10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

From transition period from ________ to _______

Commission File No.: 333-201740

BARREL ENERGY, INC.

(Exact name of registrant as specified in its charter)

Nevada	47-1963189
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
8275 S. Eastern Ave Suite 200 Las Vegas, NV	89123
(Address of principal executive offices)	(Zip Code)

(702) 595-2247

 (Registrant’s telephone number, including area code) 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 past 90 days. Yes x No ¨

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 (§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 ¨ No x

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 of the Exchange Act.:

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	x
		Emerging Growth Company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes  x No

As of August 20, 2019 the registrant had 41,093,618 shares of common stock outstanding.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	4
	Balance Sheets as of June 30, 2019, (Unaudited) and September 30, 2018	5
	Statements of Operations and Comprehensive loss for the Three and Nine Months Ended June 30, 2019 and 2018 – (Unaudited)	6
	Statement of Shareholders Deficit for the Nine Months Ended June 30, 2019 and 2018(Unaudited)	7
	Statements of Cash Flows for the Nine Months Ended June 30, 2019 and 2018 (Unaudited)	8
	Notes to Financial Statements (Unaudited)	9
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3:	Quantitative and Qualitative Disclosures about Market Risk	17
Item 4T:	Controls and Procedures	17
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	18
Item 1A:	Risk Factors	18
Item 2:	Unregistered Sales of Securities and Use of Proceeds	18
Item 3:	Default upon Senior Securities	18
Item 4:	Mine Safety Information	18
Item 5:	Other information	18
Item 6:	Exhibits	19
Signatures		20

Reference in this report to “BARREL ENERGY” “we,” “us,” and “our” refer to BARREL ENERGY, Inc.

2

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

3

PART I – FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

The financial information set forth below with respect to our financial statements for the three and nine months period ended June 30, 2019 and 2018 is unaudited. This financial information, in the opinion of management, includes all adjustments consisting of normal recurring entries necessary for the fair presentation of such data. The results of operations for the nine months ended June 30, 2019 are not necessarily indicative of results to be expected for any subsequent period. Our year end is September 30.

4

BARREL ENERGY INC

BALANCE SHEETS

	June 30, 2019			September 30, 2018
	Unaudited
ASSETS
Current assets:
Cash and cash equivalents	$	12,525		$	3,458
Prepaid		--			33,333
Total current assets		12,525			36,791
Total assets	$	12,525		$	36,791
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses	$	47,427		$	27,719
Consulting payable- related parties		64,361			--
Advances from shareholder		23,201			32,791
Convertible notes payable- net of discount of $218,736 and zero respectively		90,146			52,709
Notes payable		100,000			--
Derivative liability		334,338			--
Total current liabilities		659,473			113,219
Total liabilities		659,473			113,219
Commitment and Contingencies
Stockholders’ equity (deficit):
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding		-			-
Common stock, $0.001 par value, 450,000,000 authorized, 41,093,618 issued and outstanding as of June 30, 2019 and 23,801,332 as of September 30, 2018		41,093			23,801
Additional paid in capital		870,515			272,638
Stock subscription receivable		--			(11,500	)
Accumulated other comprehensive loss		(5,126	)		(6,857	)
Accumulated deficit		(1,553,430	)		(354,510	)
Total stockholders’ equity (deficit)		(646,948	)		(76,428	)
Total liabilities and stockholders’ equity (deficit)	$	12,525		$	36,791

The accompanying notes are an integral part of these unaudited interim financial statements.

5

BARREL ENERGY INC

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE AND NINE MONTHS JUNE 30,

(Unaudited)

	Three Months						Nine Months
	2019			2018			2019			2018
Operating expenses:
Consulting – related parties	$	87,155		$	--		$	264,681		$	--
Consulting		77,627			--			174,824			--
General and administrative expense		154,647			7,319			306,788			192,025
Loss from operations		(319,429	)		(7,319	)		(746,293	)		(192,025	)
Other expense
Loss on currency		--			--			(24	)		--
Change in fair value		(45,570	)		--			(16,796	)		--
Financing cost		(117,394	)		--			(271,098	)		--
Interest expense		(117,233	)		(1,256	)		(133,771	)		(3,860	)
Total other expense		(280,197	)		(1,256	)		(421,689	)		(3,860	)
Net loss		(599,262	)		(8,575	)		(1,167,982	)		(195,885	)
Foreign currency translation adjustment		(349	)		6,188			1,731			(3,570	)
Comprehensive loss	$	(599,611	)	$	(2,387	)	$	(1,166,251	)	$	(199,455	)
Net loss per common share, Basic and Diluted	$	(0.02	)	$	(0.00	)	$	(0.03	)	$	(0.02	)
Weighted average number of common shares outstanding, basic and diluted		38,371,853			12,301,332			35,320,524			12,301,332

The accompanying notes are an integral part of these unaudited interim financial statements.

6

BARREL ENGERGY INC

STATEMENTS OF SHAREHOLDERS DEFICIT

(Unaudited)

						Additional											Total
	Common Stock					Paid-In			Accumulated			Stock			Comprehensive		Stockholders’
	Shares		Amount			Capital			Deficit			Receivable			Gain (Loss)		Deficit
Balance at September 30, 2017		12,301,332	$	12,301		$	272,638	$	(178,477	)		--		$	(4,298	)	$	102,165
Comprehensive gain (loss)		--		--			--		--			--			2,355			2,355
Net loss		--		--			--		(24,712	)		--			--			(24,712	)
Balance at December 31, 2017		12,301,332		12,301			272,638		(203,189	)		--			(1,943	)		79,808
Comprehensive gain (loss)		--		--			--		--			--			(12,112	)		(12,112	)
Net loss		--		--			--		(162,598	)		--			--			(162,598	)
Balance at March 31, 2018		12,301,332		12,301			272,638		(365,787	)		--			(14,055	)		(94,902	)
Comprehensive gain (loss)		--		--			--		--						6,188			6,188
Net income (loss)		--		--			--		(8,575	)		--			--			(8,575	)
Balance at June 30, 2018		12,301,332		12,301			272,638		(374,362	)					(7,867	)		(97,289	)
Balance, September 30, 2018		12,301,332		23,801			272,638		(354,510	)		(11,500	)		(6,857	)		(76,428	)
Common stock issued for cash		13,502,000		25,002			998		--			--			--			26,000
Common stock issued for service		175,000		175			131,075		--			--			--			131,250
Shares issued for stock receivable		11,500,000		(11,500	)		--		--			11,500			--			--
Comprehensive gain (loss)		--		--			--		--			--			3,420			3,420
Net loss		--		--			--		(507,637	)		--			--			(507,637	)
Balance at December 31, 2018		37,478,332		37,478			404,711		(862,147	)		--			(3,437	)		(423,395	)
Common stock issued for cash		440,286		440			219,703		--			--						220,143
Comprehensive gain (loss)		--		--			--		--			--			(1,340	)		(1,340	)
Net loss		--		--			--		(61,719	)		--			--			(61,719	)
Balance at March 31, 2019		37,918,618		37,918			624,414		(923,866	)		--			(4,777	)		(266,311	)
Common stock issued for cash		3,035,000		3,035			75,465											78,500
Common stock issued for convertible debt		140,000		140			4,760		--			--			--			4,900
Finance charges of note		--		--			134,938		--			--			--			134,938
Deemed dividend of warrants							30,938		(30,938	)								--
Comprehensive gain (loss)		--		--			--		--			--			(349	)		(349	)
Net loss		--		--			--		(598,626	)		--			--			(598,626	)
Balance at June 30, 2019		41,093,618	$	41,093		$	870,515	$	(1,553,430	)	$	--		$	(5,126	)	$	(646,948	)

The accompanying notes are an integral part of these unaudited interim financial statements

7

BARREL ENGERGY INC

STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED JUNE 30,

(Unaudited)

