Cost Measured at Fair Market Value

The Company owns interests in the following entities which was recorded at our direct cost measured at fair market value to acquire our interest in these properties.

 

    Investment     Ownership %  
             
Aqua Mining (PNG)     34       90 %
Angel Jade Pty Ltd     104,000       70 %

XML 31 R22.htm IDEA: XBRL DOCUMENT v3.4.0.3
Property And Equipment (Tables)
9 Months Ended
Jun. 30, 2015
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment

          September 30,  
    June 30, 2015     2014     2013  
                   
Building and Improvements   $ -     $ 70,665     $ -  
Plant Equipment     3,724       19,133       -  
Computer Equipment     -       6,274       3,990  
Office Equipment     -       504       -  
Motor Vehicle     50,424       -       -  
      54,148       96,576       3,990  
Less accumulated depreciation     -3,017       -16,982       -3,990  
    $ 51,131     $ 79,594     $ -  

XML 32 R23.htm IDEA: XBRL DOCUMENT v3.4.0.3
Convertible Notes Payable (Tables)
9 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
Schedule of Convertible Notes Payable

      June 30, 2015  
      Note Face Amount     Debt Discount     Net Amount of Note  
                     
2011 Note     $ 22,166     $ -     $ 22,166  
2012 Note       48,000       -       48,000  
2013 Note       12,000       -       12,000  
2014 Note       100,000       -       100,000  
Total     $ 182,166     $ -     $ 182,166  

 

      September 30, 2014  
      Note Face Amount     Debt Discount     Net Amount of Note  
2011 Note     $ 28,726     $ -     $ 28,726  
2012 Note       48,000       -       48,000  
2013 Note       12,000       -       12,000  
2014 Note       100,000       -80,434       19,566  
Total     $ 188,726     $ -80,434     $ 108,292  

XML 33 R24.htm IDEA: XBRL DOCUMENT v3.4.0.3
Loan from Related Party (Tables)
9 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
Schedule of Loan From Related Party

Convertible Notes Issued to the President and Director of Kibush Capital Corporation:

 

    September 30, 2014  
    Note face amount     Debt Discount     Net amount of note  
                   
Loan from related party   $ 366,816     $ (259,937 )   $ 106,879  
Total   $ 366,816     $ (259,937 )   $ 106,879  

XML 34 R25.htm IDEA: XBRL DOCUMENT v3.4.0.3
Related Party Transactions (Tables)
9 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions

The following transactions were carried out with related parties:

 

    June 30, 2015     September 30, 2014     September 30, 2013  
                   
Loan from related party - unsecured loan (a)   $ 629,269     $ 339,920     $ -  
Convertible loans (b)     182,166       366,816       -  
Loan from related party   $ 811,435     $ 706,736     $ -  

 

(a) From time to time, the president and stockholder of the Company provides advances to the Company for its working capital purposes. These advances bear no interest and are due on demand.

 

(b) See Note 6 for details of Convertible notes.

 

(c) On April 29, 2015, the Company issued 3,001,702 shares of its common stock to Warren Sheppard (previously authorized by for issuance by the company on December 10, 2014) pursuant to his employment agreement.

 

(d) Between April 1, 2015 and June 24, 2015, the Company issued a total of 4,000,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $4,000 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

XML 35 R26.htm IDEA: XBRL DOCUMENT v3.4.0.3
Business Combinations (Tables)
9 Months Ended
Jun. 30, 2015
Business Combinations [Abstract]  
Schedule of Business Combinations

The subsidiaries as listed below have share capital consisting solely of ordinary shares, which are held directly by the Company; the country of incorporation is also their principal place of business.

