0001704795
2018-10-01
2019-09-30
0001704795
2018-09-30
0001704795
2019-09-30
0001704795
us-gaap:ConvertibleNotesPayableMember
2019-09-30
0001704795
us-gaap:RevolvingCreditFacilityMember
2019-09-30
0001704795
us-gaap:SeriesAPreferredStockMember
2019-09-30
0001704795
us-gaap:FairValueInputsLevel3Member
2019-09-30
0001704795
us-gaap:FairValueInputsLevel3Member
2018-09-30
0001704795
bant:CrownBridgePartnersLlcMember
2017-11-09
0001704795
bant:SettlementAgreementMember
2018-01-03
0001704795
bant:LivingstonAssetManagementLlcMember
2018-01-30
0001704795
bant:HowcoMember
2019-09-30
0001704795
bant:SeniorSecuredCreditFacilityMember
2016-09-13
0001704795
bant:PortaPellexMember
2018-10-23
0001704795
2018-09-04
0001704795
2018-09-18
0001704795
2018-10-18
0001704795
2018-11-18
0001704795
2018-12-18
0001704795
srt:ChiefExecutiveOfficerMember
2018-12-02
2018-12-30
0001704795
bant:LivingstonAssetManagementLlcMember
2018-05-04
2018-06-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-07-14
2018-08-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-08-15
2018-09-02
0001704795
bant:LivingstonAssetManagementLlcMember
2018-09-15
2018-10-02
0001704795
bant:LivingstonAssetManagementLlcMember
2018-10-15
2018-11-02
0001704795
2018-08-02
2018-08-29
0001704795
bant:SeniorSecuredCreditFacilityMember
2016-09-01
2016-09-13
0001704795
us-gaap:WarrantMember
bant:SecuritiesPurchaseAgreementMember
2017-10-20
2017-11-09
0001704795
2018-07-05
2018-07-20
0001704795
us-gaap:CommonStockMember
2018-10-01
2019-09-30
0001704795
bant:LivingstonAssetManagementLlcMember
2017-11-01
2017-11-15
0001704795
2018-08-22
2018-09-04
0001704795
2018-08-22
2018-09-18
0001704795
2017-10-01
2018-09-30
0001704795
bant:ConvertibleNotesPayableOneMember
2019-09-30
0001704795
2018-08-29
0001704795
2018-11-13
0001704795
us-gaap:NotesPayableOtherPayablesMember
2018-06-29
2018-09-30
0001704795
2018-10-22
2018-11-18
0001704795
2018-11-23
2018-12-18
0001704795
us-gaap:PreferredStockMember
2018-09-30
0001704795
us-gaap:PreferredStockMember
2019-09-30
0001704795
us-gaap:CommonStockMember
2018-09-30
0001704795
us-gaap:CommonStockMember
2019-09-30
0001704795
us-gaap:AdditionalPaidInCapitalMember
2018-09-30
0001704795
us-gaap:AdditionalPaidInCapitalMember
2019-09-30
0001704795
us-gaap:RetainedEarningsMember
2018-09-30
0001704795
us-gaap:RetainedEarningsMember
2019-09-30
0001704795
2018-07-20
0001704795
us-gaap:FairValueInputsLevel1Member
2019-09-30
0001704795
us-gaap:FairValueInputsLevel2Member
2019-09-30
0001704795
us-gaap:WarrantMember
2016-09-09
0001704795
srt:ChiefExecutiveOfficerMember
2018-12-30
0001704795
2016-08-05
2016-08-31
0001704795
bant:MatthewWilesMember
2017-03-01
2017-03-28
0001704795
bant:LivingstonAssetManagementLlcMember
2017-11-15
0001704795
bant:TrilliumPartnersLPMember
2018-11-27
0001704795
bant:SeniorSecuredCreditFacilityMember
2017-03-28
0001704795
2017-06-30
0001704795
2017-06-01
2017-06-30
0001704795
bant:ChiefStrategyOfficerMember
2019-09-30
0001704795
bant:SettlementAgreementMember
2017-12-21
2018-01-03
0001704795
bant:CrownBridgePartnersLlcMember
2017-11-06
2017-11-09
0001704795
bant:LivingstonAssetManagementLlcMember
2019-09-30
0001704795
bant:CreditAgreementMember
2017-12-21
2018-01-03
0001704795
srt:MaximumMember
2020-09-30
0001704795
srt:MinimumMember
2020-09-30
0001704795
bant:SettlementAgreementMember
2018-01-01
2018-01-29
0001704795
bant:ChiefStrategyOfficerMember
2016-09-30
0001704795
bant:ChiefStrategyOfficerMember
2018-11-05
2018-11-30
0001704795
bant:LivingstonAssetManagementMember
2018-09-30
0001704795
us-gaap:AccountsReceivableMember
bant:CustomerOneMember
2018-10-01
2019-09-30
0001704795
us-gaap:AccountsReceivableMember
bant:CustomerTwoMember
2018-10-01
2019-09-30
0001704795
bant:LivingstonAssetManagementLlcMember
2018-01-01
2018-01-30
0001704795
bant:PortaPellexMember
2018-10-17
0001704795
2019-04-18
0001704795
2019-05-18
0001704795
2019-06-18
0001704795
bant:HowcoDistributingMember
2018-04-06
2018-04-13
0001704795
us-gaap:PreferredStockMember
2018-10-01
2019-09-30
0001704795
2018-10-25
2018-11-27
0001704795
us-gaap:AccountsPayableMember
bant:SupplierThreeMember
2018-10-01
2019-09-30
0001704795
srt:ChiefExecutiveOfficerMember
2019-07-02
0001704795
srt:ChiefExecutiveOfficerMember
2019-09-13
0001704795
2018-11-05
2018-11-13
0001704795
bant:HowcoMember
2019-09-18
0001704795
2019-08-01
2019-08-06
0001704795
bant:TechnologySupportServicesMember
2019-09-30
0001704795
bant:CrownBridgePartnersMember
2019-01-04
0001704795
bant:CrownBridgePartnersMember
2019-02-06
0001704795
bant:SeniorSecuredCreditFacilityMember
2019-09-30
0001704795
bant:SeniorSecuredCreditFacilityMember
2018-09-30
0001704795
bant:SeniorSecuredCreditFacilityMember
2018-10-01
2019-09-30
0001704795
bant:SeniorSecuredCreditFacilityMember
2017-03-01
2017-03-13
0001704795
bant:LivingstonAssetManagementLlcMember
2018-02-25
2018-03-07
0001704795
bant:AuctusFundLlcMember
2018-01-31
0001704795
bant:TrilliumPartnersLPMember
2019-07-05
2019-07-12
0001704795
bant:CrownBridgePartnersLlcMember
2017-11-01
2017-11-09
0001704795
bant:LivingstonAssetManagementLlcMember
2018-03-01
2018-03-07
0001704795
bant:LivingstonAssetManagementLlcMember
2018-03-07
0001704795
bant:SeniorSecuredCreditFacilityNoteMember
2019-09-30
0001704795
bant:SeriesAPreferredStockOneMember
2019-09-30
0001704795
2019-02-05
2019-02-11
0001704795
bant:TexasWyomingDrillingIncMember
2015-10-01
2016-09-30
0001704795
bant:NoteAMember
2018-10-30
0001704795
bant:NoteBMember
2018-10-30
0001704795
bant:SeniorSecuredCreditFacilityMember
2018-10-30
0001704795
bant:SeniorSecuredCreditFacilityMember
2018-10-01
2018-10-30
0001704795
2019-01-18
0001704795
2019-02-18
0001704795
2019-03-18
0001704795
2019-07-18
0001704795
2019-08-18
0001704795
2019-09-18
0001704795
bant:SeniorSecuredCreditFacilityMember
bant:NoteBMember
2018-10-30
0001704795
2019-10-01
2020-09-30
0001704795
2020-09-30
0001704795
us-gaap:SeriesAPreferredStockMember
2020-09-30
0001704795
2017-12-31
0001704795
us-gaap:CommonStockMember
2019-10-01
2020-09-30
0001704795
us-gaap:CommonStockMember
2020-09-30
0001704795
us-gaap:AdditionalPaidInCapitalMember
2019-10-01
2020-09-30
0001704795
us-gaap:AdditionalPaidInCapitalMember
2020-09-30
0001704795
us-gaap:RetainedEarningsMember
2019-10-01
2020-09-30
0001704795
us-gaap:RetainedEarningsMember
2020-09-30
0001704795
us-gaap:FairValueInputsLevel1Member
2020-09-30
0001704795
us-gaap:FairValueInputsLevel2Member
2020-09-30
0001704795
us-gaap:FairValueInputsLevel3Member
2020-09-30
0001704795
us-gaap:ConvertibleDebtMember
2019-10-01
2020-09-30
0001704795
us-gaap:ConvertibleNotesPayableMember
us-gaap:CommonStockMember
2019-10-01
2020-09-30
0001704795
us-gaap:RevolvingCreditFacilityMember
2019-10-01
2020-09-30
0001704795
us-gaap:RevolvingCreditFacilityMember
2020-09-30
0001704795
bant:HowcoMember
2019-10-01
2020-09-30
0001704795
bant:HowcoMember
2020-09-30
0001704795
us-gaap:ConvertibleNotesPayableMember
2020-09-30
0001704795
us-gaap:ConvertibleNotesPayableMember
2019-10-01
2020-09-30
0001704795
bant:ConvertibleNotesPayableOneMember
2020-09-30
0001704795
bant:ConvertibleNotesPayableOneMember
2019-10-01
2020-09-30
0001704795
us-gaap:ConvertibleNotesPayableMember
srt:ChiefExecutiveOfficerMember
2019-10-01
2020-09-30
0001704795
srt:ChiefExecutiveOfficerMember
bant:ConvertibleNotesPayableOneMember
2019-10-01
2020-09-30
0001704795
srt:ChiefExecutiveOfficerMember
2020-09-30
0001704795
srt:PresidentMember
2016-09-16
2016-10-01
0001704795
us-gaap:SalesRevenueNetMember
bant:CustomerOneMember
2019-10-01
2020-09-30
0001704795
us-gaap:SalesRevenueNetMember
bant:CustomerTwoMember
2019-10-01
2020-09-30
0001704795
us-gaap:AccountsReceivableMember
bant:CustomerOneMember
2019-10-01
2020-09-30
0001704795
bant:PurchaseMember
bant:SupplierOneMember
2018-10-01
2019-09-30
0001704795
bant:PurchaseMember
bant:SupplierTwoMember
2018-10-01
2019-09-30
0001704795
2019-04-10
0001704795
us-gaap:CommonStockMember
srt:MaximumMember
2019-01-30
0001704795
us-gaap:CommonStockMember
srt:MinimumMember
2019-01-30
0001704795
bant:StockIncentivePlanMember
2020-09-30
0001704795
bant:NonEmployeeServicesMember
2019-10-01
2019-10-07
0001704795
2019-10-01
2019-10-07
0001704795
bant:RedstartHoldingCorporationMember
2019-10-01
2019-10-22
0001704795
bant:RedstartHoldingCorporationMember
2019-10-22
0001704795
bant:CrownBridgePartnersLlcMember
2019-10-01
2019-10-29
0001704795
bant:CrownBridgePartnersLlcMember
2019-10-29
0001704795
bant:RedstartHoldingCorporationMember
2019-11-19
0001704795
bant:RedstartHoldingCorporationMember
2019-11-05
2019-11-19
0001704795
us-gaap:EmployeeStockOptionMember
2019-10-01
2020-09-30
0001704795
us-gaap:EmployeeStockOptionMember
2018-10-01
2019-09-30
0001704795
us-gaap:WarrantMember
2016-09-01
2016-09-09
0001704795
bant:SecuritiesPurchaseAgreementMember
2017-12-01
2017-12-20
0001704795
bant:HowcoMember
2020-09-30
0001704795
bant:TrilliumPartnersLPMember
2019-10-01
2020-09-30
0001704795
bant:TrilliumPartnersLPMember
2020-09-30
0001704795
bant:TrilliumPartnersLPMember
2020-02-17
2020-02-25
0001704795
2020-02-05
2020-02-21
0001704795
us-gaap:PreferredStockMember
2019-10-01
2020-09-30
0001704795
us-gaap:PreferredStockMember
2020-09-30
0001704795
bant:LivingstonAssetManagementLlcMember
2018-10-02
0001704795
bant:LivingstonAssetManagementLlcMember
2018-08-01
0001704795
bant:ForaBusinessLoansLLCMember
2019-08-15
0001704795
bant:HowcoMember
2019-08-01
2019-08-15
0001704795
bant:PIRSCapitalLLCMember
2019-09-18
0001704795
bant:HowcoMember
2019-09-01
2019-09-18
0001704795
bant:StockIncentivePlanMember
2019-10-01
2020-09-30
0001704795
us-gaap:CommonStockMember
2019-08-01
2019-08-06
0001704795
srt:ChiefExecutiveOfficerMember
2019-09-01
2019-09-16
0001704795
srt:ChiefExecutiveOfficerMember
2019-09-16
0001704795
bant:SeniorSecuredCreditFacilityNoteMember
2020-09-30
0001704795
bant:LivingstonAssetManagementLlcMember
2019-10-01
2020-09-30
0001704795
2020-01-18
0001704795
2020-03-18
0001704795
bant:TysadcoPartnersMember
2019-10-01
2019-12-31
0001704795
bant:TechnologySupportServicesMember
2019-10-01
2019-12-31
0001704795
bant:TrilliumPartnersLPMember
2020-03-05
2020-03-11
0001704795
us-gaap:AccountsReceivableMember
bant:CustomerTwoMember
2019-10-01
2020-09-30
0001704795
bant:PurchaseMember
bant:SupplierOneMember
2019-10-01
2020-09-30
0001704795
bant:PurchaseMember
bant:SupplierTwoMember
2019-10-01
2020-09-30
0001704795
2019-12-02
2019-12-30
0001704795
bant:HowcoMember
2016-09-30
0001704795
bant:SeniorSecuredCreditFacilityMember
2020-09-30
0001704795
us-gaap:ConvertibleNotesPayableMember
2020-04-15
0001704795
us-gaap:ConvertibleNotesPayableMember
2020-04-05
2020-04-15
0001704795
srt:ChiefExecutiveOfficerMember
2019-09-02
2019-09-13
0001704795
bant:ChiefExecutiveOfficerOneMember
2020-04-05
2020-04-14
0001704795
bant:ChiefExecutiveOfficerOneMember
2020-04-14
0001704795
srt:ChiefExecutiveOfficerMember
2019-01-19
0001704795
srt:ChiefExecutiveOfficerMember
2019-10-01
2020-09-30
0001704795
srt:ChiefExecutiveOfficerMember
2019-06-29
2019-07-01
0001704795
srt:ChiefExecutiveOfficerMember
2020-04-05
2020-04-15
0001704795
srt:ChiefExecutiveOfficerMember
2020-04-15
0001704795
2019-11-18
0001704795
2019-12-18
0001704795
2020-04-18
0001704795
2020-05-18
0001704795
2020-06-18
0001704795
bant:TrilliumPartnersLPMember
2020-09-30
0001704795
bant:TrilliumPartnersLPMember
2019-10-01
2020-09-30
0001704795
bant:HowcoMember
2020-04-05
2020-04-07
0001704795
bant:TrilliumPartnersLPMember
2020-03-20
2020-04-03
0001704795
bant:TrilliumPartnersLPMember
2020-04-03
0001704795
bant:TrilliumPartnersLPMember
2020-04-05
2020-04-15
0001704795
bant:TrilliumPartnersLPMember
2020-04-15
0001704795
bant:RedstartHoldingCorporationMember
2020-04-11
2020-04-16
0001704795
bant:RedstartHoldingCorporationMember
2020-04-16
0001704795
bant:RedstartHoldingCorporationMember
2020-04-05
2020-04-22
0001704795
bant:RedstartHoldingCorporationMember
2020-04-22
0001704795
bant:TriBridgeVenturesLlcMember
2020-04-05
2020-04-09
0001704795
bant:TriBridgeVenturesLlcMember
2020-04-09
0001704795
bant:TriBridgeVenturesLlcMember
2020-04-22
0001704795
bant:AlphaCapitalAnstaltMember
2020-04-05
2020-04-23
0001704795
bant:AlphaCapitalAnstaltMember
2020-04-23
0001704795
bant:RedstartHoldingCorporationMember
2020-04-04
2020-04-29
0001704795
bant:RedstartHoldingCorporationMember
2020-04-29
0001704795
bant:TrilliumPartnersLPMember
2020-04-25
2020-05-02
0001704795
bant:TrilliumPartnersLPMember
2020-04-25
2020-05-05
0001704795
bant:TrilliumPartnersLPMember
2020-04-25
2020-05-13
0001704795
bant:TrilliumPartnersLPMember
2020-04-25
2020-05-18
0001704795
bant:TrilliumPartnersLPMember
2020-04-25
2020-05-26
0001704795
bant:TrilliumPartnersLPMember
2020-06-04
2020-06-11
0001704795
bant:TrilliumPartnersLPMember
2020-06-11
0001704795
bant:TrilliumPartnersLPMember
2020-06-04
2020-06-18
0001704795
bant:TrilliumPartnersLPMember
2020-06-18
0001704795
bant:TrilliumPartnersLPMember
2020-06-06
2020-06-26
0001704795
bant:TrilliumPartnersLPMember
2020-06-26
0001704795
bant:TrilliumPartnersLPMember
2020-05-02
0001704795
bant:TrilliumPartnersLPMember
2020-05-05
0001704795
bant:TrilliumPartnersLPMember
2020-05-13
0001704795
bant:TrilliumPartnersLPMember
2020-05-18
0001704795
bant:TrilliumPartnersLPMember
2020-05-26
0001704795
bant:TrilliumPartnersLPOneMember
2020-06-07
2020-06-26
0001704795
bant:TrilliumPartnersLPOneMember
2020-06-26
0001704795
bant:RedstartHoldingCorporationMember
2020-04-25
2020-05-05
0001704795
bant:RedstartHoldingCorporationMember
2020-05-05
0001704795
bant:RedstartHoldingCorporationMember
2020-04-25
2020-05-07
0001704795
bant:RedstartHoldingCorporationMember
2020-05-07
0001704795
bant:RedstartHoldingCorporationMember
2020-04-25
2020-05-12
0001704795
bant:RedstartHoldingCorporationMember
2020-05-12
0001704795
bant:RedstartHoldingCorporationMember
2020-05-06
2020-05-14
0001704795
bant:RedstartHoldingCorporationMember
2020-05-14
0001704795
bant:RedstartHoldingCorporationMember
2020-04-25
2020-05-18
0001704795
bant:RedstartHoldingCorporationMember
2020-05-18
0001704795
bant:RedstartHoldingCorporationMember
2020-05-04
2020-05-20
0001704795
bant:RedstartHoldingCorporationMember
2020-05-20
0001704795
bant:RedstartHoldingCorporationMember
2020-05-06
2020-05-25
0001704795
bant:RedstartHoldingCorporationMember
2020-05-25
0001704795
bant:RedstartHoldingCorporationMember
2020-05-04
2020-05-26
0001704795
bant:RedstartHoldingCorporationMember
2020-05-26
0001704795
bant:RedstartHoldingCorporationMember
2020-05-01
2020-05-27
0001704795
bant:RedstartHoldingCorporationMember
2020-05-27
0001704795
bant:RedstartHoldingCorporationMember
2020-05-01
2020-05-29
0001704795
bant:RedstartHoldingCorporationMember
2020-05-29
0001704795
bant:RedstartHoldingCorporationMember
2020-05-28
2020-06-02
0001704795
bant:RedstartHoldingCorporationMember
2020-06-02
0001704795
bant:RedstartHoldingCorporationMember
2020-05-28
2020-06-03
0001704795
bant:RedstartHoldingCorporationMember
2020-06-03
0001704795
bant:RedstartHoldingCorporationMember
2020-06-04
2020-06-05
0001704795
bant:RedstartHoldingCorporationMember
2020-06-05
0001704795
bant:RedstartHoldingCorporationMember
2020-05-28
2020-06-08
0001704795
bant:RedstartHoldingCorporationMember
2020-06-08
0001704795
bant:RedstartHoldingCorporationMember
2020-06-10
0001704795
bant:RedstartHoldingCorporationMember
2020-06-11
0001704795
bant:CrownBridgePartnersLlcMember
2020-05-14
0001704795
bant:CrownBridgePartnersLlcMember
2020-05-01
2020-05-14
0001704795
bant:TriBridgeVenturesLlcMember
2020-04-25
2020-05-18
0001704795
bant:TriBridgeVenturesLlcMember
2020-05-18
0001704795
bant:CrownBridgePartnersLlcMember
2020-05-01
2020-05-19
0001704795
bant:CrownBridgePartnersLlcMember
2020-05-19
0001704795
bant:TriBridgeVenturesLlcMember
2020-05-04
2020-05-21
0001704795
bant:TriBridgeVenturesLlcMember
2020-05-21
0001704795
bant:TriBridgeVenturesLlcMember
2020-05-04
2020-05-29
0001704795
bant:TriBridgeVenturesLlcMember
2020-05-29
0001704795
bant:TriBridgeVenturesLlcMember
2020-05-24
2020-06-03
0001704795
bant:TriBridgeVenturesLlcMember
2020-06-03
0001704795
bant:TriBridgeVenturesLlcMember
2020-05-24
2020-06-16
0001704795
bant:TriBridgeVenturesLlcMember
2020-06-16
0001704795
bant:CrownBridgePartnersMember
2020-05-04
2020-05-22
0001704795
bant:CrownBridgePartnersMember
2020-05-22
0001704795
bant:CrownBridgePartnersMember
2020-05-30
2020-06-10
0001704795
bant:CrownBridgePartnersMember
2020-06-10
0001704795
srt:ChiefExecutiveOfficerMember
2020-04-04
2020-04-14
0001704795
srt:ChiefExecutiveOfficerMember
2020-04-14
0001704795
srt:ChiefExecutiveOfficerMember
2020-04-05
2020-04-14
0001704795
bant:ChiefStrategyOfficerMember
2019-12-31
0001704795
us-gaap:USTreasurySecuritiesMember
2019-12-31
0001704795
bant:HowcoDistributingMember
2020-04-06
2020-04-16
0001704795
srt:ChiefExecutiveOfficerMember
2019-01-05
2019-01-19
0001704795
srt:ChiefExecutiveOfficerMember
2019-06-29
2019-07-02
0001704795
2016-09-01
2016-09-09
0001704795
bant:SeriesAPreferredStockOneMember
2020-09-30
0001704795
2019-01-15
2019-12-15
0001704795
bant:AmericanExpressMember
2020-09-30
0001704795
2020-01-27
0001704795
2018-12-03
2018-12-20
0001704795
bant:ChiefStrategyOfficerMember
2019-09-30
0001704795
srt:ChiefExecutiveOfficerMember
bant:MichaelBannonMember
2019-01-05
2019-01-19
0001704795