	2019			2018
Cash flows from operating activities:
Net loss	$	(1,167,982	)	$	(195,855	)
Adjustments to reconcile net loss to net cash used in operating activities:
Derivative change in fair value		16,769			--
Amortization of debt discount		134,938			--
Financing cost		253,583			--
Changes in operating assets and liabilities:
Accounts payable and accrued expense		11,644			53,111
Prepaid		33,333			--
Due to related party		64,361			--
Net cash used in operating activities		(653,354	)		(142,744	)
Cash flows from financing activities:
Cash received for the sale of common stock		323,643			--
Proceeds from notes payable		100,000			--
Proceeds from convertible notes payable		255,000			--
Repayment of related party advances and convertible note payable		(9,590	)		(92,739	)
Net cash provided by (used in) financing activities		669,053			(92,739	)
Effects of currency translation		(6,632	)		(6,587	)
Net increase (decrease) in cash		9,067			(240,070	)
Cash – beginning of period		3,458			250,160
Cash – end of period	$	12,525		$	8,090
SUPPLEMENT DISCLOSURES:
Interest paid	$	--		$	334
Income taxes paid		-			-
NON CASH INVESTING AND FINANCING ACTIVITIES
Discount recorded on inception of derivatives	$	36,000		$	--
Expenses paid on behalf of the Company	$	--		$	51,898

The accompanying notes are an integral part of these unaudited interim financial statements.

8

BARREL ENERGY INC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 – NATURE OF BUSINESS

BARREL ENERGY INC. is a Nevada corporation, incorporated January 17, 2014, which has engaged historically in the oil and gas sector of the energy industry. In January 2019 the Company terminated the agreement. It still maintains its interest in capped oil and gas properties in Alberta Canada. The Company entered into an agreement in the lithium exploration business but terminated the contract. The Company has leased land in central California to grow hemp for extracting CBD and the use of fiber in clothing and other materials.

On April 11, 2019 the Company amended its articles of incorporation to increase its number of authorized shares of common stock from 75,000,000 to 450,000,000.

BASIS OF PRESENTATION

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the audited September 30, 2018 financial statements and related notes included in the Company’s form 10-K filed with the SEC.

Basic and diluted net income per share

Basic loss per share is calculated as net loss to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted loss per share for the period equals basic loss per share as the effect of any stock based compensation awards or stock warrants would be antidilutive. As of June 30, 2019 the potential shares at conversion standing was 4,795,199.

NOTE 2 - GOING CONCERN

The Company’s unaudited interim financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has negative working capital and an accumulated deficit of $1,553,430 as of June 30, 2019. The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the company’s ability to continue as a going concern. The unaudited interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

9

NOTE 3 – CONVERTIBLE NOTE

On July 1, 2014, the Company issued a USD $67,215 (CAD $75,000) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2015. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid. On September 30, 2017 the Company issued 700,000 shares of common stock with a value of $5,612 (CDN $7,000) for partial conversion of the convertible note. As of June 30, 2019, the convertible debt outstanding was USD $52,032 plus accrued interest of USD $26,113 for a total liability of USD $78,145.

On November 12, 2018 the Company issued a $36,000 convertible note to Crown Partners, LLC. The note bears an original discount of $10,000, matures in 12 months from the origination date and bears interest at 5% per annuum. The note is convertible at any time, in part or whole, at $0.50 per share until the 180^th date of the note at which time it is convertible an 55% of the market price which is defined as the lowest trading price 25 days prior to conversion. An interest amount of $1,142 has been accrued along with a principal balance of $31,850 as of June 30, 2019

On May 15, 2019 the Company issued a $100,000 convertible note plus 500,000 warrants to Auctus Funding, LLC. The note bears an original discount of $3,500, matures February 17, 2020 and bears interest at 5% per annuum. The note is convertible at any time, at 55% of the market price which is defined as the lowest trading price 25 days prior to conversion. Interest of $1,478 has been accrued as of June 30, 2019. The warrants are convertible at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. (See Note 6: Warrants)

On May 16, 2019 the Company issued a $125,000 convertible note and 625,000 warrants to FirstFire Global Opportunity Fund, LLC. The note bears an original discount of $12,500, matures in 12 months from the origination date and bears interest at 7% per annuum. The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion. Interest of $1,055 has been accrued as of June 30, 2019. The warrants are convertible at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. (See Note 6: Warrants)

NOTE 4 – RELATED PARTY

During the period from October 1, 2018 through June 30, 2019 the Company paid related parties consulting fees of $264,681 of which Harp Sangha was paid $174,000 and Craig Alford was paid $66,000. Under the terms of their consulting agreements Mr. Alford is entitled to $67,500 for the period and Mr. Sangha $135,000. As of June 30, 2019 the Company owed the related parties $64,361 in accrued consulting. The monthly payments, dates of their contracts termination and relation to the Company or family of the officers are set forth below:

Name	Monthly		Terminates	Related Party
Louis Silver	$	2,000	1/31/2019	no
Harkrishnan Giroh	$	2,500	1/31/2019	no
Jagraj Sangha	$	4,000	6/30/2019	Son of Harp Sangha
Remit Bains	$	3,000	9/30/2019	Wife of Brother of Harp Sangha
Flora Mushi	$	3,000	9/30/2019	no
William Monroe	$	5,833	3/31/2019	No
Baljinder Cheema	$	5,000	2/28/2019	no
Kulraj Sangha	$	3,000	9/30/2019	Yes to Harp Sangha
Craig Alford	$	7,000	9/30/2019	Officer
Harp Sangha	$	15,000	9/30/2019	Officer

During the period ended June 30, 2019 Harpreet Sangha, the Company’s Chairman and Chief Financial Officer, entered into an agreement and purchased 10,000,000 shares of the Company’s common stock for $10,000 and Craig Alford, the Company’s President, who entered into an agreement and purchased 4,000,000 shares of the Company’s common stock for $4,000.

10

NOTE 5 – EQUITY

During the period from September 30, 2018 to June 30, 2019, the Company entered into separate Subscription Agreements with 17 persons under which 25,000,000 shares of the Company’s common stock were sold for $0.001 per share. In addition, twenty individuals were sold 3,477,286 units, consisting of one share of common stock at $0.50 per share one warrant to purchase one share of common stock shares at $0.50 per share within three years. This included Harpreet Sangha, the Company’s Chairman, who entered into an agreement to purchase 10,000,000 shares of the Company’s common stock and Craig Alford, the Company’s President, who entered into an agreement to purchase 4,000,000 shares of the Company’s common stock. Three individuals purchasing a total of 3,250,000 shares of common stock with a value $3,250 are relatives of the company Chairman and CFO. . Subscription Agreements were approved by the Company’s Board of Directors. The sales were made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act of 1933 and, with respect to a majority of the purchasers, Regulation S.

On November 13, 2018 the Company entered into a $3,000,000 equity purchase agreement with Crown Bridge Partners. Under the terms of the agreement, the Company may put to the investor shares of the Company common stock in minimums of $10,000 to maximums of either $100,000 or 200% of the average trading volume, whichever is less. The agreement may be terminated at any time by the Company or when the total commitment of shares are sold by the Company to the investor. As part of the agreement, the Company issued 175,000 shares of its common stock at $0.75 per share as a commitment fee. The value of the transaction of $131,250 was expensed as a financing cost.

NOTE 6 – WARRANTS

During the nine months period ended June 30, 2019 the Company issued 477,286 warrants to twenty individuals as part of their purchase of 477,286 shares of common stock. The warrants mature in three years and are convertible into one share of common stock for each warrant at $0.50 per share.

During the nine months period ended June 30, 2019 the Company issued 1,125,000 warrants to 2 convertible debt entities as part of the note issued. The warrants are convertible at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. The warrants were issued as an inducement of the issuance of the two notes for an aggregate of $225,000.