 

Name of Entity   Country of
Incorporation
  Acquisition Date   Voting Equity Interests     Nature of Relationship  
                     
Aqua Mining (PNG) Ltd   Papua New Guinea   28-Feb-2014     90 %     Note 1  
                         
Angel Jade Pty Ltd   Australia   10-Dec 2014     70 %     Note 2  

XML 36 R27.htm IDEA: XBRL DOCUMENT v3.4.0.3
Restatement of September 30, 2014 Balance Sheet (Tables)
9 Months Ended
Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Restatement of Balance Sheet

The following summarizes the effects of restatement: 

 

Consolidated Balance Sheet
September 30, 2014

 

    Previously              
    Reported     Adjustment     Restated  
ASSETS                        
CURRENT ASSETS                        
Cash   $ 110,152             $ 110,152  
Prepaid expenses     6,035               6,035  
TOTAL CURRENT ASSETS   $ 116,187             $ 116,187  
Property and equipment, net     79,594               79,594  
Investment in unconsolidated Joint Venture/Mining Rights     8,000,000       (7,960,000 )     40,000  
OTHER ASSETS     499               499  
Deposits Paid     499               499  
Goodwill     0                  
TOTAL CURRENT ASSETS AND TOTAL ASSETS     8,196,280       (7,960,000 )     236,280  
                         
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)                        
CURRENT LIABILITIES:                        
Accounts Payable     2,957               2,957  
Accrued Expenses     354,685               354,685  
Promissory Notes Payable                        
Convertible notes payable, net of discounts of $80,434     108,292               108,292  
Loans from Related Parties     446,799               446,799  
Derivative Liabilities     752,997               752,997  
Deposits     80,000               80,000  
Shares to be Issued - Five Arrows                        
TOTAL CURRENT LIABILITIES   $ 1,745,730               1,745,730  
TOTAL CURRENT LIABILITIES   $ 1,745,730               1,745,730  
                         
STOCKHOLDERS’ EQUITY (DEFICIENCY)                        
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at September 30, 2014.   $ 3,000             $ 3,000  
Common stock, $0.001 par value; 500,000,000 shares authorized and 53,837,485 shares issued and outstanding at September 30, 2014.     53,837               53,837  
Additional paid-in capital     16,454,962       (7,960,000 )     8,494,962  
Accumulated deficit     (10,225,051 )             (10,225,051 )
Accumulated other comprehensive income     55,022               55,022  
Total stockholders’ deficit, including non-controlling interest   $ (6,341,770 )     7,960,000     $ 1,618,230  
Non-Controlling interest   $ 108,780             $ 108,780  
Total stockholders’ deficit     (6,450,550 )     7,960,000       1,509,450  
Total liabilities and stockholders’ deficit     8,196,280       (7,960,000 )     236,280  

 

In addition to the restatement set forth above, the Company has corrected an error that appears in our June 30, 2015 Form 10-Q/A filed March 24, 2016. The $40,000 attributable to “Investment in unconsolidated Joint Venture/Mining Rights” as of September 30, 2014 was inadvertently deleted from the balance sheet for the above referenced period. This Amendment corrects that error and is consistent with the audited balance sheet for the year ended September 30, 2014. This error did not appear in any other periods and does not impact any other periodic or annual reports of the Company. Correction of the error had the following effects on the Company’s balance sheet presented in its Form 10-Q/A for the period ended June 30, 2015:

 

Consolidated Balance Sheet

 

    June 30, 2015     September 30, 2014
(per 6/30/15 10-Q/A filed on 3/24/16)
    Adjustment     September 30, 2014
(as corrected and restated)
 
ASSETS                                
CURRENT ASSETS                                
Cash   $ 5,763     $ 110,152             $ 110,152  
Prepaid expenses     0       6,035               6,035  
TOTAL CURRENT ASSETS   $ 5,763     $ 116,187             $ 116,187  
Property and equipment, net     51,131       79,594               79,594  
Investment in unconsolidated Joint Venture/Mining Rights     0       0       40,000       40,000  
OTHER ASSETS     20119       499               499  
Deposits Paid     10494                          
Goodwill     14000       0               0  
TOTAL CURRENT ASSETS AND TOTAL ASSETS     101,507       196,280       40,000       236,280  
                                 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)                                
CURRENT LIABILITIES:                                
Accounts Payable     12,234       2,957               2,957  
Accrued Expenses     249,143       354,685               354,685  
Promissory Notes Payable     21185                          
Convertible notes payable, net of discounts of $80,434     182,166       108,292               108,292  
Loans from Related Parties     629,269       446,799               446,799  
Derivative Liabilities     514,139       752,997               752,997  
Deposits     155,300       80,000               80,000  
Shares to be Issued - Five Arrows     36,378                          
TOTAL CURRENT LIABILITIES   $ 1,799,813     $ 1,745,730               1,745,730  
TOTAL CURRENT LIABILITIES   $ 1,799,813     $ 1,745,730               1,745,730  
                                 