srt:ChiefExecutiveOfficerMember
bant:MichaelBannonMember
2019-01-19
0001704795
srt:ChiefExecutiveOfficerMember
bant:MichaelBannonMember
2019-10-01
2020-09-30
0001704795
srt:ChiefExecutiveOfficerMember
bant:MichaelBannonMember
2020-09-30
0001704795
us-gaap:FairValueInputsLevel3Member
2018-10-01
2019-09-30
0001704795
us-gaap:FairValueInputsLevel3Member
2019-10-01
2020-09-30
0001704795
us-gaap:AdditionalPaidInCapitalMember
2018-10-01
2019-09-30
0001704795
us-gaap:RetainedEarningsMember
2018-10-01
2019-09-30
0001704795
2020-07-01
2020-07-20
0001704795
bant:TrilliumPartnersLPMember
2020-08-05
2020-09-30
0001704795
bant:CFOMember
bant:CompensationAgreementMember
2019-01-02
2019-01-04
0001704795
bant:CFOMember
bant:CompensationAgreementMember
2019-06-05
2019-06-10
0001704795
bant:NonEmployeeServicesMember
2019-02-25
2019-03-02
0001704795
bant:NonEmployeeServicesMember
2019-03-05
2019-03-31
0001704795
bant:TysadcoPartnersMember
2019-03-05
2019-03-31
0001704795
bant:TechnologySupportServicesMember
2019-05-02
2019-05-03
0001704795
bant:TechnologySupportServicesMember
2019-05-03
0001704795
bant:ConsultantMember
2019-06-05
2019-06-10
0001704795
bant:ConsultantMember
2019-06-10
0001704795
2019-08-01
2019-08-28
0001704795
2019-08-28
0001704795
bant:TysadcoPartnersMember
2019-09-01
2019-09-30
0001704795
bant:TysadcoPartnersMember
2019-09-30
0001704795
bant:TysadcoPartnersMember
2019-12-05
2019-12-31
0001704795
bant:TechnologySupportServicesMember
2019-09-01
2019-09-30
0001704795
bant:OneYearAgreementMember
2019-10-01
2019-10-07
0001704795
bant:OneYearAgreementMember
2019-10-07
0001704795
bant:AttorneyMember
2020-02-03
2020-02-21
0001704795
srt:ChiefExecutiveOfficerMember
2020-07-01
2020-07-24
0001704795
2020-04-14
0001704795
2020-04-05
2020-04-14
0001704795
2019-01-06
2019-01-30
0001704795
bant:SeniorSecuredCreditFacilityMember
2019-10-01
2020-09-30
0001704795
us-gaap:LoansMember
2017-12-31
0001704795
bant:PowerUpLendingGroupLtdMember
us-gaap:ConvertibleNotesPayableMember
2017-10-01
2017-10-05
0001704795
bant:SeniorSecuredCreditFacilityMember
bant:NoteAMember
2020-09-30
0001704795
bant:SeniorSecuredCreditFacilityMember
bant:NoteBMember
2020-09-30
0001704795
bant:SeniorSecuredCreditFacilityMember
bant:NoteAMember
2019-10-01
2020-09-30
0001704795
bant:LivingstonAssetManagementLlcMember
2018-06-22
2018-07-02
0001704795
bant:LivingstonAssetManagementLlcMember
2018-07-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-06-01
0001704795
bant:OtherConvertibleDebtMember
2018-02-02
2018-02-07
0001704795
bant:LivingstonAssetManagementLlcMember
2019-03-05
2019-03-31
0001704795
bant:HowcoMember
2020-08-25
0001704795
bant:HowcoMember
2020-08-06
2020-08-25
0001704795
bant:HowcoMember
2020-05-24
2020-06-02
0001704795
bant:TrilliumPartnersLPMember
2020-09-11
0001704795
bant:TrilliumPartnersLPMember
2020-09-01
2020-09-11
0001704795
bant:EBFPartnersLLCMember
2020-01-28
0001704795
bant:HowcoMember
2020-01-03
2020-01-28
0001704795
bant:LivingstonAssetManagementMember
2020-01-25
2020-02-01
0001704795
bant:LivingstonAssetManagementMember
2019-12-25
2020-01-02
0001704795
bant:LivingstonAssetManagementMember
2019-11-25
2019-12-01
0001704795
bant:LivingstonAssetManagementMember
2019-10-25
2019-11-01
0001704795
bant:LivingstonAssetManagementMember
2019-09-25
2019-10-02
0001704795
bant:ForaBusinessLoansLLCOneMember
2020-06-02
0001704795
bant:ForaBusinessLoansLLCOneMember
2020-09-30
0001704795
bant:ForaBusinessLoansLLCOneMember
2019-09-30
0001704795
2018-10-01
2018-10-17
0001704795
2018-10-17
0001704795
bant:TrilliumPartnersLPMember
2018-10-01
2018-10-17
0001704795
bant:PortaPellexMember
2018-10-01
2018-10-17
0001704795
bant:TrilliumPartnersLPMember
2018-11-05
2018-11-27
0001704795
bant:JeffersonStreetCapitalLlcMember
2018-10-23
0001704795
bant:JeffersonStreetCapitalLlcMember
2018-10-01
2018-10-23
0001704795
bant:JeffersonStreetCapitalLlcMember
2018-11-25
2018-12-05
0001704795
bant:JeffersonStreetCapitalLlcMember
2018-12-05
0001704795
bant:LivingstonAssetManagementMember
2018-06-01
0001704795
bant:LivingstonAssetManagementMember
2020-09-30
0001704795
bant:LivingstonAssetManagementMember
2019-10-01
2020-09-30
0001704795
us-gaap:SalesRevenueNetMember
bant:CustomerOneMember
2018-10-01
2019-09-30
0001704795
us-gaap:SalesRevenueNetMember
bant:CustomerTwoMember
2018-10-01
2019-09-30
0001704795
us-gaap:AccountsPayableMember
bant:SupplierOneMember
2019-10-01
2020-09-30
0001704795
us-gaap:AccountsPayableMember
bant:SupplierTwoMember
2019-10-01
2020-09-30
0001704795
us-gaap:AccountsPayableMember
bant:SupplierThreeMember
2019-10-01
2020-09-30
0001704795
us-gaap:AccountsPayableMember
bant:SupplierOneMember
2018-10-01
2019-09-30
0001704795
us-gaap:AccountsPayableMember
bant:SupplierTwoMember
2018-10-01
2019-09-30
0001704795
us-gaap:SubsequentEventMember
2020-10-07
0001704795
us-gaap:SubsequentEventMember
2020-12-23
0001704795
us-gaap:SubsequentEventMember
bant:TrilliumPartnersLPMember
2020-10-07
0001704795
us-gaap:SubsequentEventMember
bant:TrilliumPartnersLPMember
2020-12-23
0001704795
us-gaap:SubsequentEventMember
bant:ConsultantForServicesMember
2020-10-22
0001704795
us-gaap:SubsequentEventMember
bant:EmployeesMember
2020-10-22
0001704795
us-gaap:SubsequentEventMember
bant:NonEmployeesMember
2020-10-22
0001704795
bant:LivingstonAssetManagementMember
2017-10-01
2018-09-30
0001704795
bant:LivingstonAssetManagementMember
us-gaap:CommonStockMember
2019-02-04
2019-09-30
0001704795
bant:LivingstonAssetManagementMember
us-gaap:CommonStockMember
2019-09-30
0001704795
bant:LivingstonAssetManagementMember
us-gaap:CommonStockMember
2018-11-05
2018-11-22
0001704795
bant:LivingstonAssetManagementMember
us-gaap:CommonStockMember
2018-11-22
0001704795
bant:LivingstonAssetManagementMember
us-gaap:CommonStockMember
2019-02-04
2019-03-27
0001704795
bant:LivingstonAssetManagementMember
us-gaap:CommonStockMember
2019-03-27
0001704795
bant:LivingstonAssetManagementMember
us-gaap:CommonStockMember
2019-11-07
0001704795
bant:CrownBridgePartnersMember
2018-10-17
0001704795
bant:CrownBridgePartnersMember
2018-10-03
2018-10-17
0001704795
bant:CrownBridgePartnersMember
2018-12-11
2019-01-04
0001704795
bant:CrownBridgePartnersMember
2019-01-15
2019-02-06
0001704795
bant:JeffersonStreetCapitalLlcMember
2018-11-03
2018-12-05
0001704795
bant:TrilliumPartnersLPMember
2018-11-06
2018-11-27
0001704795
bant:LivingstonAssetManagementMember
2019-01-03
2019-01-08
0001704795
bant:LivingstonAssetManagementMember
2019-01-08
0001704795
bant:LivingstonAssetManagementMember
bant:JuneOneTwoThousandEightMember
2019-01-03
2019-01-08
0001704795
bant:LivingstonAssetManagementMember
bant:JuneOneTwoThousandEightMember
2019-01-06
2019-01-18
0001704795
bant:LivingstonAssetManagementMember
bant:JuneOneTwoThousandEightMember
2019-01-18
0001704795
bant:LivingstonAssetManagementMember
bant:JulyOneTwoThousandEightMember
2019-01-06
2019-01-18
0001704795
bant:LivingstonAssetManagementMember
bant:JulyOneTwoThousandEightMember
2019-01-18
0001704795
bant:LivingstonAssetManagementMember
2019-02-05
2019-02-11
0001704795
bant:LivingstonAssetManagementMember
2019-02-11
0001704795
bant:LivingstonAssetManagementMember
bant:SeptemberOneTwoThousandEightMember
2019-03-05
2019-03-18
0001704795
bant:LivingstonAssetManagementMember
bant:SeptemberOneTwoThousandEightMember
2019-03-18
0001704795
bant:LivingstonAssetManagementMember
2019-03-03
2019-03-18
0001704795
bant:LivingstonAssetManagementMember
2019-03-20
2019-04-03
0001704795
bant:LivingstonAssetManagementMember
2019-04-03
0001704795
bant:LivingstonAssetManagementMember
2019-06-02
2019-06-19
0001704795
bant:LivingstonAssetManagementMember
2019-06-19
0001704795
bant:LivingstonAssetManagementMember
2019-06-02
2019-06-25
0001704795
bant:LivingstonAssetManagementMember
2019-06-25
0001704795
bant:TrilliumPartnersLPMember
2020-02-25
0001704795
bant:TrilliumPartnersLPMember
2020-03-11
0001704795
bant:RedstartHoldingsMember
2019-02-25
2019-03-02
0001704795
bant:RedstartHoldingsMember
2020-02-03
2020-02-14
0001704795
bant:TrilliumPartnersLPOneMember
bant:JulyFourteenAndTwentyTwentyMember
2020-07-05
2020-07-14
0001704795
bant:TrilliumPartnersLPOneMember
bant:JulyFourteenAndTwentyTwentyMember
2020-07-14
0001704795
bant:TrilliumPartnersLPTwoMember
bant:JulyFourteenAndTwentyTwentyMember
2020-07-05
2020-07-14
0001704795
bant:TrilliumPartnersLPTwoMember
bant:JulyFourteenAndTwentyTwentyMember
2020-07-14
0001704795
bant:CrownBridgePartnersMember
2020-07-05
2020-07-22
0001704795
bant:CrownBridgePartnersMember
2020-07-22
0001704795
bant:TrilliumPartnersLPMember
2020-07-06
2020-07-23
0001704795
bant:TrilliumPartnersLPMember
2020-07-23
0001704795
bant:CrownBridgePartnersMember
2020-08-28
0001704795
bant:CrownBridgePartnersMember
2020-08-02
2020-08-31
0001704795
bant:CrownBridgePartnersMember
2020-08-31
0001704795
bant:CrownBridgePartnersOneMember
2020-08-02
2020-08-31
0001704795
bant:CrownBridgePartnersOneMember
2020-08-31
0001704795
srt:ChiefExecutiveOfficerMember
2020-07-07
2020-07-24
0001704795
srt:ChiefExecutiveOfficerMember
2020-07-24
0001704795
bant:LivingstonAssetManagementLlcMember
2018-10-01
2019-09-30
0001704795
bant:LivingstonAssetManagementLlcMember
2019-05-15
2019-06-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-09-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-11-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-12-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-01-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-02-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-03-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-04-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-05-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-06-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-08-15
2018-09-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-10-15
2018-11-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-11-15
2018-12-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-12-15
2019-01-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-01-15
2019-02-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-02-15
2019-03-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-03-15
2019-04-01
0001704795
bant:LivingstonAssetManagementLlcMember
2019-04-15
2019-05-01
0001704795
bant:LivingstonAssetManagementLlcMember
2018-05-10
2018-06-01
0001704795
bant:LivingstonAssetManagementLlcMember
2020-02-15
2020-03-01
0001704795
bant:LivingstonAssetManagementLlcMember
2020-03-16
2020-04-01
0001704795
bant:LivingstonAssetManagementLlcMember
2020-06-15
2020-07-02
0001704795
bant:LivingstonAssetManagementLlcMember
2020-07-15
2020-08-01
0001704795
2020-07-18
0001704795
2020-08-18
0001704795
2020-09-18
0001704795
us-gaap:ConvertibleDebtMember
2018-10-15
2018-11-13
0001704795
us-gaap:SubsequentEventMember
bant:LivingstonAssetManagementLlcMember
bant:ConvertibleNotesMember
2020-11-24
0001704795
us-gaap:SubsequentEventMember
bant:LivingstonAssetManagementLlcMember
bant:ConvertibleNotesMember
2020-11-22
2020-11-24
0001704795
bant:LivingstonAssetManagementLlcMember
bant:ConvertibleNotesMember
2019-09-26
2019-10-02
0001704795
us-gaap:SubsequentEventMember
bant:TriBridgeVenturesLlcMember
bant:ConvertibleNotesMember
2020-12-11
0001704795
us-gaap:SubsequentEventMember
bant:TriBridgeVenturesLlcMember
bant:ConvertibleNotesMember
2020-12-08
2020-12-11
0001704795
bant:TriBridgeVenturesLlcMember
bant:ConvertibleNotesMember
2020-05-11
2020-05-14
0001704795
us-gaap:SubsequentEventMember
bant:LivingstonAssetManagementLlcMember
bant:ConvertibleNotesMember
2020-12-15
0001704795
us-gaap:SubsequentEventMember
bant:LivingstonAssetManagementLlcMember
bant:ConvertibleNotesMember
2020-12-12
2020-12-15
0001704795
bant:LivingstonAssetManagementLlcMember
bant:ConvertibleNotesMember
2019-12-12
2019-12-15
0001704795
bant:AlphaCapitalAnstaltMember
bant:ConvertibleNotesMember
2020-02-17
2020-02-20
0001704795
bant:AlphaCapitalAnstaltMember
bant:ConvertibleNotesMember
us-gaap:SubsequentEventMember
2020-12-16
0001704795
us-gaap:SubsequentEventMember
2020-10-15
2020-10-18
0001704795
us-gaap:SubsequentEventMember
2020-10-18
0001704795
us-gaap:SubsequentEventMember
2020-11-18
0001704795
us-gaap:SubsequentEventMember
2020-12-18
0001704795
us-gaap:SubsequentEventMember
2020-12-15
0001704795
us-gaap:SubsequentEventMember
2020-12-12
2020-12-15
0001704795
2019-02-25
2019-03-04
0001704795
bant:RedstartHoldingsCorporationMember
2019-10-01
2019-12-31
0001704795
bant:RedstartHoldingsCorporationMember
2019-12-31
0001704795
bant:RedstartHoldingsCorporationMember
2019-10-01
2020-09-30
0001704795
bant:RedstartHoldingsCorporationMember
2020-09-30
0001704795
bant:TrilliumPartnersLPMember
2019-10-25
2019-11-02
0001704795
bant:TriBridgeVenturesLlcMember
2020-06-04
2020-06-09
0001704795
bant:AttorneyMember
2019-10-01
2020-09-30
0001704795
us-gaap:SubsequentEventMember
bant:ConvertibleandNonConvertibleNotesMember
bant:AttorneyMember
2020-12-18
0001704795
bant:LivingstonAssetManagementLlcMember
bant:ConvertibleNotesMember
2019-10-28
2019-11-02
0001704795
bant:CrownBridgePartnersMember
2020-08-05
2020-08-28
0001704795
2020-04-05
2020-06-30
0001704795
bant:LivingstonAssetManagementLlcMember
2020-04-17
2020-05-02
0001704795
bant:HowcoMember
2019-09-30
0001704795
us-gaap:ConvertibleDebtMember
2020-09-30
0001704795
bant:ConvertibleNotesPayableOneMember
2018-10-01
2019-09-30
0001704795
bant:CFOMember
2017-03-01
2017-03-28
0001704795
2019-01-19
0001704795
bant:CrownBridgePartnersLlcMember
bant:FirstTrancheMember
2017-11-05
2017-11-09
0001704795
bant:SeniorSecuredCreditFacilityMember
bant:NoteAMember
2018-10-30
0001704795
bant:OtherConvertibleDebtMember
bant:CrownBridgePartnersLlcMember
2017-11-06
2017-11-09
0001704795
2019-11-17
0001704795
bant:LivingstonAssetManagementLlcMember
2020-09-30
0001704795
bant:CrownBridgePartnersLlcMember
2019-10-01
2020-09-30
0001704795
bant:CrownBridgePartnersLlcMember
2019-02-15
2019-03-01
0001704795
bant:TriBridgeVenturesLlcMember
2020-04-25
2020-05-05
0001704795
2019-12-02
2019-12-31
0001704795
2018-10-23
0001704795
bant:LivingstonAssetManagementMember
2018-05-25
2018-06-01
0001704795
bant:RedstartHoldingCorporationMember
2020-05-28
2020-06-10
0001704795
bant:RedstartHoldingCorporationMember
2020-05-28
2020-06-11
0001704795
us-gaap:ConvertibleDebtMember
us-gaap:CommonStockMember
2019-10-01
2020-09-30
0001704795
us-gaap:ConvertibleDebtMember
2019-09-30
0001704795
bant:TrilliumPartnersLPMember
2019-09-30
0001704795
us-gaap:SubsequentEventMember
2020-11-02
0001704795
us-gaap:SubsequentEventMember
2020-10-28
2020-11-02
0001704795
us-gaap:SubsequentEventMember
2020-11-03
2020-11-18
0001704795
us-gaap:SubsequentEventMember
srt:ChiefFinancialOfficerMember
bant:HowcoOneMember
2020-12-01
2020-12-22
0001704795
us-gaap:SubsequentEventMember
bant:LivingstonAssetManagementLlcMember
bant:ConvertibleNotesMember
2020-12-02
0001704795
us-gaap:SubsequentEventMember
bant:LivingstonAssetManagementLlcMember
bant:ConvertibleNotesMember
2020-11-29
2020-12-02
0001704795
us-gaap:SubsequentEventMember
2020-12-03
2020-12-18
0001704795
2020-12-31
0001704795
us-gaap:SubsequentEventMember
bant:EmployeesMember
2020-10-02
2020-10-22
0001704795
us-gaap:SubsequentEventMember
bant:NonEmployeesMember
2020-10-02
2020-10-22
0001704795
us-gaap:SubsequentEventMember
bant:ConsultantForServicesMember
2020-10-02
2020-10-22
0001704795
2020-09-11
0001704795
bant:HowcoDistributingMember
us-gaap:SubsequentEventMember
2020-12-01
2020-12-30
0001704795
bant:HowcoDistributingMember
us-gaap:SubsequentEventMember
2020-12-30
0001704795
2020-03-31
xbrli:shares
iso4217:USD
iso4217:USD
xbrli:shares
xbrli:pure
bant:Customers
bant:Suppliers
-7115159
-4328318
-4328318
-7115159
2018-12-31
2019-01-31
2019-02-28
2019-03-31
2019-04-30
2019-02-28
2019-06-30
2017-09-09
2019-01-31
2019-11-30
2019-02-28
2019-04-30
2019-05-31
2019-06-30
2019-07-31
2019-08-31
2019-09-30
2019-10-31
15000
17000
7827730
840000
8310950
840000
400000
The Note bears interest at a rate of 18% per annum, required monthly payments of $52,500, which is interest only, starting on October 13, 2016 through February 13, 2017, and monthly payments, including interest and principal, of $298,341 starting on March 13, 2017 through maturity on March 13, 2018.
The Company received a first tranche payment of $75,500 under the terms of a Securities Purchase Agreement dated October 25, 2017, with Crown Bridge under which the Company issued to Crown Bridge a convertible note in the principal amount of $105,000 and a five-year warrant to purchase 100 shares of the Company's common stock at an exercise price of $350 as a commitment fee which is equal to the product of one-third of the face value of each tranche divided by $0.35.
The placement agent services fee amounted to $15,000 payable to Scottsdale Capital Advisors in the form of a convertible note. The note matures six months from the date of issuance and shall accrue interest at the rate of 10% per annum. The $15,000 note is convertible into shares of the Company's common stock at a discount of 30% of the low closing bid price for the twenty trading days prior to the conversion and is not subject to any registration rights. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $6,429 with a charge to interest expense.