11

The outstanding warrants are set out as follow:

	Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contract Life		Intrinsic Value
Outstanding at September 30, 2018		--		--		--		--
Granted		1,602,286		0.29		4.32		--
Expired		--		--		--		--
Exercised		--		--		--		--
Outstanding at June 30, 2019		1,602,286	$	0.29		4,32	$	288,411

The Company used the Black Scholes Pricing model to estimate the fair value of the warrants as of grant date, using the following key inputs: market prices of the Company’s common stock at dates of grant between $0.28 - $3.00 per share, conversion price of $0.20-0.50, volatility of 272.63% and discount rate of 2.40%. Based on the fair value of the common stock of $221,000 and value of the warrants of $535,293 the fair value of the warrants was calculated to be 38 % of the total value or $288,411. The valuation resulted in a deemed dividend from the down round calculation of the 1,125,000 warrants of $30,938

NOTE 7 – NOTES PAYABLE

On November 15, 2018 the Company received an advance from one non-related party for $65,000. On December 3, 2018 the Company received an additional advance of $35,000 from the same individual for a total of $100,000. Both advances are unsecured, on demand and bear no interest. The Company has calculated an imputed interest of $2,500 for the last period.

NOTE 8- DERIVATIVE LIABILITIES

On November 12, 2018 the Company issued a $36,000 convertible note to Crown Partners, LLC. The note bears an original discount of $3,500, matures in 12 months from the origination date and bears interest at 5% per annuum. The note is convertible at any time, in part or whole, at $0.50 per share until the 180^th date of the note at which time it is convertible an 55% of the market price which is defined as the lowest trading price 25 days prior to conversion. The Company used the American Option Binomial Tree Pricing model to estimate the fair value of the derivative liability as of the date of issuance and as of June 30, 2019, using the following key inputs: market price of the Company’s common stock $0.11 per share, volatility of 269,66% and discount rate of 2.37%. The fair value of the derivative liability was determined to $61,178 as of June 30, 2019.

On May 15, 2019 the Company issued a $100,000 convertible note to Auctus Funding, LLC. The note bears an original discount of $3,500, matures February 17, 2020 and bears interest at 5% per annuum. The note is convertible at any time, at 5% of the market price which is defined as the lowest trading price 25 days prior to conversion. The Company used the American Option Binomial Tree Pricing model to estimate the fair value of the derivative liability as of the date of issuance and as of June 30, 2019, using the following key inputs: market price of the Company’s common stock $0.11 per share, volatility of 269,66% and discount rate of 2.37%. The fair value of the derivative liability was determined to $243,418 as of June 30, 2019.

On May 16, 2019 the Company issued a $125,000 convertible note to FirstFire Global Opportunity Fund, LLC. The note bears an original discount of $12,500, matures in 12 months from the origination date and bears interest at 7% per annuum. The note is convertible at any time, in part or whole, at $0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion. The Company used the American Option Binomial Tree Pricing model to estimate the fair value of the derivative liability as of the date of issuance and as of June 30, 2019, using the following key inputs: market price of the Company’s common stock $0.11 per share, volatility of 269.66% and discount rate of 2.37%. The fair value of the derivative liability was determined to $38,742 as of June 30, 2019.

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Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and shareholder loans. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Financial assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels:

Level 1— Quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2— quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.

Level 3— Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Financial assets and liabilities measured at fair value on a recurring basis are summarized below as of September 30, 2018 and June 30, 2019:

	Level 1		Level 2		Level 3		Total
As of September 30, 2018:
Assets
None	$	-	$	-	$	-	$	-
Liabilities
Derivative liability	$	-	$	-	$	--	$	--
As of June 30, 2019:
Assets
None	$	-	$	-	$	-	$	-
Liabilities
Derivative liability	$	-	$	-	$	334,338	$	334,338

The following table summarizes the change in the fair value of the derivative liability during the nine months ended June 30, 2019:

Fair value as of September 30,2018	$	--
Additions		462,119
Debt discount charged to derivative		106,300
Financing cost charged to derivative		70,000
Change in fair value		(16,769	)
Fair value as of June 30, 2019	$	334,338

13

NOTE 9 – COMMITMENTS AND CONTINGENCIES

On May 14, 2019 the Company signed a land lease in central California for 602 acres at $1,000 per acre to grow hemp for fiber usage. The lease is for 10 years with annual costs of $602,000 with the initial payment of $200,000 due September 30, 2019.

The yearly rental obligations including the lease agreements are as follows:

Fiscal Year
2019	$	602,000
2020	$	602,000
2021	$	602,000
2022	$	602,000
2023 and years thereafter		3,612,000
Total	$	6,020,000

NOTE 10 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events to determine events occurring after June 30, 2019 through August 20, 2019 that would have a material impact on the Company’s financial results or require disclosure and have determined none exist other than those noted above in this footnote.

14

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Executive Overview

Barrel Energy Inc (Barrel) was incorporated on January 27, 2014 under the laws of the State of Nevada. The Company was formed to invest in producing oil and gas properties. On September 26, 2014, the Company leased an unproven oil and gas property in the province of Alberta, Canada.

On October 11, 2018, Barrel Energy Inc. (the “Company”) entered into an Earn-In Agreement (the “Agreement”) with True Grit Resources, a British Columbia corporation (“TGR”), an unrelated third party. In exchange for the payment by the Company of certain consideration, the Company may earn of to 100% participation interest in certain mineral rights leases that TGR has in Arizona. The first payment for $100,000 was due within ten (10) days of the execution of the Agreement and another payment of $300,000 or expenditure to the property was due within 30 days of the first payment. Upon receipt of $400,000, the Company will have a 49% participation interest in the Arizona property mineral lease rights .The Company may require a 70% earn-in interest by expending a cumulative $1,400,000 on the property. In order to secure the 100% participation interest, the Company is required to expend a cumulative amount of payments and property expenditures of $2,400,000.

The mineral rights the Company was acquiring is subject to an option agreement dated October 3, 2017 between True Grit and two individuals with beneficial ownership of the mining Permit issued by the State of Arizona in accordance with ARS 27-234. The Company at the date of this filing is unable to confirm that the either the beneficial owners and or True Grit’s claims are current and active. If the Claims cannot be confirmed the earn in agreement may not be valid and may be void. Prior to any payments per the agreement, the Company is requiring from True Grit a statement from the Bureau of Land Management confirming the claims and permits on the property are current and in effect

On November 5, 2018 the Company received an extension for the initial payments of $400,000 of which the initial $100,000 is required to be paid by February 28, 2019.

On January 17, 2019 the Company terminated the Earn-In agreement with True Grit Resources.

On April 11, 2019 the Company amended its articles of incorporation to increase its number of authorized shares of common stock to 450,000,000.

On May 14, 2019 the Company signed a 10 year land lease to grow hemp fiber.

As of the date of this filing no revenues have been recorded for the past two years. Our focus for the next twelve months will be to obtain additional funding to develop and expand our operations and new projects. Our success will depend on our ability to obtain funding through equity and/or debt transactions. However, with the downturn of the United States and world economies, we will encounter substantial competition for the limited financing that will be available in the marketplace. If we are unable to obtain financing, then we will likely delay further development of our unimproved property which is an oil lease in Canada.

In summary, management continues to position the company in a way to best benefit from worldwide economic conditions, trends, events, and demand for new technologies.

15

Liquidity and Capital Resources

At June 30, 2019, we had an accumulated deficit of $1,553,430. We recorded a net loss of $598,262 and $1,167,982 for the three and nine months periods ended June 30, 2019 and net loss of $8,575 and $195,885 for the same periods in 2018, respectively. Based on these numbers there is substantial doubt that we can continue as a going concern unless we obtain external funding. Management plans to continue limited operations until we obtain additional funding to expand our operations.