STOCKHOLDERS’ EQUITY (DEFICIENCY)                                
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at September 30, 2014.   $ 3,000     $ 3,000             $ 3,000  
Common stock, $0.001 par value; 500,000,000 shares authorized and 53,837,485 shares issued and outstanding at September 30, 2014.     77,399       53,837               53,837  
Additional paid-in capital     9,151,960       8,494,962       40,000       8,534,962  
Accumulated deficit     -10,876,028       -10,225,051               -10,225,051  
Accumulated other comprehensive income     0       55,022               55,022  
Total stockholders’ deficit, including non-controlling interest   $ -1,643,669     $ -1,658,230       -40,000     $ -1,618,230  
Non-Controlling interest   $ -54,638     $ 108,780             $ 108,780  
TOTAL STOCKHOLDERS’ DEFICIT     -1,698,306       -1,549,450       -40,000       -1,509,450  
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT     101,507       196,280       40,000       236,280  

XML 37 R28.htm IDEA: XBRL DOCUMENT v3.4.0.3
Condensed Consolidated Financial Statements (Details Narrative) - USD ($)
Jun. 30, 2015
Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accumulated deficit $ 10,876,028 $ 10,225,051
XML 38 R29.htm IDEA: XBRL DOCUMENT v3.4.0.3
Summary of Significant Accounting Policies (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Sep. 30, 2014
Sep. 30, 2013
Accounting Policies [Abstract]            
Net increase (decrease) to fair value of derivative liabilities         $ 92,382 $ 0
Research and development costs $ 35,496 $ 0 $ 31,408
XML 39 R30.htm IDEA: XBRL DOCUMENT v3.4.0.3
Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details)
9 Months Ended
Jun. 30, 2015
Plant Equipment [Member] | Minimum [Member]  
Estimated useful lives 2 years
Plant Equipment [Member] | Maximum [Member]  
Estimated useful lives 15 years
Computer and software [Member] | Minimum [Member]  
Estimated useful lives 1 year
Computer and software [Member] | Maximum [Member]  
Estimated useful lives 2 years
Office Equipment [Member] | Minimum [Member]  
Estimated useful lives 3 years
Office Equipment [Member] | Maximum [Member]  
Estimated useful lives 10 years
Building Improvements [Member]  
Estimated useful lives 20 years
XML 40 R31.htm IDEA: XBRL DOCUMENT v3.4.0.3
Summary of Significant Accounting Policies - Schedule of Derivative Financial Instruments (Details)
12 Months Ended
Sep. 30, 2014
Annual dividend yield 0.00%
Minimum [Member]  
Expected life (years) 6 months
Risk-free interest rate 0.03%
Expected volatility 210.12%
Maximum [Member]  
Expected life (years) 1 year
Risk-free interest rate 0.13%
Expected volatility 400.48%
XML 41 R32.htm IDEA: XBRL DOCUMENT v3.4.0.3
Summary of Significant Accounting Policies - Schedule of Convertible Debt Measured at Fair Value (Details) - USD ($)
9 Months Ended 12 Months Ended
Jun. 30, 2015
Sep. 30, 2014
Sep. 30, 2013
Accounting Policies [Abstract]      
Derivative liabilities: Embedded conversion features - notes $ 514,139 $ 752,997
Total derivative liability 514,139 752,997
Change in fair value included in other income (expense), net $ 99,587 $ (92,382)
XML 42 R33.htm IDEA: XBRL DOCUMENT v3.4.0.3
Summary of Significant Accounting Policies - Derivative Liabilities Measured at Fair Value Level 3 Inputs (Details) - USD ($)
9 Months Ended 12 Months Ended
Jun. 30, 2015
Sep. 30, 2014
Sep. 30, 2013
Accounting Policies [Abstract]      
Balance at beginning of year $ 673,788
Change in derivative liabilities (259,506) $ 845,379
Net change in fair value included in net loss 99,857 (92,382)
Ending balance $ 514,139 $ 673,788
XML 43 R34.htm IDEA: XBRL DOCUMENT v3.4.0.3
Mineral Rights - Schedule of Direct Cost Measured at Fair Market Value (Details)