The Note is only convertible upon default or mutual agreement by both parties at a conversion rate of 85% of the lowest of the daily volume weighted average price of the Company's common stock during the 5 business days immediately prior to the conversion date.
The note principal and put premium were $15,000, and $15,000, at September 30, 2020 and 2019. Accrued interest was $1,843, at September 30, 2020.
The note principal and put premium were $17,000, and $17,000, at September 30, 2020 and 2019. Accrued interest was $1,799, at September 30, 2020.
The notes are convertible into common shares at a discount of 50% to the lowest bid price in the 30 trading days immediately preceding the notice of conversion. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $12,500 with a charge to interest expense for each note.
The Company’s CEO (“Pike Falls”) for a cash advances to Howco. The advances are to be for 100% of the face value of the purchase orders to be repaid with accounts receivable related to the sales of the products underlying the purchase orders. Pike Falls receives 4% of the purchase price for the first 45 days and .00086% per day thereafter on the unpaid balance.
For the Livingston Asset Management LLC conversions noted above from January 8, 2019 to March 18, 2019, total debt, interest and fees were $58,403, and related debt premium of $50,000, resulted in credits to equity of $108,403.
75000
298341
P5Y
P5Y
P0Y24M0D
P0Y6M0D
P0Y6M0D
P0Y6M0D
P0Y6M0D
P0Y6M0D
P12M
0.12
0.05
0.0550
0.07
0.07
0.10
0.10
0.10
0.10
0.0098
0.12
0.10
0.10
0.02
0.10
0.10
0.10
0.10
0.10
3000
10000
6000
6000
6000
6000
6000
90000
62500
6000
6000
6000
6000
6000
6000
6000
6000
6000
68000
29300
63000
6000
6000
6000
6000
6000
6000
6000
6000
6000
6000
1304258
7628312
95257
196961
5000
10500
The Company increased note principal to $122,500 and added $8,077 to debt premium related to the stock settled debt feature discussed above.
The employee profit share is equal to their annual salary divided by the Company's total annual payroll and multiplied by 10% of net income for the fiscal year. During the years ended September 30, 2020 and 2019 the employees earned $0 and $0, under this plan.
The note bears interest at 5%, matures on June 30, 2019 and is convertible into the Company's common stock at 50% of the lowest closing bid price during the 20 trading days immediately preceding the notice of conversion.
The Company issued a convertible promissory note to Trillium Partners LP for cash in the amount of $10,000. The note bears interest at 10%, matures on January 11, 2020, and was convertible into the Company’s common stock at 50% of the lowest closing bid price on the 20 trading days immediately preceding the notice of conversion. The Company accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $10,000 with a charge to interest expense for the notes.
The Company issued a convertible note to Livingston Asset Management for $51,000, under the same interest rate and conversion discount terms. The note matures on March 31, 2020.
The following notes have been issued to the law firm, each having six month term to maturity and 12% annual interest but a change in the conversion terms such that a fixed discount of 50% of the lowest bid price in the 30 trading days immediately preceding the notice of conversion.
Livingston is to receive $20,000, per month including $3,000 cash and $17,000 in promissory notes. The notes bear interest of 10% per annum and mature in six month. The promissory notes issued after February 28, 2020 are convertible into shares of common stock at a discount of 50% of the lowest closing bid price during the 30 trading days prior to conversion. The notes having a conversion feature are treated as stock settled debt under ASC 480 and a debt premium of $17,000 is recognized as interest expense on note issuance date.
The principal balance of $10,000 was reclassified to notes and loans payable and the related put premium totaling $10,000 was recognized as gains on debt extinguishment on the date of the amendment.
The Company issued a convertible promissory note in the amount of $53,000 to Geneva Roth Remark Holdings Inc. The Company received $50,000, in cash on June 10, 2020 with $3,000, being retained for legal and underwriting fees which will be treated as OID and be amortized to interest expense over the term of the note. The note matures on June 10, 2021, bears interest at 10%, with a 22% default interest rate and may be converted at 58% of the lowest closing bid price in the 20 days preceding a conversion. The cross-default terms in the note only include defaults on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $38,379 of put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal and accrued interest balances were, $53,000 and $1,597 at September 30, 2020, respectively.
The Company entered into an agreement with Geneva Roth Remark Holdings Inc. to issue a convertible promissory note in the amount of $53,000. The Company received $50,000, in cash on July 15, 2020 with $3,000, being retained for legal and underwriting fees which will be treated as debt discount and be amortized to interest expense over the term of the note. The note matures on July 10, 2021, bears interest at 10%, with a 22% default interest rate and may be converted at 58% of the lowest closing bid price in the 20 days preceding a conversion. The Company will treat the convertible note in accordance with ASC 480 Stock Settled Debt, recognizing $38,380 as put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal and accrued interest balances were, $53,000 and $1,118 at September 30, 2020, respectively.
The Company issued a convertible promissory note in the amount of $104,000 to Geneva Roth Remark Holdings Inc. The Company received $100,500, in cash on August 28, 2020 with $3,500, being retained for legal and underwriting fees which will be treated as OID and be amortized to interest expense over the term of the note. The note matures on August 28, 2021, bears interest at 10%, with a 22% default interest rate and may be converted at 58% of the lowest closing bid price in the 20 days preceding a conversion. The principal, premium and accrued interest were $104,000, $75,310 and $826 respectively at September 30, 2020.
The Company issued a convertible promissory note to Geneva Roth Remark Holdings for $60,000, for $57,000, cash and fees of $3,000 (treated as OID to be amortized over the life of the note) having a 10% annual interest rate, maturity of April 20, 2021, and conversion right to a 42% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The Company treated the convertible note in accordance with ASC 480 Stock Settled Debt, and recognized the put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. Principal, put premium and accrued interest were $60,000, $43,448 and $2,630, respectively at September 30, 2020.
The Company is entitled to prepay the Note between 30 days after its issuance until 180 days from its issuance at amounts that increase from 112% of the prepayment amount to 137% of the prepayment amount depending on the length of time when prepayments are made. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $56,538 with a charge to interest expense.
The convertible note (the “Note”) issued to Crown Bridge in the principal amount of $105,000, has an original issue discount of $10,500 and issue costs of $19,000 both of which are recorded as debt discount along with the warrant relative fair value of $12,507 for the original 100, warrants and $31,529 for the penalty warrants to be amortized over the twelve month term of this tranche, bears interest of 10% (12% default rate) per annum, and has a maturity date of 12 months from the date of each tranche of payments under the Note with future tranches being at the discretion of Crown Bridge. The conversion rate for any conversion of unpaid principal and interest under the Notes is at a 35% discount to the lowest market price of the shares of the Company’s common stock within a 20 day trading period prior to the date of conversion to which an additional 10% discount will be added if the conversion price of the Company’s common stock is less than $50, per share and no shares of the Company’s common stock can be issued to the extent Crown Bridge would own more than 4.99% of the outstanding shares of the Company’s common stock and the conversion shares contain piggy-back registration rights. The Note is subject to customary default provisions including an event of default if the bid price of the Company’s common stock is less than its par value of $.0001 per share.
The Company received a second tranche advance under the Crown Bridge Partners, LLC, master note dated October 25, 2017, for principal amount of $35,000, including covered fees and original issue discount totaling $5,000. Under the conversion terms of the above note, the holder is entitled to a 35% discount plus an additional 10% discount based on the conversion rights of certain other note holders. Therefore a discount of 45% is assumed for any conversions of this note tranche. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $28,636 with a charge to interest expense. The original issue discount and fees charged were treated as debt discount and will be amortized to financing expenses over the term of the note. Following conversions during the year ended September 30, 2020 the principal balance and debt premium balances were reduced and the unamortized debt discount was $0, at September 30, 2020. The principal was increased by charges of $17,500 for technical default effective during the year ended September 30, 2020 and an additional put premium was calculated to be $26,250. The cross-default provisions of the note include defaults on any notes issued to third parties including any issued subsequent to the issuance of this note. The default charge and the put premium were charged to interest expense of June 30, 2020. The conversion discount increased to 60% as a result of the default. The principal and accrued interest were $2,766 and $6,187, respectively at September 30, 20 Unamortized debt discount was $2,069, at September 30, 2019, principal was $35,000, and accrued interest was $2,402.
The Company issued a convertible promissory note for $35,000 issued to Tri-Bridge Ventures LLC for a cash loan of $35,000. The note has a one year maturity, 8% annual interest and can be converted to common stock at the contracted price of 60% of the lowest daily traded price during the 10 days prior to delivery of a conversion notice. The Company has treated the convertible note in accordance with ASC 480 Stock Settled Debt, and recognized the put premium for the stock price discount as a liability with a charge to interest expense at the date of the issuance of the convertible promissory note. The note principal put premium and accrued interest in $35,000, $23,333 and $836, respectively at September 30, 2020.
18505
17755
17755
128628
119777
128628
8851
78471
791728
349389
3163443
2832790
218637
174574
131724
42850
54000
54000
400000
200000
17000
17000
17000
17000
17000
161700
2500
2500
12000
4500
24000
12000
6000
2500
1598246
17000
69391
10395
15000
750
220.00
220.00
220.00
25000000
250
250
25000000
250
250
0.0001
0.0001
0.0001
0.0001
3255346
491032439
220239
6000000000
6000000000
1500000000
6000000000
1 for 1,000
The Company filed amendments with the Secretary of the State of Delaware, amending its articles of incorporation to execute a reverse stock split of 1 share for every 1,000 shares outstanding, and changing its name to Bantec, Inc.
250
250
250
250
250
250
250
250
Bantec, Inc.
false
--09-30
10-K
2020-09-30
2020
Yes
Non-accelerated Filer
true
false
true
false
Yes
94500
1067
1209
1353
1495
1637
7500
115669
7500
128620
6760
105000
10000
5700
5000
247
450
370
1350
1450
500
4958
1170
3315
2190
6000
3300
4600
1588
6752
7595
9413
12235
7679
2440
4136
23250
62500
9500
3000
3000
12500
12500
12500
12500
12500
2125
1600
4100
6000
5128
12000
5350
14800
200000
0
0
0
0
70000
0
0
8500
50000
151221142
142857
155000
71429
322875
239608
367385
1623103
963636
963636
2008093
400000
1054545
860377
643232
2959973
2966527
2961147
2202427
5055829
5072843
6140157
1058824
1033333
1055556
1482759
1461538
1461538
1461333
1458333
2869565
2869565
2869565
2869565
2863636
4000000
1450000
3650843
1800000
4340119
5705136
7415359
5882100
2100000
3800000
15000000
151221142
1192
23948
1273261
35420
52101
60612
158416
4447722
7312600
6700000
12997096
6500000
17000000
150000000
10000000
3545455
636364
5300
5300
51000
10010
2200
5800
3600
3100
3800
4300
3800
3800
3800
3500
6600
6600
6600
6600
6300
8800
5300
1400
60000
17000
35000
17000
21300
53000
6000
6000
6000
43500
6000
53500
17000
1331
43
94
61
26
3
597
2175
22
9
1590
1528
1456
44
1404
2617
3000
1924
0
0
1550
0
1770
0
3000
0
0
2500
14500
1799
23948
15000000
240000
120000
32500
50000
150000000
21541
4
21537
108
900000
887439
513089
900000
945227
62500
62500
6207266
140854
150000
210000
6473702
243742
150000
208500
0
0
184390
128620
17000
85000
187870
18163
180750
12507
180000
75000
16500
15000
59737
67356
360000
100000
Two vendors (The Equity Group and Toppan Vintage) have asserted claims for past due amounts of approximately $59,000, arising from services provided.
The Company entered into a settlement agreement and mutual release with a vendor who had provided public relations and other consulting services whereby the Company shall pay to this vendor an aggregate amount of $60,000 of which $30,000 was paid on February 2, 2018. The Company was to have paid ten monthly payments of $3,000 per month beginning on February 29, 2018. The vendor is to return 400 common shares of the Company's common stock which will be cancelled upon satisfaction of the liability. The liability is recorded at $21,000 as of September 30, 2020 and 2019.
The Supreme Court of the State of New York issued a summons to the former CFO of the Company, to appear before the court to answer the Company's complaint seeking payment under a personal guarantee of the defendant to provide half of any compensation paid to the former Chief Strategy Officer. The Company is seeking $300,000 from the defendant relating to the November 27, 2018 settlement agreement with the former Chief Strategy Office for $600,000. The former CFO has responded to the suit and has filed a motion to dismiss the Company's suit during August of 2019. The judge presiding ruled to dismiss the defendant's motion. Currently, the discovery process is underway, and a trial date will be set sometime in October.
The Company is a wholesale vendor to the Department of Defense through its wholly owned subsidiary, Howco and is directly involved in distribution and integration of advanced low altitude UAV systems, services and products. Both the wholesale vendor and the integration/distribution aspects of the Company's business have been affected due to the COVID-19 social distancing requirements mandated by the federal, state and local governments where the Company's operations occur. For some businesses, like the Company's, much of the integration and distribution of its core products and delivery of its core services cannot always be done through "virtual" means, and even when this is possible, it requires significant capital and time to achieve. Sales and shipments at Howco have continued at a slightly lower rate than during the three months ended June 30, 2019. It is anticipated that there may be a higher impact of the COVID-19 being realized during the year ended September 30, 2020, the Company cannot fully assess the financial impact of the related restrictions as compared to other economic and business factors.
90000
23250
157500
200000
400000
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, through December 15, 2019.
The lease term begins February 1, 2017 and expires January 31, 2019 with the option to extend the term an additional 24 months. However, the Company never took possession of the premises and in July 2017, the Company made a decision to not take possession of the premises.
The Company's subsidiary Howco renewed its office and warehouse lease in Vancouver, WA for a term commencing on June 1, 2020 extending through June 1, 2023 at an initial monthly rent of approximately $5,154.
1.50
63000
1010278197
DE
0001704795
156554
855439
1791312
919439
1791312
32000
846085
791728
349389
128628
138430
128628
1906478
3595428
5460
-57623
992592
14057
18000
350
2290
3459
3750
4400
1145
1145
1145
1145
1145
1250
1250
1250
149541
195840
220.00
264637
15122
249515
51000
2092
51000
51000
51000
51000
264637
127328
157500
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left">Years ending September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 87%; text-align: left">2021</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">62,185</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">2022</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">63,369</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: left">2023</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">42,929</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Total minimum non-cancelable operating lease payments</font></td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">168,483</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
62185
63369
42929
0.10
64000
000-55789
71700
127056
12706
42850
42850
600000
33333
200000
42850
174574
3850
600000
500000
131724
0
131724
34000
166995
99142
372260
990305
377194
69391
688444
367500
69391
195000
195000
221323
31260
210409
76619
5332
17947
20855
7500
7500
682
24
678
654
640
627
757
658
21838
2024-01-07
2017-06-11
2017-12-31
2022-01-07
2020-06-09
2024-01-07
2022-01-31
2021-09-23
2020-06-09
2026-04-15
5000
2500
132803
14250
64940
0.50
0.50
0.50
0.50
0.50
0.50
688444
367500
195000
FY
No
No
138776
44556
41609
-26746451
-31074769
0.0001
0.0001
0.0034
0.0034
0.0034
3255346
491032439
322550196
322550196
564463
564463
10000000
10000000
5000000
36006192
16623800
29007611
19794860
16384615
46375000
16503483
118558
44599
900000
0.08
197485
269682
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 1 - <font style="font-variant: small-caps"><u>NATURE
OF OPERATIONS</u></font></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bantec, Inc. is product and service company targeting the U.S.
Government, state governments, municipalities, hospitals, universities, manufacturers and other building owners. Bantec also provides
product procurement, distribution, and logistics services through its wholly-owned subsidiary, Howco Distributing Co., ("Howco")
(collectively, the "Company") to the United States Department of Defense and Defense Logistics Agency. The Company
established Bantec Sanitizing which offers sanitizing products and equipment through its new we store bantec.store. The Company
has operations based in Little Falls, New Jersey and Vancouver, Washington. The Company continues to seek strategic acquisitions
and partnerships that offer us an opportunity to grow sales and profit.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On April 24, 2018 the Company amended its
articles of incorporation, filed with the Delaware Secretary of State, changing the Company name from Drone USA, Inc. to Bantek,
Inc., which was accepted by FINRA on February 19, 2019. Bantek, Inc. filed a change of name to Bantec, Inc. and to effect a reverse
stock split (of the common stock) of 1 for 1,000 on August 6, 2019, which became effective on February 10, 2020. All share and
per share related amounts in the accompanying consolidated financial statements and footnotes have been retroactively adjusted
for all periods presented for the effect of the reverse split.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-variant: small-caps"><b>NOTE
3 - <u>ACCOUNTS RECEIVABLE</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company's accounts receivable
at September 30, 2020 and 2019 is as follow:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; vertical-align: bottom; text-align: center"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>September 30,<br /> 2020</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>September 30,<br /> 2019</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: justify">Accounts receivable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">349,389</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">791,728</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt">Reserve for doubtful accounts</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">349,389</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">791,728</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 4 - <font style="font-variant: small-caps"><u>INVENTORY</u></font></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">At September 30, 2020 and 2019, inventory
consists of finished goods and was valued at $44,599 and $118,558, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 6 - <font style="font-variant: small-caps"><u>LINE OF
CREDIT - BANK</u></font></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company has a revolving line of credit
with a financial institution, which balance is due on demand and principal payments are due monthly at 1/60 <sup>th</sup> of the
outstanding principal balance. This revolving line of credit is in the amount of $50,000, and is personally guaranteed by the Company's
Chief Executive Officer ("CEO"). The line bears interest at a fluctuating rate equal to the prime rate plus 4.25%,
which at September 30, 2020 and September 30, 2019 was 7.5% and 9.25%, respectively. As of September 30, 2020 and 2019, respectively,
the balance of the line of credit was $41,609 and $44,556, with $8,391, available at September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.3pt"><b>NOTE 8 <font style="font-variant: small-caps">-
<u>NOTE PAYABLE – SELLER</u></font></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the acquisition of Howco
in September 2016, the Company issued a note payable in the amount of $900,000 to the sellers of Howco. The note matured on September
9, 2017 and bears interest at 5.50% per annum. The note requires payment of unpaid principal and interest upon maturity. The note
is secured by all assets of Howco Distribution Co. and subordinated to the Senior Secured Credit Facility discussed below. The
note is currently in default and the default interest rate is 8% per annum. At September 30, 2020 and September 30, 2019, accrued
interest on this note amounted to $269,682 and $197,485, respectively.</p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: justify">Principal</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">945,227</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">887,439</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt">Premiums</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">846,085</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify">Total</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,791,312</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">919,439</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt">Current portion, including premiums</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(64,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 4pt">Long term</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,791,312</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">855,439</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; vertical-align: bottom; text-align: center"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>September 30,<br /> 2020</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>September 30,<br /> 2019</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: justify">Accounts receivable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">349,389</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">791,728</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt">Reserve for doubtful accounts</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">349,389</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">791,728</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30,<br /> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Stock options</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">17,755</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">17,775</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Warrants</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">25,484,484</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,198,271</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Related party convertible debt and accrued interest</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">526,400,307</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">11,162,896</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Third party convertible debt (including senior debt)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2,068,874,206</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">83,780,049</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 0.25in">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2,620,776,752</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">96,158,991</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; font-weight: bold; text-align: center; padding-bottom: 1.5pt; padding-left: 10pt"></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Derivative<br />
Liabilities</td>
<td style="vertical-align: bottom; font-weight: bold; text-align: center; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Balance at September 30, 2018</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">258,296</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Charged to derivative expense on assignment and restatement of note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,971</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Classified as initial debt discount on assignment and restatement of note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">62,500</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Reduction of derivative recorded as gain on extinguishment upon conversions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(78,471</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Warrant exercises (partial)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(138,430</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Fair Value adjustment - warrants</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,355</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Fair Value adjustments - convertible note</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(593</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Balance at September 30, 2019</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">128,628</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Changes and adjustments during the year ended September 30, 2020</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Balance at September 30, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">128,628</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>At September 30, 2020</b></td><td style="text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>At September 30, 2019</b></td><td style="text-align: center; padding-bottom: 1.5pt"><b> </b></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><b>Description</b></td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 1</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 2</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 3</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 1</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 2</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 3</b></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 28%; text-align: left">Derivative Liability</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">128,628</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">128,628</td><td style="width: 1%; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Principles of Consolidation</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements include the
accounts of Bantec, Inc. and its wholly-owned subsidiaries, Drone USA, LLC (inactive) Bantec Construction LLC (inactive), and Howco.
All significant intercompany accounts and transactions have been eliminated in consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Use of Estimates</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The preparation of consolidated financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates
include the allowance for bad debt on accounts receivable, reserves on inventory, valuation of goodwill and intangible assets
for impairment analysis, valuation of the lease liability and related right-of-use asset, valuation of stock-based compensation,
the valuation of derivative liabilities and the valuation allowance on deferred tax assets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Fair Value Measurements</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company follows the FASB <i>Fair Value
Measurements</i> standard, as they apply to its financial instruments. This standard defines fair value, outlines a framework for
measuring fair value, and details the required disclosures about fair value measurements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Fair value is defined as the price that
would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the
measurement date. The standard establishes a hierarchy in determining the fair value of an asset or liability. The fair value hierarchy
has three levels of inputs, both observable and unobservable. Level 1 inputs include quoted market prices for identical assets
or liabilities in an active market that the Company has the ability to access at the measurement date. Level 2 inputs are market
data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar
assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by
market data. Level 3 inputs are unobservable and corroborated by little or no market data. The standard requires the utilization
of the lowest possible level of input to determine fair value and carrying amounts of current liabilities approximate fair value
due to their short-term nature. The Company accounts for certain instruments at fair value using level 3 valuation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>At September 30, 2020</b></td><td style="text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>At September 30, 2019</b></td><td style="text-align: center; padding-bottom: 1.5pt"><b> </b></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><b>Description</b></td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 1</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 2</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 3</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 1</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 2</b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="vertical-align: bottom; text-align: center; padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><b>Level 3</b></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 28%; text-align: left">Derivative Liability</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">128,628</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">128,628</td><td style="width: 1%; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">A roll-forward of the level 3 valuation financial instruments
is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; font-weight: bold; text-align: center; padding-bottom: 1.5pt; padding-left: 10pt"></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Derivative<br />
Liabilities</td>
<td style="vertical-align: bottom; font-weight: bold; text-align: center; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Balance at September 30, 2018</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">258,296</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Charged to derivative expense on assignment and restatement of note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,971</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Classified as initial debt discount on assignment and restatement of note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">62,500</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Reduction of derivative recorded as gain on extinguishment upon conversions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(78,471</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Warrant exercises (partial)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(138,430</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Fair Value adjustment - warrants</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,355</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Fair Value adjustments - convertible note</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(593</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Balance at September 30, 2019</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">128,628</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">Changes and adjustments during the year ended September 30, 2020</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Balance at September 30, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">128,628</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The warrants were issued to a convertible note holder in November
and December 2017 and initially determined to be equity instruments and recorded as note discount and as additional paid in capital.