Working capital was negative $646,948 as of June 30, 2019, compared to negative working capital of $76,428 as of September 30, 2018.

Cash used in operations totaled $653,354 during the nine months ended June 30, 2019, compared to cash used in operations of $142,744 during the same period in 2018.

Funds provided by financing activities was $669,053 from notes of $100,000, common stock sold for cash of $323,643 and proceeds from Convertible note of $255,000 offset by repayment to a related a party of $9,590 for the period ended June 30, 2019, compared to cash used in financing activities of $92,739 from repayment to related party during the same period in 2018.

The effect of foreign currency translation on cash flows was a negative $6,632 for the nine months ended June 30, 2019, compared to a negative $6,587 in the same period in 2018.

Management expects to continue to issue common stock to pay for the future development and needs. The purchasers and manner of issuance will be determined according to our financial needs and the available exemptions. We also note that if we issue more shares of our common stock our shareholders may experience dilution in the value per share of their common stock.

We intend to rely on debt and equity financing, capital contributions from management and sales of our common stock to pay for costs, services, operating leases, litigation expense and future development of our business opportunities. Accordingly, our focus for the next twelve months will be to obtain additional funding through debt or equity financing. Our success in obtaining funding will depend upon our ability to sell our common stock or borrow on terms that are financially advantageous to us. If we are unable to obtain financing, then expansion of our operations will be delayed.

Results of Operations

The Company recorded no revenue during the three and nine months periods ended June 30, 2019 and 2018.

General and administrative expenses for the three and nine months periods ended June 30, 2019 totaled $154,647 and $306,788 compared to $7,319 and $192,025 for the same periods in 2018. The increase loss from operations for the three and nine months in 2019 compared to 2018 was due to the consulting costs paid and accrued of $439,505 along with general expense of $306,788 in 2019.

The Company incurred a net loss of $599,262 and $1,167,982 in the three and nine months periods ended June 30, 2019, compared to net loss of $8,575 and $195,885 for the same periods in 2018. The higher net loss was due to higher general and administrative cost including higher consulting costs along with financing costs of $271,098 and interest of $133,771 in the nine months periods ended June 30, 2019 compared to the same periods in 2018.

Off-Balance Sheet Arrangements

None

16

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4: CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the “Exchange Act”), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of a material weakness in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weakness relates to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO /CFO do not possess accounting expertise and our company does not have an audit committee. This weakness is due to the Company’s lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

Changes in Internal Control over Financial Reporting

Except as noted above, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first nine months that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

17

PART II – OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS.

None

ITEM 1A: RISK FACTORS

None

ITEM 2: SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

During the period from September 30, 2018 to June 30, 2019, the Company entered into separate Subscription Agreements with 17 persons under which 25,000,000 shares of the Company’s common stock were sold for $0.001 per share. In addition, twenty individuals were sold 3,477,286 units, consisting of one share of common stock at $0.50 per share one warrant to purchase one share of common stock shares at $0.50 per share within three years. This included Harpreet Sangha, the Company’s Chairman, who entered into an agreement to purchase 10,000,000 shares of the Company’s common stock and Craig Alford, the Company’s President, who entered into an agreement to purchase 4,000,000 shares of the Company’s common stock. Three individuals purchasing a total of 3,250,000 shares of common stock with a value $3,250 are relatives of the company Chairman and CFO. . Subscription Agreements were approved by the Company’s Board of Directors. The sales were made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act of 1933 and, with respect to a majority of the purchasers, Regulation S.

On November 13, 2018 the Company entered into a $3,000,000 equity purchase agreement with Crown Bridge Partners. Under the terms of the agreement, the Company may put to the investor shares of the Company common stock in minimums of $10,000 to maximums of either $100,000 or 200% of the average trading volume, whichever is less. The agreement may be terminated at any time by the Company or when the total commitment of shares are sold by the Company to the investor. As part of the agreement, the Company issued 175,000 shares of its common stock at $0.75 per share as a commitment fee. The value of the transaction of $131,250 was expensed as a financing cost.

ITEM 3: DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4: MINE SAFETY INFORMATION

None

ITEM 5: OTHER INFORMATION.

None

18

ITEM 6. EXHIBITS

No.	Description
31.1	Chief Executive Officer Certification
31.2	Chief Financial Officers Certification
32.1	Section 1350 Certification
32.2	Section 1350 Certification

 

19

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BARREL ENERGY, INC.
Date: August 20, 2019	By:	/s/ Craig Alford
		Craig Alford
		President
		Chief Executive Officer

20

EX-31.1

EXHIBIT 31.1

FORM OF CERTIFICATION

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

CERTIFICATION

I, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of BARREL ENERGY, Inc.;
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 are 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 has:

(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 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 the 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 has a significant role in the registrant’s internal control over financial reporting.

Dated: August 20, 2019	/s/ Craig Alford
	Craig Alford
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

FORM OF CERTIFICATION

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

CERTIFICATION

I, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of BARREL ENERGY, Inc.;
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 are 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 has:

(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 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 the 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 has a significant role in the registrant’s internal control over financial reporting.

Dated: August 20, 2019	/s/ Lowell Holden
	Lowell Holden
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarter Report of BARREL ENERGY, Inc. on Form 10-Q for the period ended June 30, 2019 as filed with the Securities and Exchange Commission (the “Report”) Craig Alford, Chief Executive Officer of the Company, does hereby certify, pursuant to §906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that to his knowledge:

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 results of operation of the Company.

Dated: August 20, 2019	/s/ Craig Alford
	Craig Alford Chief Executive Officer

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

EX-32.2

EXHIBIT 32.2

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarter Report of BARREL ENERGY, Inc. on Form 10-Q for the period ended June 30, 2019 as filed with the Securities and Exchange Commission (the “Report”) Lowell Holden, Chief Financial Officer of the Company, does hereby certify, pursuant to §906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that to his knowledge:

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 results of operation of the Company.

Dated: August 20, 2019	/s/ Lowell Holden
	Lowell Holden Chief Financial Officer

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

XML

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2019	Aug. 20, 2019
Document And Entity Information
Entity Registrant Name	Barrel Energy Inc.
Entity Central Index Key	0001631463
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2019
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		41,093,618

XML

BALANCE SHEETS - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 12,525	$ 3,458
Prepaid		33,333
Total current assets	12,525	36,791
Total assets	12,525	36,791
Current liabilities:
Accounts payable and accrued expenses	47,427	27,719
Consulting payable- related parties	64,361
Advances from shareholder	23,201	32,791
Convertible notes payable- net of discount of $218,736 and zero respectively	90,146	52,709
Notes payable	100,000
Derivative liability	334,338
Total current liabilities	659,473	113,219
Total liabilities	659,473	113,219
Commitment and Contingencies
Stockholders' equity (deficit):
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding
Common stock, $0.001 par value, 450,000,000 authorized, 41,093,618 issued and outstanding as of June 30, 2019 and 23,801,332 as of September 30, 2018	41,093	23,801
Additional paid in capital	870,515	272,638
Stock subscription receivable		(11,500)
Accumulated other comprehensive loss	(5,126)	(6,857)
Accumulated deficit	(1,553,430)	(354,510)
Total stockholders' equity (deficit)	(646,948)	(76,428)
Total liabilities and stockholders' equity (deficit)	$ 12,525	$ 36,791

XML

BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Current liabilities
Convertible notes payable net of discount	$ 218,736	$ 0
Stockholders' equity (deficit)
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	41,093,618	23,801,332
Common stock, shares outstanding	41,093,618	23,801,332