Jun. 30, 2015
USD ($)
Aqua Mining (PNG) [Member]  
Investment $ 34
Ownership 90.00%
Angel Jade Pty Ltd [Member]  
Investment $ 104,000
Ownership 70.00%
XML 44 R35.htm IDEA: XBRL DOCUMENT v3.4.0.3
Property and Equipment (Details Narrative) - USD ($)
9 Months Ended 12 Months Ended
Jun. 30, 2015
Sep. 30, 2014
Sep. 30, 2013
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 3,017 $ 12,992 $ 3,990
XML 45 R36.htm IDEA: XBRL DOCUMENT v3.4.0.3
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
Jun. 30, 2015
Sep. 30, 2014
Sep. 30, 2013
Property and equipment, gross $ 54,148 $ 96,576 $ 3,990
Less accumulated depreciation (3,017) (16,982) $ (3,990)
Property and equipment $ 51,131 79,594
Building Improvements [Member]      
Property and equipment, gross 70,665
Plant Equipment [Member]      
Property and equipment, gross $ 3,724 19,133
Computer Equipment [Member]      
Property and equipment, gross 6,274 $ 3,990
Office Equipment [Member]      
Property and equipment, gross $ 504
Motor Vehicle [Member]      
Property and equipment, gross $ 50,424
XML 46 R37.htm IDEA: XBRL DOCUMENT v3.4.0.3
Convertible Notes Payable (Details Narrative) - USD ($)
9 Months Ended 12 Months Ended
Aug. 25, 2014
Jan. 03, 2013
Jan. 02, 2012
May. 01, 2011
Jun. 30, 2015
Jun. 30, 2014
Sep. 30, 2014
Mar. 31, 2015
Oct. 12, 2013
Sep. 30, 2013
Conversion price per share               $ 0.001 $ 0.001  
Debt discount         $ 15,465          
Fair value of embedded conversion feature of convertible debt         61,273          
Amortization of the debt discount         319,266 $ 120,421        
2011 Note [Member]                    
Debt interest rate percentage       2.00%            
Debt due date       Apr. 30, 2012            
Note face amount       $ 32,000 22,166   $ 28,726     $ 32,000
Conversion price per share       $ 0.001            
Debt discount         0   0     $ 0
2012 Note [Member]                    
Debt interest rate percentage     2.00%              
Debt due date     Jan. 01, 2013              
Note face amount     $ 48,000   48,000   48,000      
Conversion price per share     $ 0.001              
Debt discount         0          
2013 Note [Member]                    
Debt interest rate percentage   2.00%                
Debt due date   Jan. 02, 2014                
Note face amount   $ 12,000     12,000   12,000      
Conversion price per share   $ 0.001                
Debt discount         0          
2014 Note [Member]                    
Debt interest rate percentage 12.00%                  
Debt due date Feb. 25, 2015                  
Note face amount $ 50,000       100,000   100,000      
Conversion price per share $ 0.25                  
Debt discount $ 100,000       15,465   80,434      
Warrants to purchase of common stock 800,000                  
Warrant exercise price per share $ 0.25                  
Warrants term 5 years                  
Fair value of embedded conversion feature of convertible debt $ 145,362                  
Amortization of the debt discount         $ 0   $ 19,566      
XML 47 R38.htm IDEA: XBRL DOCUMENT v3.4.0.3
Convertible Notes Payable - Schedule of Convertible Notes Payable (Details) - USD ($)
Jun. 30, 2015
Sep. 30, 2014
Aug. 25, 2014
Sep. 30, 2013
Jan. 03, 2013
Jan. 02, 2012
May. 01, 2011
Debt Discount $ 80,434 $ 3,099          
2011 Note [Member]              
Note Face Amount $ 22,166 $ 28,726   $ 32,000     $ 32,000
Debt Discount          
Net Amount of Note $ 22,166 $ 28,726          
2012 Note [Member]              
Note Face Amount $ 48,000 $ 48,000       $ 48,000  
Debt Discount          
Net Amount of Note $ 48,000 $ 48,000          
2013 Note [Member]              
Note Face Amount $ 12,000 $ 12,000     $ 12,000    
Debt Discount          