On June 4, 2018 the anti-dilutive provision of the warrants took effect and based on the new conversion formula management determined
the warrant became a derivative liability and reclassified the Fair Value on June 4, 2018 from additional paid-in capital to derivative
liability with fair market value changes recognized in operations for each reporting date. The derivative liability associated
with the warrants is $119,777 and the derivative liability for convertible notes is $8,851 at September 30, 2020. (See Notes 10
and 12).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Cash and Cash Equivalents</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Cash equivalents consist of liquid investments
with maturities of three months or less at the time of purchase. There are no cash equivalents at the balance sheet dates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Accounts Receivable</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Trade receivables are recorded at net realizable
value consisting of the carrying amount less the allowance for doubtful accounts, as needed. Factors used to establish an allowance
include the credit quality of the customer and whether the balance is significant. The Company may also use the direct write-off
method to account for uncollectible accounts that are not received. Using the direct write-off method, trade receivable balances
are written off to bad debt expense when an account balance is deemed to be uncollectible.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Inventory</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Inventory consists of finished goods, which
are purchased directly from manufacturers. The Company utilizes a just in time type of inventory system where products are ordered
from the vendor only when the Company has received sales order from its customers. Inventory is stated at the lower of cost and
net realizable value on a first-in, first-out basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Property & Equipment</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property and equipment are stated at cost
and depreciated over their estimated useful lives. Maintenance and repairs are charged to expense as incurred. When assets are
retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses
are included in income in the year of disposition. The Company examines the possibility of decreases in the value of these assets
when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The assets are fully
operational drones used as demonstration units and each unit exceeds management's threshold for capitalization of $2,000.
The Company depreciates these demonstration units over a period of 3 years. Depreciation expense was $11,088 and $11,280 in 2020
and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Goodwill and Intangible Assets</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company's goodwill and tradename
assets are deemed to have indefinite lives and, accordingly, are not amortized, but are evaluated for impairment at least annually,
but more often whenever changes in facts and circumstances occur which may indicate that the carrying value may not be recoverable.
The customer list was initially deemed to have a life of 4 years and was being amortized. Goodwill and intangible assets were determined
to be impaired at September 30, 2019. (See Note 5.)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Deferred Financing Costs</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">All unamortized deferred financing costs
related to the Company's borrowings are presented in the consolidated balance sheets as a direct deduction from the related
debt. Amortization of these costs is reported as <i>interest and financing costs</i> included in the consolidated statement of
operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Revenue Recognition</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Effective October 1, 2018, the Company
adopted Accounting Standards Codification ("ASC") 606, Revenue From Contracts With Customers, which is effective for
public business entities with annual reporting periods beginning after December 15, 2017. This new revenue recognition standard
(new guidance) has a five-step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine
the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied.
The Company's initial application of ASC 606 did not have a material impact on its financial statements and disclosures and
there was no cumulative effect of the adoption of ASC 606.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company sells a variety of products
to government entities. The purchase orders received specifies each item and its manufacturer; the Company only needs to fulfill
the performance obligation by shipping the specified items. No other performance obligations exist under the terms of the contracts.
The Company recognizes revenue for the agreed upon sales price when the product is shipped to the customer, which satisfies the
performance obligation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company sells drones and related products
manufactured by third parties to various parties. The Company also offers technical services related to drone utilization and performs
other services. The Company began offering insulation jackets for commercial and government facilities to insulate and monitor
heating and cooling equipment. Contracts for drone related products and services and insulating jacket related sales will be evaluated
using the five-step process outline above. There have been no material sales for drone products or other services for which full
compliance with performance obligations has not been met. Sales of insulation jackets have not yet commenced. Upon significant
sales for drone products and services and insulation jackets, the Company will disaggregate sales by these lines of business and
within the lines of business to the extent that the product or service has different revenue recognition characteristics.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Stock-based compensation</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Stock-based compensation is accounted for
based on the requirements of ASC 718 – <i>"Compensation –Stock Compensation</i>", which requires recognition
in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments
over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting
period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based
on the grant-date fair value of the award. The Company utilizes the Black-Sholes option pricing model and uses the simplified method
to determine expected term because of lack of sufficient exercise history. Additionally, effective October 1, 2016, the Company
adopted the Accounting Standards Update No. 2016-09 ("ASU 2016-09"<i>), Improvements to Employee Share-Based Payment
Accounting</i>. Among other changes, ASU 2016-09 permits the election of an accounting policy for forfeitures of share-based payment
awards, either to recognize forfeitures as they occur or estimate forfeitures over the vesting period of the award. The Company
has elected to recognize forfeitures as they occur and the cumulative impact of this change did not have any effect on the Company's
consolidated financial statements and related disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">As of October 1, 2018, the Company has
early adopted ASU 2018-7 Compensation-Stock Compensation which conforms the accounting for non-employees to the accounting treatment
for employees. The new standard replaces using a fair value as of each reporting date with use of the calculated fair value as
of the grant date. The implementation of the standard provides for the use of the fair market value as of the adoption date, rather
than using the value as of the original grant date. Therefore, the values calculated and reported at September 30, 2018 become
a proxy for the grant date value. The Company utilizes the Black-Sholes option pricing model and uses the simplified method to
determine expected term because of lack of sufficient exercise history. There was no cumulative effect on the adoption date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Convertible Notes with Fixed Rate Conversion
Options</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company may enter into convertible
notes, some of which contain, predominantly, fixed rate conversion features, whereby the outstanding principal and accrued interest
may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion.
This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible
note liability at its fixed monetary amount by measuring and recording a premium, as applicable, on the Note date with a charge
to interest expense in accordance with ASC 480 - "Distinguishing Liabilities from Equity".</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Derivative Liabilities</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company has certain financial instruments
that are derivatives or contain embedded derivatives. The Company evaluates all its financial instruments to determine if those
contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance
with ASC 810-10-05-4 and 815-40. This accounting treatment requires that the carrying amount of any derivatives be recorded
at fair value at issuance and marked-to-market at each balance sheet date. In the event that the fair value is recorded
as a liability, as is the case with the Company, the change in the fair value during the period is recorded as either other income
or expense. Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion,
repayment or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or
loss on extinguishment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Lease Accounting</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">In February 2016, the FASB issued a new
accounting standard on leases. The new standard, among other changes, will require lessees to recognize a right-of-use asset and
a lease liability on the balance sheet for all leases. The lease liability will be measured at the present value of the lease payments
over the lease term. The right-of-use asset will be measured at the lease liability amount, adjusted for lease prepayments, lease
incentives received and the lessee's initial direct costs (e.g. commissions). The new standard is effective for annual reporting
periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption
will require a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest period
presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company's subsidiary has
renewed the lease for the warehouse and office facility in Vancouver, Washington in May 2020 effective June 1, 2020, which
extends through May 30, 2023, and is accounted for under ASC 842. The corporate office is an annual arrangement which
provides for a single office in a shared office environment and is exempt from ASC 842 treatment. During the year ended
September 30, 2020 the Company recognized a lease liability of $156,554 and the related right-of-use asset for the same
amount and will amortize both over the life of the lease.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Net Loss Per Share</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic loss per share is calculated by dividing
the loss attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted loss per share
reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock that shared in the earnings (loss) of the Company. Diluted loss per
share is computed by dividing the loss available to stockholders by the weighted average number of shares outstanding for the period
and dilutive potential shares outstanding unless such dilutive potential shares would result in anti-dilution. As of September
30, 2020, 17,755 options were outstanding of which 14,427 were exercisable, 25,484,484 warrants were outstanding and exercisable,
and related party convertible debt and accrued interest totaling $1,304,258 was convertible into 526,400,307 shares of common stock.
Additionally, as of September 30, 2020, the outstanding principal balance, including accrued interest of the third-party convertible
debt, totaled $7,628,312 and was convertible into 2,068,874,026 shares of common stock. It should be noted that contractually the
limitations on the third-party notes (and the related warrant) limit the number of shares converted to to either 4.99% or 9.99%
of the then outstanding shares. As of September 30, 2020, and 2019, potentially dilutive securities consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30,<br />
2020</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30,<br />
2019</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Stock options</font></td>
<td style="width: 1%"> </td>
<td style="border-bottom: black 4.5pt double; width: 1%"> </td>
<td style="border-bottom: black 4.5pt double; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">17,755</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="border-bottom: black 4.5pt double; width: 1%"> </td>
<td style="border-bottom: black 4.5pt double; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">17,775</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Warrants</font></td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,484,484</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,198,271</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Related party convertible debt and accrued interest</font></td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">526,400,307</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">11,162,896</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Third party convertible debt (including senior debt)</font></td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,068,874,206</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">83,780,049</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 0.25in; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,620,776,752</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">96,158,991</font></td>
<td> </td></tr>
</table>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Income Taxes</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company's current provision for
income taxes is based upon its estimated taxable income in each of the jurisdictions in which it operates, after considering the
impact on taxable income of temporary differences resulting from different treatment of items for tax and financial reporting purposes.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit
carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in
the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax
assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible.
Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized,
a valuation allowance against the deferred tax assets would be established in the period such determination was made. The Company
follows the accounting for uncertainty in income taxes guidance, which clarifies the accounting and disclosures for uncertainty
in income taxes recognized in the Company's financial statements and prescribes a recognition threshold and measurement attribute
for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also
provides guidance on derecognition and measurement of a tax position taken or expected to be taken in a tax return.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company currently has no federal or state tax examinations
in progress. As of September 30, 2020, the Company's tax returns for the tax years 2020, 2019 and 2018 remain subject to
audit, primarily by the Internal Revenue Service.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company did not have material unrecognized tax benefits
as of September 30, 2020 and 2019 and does not expect this to change significantly over the next 12 months. The Company will recognize
interest and penalties accrued on any unrecognized tax benefits as a component of provision for income taxes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Segment Reporting</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company uses "the management
approach" in determining reportable operating segments. The management approach considers the internal organization and reporting
used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source
for determining the Company's reportable segments. The Company's chief operating decision maker is the chief executive
officer of the Company, who reviews operating results to make decisions about allocating resources and assessing performance for
the entire Company. As of September 30, 2020, the Company did not report any segment information since the Company only generates
sales from its subsidiary, Howco.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Reclassification</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Two loan amounts under long term liabilities have been combined
into one line item at September 30, 2019 to conform with 2020 presentation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 5 - <font style="font-variant: small-caps"><u>GOODWILL
AND INTANGIBLE ASSETS</u></font></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company conducted its goodwill and its intangible assets
impairment test as of September 30, 2019 and determined that an impairment existed as certain asset values were unsupported by
the current and projected net income and cash flows of the component holding the goodwill and intangible assets, the Company's
subsidiary, Howco. Accordingly, an impairment charge of $3,420,624 was charged against the Goodwill, Trademark and Customer List
assets and was recognized in fiscal year 2019.</p>
128628
258296
128628
15971
62500
-78471
-138430
9355
-593
11162896
526400307
83780049
2068874206
16214281
17944973
17944973
11280
11088
P4Y
1198270750
526400307
2068874026
134826
95634
50000
The line bears interest at a fluctuating rate equal to the prime rate plus 4.25%.
0.0925
0.075
0.10
8391
36146
8000
15288
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 12 - <u>STOCKHOLDERS' DEFICIT</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><u>Preferred Stock</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">As of September 30, 2020, the Company is
authorized to issue 5,000,000 shares of $0.0001 par value preferred stock, with designations, voting, and other rights and preferences
to be determined by the Board of Directors of which 4,999,750 remain available for designation and issuance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">As of September 30, 2020 and September
30, 2019, the Company has designated 250 shares of $0.0001 par value Series A preferred stock, of which 250 shares are issued and
outstanding. These preferred shares have voting rights per shareholder equal to the total number of issued and outstanding shares
of common stock divided by 0.99.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><u>Common Stock</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On January 30, 2019 the Company's
shareholders approved an increase in authorized common stock to 6,000,000,000 from 1,500,000,000, which became effective February
24, 2019. On August 6, 2019, the Company filed amendments with the Secretary of the State of Delaware, amending its articles of
incorporation to execute a reverse stock split of 1 share for every 1,000 shares outstanding, and changing its name to BANTEC,
INC. (f/k/a BANTEK, INC.) The name change and the stock split became effective in February 2020, and the transfer agent adjusted
the outstanding shares for the reverse split on February 10, 2020. All share and per share related amounts in the accompanying
consolidated financial statements and footnotes have been retroactively adjusted for all periods presented to recognize the reverse
split. As of September 30, 2020 and September 30, 2019 there were 491,032,439, and 3,255,346, shares outstanding, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Stock Incentive Plan</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Company established its 2016 Stock
Incentive Plan (the "Plan") that permits the granting of incentive stock options and other common stock awards. The
maximum number of shares available under the Plan is 100,000 shares. The Plan is open to all employees, officers, directors, and
non-employees of the Company. Options granted under the Plan will terminate and may no longer be exercised (i) immediately upon
termination of an employee or consultant for cause or (ii) one year after termination of employment, but not later than the remaining
term of the option. As of September 30, 2020, 82,245 awards remain available for grant under the Plan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>S-1 Offering and Issuances Under Subscription</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On July 20, 2020, the Company submitted
an amendment to its registration statement filed on Form S-1 in response to comments on its original filing on June 8, 2020. The
Company requested accelerated status and the registration statement became effective on July 23, 2020. The offering provides for
the issuance of up to 1,500,000.000 shares of common stock at a price of $.00175, under subscriptions. The Company will use the
proceeds for working capital and may seek to expand the business through investment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Subscription Under S-1 Offering</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Between August 5, 2020 and September 30,
2020, Trillium Partners LP was issued 151,221,142 shares of common stock at the offering price for a total of $264,637, in proceeds
to the Company under the S-1 offering by subscription.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Common Stock Issued for Employee Compensation</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Under the terms of the January 4, 2019
compensation agreement with the CFO, the Company was to issue 100 shares each month to the CFO. On March 13, 2019, the Company
was obligated to, and issued 200 shares valued at the grant date quoted stock price of $1.00, for total of $200, charged to compensation
expenses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 10, 2019, 1,500 common shares were
issued to the CFO. The shares were valued at the issue date quoted stock price of $0.30. The shares issued covered shares owed
in conjunction with the compensation agreement (300 shares) and 1,200 shares issued as severance compensation. $450 was charged
to compensation expenses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Shares Issued for non-employee Services</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On March 1, 2019, under the Company's
March 1, 2019, agreement with its technology support provider the Company is to issue common shares equal to $1,500 every month.
The Company recognized the expense of $1,500, and authorized the issuance of 1,667, shares to the vendor as of March 31, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On March 31, 2019, 10,000, common shares
were issued to Tysadco Partners for the Company's investor relations firm as per the agreement for monthly payments in common
shares of $4,000 per month totaling $16,000, which was fully recognized as expense as of March 31, 2019. The issuance settled the
amounts due for October 20, 2018 through February 20, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 3, 2019, the Company issued 8,000,
common shares to its technology support provider, for services for April and May 2019. The shares were valued at $0.375, and $3,000,
was charged to expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 10, 2019, the Company issued 1,192,
common shares to a consultant. The shares were valued at $0.30 per share, and $358, was charged to expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On August 28, 2019, the Company issued
15,288, common shares to an attorney for services. The shares were valued at the stock price on the date the shares were issued
at $0.0447, and $684, was charged to professional fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On September 30, 2019, the Company approved
the issuance of 240,000, restricted common shares to Tysadco Partners for the prior six months investor relation services. The
shares were valued at $0.10 and $24,000, was charged to professional fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On September 30, 2019, the Company approved
the issuance of 32,500, restricted common shares to an individual for the prior four months of technology support services. The
shares were valued at $0.1846 and $6,000, was charged to professional fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On October 7, 2019, the Company entered
into a one year agreement for professional services for a one-time fee to be paid with 50,000 common shares of restricted stock.
The services relate mostly to technology and related internet media and website improvement. The shares were valued at $.05 per
share based on the value of the services to be received for total expense of $2,500, charged to professional fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On October 7, 2019, the Company entered
into a one year agreement for professional services for a one-time fee to be paid with 25,000 common shares of restricted stock
the services relate mostly to investor relations through internet media. The shares were valued at $.10 per share based on the
value of the services to be received for total expense of $2,500, charged to professional fees. An additional 25,000 shares were
authorized and issued to the service provider during the three months ended June 30, 2020. The shares were valued at $108.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On December 31, 2019, the Company approved
the issuance of 120,000 restricted common shares to Tysadco Partners for the prior three months investor relation services. The
shares were valued at $12,000, and charged to professional fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On December 31, 2019, the Company approved
the issuance of 45,000 restricted common shares to an individual for the prior four months of technology support services. The
shares were valued at $4,500, and charged to professional fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On February 21, 2020, the Company issued
23,948 shares of common stock to an attorney in settlement of amounts owed of $456.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">All shares issued to employees and non-employees are valued
at the quoted trading prices on the respective grant dates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Shares Issued Under 3(a)(10)</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Company issued common shares to Livingston
Asset Management, pursuant to its senior secured creditor's (TCA) Replacement Note A and the related 3(a)(10) settlement
(see Note 10).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Between March 14, 2018 and October 29,
2018, 101,624 common shares were issued by the Company and sold by Livingston, with 71,624 shares issued and sold through September
30, 2018, and the remaining 30,000 issued as of September 30, 2018 and sold as of November 22, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The shares of the Company's common
stock issued under section 3(a)(10) of the Securities Act, have been initially recorded at par value with an equal charge to additional
paid-in capital and proceeds of $308,100 and pro rata note premium of $204,989 totaling $513,089 have been recorded as equity relating
to these issued shares as of September 30, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Between February 4, 2019 and September
30, 2019, 1,273,261 common shares were issued to Livingston of which 220,239 shares remained under Livingston's control as
of September 30, 2019. The issuances totaling $127,328 were credited to common stock with the same amount charged to additional
paid in capital until remitted to TCA (see below).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Common Stock Sold for Settlement Payment
of 3(a)(10)</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On November 22, 2018 Livingston Asset Management
finalized sale of 30,000 shares of common stock and remitted a payment to TCA for $45,320 in partial settlement of TCA Note A under
the terms of the 3(a)(10) agreement. The liability was reduced by $45,320. The principal reduction of $45,320 and related debt
premium of $30,618 were recorded as additional paid in capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Between February 4, 2019 and March 27,
2019, 645,728 shares were sold and settled. Livingston remitted payments of $225,000, in partial settlement of the TCA Note A,
under the 3(a)(10) arrangement. The liability was reduced by $225,000; the principal reduction of $225,000 and the related debt
premium of $150,000 were recorded as additional paid in capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In total $270,320, was remitted to TCA
reducing the related note from $691,907 to $421,587 during the year ended September 30, 2019 and $180,618 was charged to debt premium
reducing the balance to $281,054 at September 30, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Return and Cancellation of Unsold Shares
of Common Stock from 3(a)(10) Arrangement</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Livingston Asset Management returned 194,520
unsold shares of common stock to the Company on November 7, 2019. The transfer agent cancelled the shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Shares Issued for Warrant Exercise</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On October 17, 2018, Crown Bridge Partners
was issued 35,420, common shares at $7.20, in a cashless exchange for 39,991 warrants surrendered. $68,232, was recorded as equity
and derivative liabilities were reduced by the same amount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On January 4, 2019, Crown Bridge Partners
was issued 52,101, common shares at $0.2235, in a cashless exchange for 58,230 warrants surrendered. $28,892, was recorded as equity
and derivative liabilities were reduced by the same amount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On February 6, 2019, Crown Bridge Partners
was issued 60,612 common shares at $0.6815, in a cashless exchange for 69,375, warrants surrendered. $41,307, was recorded as equity
and derivative liabilities were reduced by the same amount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">In total $138,430, was reclassified from derivative liability
to additional paid in capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Shares Issued for Conversion of Convertible
Notes</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Between November 1, 2018, and December
5, 2018 Jefferson Street Capital was issued 128,620, common shares for conversion of principal related to the Porta Pellex note
assignment and restatement (See Note 11). The note was converted at contractual rates and the shares issued had aggregate fair
values on the conversion dates of $166,929. The note principal of $62,500, interest due of $7,500, and fees of $4,400, were fully
liquidated as a result of the conversions. Derivative liabilities of $78,471 were reclassified to additional paid in capital, debt
discount of $62,500 was amortized to interest expense and loss on debt extinguishment of $14,057 was recorded.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Between November 6, 2018, and November
27, 2018 Trillium Partners LP was issued 115,669, common shares for conversion of $62,500, principal related to the Porta Pellex
note assignment and restatement (See Note 11). The note principal of $62,500, accrued interest or $7,500, and fees of $2,290 were
fully liquidated as a result of the conversions. The note was converted at contractual rates. Debt premiums of $62,500 were recorded
as additional paid in capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On January 8, 2019, Livingston Asset Management,
LLC converted $9,500, of principal, $682, of accrued interest and $1,145, in fees for the fee note issued June 1, 2018, for 45,306,
common shares at the contractual price of $0.25. $9,500, was reclassified from debt premium to additional paid in capital at conversion.
