Commitments

6 Months Ended

Mar. 31, 2021

Disclosure Text Block [Abstract]

Lessee, Operating Leases [Text Block]

Note 11 – Commitments 

Lease Commitment 

Effective December 1, 2018, the Company entered a three-year lease for an office in the city of Arcadia, California. The monthly base rent is $2,115 payable on the first day of each month, with a 3% increase each year.

The Company recorded rental cost of $13,770 and $13,705 for the six months ended March 31, 2021 and 2020, respectively. The Company recorded rental cost of $6,918 and $6,853 for the three months ended March 31, 2021 and 2020, respectively. 

The components of lease costs, lease term and discount rate with respect to the office lease with an initial term of more than 12 months are as follows:  

	Six Months Ended March 31,
	2021			2020
Operating Lease costs	$	13,770		$	13,705
Weighted Average Remaining Lease Term		0.75			1.75
Weighted Average Discount Rate		4	%		4	%

	Three Months Ended March 31,
	2021			2020
Operating Lease costs	$	6,918		$	6,853
Weighted Average Discount Rate		4	%		4	%

The following is a schedule of maturities of lease liabilities as of March 31, 2021:

For the 12 months ended	Operating Leases
March 31, 2022	$	17,950
Less: imputed interest		(266	)
Present value of lease liabilities	$	17,684

Consulting and Service Agreements

1) On April 1, 2017, the Company entered into a strategic consulting agreement with a consulting company with a term of one year. The consulting company provides the Company the strategic advices on business development and marketing. The compensation to the consulting company is $50,000 per year, payable in equal installments at the end of each month. The agreement was extended to March 31, 2022 with the same terms.

2) Exploratory Drilling Agreement and Related Costs. On April 1, 2018, the Company entered into a contract with an individual owner of a mining concession in Mexico.  The mine is located in Mexico, in the state of Sinaloa, Badiraguato municipality, Nocoriba village. The latitude is 25.2520000 and the longitude is -107.225500. The Company started drilling within the concession 10HAAS. For the six and three months ended March 31, 2021 and 2020, the Company spent $0 expense on this mine. The Company expects to spend an additional $1.56 million on this project as of March 31, 2021. If the project is successful, the Company will receive 3% equity in the mine (which percentage will be paid upon successful completion of exploration and drilling of the mine). The mine owner is currently in discussion with a potential buyer to purchase this mine and the buyer is analyzing the minerals of this mine. The mine owner and Fuse Group have agreed to put exploration on hold until this buyer completes its analysis in preparation for making the acquisition decision. The project is currently on hold due to the COVID-19 pandemic. Negotiations will resume once the analysis of minerals of the mine is completed and accepted by the potential buyer. 

Employment Agreement

The Company currently has an employment agreement with Michael Viotto, the Company’s CFO.  Pursuant to the terms of his employment agreement, dated September 1, 2020, Mr. Viotto receives annual compensation of $50,000, and the agreement has a term of one year, from August 22, 2020.  Mr. Viotto’s employment agreement includes typical clauses relating to noncompetition, nonsolicitation and indemnification of Mr. Viotto in connection with his service as the Company’s CFO.