Net Amount of Note $ 12,000 $ 12,000          
2014 Note [Member]              
Note Face Amount $ 100,000 100,000 $ 50,000        
Debt Discount 80,434          
Net Amount of Note $ 100,000 19,566          
Convertible Notes Payable [Member]              
Note Face Amount $ 182,166 188,726          
Debt Discount 80,434          
Net Amount of Note $ 182,166 $ 108,292          
XML 48 R39.htm IDEA: XBRL DOCUMENT v3.4.0.3
Loan from Related Party (Details Narrative) - USD ($)
1 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Sep. 30, 2014
Sep. 30, 2013
Embedded conversion feature of the convertible debt       $ 61,273      
Debt discount       15,465      
Amortization of debt discount       319,266 $ 120,421    
Cumulative interest   $ 96,579       $ 96,579 $ 0
March 2014 Note [Member]              
Debt interest rate percentage 12.50%            
Debt maturity date Mar. 31, 2015            
Principal amount $ 157,500            
Percentage of common stock conversion price 50.00%            
Embedded conversion feature of the convertible debt $ 305,039            
Debt discount $ 157,500 78,534   0   78,534  
Amortization of debt discount           78,966  
June 2014 Note [Member]              
Debt interest rate percentage     12.50%   12.50%    
Debt maturity date     Jun. 30, 2015        
Principal amount     $ 110,741   $ 110,741    
Percentage of common stock conversion price     50.00%        
Embedded conversion feature of the convertible debt     $ 213,207        
Debt discount   $ 82,828 $ 110,741 0 $ 110,741 82,828  
Amortization of debt discount           $ 27,913  
September 2014 Note [Member]              
Debt interest rate percentage   12.50%       12.50%  
Debt maturity date   Sep. 30, 2015          
Principal amount   $ 98,575       $ 98,575  
Percentage of common stock conversion price   50.00%          
Embedded conversion feature of the convertible debt   $ 181,771          
Debt discount   $ 98,575   $ 15,465   98,575  
Amortization of debt discount           $ 0  
XML 49 R40.htm IDEA: XBRL DOCUMENT v3.4.0.3
Loan from Related Party - Schedule of Convertible Debt (Details) - USD ($)
Jun. 30, 2015
Sep. 30, 2014
Debt Discount $ 15,465  
President And Director [Member]    
Note face amount   $ 366,816
Debt Discount   (259,937)
Net amount of note   106,879
Loan From Related Party [Member] | President And Director [Member]    
Note face amount   366,816
Debt Discount   (259,937)
Net amount of note   $ 106,879
XML 50 R41.htm IDEA: XBRL DOCUMENT v3.4.0.3
Stockholder's Deficit (Details Narrative) - USD ($)
5 Months Ended 11 Months Ended
Feb. 28, 2014
Oct. 12, 2013
Aug. 22, 2013
Mar. 31, 2015
Sep. 30, 2014
Jun. 30, 2015
Equity [Abstract]            
Authorized reverse stock split     225:1 reverse stock split      
Number of stock issued during period 40,000,000 10,000,000        
Percentage of ownership acquire   80.00%        
Shares issued price per share $ 0.001 $ 0.001        
Debt conversion into shares       4,560,000 3,274,000  
Debt conversion into shares, value       $ 3,274 $ 3,274  
Conversion price per share   $ 0.001   $ 0.001    
Preferred stock, shares authorized         50,000,000 50,000,000
Preferred stock, par value         $ 0.001 $ 0.001
Preferred stock, designated         10,000,000 10,000,000
Series A preferred stock, shares issued         3,000,000 3,000,000
Series A preferred stock, shares outstanding         3,000,000 3,000,000
XML 51 R42.htm IDEA: XBRL DOCUMENT v3.4.0.3
Related Party Transactions (Details) - USD ($)
Jun. 30, 2015
Sep. 30, 2014
Sep. 30, 2013
Related Party Transactions [Abstract]      
Loan from related party - unsecured loan (a) [1] $ 629,269 $ 339,920
Convertible loans (b) [2] 182,166 366,816
Loan from related party $ 811,435 $ 706,736