XML

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating expenses
Consulting - related parties	$ 87,155		$ 264,681
Consulting	77,627		174,824
General and administrative expense	154,647	7,319	306,788	192,025
Loss from operations	(319,429)	(7,319)	(746,293)	(192,025)
Other expense
Loss on currency			(24)
Change in fair value	(45,570)		(16,769)
Financing cost	(117,394)		(271,098)
Interest expense	(117,233)	(1,256)	(133,771)	(3,860)
Total other expense	(280,197)	(1,256)	(421,689)	(3,860)
Net loss	(599,262)	(8,575)	(1,167,982)	(195,885)
Foreign currency translation adjustment	(349)	6,188	1,731	(3,570)
Comprehensive loss	$ (599,611)	$ (2,387)	$ (1,166,251)	$ (199,455)
Net loss per common share, Basic and Diluted	$ (0.02)	$ (0.00)	$ (0.03)	$ (0.02)
Weighted average number of common shares outstanding, basic and diluted	38,371,853	12,301,332	35,320,524	12,301,332

XML

STATEMENTS OF SHAREHOLDERS DEFICIT (Unaudited) - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital	Accumulated Deficit	Stock Receivable	Comprehensive Gain Loss
Beginning Balance, Shares at Sep. 30, 2017		12,301,332
Beginning Balance, Amount at Sep. 30, 2017	$ 102,165	$ 12,301	$ 272,638	$ (178,477)		$ (4,298)
Comprehensive gain (loss), Amount	2,355					2,355
Net loss	(24,712)			(24,712)
Ending Balance, Shares at Dec. 31, 2017		12,301,332
Ending Balance, Amount at Dec. 31, 2017	79,808	$ 12,301	272,638	(203,189)		(1,943)
Comprehensive gain (loss), Amount	(12,112)					(12,112)
Net loss	(162,598)			(162,598)
Ending Balance, Shares at Mar. 31, 2018		12,301,332
Ending Balance, Amount at Mar. 31, 2018	(94,902)	$ 12,301	272,638	(365,787)		(14,055)
Comprehensive gain (loss), Amount	6,188					6,188
Net loss	(8,575)			(8,575)
Ending Balance, Shares at Jun. 30, 2018		12,301,332
Ending Balance, Amount at Jun. 30, 2018	(97,289)	$ 12,301	272,638	(374,362)		(7,867)
Beginning Balance, Shares at Sep. 30, 2018		12,301,332
Beginning Balance, Amount at Sep. 30, 2018	(76,428)	$ 23,801	272,638	(354,510)	(11,500)	(6,857)
Comprehensive gain (loss), Amount	3,420					3,420
Net loss	(507,637)			(507,637)
Common stock issued for cash, Shares		13,502,000
Common stock issued for service, Shares		175,000
Shares issued for stock receivable, Shares		11,500,000
Common stock issued for cash, Amount	26,000	$ 25,002	998
Common stock issued for service, Amount	131,250	175	131,075
Shares issued for stock receivable, Amount		$ (11,500)			11,500
Ending Balance, Shares at Dec. 31, 2018		37,478,332
Ending Balance, Amount at Dec. 31, 2018	(423,395)	$ 37,478	404,711	(862,147)		(3,437)
Comprehensive gain (loss), Amount	(1,340)					(1,340)
Net loss	(61,719)			(61,719)
Common stock issued for cash, Shares		440,286
Common stock issued for cash, Amount	220,143	$ 440	219,703
Ending Balance, Shares at Mar. 31, 2019		37,918,618
Ending Balance, Amount at Mar. 31, 2019	(266,311)	$ 37,918	624,414	(923,866)		(4,777)
Comprehensive gain (loss), Amount	(349)					(349)
Net loss	(598,626)			(598,626)
Common stock issued for cash, Shares		3,035,000
Common stock issued for convertible debt, Shares		140,000
Finance charges of note, Amount	134,938		134,938
Deemed dividend of warrants, Amount			30,938	(30,938)
Common stock issued for cash, Amount	78,500	3,035	75,465
Common stock issued for convertible debt, Amount	4,900	$ 140	4,760
Ending Balance, Shares at Jun. 30, 2019		41,093,618
Ending Balance, Amount at Jun. 30, 2019	$ (646,948)	$ 41,093	$ 870,515	$ (1,553,430)		$ (5,126)

XML

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net loss	$ (1,167,982)	$ (195,885)
Adjustments to reconcile net loss to net cash used in operating activities:
Derivative change in fair value	16,769
Amortization of debt discount	134,938
Financing cost	253,583
Changes in operating assets and liabilities:
Accounts payable and accrued expense	11,644	53,111
Prepaid	33,333
Due to related party	64,361
Net cash used in operating activities	(653,354)	(142,744)
Cash flows from financing activities:
Cash received for the sale of common stock	323,643
Proceeds from notes payable	100,000
Proceeds from convertible notes payable	255,000
Repayment of related party advances and convertible note payable	(9,590)	(92,739)
Net cash provided by (used in) financing activities	669,053	(92,739)
Effects of currency translation	(6,632)	(6,587)
Net increase (decrease) in cash	9,067	(240,070)
Cash - beginning of period	3,458	250,160
Cash - end of period	12,525	8,090
SUPPLEMENT DISCLOSURES:
Interest paid		334
Income taxes paid
NON CASH INVESTING AND FINANCING ACTIVITIES
Discount recorded on inception of derivatives	36,000
Expenses paid on behalf of the Company		$ 51,898

XML

NATURE OF BUSINESS

9 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

NOTE 1 - NATURE OF BUSINESS

BARREL ENERGY INC. is a Nevada corporation, incorporated January 17, 2014, which has engaged historically in the oil and gas sector of the energy industry. In January 2019 the Company terminated the agreement. It still maintains its interest in capped oil and gas properties in Alberta Canada. The Company entered into an agreement in the lithium exploration business but terminated the contract. The Company has leased land in central California to grow hemp for extracting CBD and the use of fiber in clothing and other materials.

On April 11, 2019 the Company amended its articles of incorporation to increase its number of authorized shares of common stock from 75,000,000 to 450,000,000.

BASIS OF PRESENTATION

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the audited September 30, 2018 financial statements and related notes included in the Company’s form 10-K filed with the SEC.

Basic and diluted net income per share

Basic loss per share is calculated as net loss to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted loss per share for the period equals basic loss per share as the effect of any stock based compensation awards or stock warrants would be antidilutive. As of June 30, 2019 the potential shares at conversion standing was 4,795,199.

XML

GOING CONCERN

9 Months Ended

Jun. 30, 2019

GOING CONCERN

NOTE 2 - GOING CONCERN

The Company’s unaudited interim financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has negative working capital and an accumulated deficit of $1,553,430 as of June 30, 2019. The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the company’s ability to continue as a going concern. The unaudited interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

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CONVERTIBLE NOTE

9 Months Ended

Jun. 30, 2019

CONVERTIBLE NOTE

NOTE 3 - CONVERTIBLE NOTE

On July 1, 2014, the Company issued a USD $67,215 (CAD $75,000) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2015. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid. On September 30, 2017 the Company issued 700,000 shares of common stock with a value of $5,612 (CDN $7,000) for partial conversion of the convertible note. As of June 30, 2019, the convertible debt outstanding was USD $52,032 plus accrued interest of USD $26,113 for a total liability of USD $78,145.