The unliquidated balance of the fee note was $3,000, following the conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On January 18, 2019, Livingston Asset Management
converted $3,000, of the remaining principal balance, $24, of accrued interest and $1,145, in fees for the fee note issued June
1, 2018, and $12,500, of principal, $678, of accrued interest and $1,145, in fees from the fee note issued July 1, 2018, for total
of 73,968, shares of common stock at the contracted price of $0.25. $15,500, was reclassified from debt premium to additional paid
in capital at conversion. The notes were fully liquidated following the conversions.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On February 11, 2019, Livingston Asset
Management converted $12,500, of principal, $654, of accrued interest and $1,145, in fees from the fee note issued August 1, 2018,
for 47,664, common shares at the contracted price of $0.30. $12,500, was reclassified from debt premium to additional paid in capital
at conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On March 18, 2019, Livingston Asset Management
converted $12,500, of principal, $640, of accrued interest and $1,145, in fees from the fee note issued September 1, 2018, for
47,618, common shares at the contracted price of $0.30. $12,500, was reclassified from debt premium to additional paid in capital
at conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">For the Livingston Asset Management LLC
conversions noted above from January 8, 2019 to March 18, 2019, total debt, interest and fees were $58,403, and related debt premium
of $50,000, resulted in credits to equity of $108,403.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On April 3, 2019, Livingston Asset Management
converted $12,500, of principal, $627, of accrued interest and $1,250, in fees from the fee note issued October 1, 2018, for 71,884,
common shares at the contracted price of $0.20. $12,500, was reclassified from debt premium to additional paid in capital at conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 19, 2019, Livingston Asset Management
converted $12,500, of principal, $757, of accrued interest and $1,250, in fees from the fee note issued November 1, 2018, for 145,069,
common shares at the contracted price of $0.10. $12,500, was reclassified from debt premium to additional paid in capital at conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 25, 2019, Livingston Asset Management
converted $2,125, of principal, $658, of accrued interest and $1,250, in fees from the fee note issued November 1, 2018, for 80,651,
common shares at the contracted price of $0.10. The remaining principal balance was $10,375, as of September 30, 2019. $2,125,
was reclassified from debt premium to additional paid in capital at conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In total 336,461,204 shares of common stock
were issued upon conversion of convertible notes and accrued interest during the year ended September 30, 2020 as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On October 22, 2019, the Company issued
142,857, shares of common stock to Redstart Holding Corporation, as it converted principal of $10,000, on its convertible note
dated March 4, 2019, at the contractual rate of $0.07 per share. The balance of principal following the conversion was $68,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On October 29, 2019, the Company issued
155,000, shares of common stock to Crown Bridge Partners, as it converted principal of $5,700, and $500, in fees on its convertible
note dated March 1, 2019, at the contractual rate of $0.04 per share. The balance of principal following the conversion was $29,300.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On November 19, 2019, the Company issued
71,429, shares of common stock to Redstart Holding Corporation, as it converted principal of $5,000, on its convertible note dated
March 4, 2019, at the contractual rate of $0.07 per share. The balance of principal following the conversion was $63,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On February 14, 2020, Redstart Holdings,
converted $1,600, of principal from their note issued on March 2, 2019, for 158,416, shares of common stock, at the contracted
price of $.0101.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On February 25, 2020, Trillium Partners
LP, holder through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 322,875, shares
of common stock at the contracted price of $.008 per share. Principal of $247, accrued interest of $1,331, and conversion fees
of $1,005, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On March 11, 2020, Trillium Partners LP,
holder through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 239,608, shares of common
stock at the contracted price of $.00625 per share. Principal of $450, accrued interest of $43, and conversion fees of $1,005,
were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On April 3, 2020, Trillium Partners LP,
the holder through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 367,385, shares
of common stock at the contracted price of $0.005 per share. Principal of $370, accrued interest of $94, and conversion fees of
$1,005, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On April 15, 2020, Trillium Partners LP,
the holder through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 1,623,103, shares
of common stock at the contracted price of $0.00155 per share. Principal of $1,350, accrued interest of $61, and conversion fees
of $1,105, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On April 16, 2020, Redstart Holdings, converted
$5,300, of their note issued on March 2, 2019, for 963,636, shares of common stock, at the contracted price of $0.0055</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On April 22, 2020, Redstart Holdings, converted
$5,300, of their note issued on March 2, 2019, for 963,636, shares of common stock, at the contracted price of $0.0055.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On April 22, 2020, Tri-Bridge converted
$10,010, of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge
Ventures, LLC on April 9, 2020, into 2,008,093, shares of common stock, at $0.005, per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On April 23, 2020, Alpha Capital Anstalt
converted $2,200, of the Livingston Asset Management LLC, notes purchased on November 9, 2019, for 400,000, shares of common stock
at the contracted price of $.0055.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On April 29, 2020, Redstart Holdings, converted
a $5,800, of their note issued on March 2, 2019, for 1,054,545, shares of common stock, at the contracted price of $0.0055.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 1, 2020, Trillium Partners LP, the
holder through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 860,377, shares of common
stock at the contracted price of $0.003 per share. Principal of $1,450, accrued interest of $26, and conversion fees of $1,105,
were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 5, 2020, Trillium Partners LP, the
holder through assignment of the September 8, 2018, fee note issued to an attorney for services was issued 643,232, shares of common
stock at the contracted price of $0.0023 per share. Principal of $500, accrued interest of $3, and conversion fees of $1,105, were
converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 5, 2020, Redstart Holdings, converted
$3,600, of their note issued on March 2, 2019, for 1,058,824, shares of common stock, at the contracted price of $0.0034.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 7, 2020, Redstart Holdings, converted
$3,100, of their note issued on March 2, 2019, for 1,033,333, shares of common stock, at the contracted price of $0.003.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 12, 2020, Redstart Holdings, converted
$3,800, of their note issued on March 2, 2019, for 1,055,556, shares of common stock, at the contracted price of $0.0036.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 13, 2020, Trillium Partners LP,
the holder through assignment of the September 8 & 18, 2018, fee notes issued to an attorney for services was issued 2,959,973,
shares of common stock at the contracted price of $0.0025 per share. Principal of $4,958, accrued interest of $597, and conversion
fees of $1,105, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 14, 2020, Redstart Holdings, converted
$4,300, of their note issued on March 2, 2019, for 1,482,759, shares of common stock, at the contracted price of $0.0029.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 14, 2020, the Company issued 1,450,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $1,588, and $500, in fees on its convertible note
dated March 1, 2019, at the contractual rate of $.00144 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 18, 2020, Tri-Bridge converted $6,752,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures,
LLC on April 9, 2020, into 3,650,843, shares of common stock, at $0.00018, per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 18, 2020, Trillium Partners LP,
the holder through assignment of the September 8 and 18, 2018, fee notes issued to an attorney for services was issued 2,966,527,
shares of common stock at the contracted price of $0.0015 per share. Principal of $1,170, accrued interest of $2,175, and conversion
fees of $1,105, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 18, 2020, Redstart Holdings, converted
$3,800, of their note issued on March 2, 2019, for 1,461,538, shares of common stock, at the contracted price of $0.0026.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 19, 2020, the Company issued 1,800,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $2,092, and $500, in fees on its convertible note
dated March 1, 2019, at the contractual rate of $.00144 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 20, 2020, Redstart Holdings, converted
$3,800, of their note issued on March 2, 2019, for 1,461,538, shares of common stock, at the contracted price of $0.0026.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 21, 2020, Tri-Bridge converted $7,595,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures,
LLC on April 9, 2020, into 4,340,119, shares of common stock, at $0.000175, per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 22, 2020, the Company issued 2,100,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $2,440, and $500, in fees on its convertible note
dated March 1, 2019, at the contractual rate of $.00144 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 25, 2020, Redstart Holdings, converted
$3,800, of their note issued on March 2, 2019, for 1,461,333, shares of common stock, at the contracted price of $0.0024.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 26, 2020, Redstart Holdings, converted
$3,500, of their note issued on March 2, 2019, for 1,458,333, shares of common stock, at the contracted price of $0.0024.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 26, 2020, Trillium Partners LP,
the holder through assignment of the September 8 & 18, 2018, fee notes issued to an attorney for services was issued 2,961,147,
shares of common stock at the contracted price of $0.0015 per share. Principal of $3,315, accrued interest of $22, and conversion
fees of $1,105, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 27, 2020, Redstart Holdings, converted
a $6,600, of their note issued on March 2, 2019, for 2,869,565, shares of common stock, at the contracted price of $0.0023.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 29, 2020, Redstart Holdings, converted
$6,600, of their note issued on March 2, 2019, for 2,869,565, shares of common stock, at the contracted price of $0.0023.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 29, 2020, Tri-Bridge converted $9,413,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures,
LLC on April 9, 2020, into 5,705,136, shares of common stock, at $0.00165, per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 1, 2020, Redstart Holdings, converted
$6,600, of their note issued on March 2, 2019, for 2,869,565, shares of common stock, at the contracted price of $0.0023.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 3, 2020, Redstart Holdings, converted
$6,600, of their note issued on March 2, 2019, for 2,869,565, shares of common stock, at the contracted price of $0.0023.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 3, 2020, Tri-Bridge converted $12,235,
of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge Ventures,
LLC on April 9, 2020, into 7,415,359, shares of common stock, at $0.00165, per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 5, 2020, Redstart Holdings, converted
$6,300, of their note issued on March 2, 2019, for 2,863,636, shares of common stock, at the contracted price of $0.0022.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 8, 2020, Redstart Holdings, converted
$8,800, of their note issued on March 2, 2019, for 4,000,000, shares of common stock, at the contracted price of $0.0022.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 10, 2020, Redstart Holdings, converted
$5,300, of their note issued on March 2, 2019, along with accrued interest of $2,500, for 3,545,455, shares of common stock, at
the contracted price of $0.0022.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 10, 2020, the Company issued 3,800,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $4,136, and $500, in fees on its convertible note
dated March 1, 2019, at the contractual rate of $.00122 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 11, 2020, Redstart Holdings, converted
$1,400, of accrued interest from their note issued on March 2, 2019, for 636,364, shares of common stock, at the contracted price
of $0.0022. The note principal and all accrued interest has now been fully liquidated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 11, 2020, Trillium Partners LP,
the holder through assignment of the September 8 and 18, 2018, fee notes issued to an attorney for services was issued 2,202,427,
shares of common stock at the contracted price of $0.0015 per share. Principal of $2,190, accrued interest of $9, and conversion
fees of $1,105, were converted. The assigned notes dated September 8 and 18, 2018 were fully converted following the issuance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 16, 2020, Tri-Bridge converted
$7,679, of the Livingston Asset Management LLC note issued on September 30, 2019, for $51,000 which was assigned to Tri-Bridge
Ventures, LLC on April 9, 2020, into 5,882,100, shares of common stock, at $0.0013 per share. The assigned note was fully converted
following the issuance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 18, 2020, Trillium Partners LP,
the holder through assignment of the October 18, November 18 and December 18, 2018, fee notes issued to an attorney for services
was issued 5,055,829, shares of common stock at the contracted price of $0.0017 per share. Principal of $6,000, accrued interest
of $1,590, and conversion fees of $1,005, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 26, 2020, Trillium Partners LP,
the holder through assignment of the October 18, November 18 and December 18, 2018, fee notes issued to an attorney for services
was issued 5,072,843, shares of common stock at the contracted price of $0.00115 per share. Principal of $3,300, accrued interest
of $1,528, and conversion fees of $1,005, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 26, 2020, Trillium Partners LP,
the holder through assignment of the October 18, November 18 and December 18, 2018, fee notes issued to an attorney for services
was issued 6,140,157, shares of common stock at the contracted price of $0.00115 per share. Principal of $4,600, accrued interest
of $1,456, and conversion fees of $1,005, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On July 14, 2020, Trillium Partners LP,
the holder through assignment of the October 18, November 18 and December 18, 2018, fee notes issued to an attorney for services
was issued 4,447,722, shares of common stock at the contracted price of $0.00115 per share. Principal of $4,100, accrued interest
of $44, and conversion fees of $1,005, were converted. Following this conversion the balance of the three assigned notes was $0.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On July 14, 2020, Trillium Partners LP,
the holder through assignment of the January 18, February 18 and March 18, 2019, fee notes issued to an attorney for services was
issued 7,312,600, shares of common stock at the contracted price of $0.00115 per share. Principal of $6,000, accrued interest of
$1,404, and conversion fees of $1,005, were converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On July 22, 2020, the Company issued 6,700,000,
shares of common stock to Crown Bridge Partners, as it converted principal of $5,128, and $500, in fees on its convertible note
dated March 1, 2019, at the contractual rate of $.00084 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On July 23, 2020, Trillium Partners LP,
the holder through assignment of the January 18, February 18 and March 18, 2019, fee notes issued to an attorney for services was
issued 12,997,096, shares of common stock at the contracted price of $0.00115 per share. Principal of $12,000, accrued interest
of $2,617, and conversion fees of $1,005, were converted. The principal and accrued interest balances on the three assigned notes
was fully converted following this conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On August 28, 2020, the Company issued
10,000,000, shares of common stock to Crown Bridge Partners, as it converted principal of $8,500, and $500, in fees on its convertible
note dated March 1, 2019, at the contractual rate of $.0009 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On August 31, 2020, the Company issued
6,500,000, shares of common stock to Crown Bridge Partners, as it converted principal of $5,350, and $500, in fees on its convertible
note dated March 1, 2019, at the contractual rate of $.0009 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On August 31, 2020, the Company issued
17,000,000, shares of common stock to Crown Bridge Partners, as it converted principal of $14,800, and $500, in fees on its convertible
note dated March 1, 2019, at the contractual rate of $.0009 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify"><i>Related
Party Conversions</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 14, 2020, the Company's
CEO was issued 15,000,000 shares of restricted common stock upon conversion of $23,250 in principal on the note issued January
19, 2019 as amended on April 14, 2020 at the contractual price of $0.0016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On July 24, 2020, the CEO, was issued 150,000,000,
restricted shares of common stock upon conversion of $157,500 of principal on his January 19, 2019, note having an original principal
amount of $200,000. The shares were priced at $.00105, in accordance with the conversion terms within the amendment on April 14,
2020. Following the conversion the principal was fully liquidated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><u>Stock Options</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Company recognizes compensation cost
for unvested stock-based incentive awards on a straight-line basis over the requisite service period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">There were no options granted under the
2016 Stock Incentive Plan for the years ended September 30, 2020 and 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended September 30, 2020 and
2019, the Company recorded $103,793 and $265,113 of compensation and consulting expense related to stock options, respectively.
Total unrecognized compensation and consulting expense related to unvested stock options at September 30, 2020 amounted to $249,694.
The weighted average period over which share-based compensation expense related to these options will be recognized is approximately
2 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">For the years ended September, 2020 and
2019, a summary of the Company's stock options activity is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="vertical-align: bottom; padding-left: 0.125in; text-indent: -0.125in; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Number of<br /> Options</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Exercise Price</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Remaining<br /> Contractual<br /> Term (Years)</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Aggregate<br /> Intrinsic<br /> Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 40%; padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at September 30, 2018</font></td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">18,505</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">220.00</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">8.46</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">          -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">         -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Forfeited</font></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(750</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at September 30, 2019</font></td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">17,755</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">220.00</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">7.18</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at September 30, 2020</font></td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">17,755</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">220.00</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5.29</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Exercisable at September 30, 2020</font></td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">14,427</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">220.00</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1.86</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">All options were issued at an options price equal to the market
price of the shares on the date of the grant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><u>Warrants</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On September 9, 2016, 500 5-year warrants
exercisable at $10, per share were issued as part of the consideration for the Howco acquisition. These warrants were valued at
aggregate of $180,000, and have no intrinsic value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On November 9, 2017, the Company received
a first tranche payment of $75,500 under the terms of a Securities Purchase Agreement dated October 25, 2017, with Crown Bridge
under which the Company issued to Crown Bridge a convertible note in the principal amount of $105,000 and a five-year warrant to
purchase 100 shares of the Company's common stock at an exercise price of $350 as a commitment fee which is equal to the
product of one-third of the face value of each tranche divided by $0.35. On December 20, 2017 an additional 200,000 warrants were
issued as a penalty and in order to entice Crown Bridge to waive its right of first refusal to provide additional financing under
the terms of their convertible note. A debt discount of $44,036 was recorded for the relative fair market value of the total 300,000
warrants and amortized to interest expense as of September 30, 2018. The warrants have full ratchet price protection and cashless
exercise rights (See Note10). The warrant includes an anti-dilution clause that was triggered on June 4, 2018. On June 4, 2018
an unrelated convertible note holder became entitled to convert their note into common shares at a 60% discount to the stock's
market price. The anti-dilution provision trigger in the warrant agreement entitled Crown Bridge to exercise its warrants under
a formula that increased the number of common shares to 31,250 at a price of $3.60 per share. Due to the fact that the number of
shares and exercise price can change due to market changes in the price of the common stock the Company has concluded to treat
the warrants as derivatives and to revalue that derivative at each reporting date. Therefore a derivative liability of $261,484
with a charge to additional paid in capital was recorded on June 4, 2018. As of September 30, 2020, the warrant was revalued and
the warrant holder is entitled to exercise its warrants for 25,484,484 common shares and the related derivative liability is $119,777.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">For the years ended September 30, 2020
and 2019, a summary of the Company's warrant activity is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.25in; vertical-align: bottom; text-align: left"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Number of<br /> Warrants</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Exercise<br /> Price</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Remaining<br /> Contractual<br /> Term (Years)</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Aggregate<br /> Intrinsic<br /> Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Outstanding and exercisable at September 30, 2018</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">69,579</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1.58</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">4.1</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">185,822</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Anti-dilution adjustment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,296,287</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(167,596</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Outstanding and exercisable at September 30, 2019</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,198,270</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">.40</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">4.1</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">        -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">71,867</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Anti-dilution adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,286,214</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Outstanding and exercisable at September 30, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">25,484,484</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">.0019</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2.11</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">71,866</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.25in; vertical-align: bottom; text-align: left"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Number of<br /> Warrants</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Exercise<br /> Price</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Remaining<br /> Contractual<br /> Term (Years)</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Aggregate<br /> Intrinsic<br /> Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Outstanding and exercisable at September 30, 2018</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">69,579</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1.58</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">4.1</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">185,822</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Anti-dilution adjustment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,296,287</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(167,596</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Outstanding and exercisable at September 30, 2019</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,198,270</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">.40</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">4.1</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">        -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">71,867</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Anti-dilution adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,286,214</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Outstanding and exercisable at September 30, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">25,484,484</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">.0019</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2.11</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">71,866</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="vertical-align: bottom; padding-left: 0.125in; text-indent: -0.125in; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Number of<br /> Options</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Exercise Price</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Remaining<br /> Contractual<br /> Term (Years)</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Aggregate<br /> Intrinsic<br /> Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 40%; padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at September 30, 2018</font></td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">18,505</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">220.00</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">8.46</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">          -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">         -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Forfeited</font></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(750</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at September 30, 2019</font></td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">17,755</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">220.00</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">7.18</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at September 30, 2020</font></td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">17,755</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">220.00</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5.29</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Exercisable at September 30, 2020</font></td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">14,427</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">220.00</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1.86</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
P8Y5M16D
P7Y2M5D
P7Y2M5D
P5Y3M15D
P1Y10M10D
69579
1198270
25484484
1296287
24286214
-167596
1.58
.40
.0019
P4Y1M6D
P4Y1M6D
P4Y1M6D
P2Y1M9D
185822
71867
71866
Under the terms of the agreement Fora receives 245 payments of $854, for each business day followed by a final payment of $853.
Under the terms of the agreement PIRS receives 172 payments of $1,139
The terms call for Howco to use 75% of the funded amount for payroll costs. Howco has put in place controls designed to ensure compliance with the terms of forgiveness. The amount forgiven will be recognized as gain on debt extinguishment. Any amount that is not forgiven is to be paid over the 18 months following the 6 month deferral period.
The Company was to issue 100 shares each month to the CFO. On March 13, 2019, the Company was obligated to, and issued 200 shares valued at the grant date quoted stock price of $1.00, for total of $200, charged to compensation expenses.
1,500 common shares were issued to the CFO. The shares were valued at the issue date quoted stock price of $0.30. The shares issued covered shares owed in conjunction with the compensation agreement (300 shares) and 1,200 shares issued as severance compensation. $450 was charged to compensation expenses.
The Company entered into a one year agreement for professional services for a one-time fee to be paid with 25,000 common shares of restricted stock the services relate mostly to investor relations through internet media. The shares were valued at $.10 per share based on the value of the services to be received for total expense of $2,500, charged to professional fees. An additional 25,000 shares were authorized and issued to the service provider during the three months ended June 30, 2020. The shares were valued at $108.
The Company entered into a financing arrangement through its subsidiary Howco with IOU. Howco received $199,405 less fees of $595 and Original Issue Discount of $22,000 and deferred finance charges of $47,606, for a total of $70,201 to be amortized over the term of the note. A total of $269,606 will be paid by direct debit of Howco’s bank account of $5,173, for 52 weekly payments and 1 payment of $620. The Company recognized a principal amount of $269,606 with debt discounts of $70,201. The Company’s CEO is a personal guarantor on financing facility.
The Company entered into a financing arrangement through its subsidiary Howco with Fora Financial Business Loans, LLC. Howco is to receive $150,000 less legal and underwriting fees of $3,750 and prior loan payoff amount of $40,975. A total of $210,000 will be paid by direct debit of Howco’s bank account of $854, for 245 daily installments payments. The Company will recognize a principal amount of $210,000 with debt discounts of $63,750, and liquidate the principal balance and related discounts from the 2019 financing. The Company’s CEO is a personal guarantor on financing facility.
