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Prepaid expenses (current and noncurrent)
12 Months Ended
Sep. 30, 2019
Disclosure Text Block Supplement [Abstract]  
Other Assets Disclosure [Text Block]

Note 5 – Prepaid expenses (current and noncurrent)

 

As of September 30, 2018, the Company had current prepaid D&O insurance of $6,258, and current prepaid consulting expenses to Risun Intelligent Technology Co., Limited (“Risun”) of $69,005.  

 

On August 1, 2018, the Company entered into a Consultant Agreement Service Contract with Risun. Pursuant to the terms of the Contract, Risun shall provide services to the Company for market research, business strategy, business development and other business advisory services related to the iMetal project. The Company paid Risun the full service fee of $103,508 in August 2018. The service term began on August 1, 2018 and expired February 1, 2019. For the years ended September 30, 2019 and 2018, the Company recorded consulting expense to Risun of $69,005 and $34,503, respectively. 

 

In addition, as of September 30, 2019 and 2018, the Company had noncurrent prepaid expense of $1,000,000.  On January 4, 2017, Processing entered into a Consulting and Strategist Agreement with a consulting company for a six-month term.  On July 3, 2017, the Company and the consulting company extended the Consulting and Strategist Agreement to January 3, 2018 at no additional cost, and the Agreement was subsequently further extended to July 3, 2018. The consultant provided Processing with market research findings, exploration and advice on business development opportunities in certain countries, and other general business advisory services. Processing paid a deposit of $1,325,000 for the consulting fee, of which $325,000 was expensed as a consulting fee based on the agreement, and the remaining $1,000,000 of which would have been refunded to the Company if the Company had not made an investment and/or entered into a business relationship in Mexico. The consulting company found acquisition targets for the Company, and on June 22, 2018, the Company entered into a Memorandum of Understanding (“MOU”) with a seller for the purchase of five mines located in different areas of Mexico for an aggregate purchase price of $1,000,000. Upon the execution of the MOU, the Company acquired the exclusive right to purchase the mines from the seller, effective until September 30, 2018. The parties entered into an oral agreement pursuant to which the Company will pay the $1,000,000 purchase price upon receiving approvals from the Mexican government allowing for the transfer of the mining concession. The transfer request has been submitted to, and is being processed by, the Mexican government, but that processing was delayed due to elections and new administration in Mexico. The Company was not able to provide an estimate time for the approval at this report date. The remaining $1,000,000 of consulting fee, which relates to the acquisition of assets in Mexico will be part of the asset acquisition costs upon completion of the assets acquisition in accordance with ASC 805-5-30-1.