On November 12, 2018 the Company issued a $36,000 convertible note to Crown Partners, LLC. The note bears an original discount of $10,000, matures in 12 months from the origination date and bears interest at 5% per annuum. The note is convertible at any time, in part or whole, at $0.50 per share until the 180^th date of the note at which time it is convertible an 55% of the market price which is defined as the lowest trading price 25 days prior to conversion. An interest amount of $1,142 has been accrued along with a principal balance of $31,850 as of June 30, 2019

On May 15, 2019 the Company issued a $100,000 convertible note plus 500,000 warrants to Auctus Funding, LLC. The note bears an original discount of $3,500, matures February 17, 2020 and bears interest at 5% per annuum. The note is convertible at any time, at 55% of the market price which is defined as the lowest trading price 25 days prior to conversion. Interest of $1,478 has been accrued as of June 30, 2019. The warrants are convertible at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. (See Note 6: Warrants)

On May 16, 2019 the Company issued a $125,000 convertible note and 625,000 warrants to FirstFire Global Opportunity Fund, LLC. The note bears an original discount of $12,500, matures in 12 months from the origination date and bears interest at 7% per annuum. The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion. Interest of $1,055 has been accrued as of June 30, 2019. The warrants are convertible at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. (See Note 6: Warrants)

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RELATED PARTY

9 Months Ended

Jun. 30, 2019

RELATED PARTY

NOTE 4 - RELATED PARTY

During the period from October 1, 2018 through June 30, 2019 the Company paid related parties consulting fees of $264,681 of which Harp Sangha was paid $174,000 and Craig Alford was paid $66,000. Under the terms of their consulting agreements Mr. Alford is entitled to $67,500 for the period and Mr. Sangha $135,000. As of June 30, 2019 the Company owed the related parties $64,361 in accrued consulting. The monthly payments, dates of their contracts termination and relation to the Company or family of the officers are set forth below:

Name	Monthly		Terminates	Related Party
Louis Silver	$	2,000	1/31/2019	no
Harkrishnan Giroh	$	2,500	1/31/2019	no
Jagraj Sangha	$	4,000	6/30/2019	Son of Harp Sangha
Remit Bains	$	3,000	9/30/2019	Wife of Brother of Harp Sangha
Flora Mushi	$	3,000	9/30/2019	no
William Monroe	$	5,833	3/31/2019	No
Baljinder Cheema	$	5,000	2/28/2019	no
Kulraj Sangha	$	3,000	9/30/2019	Yes to Harp Sangha
Craig Alford	$	7,000	9/30/2019	Officer
Harp Sangha	$	15,000	9/30/2019	Officer

During the period ended June 30, 2019 Harpreet Sangha, the Company’s Chairman and Chief Financial Officer, entered into an agreement and purchased 10,000,000 shares of the Company’s common stock for $10,000 and Craig Alford, the Company’s President, who entered into an agreement and purchased 4,000,000 shares of the Company’s common stock for $4,000.

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EQUITY

9 Months Ended

Jun. 30, 2019

EQUITY

NOTE 5 - EQUITY

During the period from September 30, 2018 to June 30, 2019, the Company entered into separate Subscription Agreements with 17 persons under which 25,000,000 shares of the Company’s common stock were sold for $0.001 per share. In addition, twenty individuals were sold 3,477,286 units, consisting of one share of common stock at $0.50 per share one warrant to purchase one share of common stock shares at $0.50 per share within three years. This included Harpreet Sangha, the Company’s Chairman, who entered into an agreement to purchase 10,000,000 shares of the Company’s common stock and Craig Alford, the Company’s President, who entered into an agreement to purchase 4,000,000 shares of the Company’s common stock. Three individuals purchasing a total of 3,250,000 shares of common stock with a value $3,250 are relatives of the company Chairman and CFO. . Subscription Agreements were approved by the Company’s Board of Directors. The sales were made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act of 1933 and, with respect to a majority of the purchasers, Regulation S.

On November 13, 2018 the Company entered into a $3,000,000 equity purchase agreement with Crown Bridge Partners. Under the terms of the agreement, the Company may put to the investor shares of the Company common stock in minimums of $10,000 to maximums of either $100,000 or 200% of the average trading volume, whichever is less. The agreement may be terminated at any time by the Company or when the total commitment of shares are sold by the Company to the investor. As part of the agreement, the Company issued 175,000 shares of its common stock at $0.75 per share as a commitment fee. The value of the transaction of $131,250 was expensed as a financing cost.

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WARRANTS

9 Months Ended

Jun. 30, 2019

WARRANTS

NOTE 6 - WARRANTS

During the nine months period ended June 30, 2019 the Company issued 477,286 warrants to twenty individuals as part of their purchase of 477,286 shares of common stock. The warrants mature in three years and are convertible into one share of common stock for each warrant at $0.50 per share.

During the nine months period ended June 30, 2019 the Company issued 1,125,000 warrants to 2 convertible debt entities as part of the note issued. The warrants are convertible at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. The warrants were issued as an inducement of the issuance of the two notes for an aggregate of $225,000.

The outstanding warrants are set out as follow:

	Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contract Life		Intrinsic Value
Outstanding at September 30, 2018		--		--		--		--
Granted		1,602,286		0.29		4.32		--
Expired		--		--		--		--
Exercised		--		--		--		--
Outstanding at June 30, 2019		1,602,286	$	0.29		4,32	$	288,411

The Company used the Black Scholes Pricing model to estimate the fair value of the warrants as of grant date, using the following key inputs: market prices of the Company’s common stock at dates of grant between $0.28 - $3.00 per share, conversion price of $0.20-0.50, volatility of 272.63% and discount rate of 2.40%. Based on the fair value of the common stock of $221,000 and value of the warrants of $535,293 the fair value of the warrants was calculated to be 38 % of the total value or $288,411. The valuation resulted in a deemed dividend from the down round calculation of the 1,125,000 warrants of $30,938

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NOTES PAYABLE

9 Months Ended

Jun. 30, 2019

NOTES PAYABLE

NOTE 7 - NOTES PAYABLE

On November 15, 2018 the Company received an advance from one non-related party for $65,000. On December 3, 2018 the Company received an additional advance of $35,000 from the same individual for a total of $100,000. Both advances are unsecured, on demand and bear no interest. The Company has calculated an imputed interest of $2,500 for the last period.

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DERIVATIVE LIABILITIES

9 Months Ended

Jun. 30, 2019

DERIVATIVE LIABILITIES

NOTE 8 - DERIVATIVE LIABILITIES

On November 12, 2018 the Company issued a $36,000 convertible note to Crown Partners, LLC. The note bears an original discount of $3,500, matures in 12 months from the origination date and bears interest at 5% per annuum. The note is convertible at any time, in part or whole, at $0.50 per share until the 180^th date of the note at which time it is convertible an 55% of the market price which is defined as the lowest trading price 25 days prior to conversion. The Company used the American Option Binomial Tree Pricing model to estimate the fair value of the derivative liability as of the date of issuance and as of June 30, 2019, using the following key inputs: market price of the Company’s common stock $0.11 per share, volatility of 269,66% and discount rate of 2.37%. The fair value of the derivative liability was determined to $61,178 as of June 30, 2019.

On May 15, 2019 the Company issued a $100,000 convertible note to Auctus Funding, LLC. The note bears an original discount of $3,500, matures February 17, 2020 and bears interest at 5% per annuum. The note is convertible at any time, at 5% of the market price which is defined as the lowest trading price 25 days prior to conversion. The Company used the American Option Binomial Tree Pricing model to estimate the fair value of the derivative liability as of the date of issuance and as of June 30, 2019, using the following key inputs: market price of the Company’s common stock $0.11 per share, volatility of 269,66% and discount rate of 2.37%. The fair value of the derivative liability was determined to $243,418 as of June 30, 2019.

On May 16, 2019 the Company issued a $125,000 convertible note to FirstFire Global Opportunity Fund, LLC. The note bears an original discount of $12,500, matures in 12 months from the origination date and bears interest at 7% per annuum. The note is convertible at any time, in part or whole, at $0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion. The Company used the American Option Binomial Tree Pricing model to estimate the fair value of the derivative liability as of the date of issuance and as of June 30, 2019, using the following key inputs: market price of the Company’s common stock $0.11 per share, volatility of 269.66% and discount rate of 2.37%. The fair value of the derivative liability was determined to $38,742 as of June 30, 2019.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and shareholder loans. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Financial assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels:

Level 1— Quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2— quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.