The CEO is a personal guarantor for the MCA. Howco will make payments each business day by way of an ACH withdrawal of $1,489, for 140 payments.
The Company will also pay $3,000 in cash due on the first of each month.
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-variant: small-caps"><b>NOTE 13 - <u>DEFINED
CONTRIBUTION PLAN</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">In August 2016, Bantec established a qualified
401(k) plan with a discretionary employer matching provision. All employees who are at least twenty-one years of age and no minimum
service requirement are eligible to participate in the plan. The plan allows participants to defer up to 90% of their annual compensation,
up to statutory limits. Employer contributions charged to operations for the years ended September 30, 2020 and 2019, was $0 and
$0, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company's subsidiary, Howco,
is the sponsor of a qualified 401(k) plan with a safe harbor provision. All employees are eligible to enter the plan within one
year of the commencement of employment. Employer contributions charged to expense for the years ended September 30, 2020 and 2019,
was $29,364 and $30,683, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-variant: small-caps"><b>NOTE 14 - <u>RELATED
PARTY TRANSACTIONS</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On October 1, 2016, the Company entered
into employment agreements with two of its officers. The employment agreement with the company's President and CEO provides
for annual base compensation of $370,000 for a period of three years, which can, at the Company's election, be paid in cash
or Common Stock or deferred if insufficient cash is available, and provides for other benefits, including a discretionary bonus
and equity provision for the equivalent of 12 months' base salary, and an additional one-time severance payment of $2,500,000
upon termination under certain circumstances, as defined in the agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On March 28, 2017, Bantec entered into
an at-will employment agreement with Matthew Wiles as General Manager of Howco. Under the terms of the employment agreement, Mr.
Wiles' compensation is $140,000 per annum and he also will be eligible for a bonus of 10% of Howco's gross profits
over $1.25 million to be paid in cash after the annual financial statements have been completed and, if applicable, audited for
filing with the SEC. Mr. Wiles will also receive options to acquire 250 shares of Bantec's common stock, vesting over
five years in equal amounts on the anniversary date of his Employment Agreement. On September 16, 2019, Mr. Wiles' employment
agreement was modified to provide salary of $275,000, and an annual bonus of 2% of net income. At the Company's discretion,
salary and bonus may be paid in cash or stock and payment may be deferred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On January 30, 2019, the Company filed
Form 8K announcing the Board of Directors appointment on January 5, 2019 of Jeffery L. Garon as member of the board and as the
Company's chief financial officer. Under the terms of the January 4, 2019 compensation agreement with the CFO, the Company
issues 100 shares each month to the CFO. The monthly stock awards are charged to compensation expense using the grant date
quoted prices. During the year ended September 30, 2019, the Company was obligated to and issued 1,700 common restricted shares
to the former CFO charging payroll expenses $600. The CFO resigned effective June 20, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On September 16, 2019, the employment agreement
with the President/CEO and discussed above was modified to provide salary of $624,000, and an annual bonus of 3% of net income.
At the Company's discretion, salary and bonus may be paid in cash or stock and payment may be deferred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Shares of Common Stock Issued
to CEO</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 14, 2020, the Company's
CEO was issued 15,000,000 shares of restricted common stock in conversion of $23,250 in principal on the note issued January 19,
2019 as amended on April 14, 2020 at the contractual price of $0.0016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 24, 2020, the CEO, was issued 150,000,000,
restricted shares of common stock in conversion of $157,500 of principal and $5,460 of accrued interest on his January 19, 2019,
note having an original principal amount of $200,000. The shares were priced at $.00105, in accordance with the conversion terms
within the amendment on April 14, 2020. Following the conversion the principal was fully liquidated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has certain convertible notes
and other promissory notes payable to related parties (see Note 9 and 18).</p>
0.90
0
0
30683
29364
370000
250
3400
17000
2500000
Under the terms of the employment agreement, Mr. Wiles’ compensation is $140,000 per annum and he also will be eligible for a bonus of 10% of Howco’s gross profits over $1.25 million to be paid in cash after the annual financial statements have been completed and, if applicable, audited for filing with the SEC. Mr. Wiles will also receive options to acquire 250,000 shares of the Company’s common stock, vesting over five years in equal amounts on the anniversary date of his Employment Agreement. On September 16, 2019, Mr. Wiles’ employment agreement was modified to provide salary of $275,000, and an annual bonus of 2% of net income.
624000
0.03
The Company filed Form 8K announcing the Board of Directors appointment on January 5, 2019 of Jeffery L. Garon as member of the board and as the Company’s chief financial officer. Under the terms of the January 4, 2019 compensation agreement with the CFO, the Company issues 100 shares each month to the CFO. The monthly stock awards are charged to compensation expense using the grant date quoted prices. During the year ended September 30, 2019, the Company was obligated to and issued 1,700 common restricted shares to the former CFO charging payroll expenses $600. The CFO resigned effective June 20, 2019.
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify">Principal</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,473,702</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,207,266</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Premiums</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,846,471</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,623,445</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt">Unamortized discounts</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,223</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,981</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,310,950</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,827,730</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
21428
62500
1623445
1846471
62500
30618
150000
9500
15500
12500
12500
12500
12500
2125
912
2981
28944
9223
58110
0.30
0.10
0.50
0.50
Notwithstanding anything contained in this Agreement to the contrary, all obligations owing by the Company and all other Credit Parties under the Credit Agreement, First Replacement Note B, and all other Loan Documents shall be paid in full by the Extended Maturity Date as follows: $52,500 per month from January 13, 2018 to December 13, 2018 and the remaining principal and accrued interest on January 13, 2019. Interest payments made since the amendment have totalled $323,440 and are therefore not in accord with that amendment. However, TCA has received payments under the 3(a) (10) settlement (below) totalling $308,100 during the year ended September 30, 2018, and another $270,320, during the year ended September 30, 2019. The principal balance was $4,788,642 at September 30, 2018.
The note bears interest at 12%, matures in six months and is convertible into the Company’s common stock at 50% of the lowest closing bid price on the 30 trading days immediately preceding the notice of conversion.
The Company executed a convertible promissory note issued to Geneva Roth Remark Holdings for $43,500, having a 10% annual interest rate, maturity of December 15, 2021, and conversion right to a 40% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The note was funded for $40,000, with $3,500, disbursed for legal and execution fees.
The Company executed a convertible promissory note issued to Geneva Roth Remark Holdings for $53,500, having a 10% annual interest rate, maturity of November 2, 2021, and conversion right to a 40% discount to the lowest traded price in the 20 days prior to delivery of a conversion notice. The note was funded for $50,000, with $3,500, disbursed for legal and execution fees.
The note bears interest at 12% and is convertible into the Company’s common stock at 50% of the lowest closing bid price on the 30 trading days immediately preceding the notice of conversion.
The note bears interest at 12% and is convertible into the Company’s common stock at 50% of the lowest closing bid price on the 30 trading days immediately preceding the notice of conversion.
166929
2645
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: justify">Principal loans and notes</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">990,305</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">372,260</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt">Discounts</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(87,054</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(87,311</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">903,251</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">284,949</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
-87311
-87054
284949
903251
220709
62500
62500
15971
60000
62500
146250
147355
60000
42840
58500
111910
185632
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<br />
September 30,<br />
2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<br />
September 30,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify">Current</td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-indent: -0.125in; text-align: justify">Federal</td><td> </td>
<td style="text-align: justify">$</td>
<td style="text-align: right">            -</td><td> </td><td> </td>
<td style="text-align: justify">$</td>
<td style="text-align: right">           -</td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-indent: -0.125in; text-align: justify">State</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: justify; padding-bottom: 1.5pt"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify">Deferred</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-indent: -0.125in; text-align: justify">Federal</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt">State</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 4pt">Total income tax provision (benefit)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Year Ended<br /> September 30,<br /> 2020</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Year Ended<br /> September 30,<br /> 2019</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; width: 76%; text-align: justify; text-indent: -9pt; padding-left: 9pt">U.S. Federal (tax benefit) provision at statutory rate</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">(908,947</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">1,494,183</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">State (tax benefit) income taxes, net of federal benefit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(365,743</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(601,231</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">Permanent differences</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">719,942</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,017,899</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">True up</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,323,938</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(575,537</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">Change in Federal tax rate</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Changes in valuation allowance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,769,189</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,653,052</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 0.25in">Total</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: justify"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">September 30,<br /> 2020</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">September 30,<br /> 2019</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: italic bold 10pt Times New Roman, Times, Serif; text-align: justify">Deferred Tax Assets</td><td style="font-size: 10pt"> </td>
<td colspan="2" style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt"> </td><td style="font-size: 10pt"> </td>
<td colspan="2" style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; width: 76%; text-align: justify; text-indent: -9pt; padding-left: 0.25in">Stock-based compensation</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">811,285</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">845,730</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 0.25in">Accrued salary - unpaid</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">768,803</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">569,388</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 0.25in">Net operating losses</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,562,416</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,496,575</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Other</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 27pt">Total deferred tax assets</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,142,504</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,911,693</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Valuation allowance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,142,504</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(6,911,693</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Net deferred tax assets</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; text-indent: -9pt; padding-left: 9pt"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: italic bold 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">Deferred Tax Liabilities</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Identifiable intangibles - Howco Purchase</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 27pt">Total deferred tax liabilities</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 27pt">Net deferred tax</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt; text-align: left"> </td></tr></table>
2039-12-31
0.21
The principal was increased by charges of $17,500 for technical default effective June 30, 2020 and an additional put premium was calculated to be $26,250.
0.1846
0.005
0.00155
0.0055
0.0055
0.005
0.0055
0.0055
0.0015
0.0017
0.00115
0.003
0.0023
0.0025
0.0015
0.0015
0.00115
0.0034
0.003
0.0036
0.0029
0.0026
0.0026
0.0024
0.0024
0.0023
0.0023
0.0023
0.0023
0.0022
0.0022
0.0022
0.0022
0.00144
0.00018
0.00144
0.000175
0.00165
0.00165
0.00013
0.00144
0.00122
0.0016
0.375
0.30
0.0447
0.10
0.05
0.008
0.00625
0.00115
0.00115
0.00084
0.00115
0.0009
0.0009
0.0009
0.00105
500
1005
1005
1005
1105
1105
1105
1105
1105
1105
1105
1005
1005
1005
500
500
500
500
1005
1005
500
1005
500
500
500
4999750
4999750
103793
265113
249694
P2Y0M0D
2017-10-25
2019-03-04
2019-03-01
2019-03-04
350
10
0.25
0.25
0.30
0.30
0.20
0.10
0.10
100
500
336461204
128620
115669
45306
73968
47664
47618
71884
145069
80651
The Company's March 1, 2019, agreement with its technology support provider the Company is to issue common shares equal to $1,500 every month.
The Company recognized the expense of $1,500, and authorized the issuance of 1,667, shares to the vendor.
10,000, common shares were issued to Tysadco Partners for the Company's investor relations firm as per the agreement for monthly payments in common shares of $4,000 per month totaling $16,000, which was fully recognized as expense as of March 31, 2019.
The Company submitted an amendment to its registration statement filed on Form S-1 in response to comments on its original filing on June 8, 2020. The Company requested accelerated status and the registration statement became effective on July 23, 2020. The offering provides for the issuance of up to 1,500,000.000 shares of common stock at a price of $.00175, under subscriptions.
The Company issued 23,948 shares of common stock to an attorney in settlement of amounts owed of $456.
456
308100
78471
204989
30000
645728
45320
225000
45320
225000
45320
225000
10375
58230
69375
39991
68232
28892
41307
62500
82245
82245
The Company established its 2016 Stock Incentive Plan (the "Plan") that permits the granting of incentive stock options and other common stock awards. The maximum number of shares available under the Plan is 100,000 shares. The Plan is open to all employees, officers, directors, and non-employees of the Company. Options granted under the Plan will terminate and may no longer be exercised (i) immediately upon termination of an employee or consultant for cause or (ii) one year after termination of employment, but not later than the remaining term of the option. As of September 30, 2020, 82,245 awards remain available for grant under the Plan.
25000
50000
120000
45000
On September 9, 2016, 500 5-year warrants exercisable at $10, per share were issued as part of the consideration for the Howco acquisition. These warrants were valued at aggregate of $180,000, and have no intrinsic value.
Between March 14, 2018 and October 29, 2018, 101,624 common shares were issued by the Company and sold by Livingston, with 71,624 shares issued and sold through September 30, 2018, and the remaining 30,000 issued as of September 30, 2018 and sold as of November 22, 2018.
An additional 200,000 warrants were issued as a penalty and in order to entice Crown Bridge to waive its right of first refusal to provide additional financing under the terms of their convertible note. A debt discount of $44,036 was recorded for the relative fair market value of the total 300,000 warrants and amortized to interest expense as of September 30, 2018. The warrants have full ratchet price protection and cashless exercise rights (See Note10). The warrant includes an anti-dilution clause that was triggered on June 4, 2018. On June 4, 2018 an unrelated convertible note holder became entitled to convert their note into common shares at a 60% discount to the stock's market price. The anti-dilution provision trigger in the warrant agreement entitled Crown Bridge to exercise its warrants under a formula that increased the number of common shares to 31,250 at a price of $3.60 per share. Due to the fact that the number of shares and exercise price can change due to market changes in the price of the common stock the Company has concluded to treat the warrants as derivatives and to revalue that derivative at each reporting date. Therefore a derivative liability of $261,484 with a charge to additional paid in capital was recorded on June 4, 2018. As of September 30, 2020, the warrant was revalued and the warrant holder is entitled to exercise its warrants for 25,484,484 common shares and the related derivative liability is $119,777.
In total $270,320, was remitted to TCA reducing the related note from $691,907 to $421,587 during the year ended September 30, 2019 and $180,618 was charged to debt premium reducing the balance to $281,054 at September 30, 2019.
0.99
3000
358
684
194520
6500000
0.10
0.18
0.12
0.24
0.18
2020-12-15
0.25
850000
7000
2050000
1200000
850000
850000
850000
3500000
617647
0.25
850000
72519
6242
539
539
539
850000
270320
850000
850000
10000000
238642
537643
4293
1099250
2789
5788642
75500
The principal amount of $105,000, has an original issue discount of $10,500 and issue costs of $19,000 both of which are recorded as debt discount along with the warrant relative fair value of $12,507 for the original 100, warrants and $31,529 for the penalty warrants to be amortized over the twelve month term of this tranche, bears interest of 10% (12% default rate) per annum, and has a maturity date of 12 months from the date of each tranche of payments under the Note with future tranches being at the discretion of Crown Bridge. The conversion rate for any conversion of unpaid principal and interest under the Notes is at a 35% discount to the lowest market price of the shares of the Company’s common stock within a 20 day trading period prior to the date of conversion to which an additional 10% discount will be added if the conversion price of the Company’s common stock is less than $50, per share and no shares of the Company’s common stock can be issued to the extent Crown Bridge would own more than 4.99% of the outstanding shares of the Company’s common stock and the conversion shares contain piggy-back registration rights. The Note is subject to customary default provisions including an event of default if the bid price of the Company’s common stock is less than its par value of $.0001 per share. The Company is entitled to prepay the Note between 30 days after its issuance until 180 days from its issuance at amounts that increase from 112% of the prepayment amount to 137% of the prepayment amount depending on the length of time when prepayments are made.
The Company is entitled to prepay the Note between 30 days after its issuance until 180 days from its issuance at amounts that increase from 112% of the prepayment amount to 137% of the prepayment amount depending on the length of time when prepayments are made. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $56,538 with a charge to interest expense.
On the effective date of the Settlement Agreement, the amount due of $5,788,642 was split and apportioned into two separate replacement notes ("Replacement Note A" and Note B"). Replacement Note A had a principal amount of $1,000,000 and Replacement Note B had a principal balance of $4,788,642, both of which remained secured by the original security, pledge and guarantee agreements; and other applicable loan documents, and bear interest at 18% per annum. The default was not waived by this settlement agreement. The Company originally recorded a premium on stock settled debt of $617,647 on the $3,500,000, and subsequent to the settlement agreement recorded an additional premium on stock settled debt of $403,878 on the additional $2,288,642 for accrued interest and advisory fees payable that were capitalized as note principal. The interest rate was amended to 12% effective June 12, 2018.
The Company received a first tranche payment of $75,500 under the terms of a Securities Purchase Agreement dated October 25, 2017, with Crown Bridge Partners, LLC (“Crown Bridge”) under which the Company issued to Crown Bridge a convertible note in the principal amount of $105,000 and a five-year warrant to purchase 100, shares of the Company’s common stock at an exercise price of $350, as a commitment fee which is equal to the product of one-third of the face value of each tranche divided by $350.
The terms of a Securities Purchase Agreement dated October 25, 2017.
56538
21428
6429
281054
10395
a) 70% of the share price on the date of the note; or b) 50% of the lowest bid price during the 30 trading days preceding the date of the notice of conversion. In connection with the issuance of this Note, the Company determined that the terms of the Note contain a conversion formula that caused variations in the conversion price resulting in the treatment of the conversion option as a bifurcated derivative to be accounted for at fair value.
The note has not been converted and the principal balance is $15,000, at both September 30, 2020 and 2019, with $4,293, and $2,789, of accrued interest, respectively.
The terms of the monthly fee notes issued between December 1, 2018 through September 30, 2019, totaling $136,375, in principal such that the notes are no longer convertible into common stock. The principal balance of $136,375 was reclassified to notes and loans payable and the related put premiums totaling $136,375 were recognized as gains on debt extinguishment on the date of the amendment.
94878
The Company will issue free trading shares of its common stock under section 3(a) (10) of the Securities Act to Livingston in the amount of such judgment in a series of tranches so that Livingston will not own more than 9.99% of our outstanding shares per tranche. The parties reasonably estimate that the fair market value of the Settlement Shares to be received by Livingston is equal to approximately $1,666,667 which is based on a discount of 40%.
1273261
1374885
101624
270320
11850771
180618
13080692
100
25484484
The Company issued a convertible note to Livingston Asset Management for $51,000 ($17,000, for each of the months from July to September, 2019), under the same interest rate and conversion discount terms. The note matures on March 31, 2020.
4851
1854
0
14993
10239
4013
213
0.12
15000
31529
31500
0.10
The notes are convertible into common shares at a discount of 50% to the lowest bid price in the 30 trading days immediately preceding the notice of conversion.
10000
6000
6000
6000
90000
12500
90000
22810
0
8881
The 335,938 commitment shares were considered issued in February 2018 which was recorded as interest and financing costs at the then market close price of $0.09 per share for a value of $30,234.
17000
20000
10745
17000
10000
3000
2152
The $85,375 of principal from the Livingston Asset Management LLC notes issued December 1, 2018 through June 1, 2019, along with $8,475 of accrued interest were sold and assigned to Alpha Capital Anstalt, on February 20, 2020. The assigned notes became convertible as of the date of the assignment by virtue of an agreement between the Company and the new note holder. The terms of the notes provide for conversion of principal and accrued interest at a 50% discount to the lowest closing bid price over the 20 days prior to conversion. The notes have been accounted for as stock settled debt under ASC 480, and put premium of $93,850 has been recognized with a charge to interest expense. During the year ended September 30, 2020, $2,200 of the principal was converted into common stock. The total accrued unpaid (also not converted) is $5,277 at September 30, 2020.
The unconverted notes above, issued for legal services have total accrued interest due of $9,291 at September30, 2020, of which $2,980 is owed to Trillium Partners LP and $6,311, is owed to the attorney.
The Company issued a convertible promissory note to Redstart Holdings Corporation in the amount of $78,000. The note bears interest at 10%, matures on December 31, 2019, includes legal fees of $3,000 and is convertible at 35% discount to the average of the lowest two prices observed in the 15 days prior to the issuance of a conversion notice. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $42,000 with a charge to interest expense for the notes.