[1] From time to time, the president and stockholder of the Company provides advances to the Company for its working capital purposes. These advances bear no interest and are due on demand.
[2] See Note 6 for details of Convertible notes.
XML 52 R43.htm IDEA: XBRL DOCUMENT v3.4.0.3
Related Party Transactions (Details) (Parenthetical) - USD ($)
3 Months Ended 5 Months Ended 9 Months Ended 11 Months Ended
Apr. 29, 2015
Jun. 24, 2015
Mar. 31, 2015
Jun. 30, 2015
Sep. 30, 2014
Oct. 12, 2013
Debt conversion into shares     4,560,000   3,274,000  
Debt conversion into shares, value     $ 3,274   $ 3,274  
Conversion price per share     $ 0.001     $ 0.001
Common Stock [Member]            
Common Stock issued - Warren Sheppard, Shares 3,001,702     3,001,702    
Debt conversion into shares   4,000,000        
Debt conversion into shares, value   $ 4,000        
Conversion price per share   $ 0.001        
XML 53 R44.htm IDEA: XBRL DOCUMENT v3.4.0.3
Business Combinations (Details Narrative) - shares
Dec. 10, 2014
Feb. 28, 2014
Feb. 14, 2014
Oct. 12, 2013
Ownership percentage in minority interest       80.00%
Joint Venture Agreement [Member]        
Net profit sharing percentage   70.00%    
Percentage of contribution to trust account by leaseholders and company   1.00%    
Joint Venture Agreement [Member] | Leaseholders [Member]        
Net profit sharing percentage   30.00%    
Percentage of contribution to trust account by leaseholders and company   1.00%    
Five Arrows Limited [Member]        
Number of common stock shares issued 90,000,000   40,000,000  
Angel Jade Pty Ltd [Member]        
Number of common stock shares issued 14,000,000      
Ownership percentage in minority interest 70.00%      
XML 54 R45.htm IDEA: XBRL DOCUMENT v3.4.0.3
Business Combinations - Schedule of Business Combinations (Details)
9 Months Ended
Jun. 30, 2015
Note 1 [Member]  
Name of Entity Aqua Mining (PNG) Ltd
Country of Incorporation Papua New Guinea
Acquisition Date Feb. 28, 2014
Voting Equity Interests 90.00%
Nature of Relationship Note 1
Note 2 [Member]  
Name of Entity Angel Jade Pty Ltd
Country of Incorporation Australia
Acquisition Date Dec. 10, 2014
Voting Equity Interests 70.00%
Nature of Relationship Note 2
XML 55 R46.htm IDEA: XBRL DOCUMENT v3.4.0.3
Subsequent Events (Details Narrative)
Jul. 27, 2015
Subsequent Event [Member] | Aqua Mining (PNG) [Member]  
Lease term 5 years
XML 56 R47.htm IDEA: XBRL DOCUMENT v3.4.0.3
Restatement of September 30, 2014 Balance Sheet - Schedule of Restatement of Balance Sheet (Details) - USD ($)
Jun. 30, 2015
Sep. 30, 2014
Sep. 30, 2013
Current assets:      
Cash $ 5,763 $ 110,152  
Prepaid expenses 6,035  
Total current assets $ 5,763 116,187  
Property and equipment, net $ 51,131 79,594
Investment in unconsolidated Joint Venture/Mining Rights 40,000  
Other assets $ 20,119 $ 499  
Deposits Paid 10,494  
Goodwill 14,000  
TOTAL CURRENT ASSETS AND TOTAL ASSETS 101,507 $ 236,280  
Current liabilities:      
Accounts payable 12,234 2,957  
Accrued expenses 249,143 $ 354,685  
Promissory notes payable 21,185  
Convertible notes payable, net of discounts of $80,434 182,166 $ 108,292  
Loans from Related Parties 629,269 446,799  
Derivative liabilities 514,139 752,997  
Deposits 155,300 $ 80,000  
Shares to be Issued - Five Arrows 36,378  
TOTAL CURRENT LIABILITIES 1,799,813 $ 1,745,730  
STOCKHOLDERS' EQUITY (DEFICIENCY)      
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at September 30, 2014. 3,000 3,000  
Common stock, $0.001 par value; 500,000,000 shares authorized and 53,837,485 shares issued and outstanding at September 30, 2014 77,399 53,837  
Additional paid-in capital 9,151,960 8,494,962  
Accumulated deficit $ (10,876,028) (10,225,051)  