Level 3— Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Financial assets and liabilities measured at fair value on a recurring basis are summarized below as of September 30, 2018 and June 30, 2019:

	Level 1		Level 2		Level 3		Total
As of September 30, 2018:
Assets
None	$	-	$	-	$	-	$	-
Liabilities
Derivative liability	$	-	$	-	$	--	$	--
As of June 30, 2019:
Assets
None	$	-	$	-	$	-	$	-
Liabilities
Derivative liability	$	-	$	-	$	334,338	$	334,338

The following table summarizes the change in the fair value of the derivative liability during the nine months ended June 30, 2019:

Fair value as of September 30, 2018	$	--
Additions		462,119
Debt discount charged to derivative		106,300
Financing cost charged to derivative		70,000
Change in fair value		(16,769	)
Fair value as of June 30, 2019	$	334,338

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jun. 30, 2019

COMMITMENTS AND CONTINGENCIES

NOTE 9 - COMMITMENTS AND CONTINGENCIES

On May 14, 2019 the Company signed a land lease in central California for 602 acres at $1,000 per acre to grow hemp for fiber usage. The lease is for 10 years with annual costs of $602,000 with the initial payment of $200,000 due September 30, 2019.

The yearly rental obligations including the lease agreements are as follows:

Fiscal Year
2019	$	602,000
2020	$	602,000
2021	$	602,000
2022	$	602,000
2023 and years thereafter		3,612,000
Total	$	6,020,000

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SUBSEQUENT EVENT

9 Months Ended

Jun. 30, 2019

SUBSEQUENT EVENT

NOTE 10 - SUBSEQUENT EVENT

The Company has evaluated subsequent events to determine events occurring after June 30, 2019 through August 20, 2019 that would have a material impact on the Company’s financial results or require disclosure and have determined none exist other than those noted above in this footnote.

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NATURE OF BUSINESS (Policies)

9 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS (Policies)

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the audited September 30, 2018 financial statements and related notes included in the Company’s form 10-K filed with the SEC.

Basic and diluted net income per share

Basic loss per share is calculated as net loss to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted loss per share for the period equals basic loss per share as the effect of any stock based compensation awards or stock warrants would be antidilutive. As of June 30, 2019 the potential shares at conversion standing was 4,795,199.

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RELATED PARTY (Tables)

9 Months Ended

Jun. 30, 2019

RELATED PARTY (Tables)

Schedule of monthly payments for related parties

Name	Monthly		Terminates	Related Party
Louis Silver	$	2,000	1/31/2019	no
Harkrishnan Giroh	$	2,500	1/31/2019	no
Jagraj Sangha	$	4,000	6/30/2019	Son of Harp Sangha
Remit Bains	$	3,000	9/30/2019	Wife of Brother of Harp Sangha
Flora Mushi	$	3,000	9/30/2019	no
William Monroe	$	5,833	3/31/2019	No
Baljinder Cheema	$	5,000	2/28/2019	no
Kulraj Sangha	$	3,000	9/30/2019	Yes to Harp Sangha
Craig Alford	$	7,000	9/30/2019	Officer
Harp Sangha	$	15,000	9/30/2019	Officer

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WARRANTS (Tables)

9 Months Ended

Jun. 30, 2019

WARRANTS (Tables)

Schedule of warrants

	Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contract Life		Intrinsic Value
Outstanding at September 30, 2018		--		--		--		--
Granted		1,602,286		0.29		4.32		--
Expired		--		--		--		--
Exercised		--		--		--		--
Outstanding at June 30, 2019		1,602,286	$	0.29		4,32	$	288,411

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DERIVATIVE LIABILITIES (Tables)

9 Months Ended

Jun. 30, 2019

DERIVATIVE LIABILITIES (Tables)

Schedule of fair value financial assets and liabilities measured on recurring basis

	Level 1		Level 2		Level 3		Total
As of September 30, 2018:
Assets
None	$	-	$	-	$	-	$	-
Liabilities
Derivative liability	$	-	$	-	$	--	$	--
As of June 30, 2019:
Assets
None	$	-	$	-	$	-	$	-
Liabilities
Derivative liability	$	-	$	-	$	334,338	$	334,338

Schedule of derivative liabilities at fair value

Fair value as of September 30, 2018	$	--
Additions		462,119
Debt discount charged to derivative		106,300
Financing cost charged to derivative		70,000
Change in fair value		(16,769	)
Fair value as of June 30, 2019	$	334,338

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Jun. 30, 2019

COMMITMENTS AND CONTINGENCIES

Yearly Lease Rental Obligations

Fiscal Year
2019	$	602,000
2020	$	602,000
2021	$	602,000
2022	$	602,000
2023 and years thereafter		3,612,000
Total	$	6,020,000

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NATURE OF BUSINESS (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2019	Apr. 11, 2019	Sep. 30, 2018
Common stock, shares authorized	450,000,000		450,000,000
Common Stock [Member]
State of Incorporation
Date of Incorporation	Jan. 17, 2014
Antidilutive securities excluded from computation of earnings per share	4,795,199
Common stock, shares authorized		450,000,000

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GOING CONCERN (Details Narrative) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
GOING CONCERN (Details Narrative)
Accumulated deficit	$ (1,553,430)	$ (354,510)

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CONVERTIBLE NOTE (Details Narrative) - USD ($)				9 Months Ended		12 Months Ended
	May 16, 2019	May 15, 2019	Nov. 12, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2017	Sep. 30, 2018
Original discount				$ 134,938
Original discount				134,938
November 12, 2018 [Member]
Principal balance				31,850
Auctus Funding, LLC [Member]
Convertible debt			$ 78,145	$ 26,113
Warrant issued		500,000
Original discount		$ 3,500
Terms of conversion feature
Interest rate		5.00%		9.50%
Terms of conversion feature
Warrant per share				$ 0.20
Total liability				$ 78,145
Warrant issued		500,000
Original discount		$ 3,500
Debt maturity date				May 17, 2020
Interest rate		5.00%		9.50%
Warrant per share				$ 0.20
Convertible debt outstanding			$ 78,145	$ 26,113
Common stock issued for debt conversion, Shares						700,000
Common stock issued for debt conversion, Amount						$ 5,612
Accrued interest				$ 1,142
Principal balance
Terms of conversion feature
Original discount			$ 10,000
Debt maturity date				Dec. 31, 2015
Convertible debt
FirstFire Global Opportunity Fund [Member]
Warrant issued
Original discount	$ 12,500
Terms of conversion feature	The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion.
Interest rate	7.00%
Terms of conversion feature	The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion.
Warrant issued
Original discount	$ 12,500
Interest rate	7.00%
Accrued interest
Terms of conversion feature	The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion.
Convertible debt	$ 125,000

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RELATED PARTY (Details)	9 Months Ended
	Jun. 30, 2019 USD ($)
Louis Silver [Member] | Non-Related Parties [Member]
Monthly payment	$ 2,000
Contact termination date	Jan. 31, 2019
Harkrishnan Giroh [Member] | Non-Related Parties [Member]
Monthly payment	$ 2,500
Contact termination date	Jan. 31, 2019
Jagraj Sangha [Member] | Son Of Harp Sangha [Member]
Monthly payment	$ 4,000
Contact termination date	Jun. 30, 2019
Remit Bains [Member] | Wife Of Brother Of Harp Sangha [Member]
Monthly payment	$ 3,000
Contact termination date	Sep. 30, 2019
Flora Mushi [Member] | Non-Related Parties [Member]
Monthly payment	$ 3,000
Contact termination date	Sep. 30, 2019
William Monroe [Member] | Non-Related Parties [Member]
Monthly payment	$ 5,833
Contact termination date	Mar. 31, 2019
Baljinder Cheema [Member] | Non-Related Parties [Member]
Monthly payment	$ 5,000
Contact termination date	Feb. 28, 2019
Kulraj Sangha [Member] | Yes To Harp Sangha [Member]
Monthly payment	$ 3,000
Contact termination date	Sep. 30, 2019
Officer [Member] | Craig Alford [Member]
Monthly payment	$ 7,000
Contact termination date	Sep. 30, 2019
Officer [Member] | Harp Sangha [Member]
Monthly payment	$ 15,000
Contact termination date	Sep. 30, 2019