214286
0.0499
1527262
1598246
-22810
168483
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Shipping and Handling Costs</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has included freight-out as
a component of cost of sales, which amounted to $95,634 and $134,826 for the years ended September 30, 2020 and 2019, respectively. </p>
0.0016
0.00105
78000
1000000
1000000
3500000
50000
10375
105000
1000000
4788642
6018192
691907
12500
12500
421587
5326285
12500
12500
12500
12500
12500
12500
12500
12500
12500
12500
12500
15000
0
90000
5326285
90000
6500
161700
19000
17000
17000
17000
17000
17000
4035
194520
14057
14427
481583
127277
14057
-1105330
-491000
264637
2000
P3Y
17755
14427
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">Right of use asset (ROU) is summarized below:</font></p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30,<br /> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">Operating lease at inception - June 2, 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">156,554</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Less accumulated reduction</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(17,778</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt">Balance ROU asset as of September 30, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">138,776</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Operating lease liability related to the ROU asset is summarized below:</p>
<p style="margin: 0; font-size: 7pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">Operating lease liabilities at inception - June 2, 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">156,554</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Reduction of lease liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(17,383</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Total lease liabilities - September 30, 2020</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">139,171</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Less: current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(52,180</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Lease liabilities, non-current</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">86,991</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0; font-size: 7pt"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Non-cancellable operating lease total future payments at September 30, 2020 are summarized below:</font></p>
<p style="margin: 0; font-size: 7pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left; padding-bottom: 4pt">Total minimum operating lease payments</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">168,483</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt">Less discount to fair value</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(29,312</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Total lease liability at September 30, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">139,171</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
156554
-17778
156554
-17383
139171
-29312
168483
96158991
2620776752
1198271
25484484
17775
17755
3420624
421587
75310
-52180
86991
250000
0.57
0.20
0.12
0.72
0.11
0.75
0.18
0.18
0.21
0.23
0.11
0.52
0.14
0.14
0.13
0.10
0.14
0.12
2
2
2
2
2
2
2
2
3
2
2
1
1
3
3
3
3
3
7180
0.12
0.12
0.12
0.10
0.12
0.10
1025
1025
1025
-18000
33580
675770
50000
2580
108446
149832
164014
118558
44599
4547
35403
1064665
593405
19923
8835
19923
147611
1084588
741016
7827730
8310950
30000
202645
284949
903251
52180
14697003
16807686
855439
1791312
427500
86991
1282939
1878303
15979942
18685989
326
49104
-9157344
-14895354
77
326
10473871
11850771
-19631292
-26746451
-17944973
49104
13080692
-31074769
1084588
741016
10287214
4455186
9191809
3351438
1095405
1103748
3019292
2830140
3420624
276276
11088
6716192
2841228
-5620787
-1737480
24733
1494372
2590838
-7115159
4328318
-2.72
0.05
2615437
93011260
250
250
767160
3255346
491032439
250
265113
103793
103793
265113
650
650
1700
138430
15
138415
148132
470476
76
470400
756447
127
-127
1273261
450939
450939
30000
27
29973
272500
319
886785
33646
853139
336461204
-19
19
-194520
23484
29
23455
288948
-7115159
-4328318
22222
276276
11088
595513
435909
49000
-71681
-11113
1003705
235500
253000
15000
-24733
3420624
-823854
-442339
-414548
-73959
-42240
30856
-17778
129006
1395156
-486681
-131724
17383
15606
-15606
115000
292500
295791
1020115
1359
2947
17000
889595
64940
120125
458303
1162322
505182
41386
14182
186729
156554
8870
90000
500000
537643
3
110840
201201
445184
470476
16876
402503
62500
78471
450939
138430
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 7 - <font style="font-variant: small-caps"><u>SETTLEMENTS
PAYABLE</u></font></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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 initial payment
of $12,706, the monthly payments of $6,500 and final payment on January 27, 2020 of $3,850. The amount due at September 30, 2020,
and 2019, was $42,850, and $42,850, respectively. Under the terms of the stipulation and settlement agreement, this debt is in
default.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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 were 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 the fiscal year 2018. The balance at September 30, 2020 and 2019 is $0 and $131,724, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The total settlement payable balance of
$42,850, reported on the balance sheet includes the American Express settlement of $42,850 at September 30, 2020. At September
30, 2019, the balance was $174,574, which included the amount due to the former Chief Strategy Officer and related expected payroll
taxes of $131,724.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 10 - <u>CONVERTIBLE NOTES PAYABLE
AND ADVISORY FEE LIABILITIES</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The senior secured credit facility note
balance and convertible debt balances consisted of the following at September 30, 2020 and 2019: </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify">Principal</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,473,702</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,207,266</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Premiums</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,846,471</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,623,445</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt">Unamortized discounts</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,223</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,981</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,310,950</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,827,730</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the years ended September 30, 2020
and 2019, amortization of debt discount on the above convertible notes amounted to $6,242 and $72,519, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Senior Secured Credit Facility
Note - Default</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 13, 2016, the Company entered
into a senior secured credit facility note with an investment fund for the acquisition of Howco. The Company can borrow up to $6,500,000,
subject to lender approval, with an initial convertible promissory note at closing of $3,500,000 (the "Note"). The
Note bears interest at a rate of 18% per annum, required monthly payments of $52,500, which is interest only, starting on October
13, 2016 through February 13, 2017, and monthly payments, including interest and principal, of $298,341 starting on March 13, 2017
through maturity on March 13, 2018. In the event of default the Note balance will bear interest at 25% per annum. In connection
with this Agreement, the Company was obligated to pay additional advisory fees of $850,000 payable in the form of cash or common
stock in accordance with the terms of the Agreement. The Company was also required to reserve 7,000 shares of common stock related
to this transaction. The reserved shares will be released upon the satisfaction of the loan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of September 30, 2020 and 2019, the Company had issued 539,
shares of common stock in satisfaction of the $850,000 advisory fee in accordance with the terms of the agreement, such shares
being issued in September 2016. The proceeds from the sale of the 539, shares were to be applied to the $850,000 advisory fee due.
Based upon the value of the shares, at the time the lender sells the shares, the Company may be required to redeem unsold shares
for the difference between the $850,000 and the lender's sales proceeds. Accordingly, the $850,000 was reflected as a current
liability through December 31, 2017. In January 2018, in connection with a settlement agreement (see below), the accrued advisory
fee was reclassified to the principal balance of the replacement Convertible Note. Through the date of the settlement agreement
and through September 30, 2019 and September 30, 2020, the lender had not reported any proceeds from the sale of these shares (see
below). Prior to the settlement agreement in January 2018, notwithstanding anything contained in the Agreement to the contrary,
in the event the Lender has not realized net proceeds from the sale of Advisory Fee Shares equal to at least the Advisory Fee by
the earlier to occur of: (A) September 13, 2017; (B) the occurrence of an Event of Default; or (C) the Maturity Date, then at any
time thereafter, the Lender shall have the right, upon written notice to the Borrower, to require that the Borrower redeem all
Advisory Fee Shares then in Lender's possession for cash equal to the Advisory Fee, less any cash proceeds received by the
Lender from any previous sales of Advisory Fee Shares, if any within five (5) Business Days from the date the Lender delivers such
redemption notice to the Borrower. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Note is only convertible upon default
or mutual agreement by both parties at a conversion rate of 85% of the lowest of the daily volume weighted average price of the
Company's common stock during the 5 business days immediately prior to the conversion date. At any time and from time to
time while this Note is outstanding, but only upon: (i) the occurrence of an Event of Default under any of the Loan Documents;
or (ii) mutual agreement between the Company and the Holder, this Note may be, at the sole option of the Holder, convertible into
shares of the Company's common stock, in accordance with the terms and conditions of the Note Upon liquidation by the Holder
of Conversion Shares issued pursuant to a conversion notice, provided that the Holder realizes a net amount from such liquidation
equal to less than the conversion amount specified in the relevant conversion notice, the Company shall issue to the Holder additional
shares of the Company's common stock equal to: (i) the Conversion Amount specified in the relevant conversion notice; <i>minus</i>
(ii) the realized amount, as evidenced by a reconciliation statement from the Holder (a "Sale Reconciliation") showing
the realized amount from the sale of the Conversion Shares; <i>divided by</i> (iii) the average volume weighted average price of
the Company's common stock during the five business days immediately prior to the date upon which the Holder delivers notice
(the "Make-Whole Notice") to the Company that such additional shares are requested by the Holder.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Once a default occurs, the Note and the
$850,000 advisory fee payable will be accounted for as stock settled debt at its fixed monetary value. On March 13, 2017 the Company
defaulted on the monthly principal and interest payment of $298,341. Due to this default, as of June 30, 2017, the Company has
accounted for the embedded conversion option as stock settled debt and recorded a debt premium of $617,647 with a charge to interest
expense, and the interest rate increased to 25% (default rate).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 28, 2017, the Company entered
into an additional agreement with the above senior secured credit facility lender to receive a range of advisory services for a
total of $1,200,000 with no definitive terms or length of service which was expensed in fiscal 2017 and had been recorded as an
accrued liability – advisory fees through December 31, 2017. In connection with the settlement agreement discussed below,
in January 2018, the advisory services fees payable were reclassified to the principal balance of the replacement Convertible Note.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 3, 2018, the Company entered
into a settlement agreement (the "Settlement Agreement") and replacement note agreements with the investment fund related
to a senior secured credit facility note dated September 13, 2016. On the effective date of the Settlement Agreement, all amounts
owed to the investment fund aggregated $5,788,642 and consisted of a convertible promissory note of $3,500,000, accrued interest
payable of $238,642, and accrued advisory fees payable of $2,050,000. On the effective date of the Settlement Agreement, the amount
due of $5,788,642 was split and apportioned into two separate replacement notes ("Replacement Note A" and Note B").
Replacement Note A had a principal amount of $1,000,000 and Replacement Note B had a principal balance of $4,788,642, both of which
remained secured by the original security, pledge and guarantee agreements; and other applicable loan documents, and bear interest
at 18% per annum. The default was not waived by this settlement agreement. The Company originally recorded a premium on stock settled
debt of $617,647 on the $3,500,000, and subsequent to the settlement agreement recorded an additional premium on stock settled
debt of $403,878 on the additional $2,288,642 for accrued interest and advisory fees payable that were capitalized as note principal.
The interest rate was amended to 12% effective June 12, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Credit Agreement was amended such that the maturity date
was extended to January 13, 2019 (the "Extended Maturity Date") for replacement Note B, while the Note A maturity date
remained at March 13, 2018 but was due as of March 2017 due to the principal and interest payment default discussed above. Notwithstanding
anything contained in this Agreement to the contrary, all obligations owing by the Company and all other Credit Parties under the
Credit Agreement, First Replacement Note B, and all other Loan Documents shall be paid in full by the Extended Maturity Date as
follows: $52,500 per month from January 13, 2018 to December 13, 2018 and the remaining principal and accrued interest on January
13, 2019. Interest payments made since the amendment have totaled $323,440 and are therefore not in accord with that amendment.
However, TCA has received payments under the 3(a) (10) settlement (below) totaling $308,100 during the year ended September 30,
2018, and another $270,320, during the year ended September 30, 2019. The principal balance was $4,788,642 at September 30, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 30, 2018, TCA the Company's
senior lender amended its credit facility which had been restructured in January 2018 when fees for advisory and other matters
along with accrued but unpaid interest were capitalized and separated into two notes, Note A having $1,000,000 principal and Note
B having $4,788,642 both having the same maturity terms, interest rates and conversion rights. Under the current amendment total
amounts outstanding under the notes along with accrued interest of $537,643 has been capitalized with the principal amount due
of $6,018,192, $5,326,285 for Note B and $691,907 for Note A. The restated note has the same conversion price discount and therefore
continues to be stock settled debt under ASC 480, an additional $94,878 was charged to interest with a credit to debt premium.
The restated note accrues interest on the principal balance at 12% per annum, includes amortization to the new maturity date of
December 15, 2020. The amortization payments credited toward the principal amount and accrued interest vary and include payments
made under the 3(a)(10) settlement agreement with a third party related to Note A. Economically the total principal and accrued
interest outstanding remain unchanged as reported in the consolidated balance sheet. All other terms including conversion rights
and a make-whole provision in the case of a conversion shortfall remain the same as stated in the footnotes above.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 6, 2019, the Company received
a default notice on its payment obligations under the senior secured credit facility agreement from TCA. The Company has proposed
a number of solutions including refinancing the debt with other parties. The default was declared due to non-payment of monthly
scheduled amortization (principal and interest). TCA holds security interests in all assets of the Company including its subsidiary
Howco. The Company is in negotiation with the receiver appointed by the court related to the senior secured creditor's claim
and has proposed a preliminary settlement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At September 30, 2020 the principal of
the Note B portion was $5,326,285, accrued interest was $1,099,250 and the Note A principal subject to the 3(a) (10) court order
was $421,587. During the year ended September 30, 2020, the Company has not paid interest or principal and Livingston Asset Management
(under the 3(a) (10) settlement) has not made any payments to TCA.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 15, 2017, the Company executed
a Liability Purchase Term Sheet with Livingston Asset Management ("Livingston") under which Livingston agreed to purchase
up to $10,000,000 that the Company owes to its creditors through direct purchase of the debts from the Company's creditors
in return for a convertible note issued by the Company in the principal amount of $50,000 bearing interest of 10% per year to cover
certain legal fees and other expenses of Livingston. The note matures in six months and is convertible into shares of our common
stock at a 30% reduction off the lowest closing bid price for 20 trading days prior to the date of conversion. Livingston has the
right to retain 30% of any negotiated reduction off the face amount of the liability the Company owes to such creditors. The Company
has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $21,428 with
a charge to interest expense. The note and accrued interest were fully converted as of September 30, 2018 for 18,163, common shares.
Debt premium of $21,428 was charged to additional paid in capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 30, 2018 pursuant to the Liability
Purchase Term Sheet, the TCA Replacement Note A in the principal amount of $1,000,000 was purchased by Livingston Asset Management
LLC ("Livingston") from the original lender. Principal of Replacement Note A is due to Livingston with all then accrued
but unpaid interest due to the original lender. In accordance with the terms of the Settlement Agreement, the Court was advised
of Company's intention to rely upon the exception to registration set forth in Section 3(a) (l0) of the Securities Act to
support the issuance of its common shares and the Court held a fairness hearing regarding the issuance on March 12, 2018. Following
entry of an Order by the Court which occurred on March 12, 2018, in settlement of the claims, the Company shall issue and deliver
to Livingston shares of its common stock (the "Settlement Shares") in one or more tranches as necessary, and subject
to adjustment and ownership limitations as set forth in the Settlement Agreement, sufficient to generate proceeds such that the
aggregate Remittance Amount equals the Claim Amount. The Company will issue free trading shares of its common stock under section
3(a) (10) of the Securities Act to Livingston in the amount of such judgment in a series of tranches so that Livingston will not
own more than 9.99% of our outstanding shares per tranche. The parties reasonably estimate that the fair market value of the Settlement
Shares to be received by Livingston is equal to approximately $1,666,667 which is based on a discount of 40%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the year ended September 30, 2020, there were no 3(a) (10)
issuances. As of September 30, 2020, there have been seventeen issuances under section 3(a) (10) of the Securities Act totaling 1,374,885
shares; 1,273,261, in 2019, and 101,624, in 2018, which have been recorded at par value with an equal charge to additional paid-in
capital. On November 17, 2019, 194,520 of the shares issued under the 3(a) (10) were cancelled at the request of Livingston. The
value originally recorded as a liability remains in the convertible note balance, until these shares have been sold and reported
to the Company by the lender as part of the Make-Whole provision at which time the proceeds value of such shares are reclassified
to additional paid-in capital. During the year ended September 30, 2019, proceeds of $270,320 were remitted to TCA by Livingston
and applied to reduce the liability with corresponding credits to additional paid in capital. $180,618 of debt premium was credited
to additional paid in capital in conjunction with the payments to TCA. At September 30, 2020 the balance of $421,587 along with
related debt premium of $281,054 are included in convertible notes payable on the balance sheet.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 7, 2018 the Company entered into
a placement agent and advisory agreement with Scottsdale Capital Advisors in connection with the Livingston liability purchase
term sheet executed on November 15, 2017. The placement agent services fee amounted to $15,000 payable to Scottsdale Capital Advisors
in the form of a convertible note. The note matures six months from the date of issuance and shall accrue interest at the rate
of 10% per annum. The $15,000 note is convertible into shares of the Company's common stock at a discount of 30% of the low
closing bid price for the twenty trading days prior to the conversion and is not subject to any registration rights. The Company
has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $6,429 with
a charge to interest expense. The note has not been converted and the principal balance is $15,000, at both September 30, 2020
and 2019, with $4,293, and $2,789, of accrued interest, respectively. As the note has matured it is technically in default. Under
the terms of the note no default interest or penalties accrue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Other Convertible Debt</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2017, the FASB issued Accounting
Standards Update No. 2017-11 Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and
Hedging (Topic 815) ("ASU 2017-11"), which changes the classification analysis of certain equity-linked financial instruments
(or embedded features) with down round features. When determining whether certain financial instruments should be classified as
liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument
is indexed to an entity's own stock. ASU 2017-11 also clarifies existing disclosure requirements for equity-classified instruments.
As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for
as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified
financial instruments, ASU 2017-11 requires entities that present earnings per share (EPS) in accordance with ASC Topic 260 to
recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of
income available to common shareholders in basic EPS. For the Company, ASU 2017-11 is effective for fiscal years, and interim
periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim
period. The Company adopted this standard on October 1, 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 1, 2018 the Company entered into a consulting and services
arrangement with Livingston Asset Management which has no stipulated term. The arrangement provides for financial management services
including accounting and related periodic reporting among other advisory services. Under the agreement the Company will issue to
Livingston Asset Management Convertible Fee Notes having principal of $12,500, interest of 10% per annum, maturity of six or seven
months. The notes are convertible into common shares at a discount of 50% to the lowest bid price in the 30 trading days immediately
preceding the notice of conversion. The Company has accounted for the convertible promissory note as stock settled debt under ASC
480 and recorded a debt premium of $12,500 with a charge to interest expense for each note. As of September 30, 2019, the following
notes had been issued and converted as indicated:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">June 1, 2018, $12,500 principal, maturing
December 31, 2018 – fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">July 1, 2018, $12,500 principal, maturing
January 31, 2019 – fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">August 1, 2018, $12,500 principal maturing
January 31, 2019 – fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">September 1, 2018, $12,500 principal, maturing
February 28, 2019 – fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">October 1, 2018, $12,500 principal, maturing
March 31, 2019 – fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">November 1, 2018, $12,500 principal, maturing
April 30, 2019 – fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">December 1, 2018, $12,500 principal, maturing
May 31, 2019 – partially converted, principal balance $10,375 at September, 30, 2019 – assigned to Alpha Capital Anstalt;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">January 1, 2019, $12,500 principal, maturing
June 30, 2019 – assigned to Alpha Capital Anstalt;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">February 1, 2019, $12,500 principal, maturing
July 31, 2019– assigned to Alpha Capital Anstalt;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">March 1, 2019, $12,500 principal, maturing
August 31, 2019– assigned to Alpha Capital Anstalt;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">April 1, 2019, $12,500 principal, maturing
September 30, 2019– assigned to Alpha Capital Anstalt;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">May 1, 2019, $12,500 principal, maturing
October 31, 2019– assigned to Alpha Capital Anstalt; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">June 1, 2019, $12,500 principal, maturing
November 30, 2019– assigned to Alpha Capital Anstalt.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The notes were charged to professional
fees for each corresponding service month. The Company has accounted for each of the Convertible Fee Notes as stock settled debt
under ASC 480 and recorded a debt premium of $12,500 each with a charge to interest expense. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 30, 2019, the Company issued
a convertible note to Livingston Asset Management for $51,000 ($17,000, for each of the months from July to September, 2019), under
the same interest rate and conversion discount terms. The note matures on March 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 1, 2019, Livingston Asset Management
LLC amended the terms of the monthly fee notes issued between December 1, 2018 through September 30, 2019, totaling $136,375, in
principal such that the notes are no longer convertible into common stock. The principal balance of $136,375 was reclassified to
notes and loans payable and the related put premiums totaling $136,375 were recognized as gains on debt extinguishment on the date
of the amendment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The $85,375 of principal from the Livingston
Asset Management LLC notes issued December 1, 2018 through June 1, 2019, along with $8,475 of accrued interest were sold and assigned
to Alpha Capital Anstalt, on February 20, 2020. The assigned notes became convertible as of the date of the assignment by virtue
of an agreement between the Company and the new note holder. The terms of the notes provide for conversion of principal and accrued
interest at a 50% discount to the lowest closing bid price over the 20 days prior to conversion. The notes have been accounted
for as stock settled debt under ASC 480, and put premium of $93,850 has been recognized with a charge to interest expense. During
the year ended September 30, 2020, $2,200 of the principal was converted into common stock. The total accrued unpaid (also not
converted) is $5,277 at September 30, 2020. The assigned notes are in default and there are cross-default terms in the original
notes or the assignment documentation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In April 2020, Livingston Asset Management
LLC, sold and assigned its September 30, 2019, promissory notes to Tri-Bridge Ventures, LLC. The principal balance of $51,000 and
accrued interest of $2,571 acquired at the date of the assignment. Tri-Bridge fully converted all principal and accrued interest
by June 16, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the terms of the June 1, 2018 consulting
and services agreement with Livingston Asset Management, LLC, as amended on July 1, 2019, Livingston is to receive $20,000, per
month including $3,000 cash and $17,000 in promissory notes. The notes bear interest of 10% per annum and mature in six month.