Accumulated other comprehensive income 55,022  
Total stockholders’ deficit, including non-controlling interest $ (1,643,688) (1,618,230)  
Non-Controlling interest (54,638) 108,780  
Total stockholders’ deficit (1,698,306) (1,509,450)  
Total liabilities and stockholders’ deficit $ 101,507 236,280  
Previously Reported [Member]      
Current assets:      
Cash   110,152  
Prepaid expenses   6,035  
Total current assets   116,187  
Property and equipment, net   79,594  
Investment in unconsolidated Joint Venture/Mining Rights   8,000,000  
Other assets   499  
Deposits Paid   499  
Goodwill   0  
TOTAL CURRENT ASSETS AND TOTAL ASSETS   8,196,280  
Current liabilities:      
Accounts payable   2,957  
Accrued expenses   354,685  
Convertible notes payable, net of discounts of $80,434   108,292  
Loans from Related Parties   446,799  
Derivative liabilities   752,997  
Deposits   80,000  
TOTAL CURRENT LIABILITIES   1,745,730  
STOCKHOLDERS' EQUITY (DEFICIENCY)      
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at September 30, 2014.   3,000  
Common stock, $0.001 par value; 500,000,000 shares authorized and 53,837,485 shares issued and outstanding at September 30, 2014   53,837  
Additional paid-in capital   16,454,962  
Accumulated deficit   (10,225,051)  
Accumulated other comprehensive income   55,022  
Total stockholders’ deficit, including non-controlling interest   (6,341,770)  
Non-Controlling interest   108,780  
Total stockholders’ deficit   (6,450,550)  
Total liabilities and stockholders’ deficit   8,196,280  
Previously Reported [Member] | Per 06/30/2015 10-Q/A [Member]      
Current assets:      
Cash   110,152  
Prepaid expenses   6,035  
Total current assets   116,187  
Property and equipment, net   $ 79,594  
Investment in unconsolidated Joint Venture/Mining Rights    
Other assets   $ 499  
Goodwill   0  
TOTAL CURRENT ASSETS AND TOTAL ASSETS   196,280  
Current liabilities:      
Accounts payable   2,957  
Accrued expenses   354,685  
Convertible notes payable, net of discounts of $80,434   108,292  
Loans from Related Parties   446,799  
Derivative liabilities   752,997  
Deposits   80,000  
TOTAL CURRENT LIABILITIES   1,745,730  
STOCKHOLDERS' EQUITY (DEFICIENCY)      
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at September 30, 2014.   3,000  
Common stock, $0.001 par value; 500,000,000 shares authorized and 53,837,485 shares issued and outstanding at September 30, 2014   53,837  
Additional paid-in capital   8,494,962  
Accumulated deficit   (10,225,051)  
Accumulated other comprehensive income   55,022  
Total stockholders’ deficit, including non-controlling interest   (1,658,230)  
Non-Controlling interest   108,780  
Total stockholders’ deficit   (1,549,450)  
Total liabilities and stockholders’ deficit   196,280  
Adjustment [Member]      
Current assets:      
Investment in unconsolidated Joint Venture/Mining Rights   (7,960,000)  
TOTAL CURRENT ASSETS AND TOTAL ASSETS   (7,960,000)  
STOCKHOLDERS' EQUITY (DEFICIENCY)      
Additional paid-in capital   (7,960,000)  
Total stockholders’ deficit, including non-controlling interest   7,960,000  
Total stockholders’ deficit   7,960,000  
Total liabilities and stockholders’ deficit   (7,960,000)  
Adjustment [Member] | Per 06/30/2015 10-Q/A [Member]      
Current assets:      
Investment in unconsolidated Joint Venture/Mining Rights   40,000  
TOTAL CURRENT ASSETS AND TOTAL ASSETS   40,000  
STOCKHOLDERS' EQUITY (DEFICIENCY)      
Additional paid-in capital   40,000  
Total stockholders’ deficit, including non-controlling interest   (40,000)  
Total stockholders’ deficit   (40,000)  
Total liabilities and stockholders’ deficit   $ 40,000  
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