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RELATED PARTY (Details Narrative)	9 Months Ended
	Jun. 30, 2019 USD ($) shares
Consulting fees	$ 264,681
Harpreet Sangha [Member]
Consulting fees	174,000
Accrued consulting fees	$ 135,000
Stock issued during period | shares	10,000,000
Stock issued during period value	$ 10,000
Related Parties [Member]
Accrued consulting fees	$ 64,361
Craig Alford [Member]
Stock issued during period | shares	4,000,000
Craig Alford [Member] | Officer [Member]
Consulting fees	$ 66,000
Accrued consulting fees	$ 67,500
Stock issued during period | shares	4,000,000
Stock issued during period value	$ 4,000

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EQUITY (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Sale of stock per shares	$ .11		$ .11
Common stock shares issued	41,093,618		41,093,618		23,801,332
Common stock per shares	$ 0.001		$ 0.001		$ 0.001
Financing cost	$ (117,394)		$ (271,098)
Proceeds from issuance of common stock			$ 323,643
Subscription Agreements [Member]
Sale of stock per shares	$ 0.001		$ 0.001
Number of persons			17
Sale of stock, number issued and transaction			25,000,000
Equity Purchase Agreement [Member]
Common stock shares issued	175,000		175,000
Common stock per shares	$ 0.75		$ 0.75
Financing cost			$ 131,250
Harpreet Sangha [Member]
Stock issued during period			10,000,000
Person [Member] | Subscription Agreements [Member]
Sale of stock per shares	$ 0.50		$ 0.50
Crown Bridge Partners [Member] | Equity Purchase Agreement [Member]
Equity purchase amount	$ 3,000,000		$ 3,000,000
Equity purchase agreement description			The Company may put to the investor shares of the Company common stock in minimums of $10,000 to maximums of either $100,000 or 200% of the average trading volume, whichever is less.
Craig Alford [Member]
Stock issued during period			4,000,000
Three individuals [Member] | CFO [Member]
Common stock shares issued	3,250,000		3,250,000
Proceeds from issuance of common stock			$ 3,250
Option [Member] | Twenty Individuals [Member]
Common stock shares issued	3,477,286		3,477,286
Common stock per shares	$ .50		$ .50
Number of persons			20
Description of related parties			In addition, twenty individuals were sold 442,286 units, consisting of one share of common stock at $0.50 per share one warrant to purchase one share of common stock shares at $0.50 per share within three years
Exercise price of warrants	$ 0.50		$ 0.50

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WARRANTS (Details) - Warrant [Member]	9 Months Ended
	Jun. 30, 2019 USD ($) $ / shares shares
Number of Shares
Outstanding, Beginning | shares
Granted | shares	1,602,286
Expired | shares
Exercised | shares
Outstanding, Ending | shares	1,602,286
Weighted Average Exercise Price
Outstanding, Beginning
Granted	0.29
Expired
Exercised
Outstanding, Ending
Weighted Average Remaining Contractual Life
Granted	4 years 3 months 26 days
Granted	$ 0.29
Expired
Exercised
Outstanding, Ending
Intrinsic Value
Outstanding, Beginning | $
Granted | $
Expired | $
Outstanding at End of Year | $
Exercisable at End of Year | $	$ 288,411

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WARRANTS (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2019	Sep. 30, 2018
Discount rate	2.37%
Common stock per shares	$ 0.001	$ 0.001
Common stock shares issued	41,093,618	23,801,332
Warrant [Member]
Discount rate	2.40%
Description of fair value of warrants
Conversion price	$ .50
Volatility rate	272.63%
Fair value of common stock	$ 221,000
Fair value of warrants	535,293
Warrants outstanding	$ 288,411
Warrant [Member] | Twenty Individuals [Member]
Common stock per shares	$ 0.50
Common stock shares issued	477,286
Description of maturity	The warrants mature in three years and are convertible into one share of common stock for each warrant at $0.50 per share.
Warrant [Member] | Minimum [Member]
Common stock per shares	$ .28
Warrant [Member] | Maximum [Member]
Common stock per shares	$ 3.00
Convertible Debt Entities [Member]
Debt conversion converted instrument warrants issued, Shares	1,125,000
Debt conversion converted instrument warrants issued, Amount	$ 30,938
Discount rate	2.20%
Issuance of Notes	$ 225,000
Warrant per share	$ 0.20
Description of fair value of warrants	Based on the fair value of the common stock of $221,000 and value of the warrants of $535,293 the fair value of the warrants were calculated to be 70.7 % of the total value or $378,872 .

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NOTES PAYABLE (Details Narrative) - USD ($)	Jun. 30, 2019	Dec. 03, 2018	Nov. 15, 2018
Non-Related Parties [Member]
Advance received for related party	$ 100,000	$ 35,000	$ 65,000

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DERIVATIVE LIABILITIES (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
None
Liabilities
Derivative liability	334,338
Level 1 [Member]
None
Liabilities
Derivative liability
Level 2 [Member]
None
Liabilities
Derivative liability
Level 3 [Member]
None
Liabilities
Derivative liability	$ 334,338

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DERIVATIVE LIABILITIES (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
DERIVATIVE LIABILITIES (Details 1)
Fair value as of September 30, 2018
Additions			462,119
Debt discount charged to derivative			36,000
Financing cost charged to derivative			70,000
Change in fair value	$ 45,570		16,769
Fair value as of June 30, 2019	$ 334,338		$ 334,338

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DERIVATIVE LIABILITIES (Details Narrative) - USD ($)				9 Months Ended
	May 16, 2019	May 15, 2019	Nov. 12, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Volatility rate				269.66%
Discount rate				2.37%
Note origination fee				$ 61,178
Common stock price per share				$ .11
Fair value of derivative liability				$ 243,418
Original discount				$ 134,938
Auctus Funding, LLC [Member]
Volatility rate				269.66%
Discount rate				2.37%
Note origination fee				$ 243,418
Convertible debt
Original discount		$ 3,500
Debt maturity date				Feb. 17, 2020
Interest rate		5.00%		9.50%
Terms of conversion feature
FirstFire Global Opportunity Fund [Member]
Volatility rate				269.66%
Discount rate				2.37%
Note origination fee				$ 38,742
Convertible debt	$ 125,000
Original discount	$ 12,500
Debt maturity date				May 17, 2020
Interest rate	7.00%
Terms of conversion feature	The note is convertible at any time, in part or whole, at %0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion.
Crown Partners, LLC [Member]
Convertible debt			$ 36,000
Original discount			$ 10,000
Interest rate			5.00%
Terms of conversion feature			The note is convertible at any time, in part or whole, at $0.50 per share until the 180th date of the note at which time it is convertible an 55% of the market price which is defined as the lowest trading price 25 days prior to conversion.

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COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2018 USD ($)
COMMITMENTS AND CONTINGENCIES
2019	$ 602,000
2020	602,000
2021	602,000
2022	602,000
2023 and years thereafter	3,612,000
Total	$ 6,020,000

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COMMITMENTS AND CONTINGENCIES (Details Narrative)	9 Months Ended
	Jun. 30, 2019 USD ($)
COMMITMENTS AND CONTINGENCIES
Lease term	10 years
Lease costs	$ 602,000
Description of lease	land lease in central California for 602 acres at $1,000 per acre to grow hemp for fiber usage.
Initial Lease Payment	$ 200,000