XML 54 R12.htm IDEA: XBRL DOCUMENT v3.20.1
Settlements Payable
3 Months Ended
Dec. 31, 2019
Settlements Payable [Abstract]  
SETTLEMENTS PAYABLE

NOTE 6 - SETTLEMENTS PAYABLE

 

On July 20, 2018, the Company entered into a settlement agreement with a collection agent for American Express relating to $127,056 of past due charges. The agreement provides for an initial payment of $12,706, then monthly payments of $6,500 and a final payment on January 27, 2020 of $3,850. The amount due at December 31, and September 30, 2019, was $42,850, and $42,850, respectively.

 

On November 27 2018 the Company reached an agreement and executed a related stipulation and payment terms agreement stemming from a legal action by the former Chief Strategy Officer for improper termination. The plaintiff agreed to accept $600,000 in payments. The first scheduled payment of $200,000 was made on December 20, 2018 in accordance with the settlement terms. Twelve monthly payments of approximately $33,333 are due starting on January 15, 2019 through December 15, 2019. The Company recorded $600,000 as accrued expense of which $500,000 was expensed during fiscal year 2018. The balance at December 31, 2019, and September 30, 2019, is $54,000, and $131,724, respectively. The balance of $54,000 represents the liability for employer withholding and payroll taxes due as all net payments to the plaintiff and legal counsel have been made.

 

The total settlement payable balance of $42,850, reported on the balance sheet represents only the amount owed to American Express. The balance of the payroll tax and withholdings due of $54,000, was reclassified and is included as accrued expenses at December 31, 2019.