The promissory notes issued after February 28, 2020 are convertible into shares of common stock at a discount of 50% of the lowest
closing bid price during the 30 trading days prior to conversion. The notes having a conversion feature are treated as stock settled
debt under ASC 480 and a debt premium of $17,000 is recognized as interest expense on note issuance date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Convertible notes were issued to Livingston as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">March 1, 2020 - $17,000;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">April 1, 2020 - $17,000;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">May 1, 2020, $17,000;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">June 1, 2020 - $17,000;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">July 1, 2020 - $17,000; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">August 1, 2020 - $17,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accrued interest totaled $10,239 as of September 30, 2020. Livingston
has given the Company forbearance on fees for six months beginning September 1, 2020 through February 1, 2021.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 29, 2018 the Company entered into an agreement with
a legal firm to provide securities related and other legal services which has no stipulated term. Under the agreement the Company
will issue convertible notes with varying principal amounts for services. The first note was issued on August 29, 2018, for $6,000,
interest of 12%, and a maturity date of February 28, 2019. The conversion feature allows for conversion into common shares at the
lesser of: a) 70% of the share price on the date of the note; or b) 50% of the lowest bid price during the 30 trading days preceding
the date of the notice of conversion. In connection with the issuance of this Note, the Company determined that the terms of the
Note contain a conversion formula that caused variations in the conversion price resulting in the treatment of the conversion option
as a bifurcated derivative to be accounted for at fair value. Accordingly, under the provisions of FASB ASC Topic No. 815-40, "Derivatives
and Hedging – Contracts in an Entity's Own Stock", the embedded conversion option contained in the convertible
instruments were accounted for as derivative liabilities at the date of issuance and shall be adjusted to fair value through earnings
at each reporting date. The fair values of the embedded conversion option derivatives were determined using the Binomial valuation
model. $10,435 was recognized as derivative liability with $6,000 charged to debt discount and $4,035 charged to derivative expense
on issuance. The debt discount of $6,000 will be amortized to interest expense to the maturity date of the note. At March 31, 2019
the derivative fair value was determined to have decreased to $8,881. As the note reached its maturity date no further fair value
adjustments will be recorded. For the year ended September 30, 2019, the $5,000, balance of the debt discount was charged to interest
expense and debt discount balances was $0. The following notes have been issued to the law firm, each having six month term to
maturity and 12% annual interest but a change in the conversion terms such that a fixed discount of 50% of the lowest bid price
in the 30 trading days immediately preceding the notice of conversion. The notes have cross default provisions. The Company
has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premiums equal to the face
value of the notes with a charge to interest expense. The note principal amount was charged to professional fees during the month
the note was issued. All notes issued prior to December 31, 2019, have reached their maturity and therefore are in technical default
have a default interest rate of 18%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">September 4, 2018, $10,000 – Sold and assigned to Trillium
Partners LP and fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">September 18, 2018, $6000– Sold and
assigned to Trillium Partners LP, and fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">October 18, 2018, $6,000 – Sold and
assigned to Trillium Partners LP and fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">November 18, 2018, $6,000 – Sold
and assigned to Trillium Partners LP and fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">December 18, 2018, $6,000 – Sold
and assigned to Trillium Partners LP, and fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">January 18, 2019, $6,000 – Sold and
assigned to Trillium Partners LP on March 11, 2020 and fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">February 18, 2019, $6,000 – Sold
and assigned to Trillium Partners LP on March 11, 2020 and fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">March 18, 2019, $6,000 – Sold and
assigned to Trillium Partners LP on March 11, 2020 and fully converted;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">April 18, 2019, $6,000 – in default, sold and assigned
to Trillium Partners LP on May 28, 2020;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">May 18, 2019, $6,000 – in default, sold and assigned to
Trillium Partners LP on May 28, 2020;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">June 18, 2019, $6,000 – in default, sold and assigned
to Trillium Partners LP on May 28, 2020;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">July 18, 2019, $6,000– in default;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">August 18, 2019, $6,000– in default;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">September 18, 2019, $6,000– in default;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">October 18, 2019, $6,000– in default;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">November 18, 2019, $6,000– in default;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">December 18, 2019, $6,000– in default;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">January 18, 2020, $6,000– in default;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">March 18, 2020, $6,000 – in default;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">April 18, 2020, $6,000;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">May 18, 2020, $6,000;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">June 18, 2020, $6,000;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">July 18, 2020, $6,000;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">August 18, 2020, $6,000; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">September 18, 2020, $6,000,</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unconverted notes above, issued
for legal services have total accrued interest due of $9,291 at September 30, 2020, of which $2,980 is owed to Trillium
Partners LP and $6,311, is owed to the attorney.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 13, 2018, the Company issued a convertible promissory
note for $90,000 to a vendor in settlement of approximately $161,700 of past due amounts due for services. The note bears interest
at 5%, matures on June 30, 2019 and is convertible into the Company's common stock at 50% of the lowest closing bid price
during the 20 trading days immediately preceding the notice of conversion. The note matured on June 30, 2019, there is no default
penalty associated with the note, nor are there any cross-default provisions in the note. The Company has accounted for the convertible
promissory note as stock settled debt under ASC 480 and recorded debt premium $90,000 with a charge to interest expense for the
notes. The unconverted principal, premium and accrued interest were $90,000, $90,000, and $14,993 as of September 30, 2020. At
September 30, 2019 the principal, premium and accrued interest were $90,000, $90,000, and $4,013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 9, 2017, the Company received
a first tranche payment of $75,500 under the terms of a Securities Purchase Agreement dated October 25, 2017, with Crown Bridge
Partners, LLC ("Crown Bridge") under which the Company issued to Crown Bridge a convertible note in the principal amount
of $105,000 and a five-year warrant to purchase 100, shares of the Company's common stock at an exercise price of $350, as
a commitment fee which is equal to the product of one-third of the face value of each tranche divided by $350. Under the terms
of the note Crown Bridge was to receive "right of first refusal" for any subsequent loans or notes to fund the Company.
The Company violated this covenant when funding was received from other sources without offering Crown Bridge the opportunity to
participate. On December 20, 2017 the Company cured this covenant violation by issuing 200 additional warrants which have the same
exercise price and terms of the original warrants. The warrants have full ratchet price protection and cashless exercise rights.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The convertible note (the "Note")
issued to Crown Bridge in the principal amount of $105,000, has an original issue discount of $10,500 and issue costs of $19,000
both of which are recorded as debt discount along with the warrant relative fair value of $12,507 for the original 100, warrants
and $31,529 for the penalty warrants to be amortized over the twelve month term of this tranche, bears interest of 10% (12% default
rate) per annum, and has a maturity date of 12 months from the date of each tranche of payments under the Note with future tranches
being at the discretion of Crown Bridge. The conversion rate for any conversion of unpaid principal and interest under the Notes
is at a 35% discount to the lowest market price of the shares of the Company's common stock within a 20 day trading period
prior to the date of conversion to which an additional 10% discount will be added if the conversion price of the Company's
common stock is less than $50, per share and no shares of the Company's common stock can be issued to the extent Crown Bridge
would own more than 4.99% of the outstanding shares of the Company's common stock and the conversion shares contain piggy-back
registration rights. The Note is subject to customary default provisions including an event of default if the bid price of the
Company's common stock is less than its par value of $.0001 per share. The Company is entitled to prepay the Note between
30 days after its issuance until 180 days from its issuance at amounts that increase from 112% of the prepayment amount to 137%
of the prepayment amount depending on the length of time when prepayments are made. The Company has accounted for the convertible
promissory note as stock settled debt under ASC 480 and recorded a debt premium of $56,538 with a charge to interest expense. As
of September 30, 2018 the note holder fully converted principal and accrued interest into common shares. The debt premium on stock
settled debt was fully recognized as additional paid in capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 1, 2019, the Company received a second tranche advance
under the Crown Bridge Partners, LLC, master note dated October 25, 2017, for principal amount of $35,000, including covered fees
and original issue discount totaling $5,000. Under the conversion terms of the above note, the holder is entitled to a 35% discount
plus an additional 10% discount based on the conversion rights of certain other note holders. Therefore a discount of 45% is assumed
for any conversions of this note tranche. The Company has accounted for the convertible promissory note as stock settled debt under
ASC 480 and recorded a debt premium of $28,636 with a charge to interest expense. The original issue discount and fees charged
were treated as debt discount and will be amortized to financing expenses over the term of the note. Following conversions during
the year ended September 30, 2020 the principal balance and debt premium balances were reduced and the unamortized debt discount
was $0, at September 30, 2020. The principal was increased by charges of $17,500 for technical default effective during the year
ended September 30, 2020 and an additional put premium was calculated to be $26,250. The cross-default provisions of the note include
defaults on any notes issued to third parties including any issued subsequent to the issuance of this note. The default charge
and the put premium were charged to interest expense of June 30, 2020. The conversion discount increased to 60% as a result of
the default. The principal and accrued interest were $2,766 and $6,187, respectively at September 30, 20 Unamortized debt discount
was $2,069, at September 30, 2019, principal was $35,000, and accrued interest was $2,402.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 4, 2019, the Company issued
a convertible promissory note to Redstart Holdings Corporation in the amount of $78,000. The note bears interest at 10%,
matures on December 31, 2019, includes legal fees of $3,000 and is convertible at 35% discount to the average of the lowest
two prices observed in the 15 days prior to the issuance of a conversion notice. The Company has accounted for the
convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $42,000 with a charge to interest
expense for the notes. The fees charged were treated as debt discount and will be amortized to financing expenses over the
term of the note. During the three months ended December 31, 2019, Redstart converted principal totaling $15,000, into
214,286, shares of common stock. On December 31, 2019, the Company received a default notice and demand for payment of the
amounts due under this convertible note. The Company recognized the default penalty of $31,500, as additional principal along
with the calculated put premium of $22,810, with charges to interest expense. During the year ended September 30, 2020,
Redstart converted all principal and accrued interest into shares of common stock. The principal, premium and accrued
interest balances were $0, $0, and $0, and debt discount was fully amortized, at September 30, 2020. Principal was $78,000,
accrued interest was $4,851, and unamortized debt discount was $912, at September 30, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 12, 2019, the Company issued a
convertible promissory note to Trillium Partners LP for cash in the amount of $10,000. The note bears interest at 10%, matures
on January 11, 2020, and was convertible into the Company's common stock at 50% of the lowest closing bid price on the 20
trading days immediately preceding the notice of conversion. The Company accounted for the convertible promissory note as stock
settled debt under ASC 480 and recorded debt premium $10,000 with a charge to interest expense for the notes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 1, 2019, Trillium Partners
LP amended the terms of the notes issued July 12, 2019, such that the note is no longer convertible into common stock. The principal
balance of $10,000 was reclassified to notes and loans payable and the related put premium totaling $10,000 was recognized as gains
on debt extinguishment on the date of the amendment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The note issued to Trillium Partners LP, on July 12, 2019 was
sold and assigned to Alpha Capital Anstalt on February 20, 2020. The assigned note became convertible as of the date of the assignment
by virtue of an agreement between the Company and the new note holder. The terms of the note provide for conversion of principal
and accrued interest at a 50% discount to the lowest closing bid price over the 20 days prior to conversion. The note matured on
January 11, 2020 and therefore the default interest rate is 24%. There are no cross-default provisions in the note. The note has
been accounted for as stock settled debt under ASC 480, and put premium of $10,395 was recognized with a charge to interest expense.
The note balance and premium were $10,745 and $10,395, respectively and accrued interest was $1,854, at September 30, 2020. The
note balance and premium were $10,000 and accrued interest was $213, at September 30, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 20, 2020, the Company issued a convertible promissory
note to Geneva Roth Remark Holdings for $60,000, for $57,000, cash and fees of $3,000 (treated as OID to be amortized over the
life of the note) having a 10% annual interest rate, maturity of April 20, 2021, and conversion right to a 42% discount to the
lowest traded price in the 20 days prior to delivery of a conversion notice. The cross-default terms in the note only include defaults
on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock
Settled Debt, and recognized the put premium for the stock price discount as a liability with a charge to interest expense at the
date of the issuance of the convertible promissory note. Principal, put premium and accrued interest were $60,000, $43,448 and
$2,630, respectively at September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 14, 2020, the Company issued a convertible promissory
note for $35,000 issued to Tri-Bridge Ventures LLC for a cash loan of $35,000. The note has a one year maturity, 8% annual interest
and can be converted to common stock at the contracted price of 60% of the lowest daily traded price during the 10 days prior to
delivery of a conversion notice. There are no cross-default provisions in the note. The Company has treated the convertible note
in accordance with ASC 480 Stock Settled Debt, and recognized the put premium for the stock price discount as a liability with
a charge to interest expense at the date of the issuance of the convertible promissory note. The note principal put premium and
accrued interest in $35,000, $23,333 and $836, respectively at September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 9, 2020, the Company issued a convertible promissory
note in the amount of $53,000 to Geneva Roth Remark Holdings Inc. The Company received $50,000, in cash on June 10, 2020 with $3,000,
being retained for legal and underwriting fees which will be treated as OID and be amortized to interest expense over the term
of the note. The note matures on June 10, 2021, bears interest at 10%, with a 22% default interest rate and may be converted at
58% of the lowest closing bid price in the 20 days preceding a conversion. The cross-default terms in the note only include defaults
on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC 480 Stock
Settled Debt, recognizing $38,379 of put premium for the stock price discount as a liability with a charge to interest expense
at the date of the issuance of the convertible promissory note. The principal and accrued interest balances were, $53,000 and $1,597
at September 30, 2020, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 10, 2020, the Company entered into an agreement with
Geneva Roth Remark Holdings Inc. to issue a convertible promissory note in the amount of $53,000. The Company received $50,000,
in cash on July 15, 2020 with $3,000, being retained for legal and underwriting fees which will be treated as debt discount and
be amortized to interest expense over the term of the note. The note matures on July 10, 2021, bears interest at 10%, with a 22%
default interest rate and may be converted at 58% of the lowest closing bid price in the 20 days preceding a conversion. The cross-default
terms in the note only include defaults on notes issued to related parties of the note holder. The Company treated the convertible
note in accordance with ASC 480 Stock Settled Debt, recognizing $38,379 as put premium for the stock price discount as a liability
with a charge to interest expense at the date of the issuance of the convertible promissory note. The principal and accrued interest
balances were, $53,000 and $1,118 at September 30, 2020, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 28, 2020, the Company issued a convertible promissory
note in the amount of $104,000 to Geneva Roth Remark Holdings Inc. The Company received $100,500, in cash on August 28, 2020 with
$3,500, being retained for legal and underwriting fees which will be treated as OID and be amortized to interest expense over the
term of the note. The note matures on August 28, 2021, bears interest at 10%, with a 22% default interest rate and may be converted
at 58% of the lowest closing bid price in the 20 days preceding a conversion. The cross-default terms in the note only include
defaults on notes issued to related parties of the note holder. The Company treated the convertible note in accordance with ASC
480 Stock Settled Debt, recognizing $75,310 of put premium for the stock price discount as a liability with a charge to interest
expense at the date of the issuance of the convertible promissory note. The principal, premium and accrued interest were $104,000,
$75,310 and $826 respectively at September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 17 - <font style="font-variant: small-caps"><u>CONCENTRATIONS</u></font></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Concentration of Credit Risk</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Company maintains
its cash in bank and financial institution deposits that at times may exceed federally insured limits. At September 30, 2020, cash
in bank did not exceed the federally insured limits of $250,000. The Company has not experienced any losses in such accounts through
September 30, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Economic Concentrations</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">With respect to customer
concentration, two customers accounted for approximately 72%, and 11%, of total sales for the year ended September 30, 2020. Two
customers accounted for approximately 52% and 14%, of total sales for the period ended September 30, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">With respect to accounts receivable concentration,
two customers accounted for approximately 75%, and 21%, of total accounts receivable at September 30, 2020. Two customers accounted
for approximately 57% and 20% of total accounts receivable at September 30, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With respect to supplier concentration,
one supplier accounted for approximately 22% of total purchases for the year ended September 30, 2020. Two suppliers accounted
for approximately 18% each of total purchases for the year ended September 30, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With respect to accounts payable concentration,
three suppliers accounted for approximately 14%, 13%, and 10% of total accounts payable at September 30, 2020. Three suppliers
accounted for approximately 14%, 12%, and 12% of total accounts payable at September 30, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With respect to foreign sales, it totaled
approximately $7,180 for the year ended September 30, 2020. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><i>Recent
Accounting Pronouncements</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif">On
August 5, 2020, the Financial Accounting Standards Board (FASB) issued accounting standards update (ASU) No. 2020-06, <i>Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic
815-40)</i>.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif">The
amendments in the ASU remove certain separation models for convertible debt instruments and convertible preferred stock that require
the separation of a convertible debt instrument into a debt component and an equity or derivative component. The ASU also amends
the derivative scope exception guidance for contracts in an entity's own equity. The amendments remove three settlement conditions
that are required for equity contracts to qualify for the derivative scope exception.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif">In
addition to the above, the ASU expands disclosure requirements for convertible instruments and simplifies areas of the guidance
for diluted earnings-per-share calculations that are impacted by the amendments.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif">The
ASU is effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding
smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021. Early adoption is permitted.
The FASB noted that an entity should adopt the guidance as of the beginning of its annual fiscal year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Entities
may elect to adopt the amendments through either a modified retrospective method of transition or a fully retrospective method
of transition. If an entity has convertible instruments that include a down round feature, early adoption of the ASU is permitted
for fiscal years beginning after December 15, 2020.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">The
Company does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have
a material effect on the accompanying consolidated financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 11 - <u>LOANS AND NOTES PAYABLE</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The notes balance consisted of the following
at September 30, 2020 and 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: justify">Principal loans and notes</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">990,305</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">372,260</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt">Discounts</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(87,054</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(87,311</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">903,251</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">284,949</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On October 17, 2018 Porta Pellex assigned
$62,500 of the principal balance of its note to Trillium Partners LP along with $7,500 of accrued interest, leaving an unpaid balance
of $62,500 plus accrued interest on Porta Pellex's original note. The assigned portion of the note was restated to provide
for conversion of interest and principal into common shares at 50% discount to the lowest bid price over the 20 trading days prior
to conversion notification. This modification was treated as a debt extinguishment. The modified note was treated as stock settled
debt in accordance with ASC 480 and $62,500 was recorded as put premium with a charge to interest expense for the assigned and
restated note. The Trillium Partners LP note principal and accrued interest was fully converted into 115,669 shares of common stock
by November 27, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On October 23, 2018 Porta Pellex assigned
$62,500 all of the remaining principal balance of its note to Jefferson Street Capital LLC along with $7,500 of accrued interest.
The assigned portion of the note was restated to provide for conversion of interest and principal into common shares at the lower
of: 50% discount to the lowest bid price over the 20 trading days prior to conversion notification; or 50% of the lowest bid price
during the 20 trading days prior to the closing date of the related assignment. This modification was treated as a debt extinguishment.
In connection with the issuance of this Note, the Company determined that the terms of the modified Note contain a conversion formula
that caused variations in the conversion price resulting in the treatment of the conversion option as a bifurcated derivative to
be accounted for at fair value. Accordingly, under the provisions of FASB ASC Topic No. 815-40, "Derivatives and Hedging
– Contracts in an Entity's Own Stock", the embedded conversion option contained in the convertible instruments
were accounted for as derivative liabilities at the date of assignment and shall be adjusted to fair value through earnings at
each reporting date. The fair value of the embedded conversion option derivatives was determined using the Binomial valuation model.
In connection with this Note, on the initial measurement date of October 23, 2018, the fair values of the embedded conversion option
derivative of $78,471 was recorded as derivative liabilities, $15,971 was charged to operations on the modification date as initial
derivative expense, and $62,500 was recorded as a debt discount and is being amortized into interest expense over the expected
holding period of the restated note. The Jefferson Street Capital LLC note principal and accrued interest was fully converted
into 128,620 shares of common stock by December 5, 2018. A net loss on debt extinguishment of $14,057 was recorded during the year
ended September 30, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On August 15, 2019, the Company entered
into a lending arrangement with Fora Business Loans, LLC for financing at Howco with Bantec as co-borrower, with a principal amount
of $210,000. Howco received $146,250, in cash, $3,750 was charged to expenses and $60,000 was charged to original issue discount
to be amortized over the life of the arrangement. Under the terms of the agreement Fora receives 245 payments of $854, for each
business day followed by a final payment of $853. The lending agreement includes security interests in Howco assets and a personal
guarantee from the CEO of the Company. The principal balance was $184,390 at September 30, 2019. Following a second financing
with FORA (see below) the principal balance was $0 at June 2, 2020 and September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On September 18, 2019, the Company entered
into a sale of future revenues arrangement with PIRS Capital, LLC for Howco with a purchase amount of $195,840. Howco received
$149,541, as the purchase price in cash, $3,459 was charged to expenses and $42,840 was recorded as original issue discount to
be amortized over the life of the arrangement. Under the terms of the agreement PIRS receives 172 payments of $1,139, for each
business day to be repaid from the accounts receivable related to the future revenues: The lending agreement includes security
interests in Howco assets and a personal guarantee from the CEO of the Company. This sale of future revenues is treated as debt
and the principal balance was $187,870 at September 30, 2019 and was fully repaid as of September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 1, 2018 the Company entered into
a consulting and services arrangement with Livingston Asset Management. The arrangement provides for financial management services
including accounting and related periodic reporting among other advisory services. The agreement was amended on July 1, 2019 regard
payment terms. Under the amended agreement the Company will issue to Livingston Asset Management Fee Notes having principal of
$17,000, interest of 10% per annum, maturity of six or seven months. The Company will also pay $3,000 in cash due on the first
of each month. Following the assignments during fiscal year 2020, to Alpha Capital Anstalt and TBV LLC, the principal and accrued
interest of the promissory notes described below, held by Livingston totaled, $85,000 and $6,760, respectively at September 30,
2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 1, 2019, the Company issued
a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default
and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date.
The note bears interest at 10% and matures in six months. At September 30, 2020, accrued interest was $1,637.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 1, 2019, the Company issued
a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default
and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date.
The note bears interest at 10% and matures in six months. At September 30, 2020, accrued interest was $1,495.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 1, 2019, the Company issued
a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default
and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date.
The note bears interest at 10% and matures in six months. At September 30, 2020, accrued interest was $1,353.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 1, 2020, the Company issued
a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default
and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date.
The note bears interest at 10% and matures in six months. At September 30, 2020, accrued interest was $1,209.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 1, 2020, the Company issued
a promissory note to Livingston Asset Management LLC, for $17,000, under the terms of the agreement above. The note is now in default
and there are no cross-default provisions in the note. The principal amount was charged to professional fees on the issuance date.
The note bears interest at 10% and matures in six months. At September 30, 2020, accrued interest was $1,067.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 28, 2020, the Company's
subsidiary Howco entered into a Payment Rights Purchase and Sale Agreement financing with EBF Partners, LLC, (merchant cash advance
or "MCA") with a principal amount of $208,500. Howco received $147,355, in cash, net of original issue discount of
$58,500, and legal and other fees totaling $2,645, which will be amortized to interest expense over the term of the financing.
The CEO is a personal guarantor for the MCA. Howco will make payments each business day by way of an ACH withdrawal of $1,489,
for 140 payments. The loan is secured by receipts from future revenue transactions. The principal balance was fully repaid as of
September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 7, 2020, the Company through
Howco, entered into a bank loan which is guaranteed by the Small Business Administration under the Paycheck Protection Plan
for $220,709. The loan has a maturity of 24 months and an interest rate of .98%, which starts accruing on April 7, 2020. The
loan will be forgiven provided the terms of forgiveness upon submission of a valid application for loan forgiveness when
approved by the agent bank. The terms call for Howco to use 75% of the funded amount for payroll costs. Howco has put in
place controls designed to ensure compliance with the terms of forgiveness. The amount forgiven will be recognized as gain on
debt extinguishment when approved. Any amount that is not forgiven is to be paid over the 18 months following the 6 month deferral period.
The application for forgiveness has not been submitted and principal of $220,709 remained outstanding at September 30,
2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 2, 2020, the Company entered into
a financing arrangement through its subsidiary Howco with Fora Financial Business Loans, LLC. Howco received $150,000, net of discounts
totaling $60,000 and less legal and underwriting fees of $3,750 and prior loan payoff amount of $40,975. A total of $210,000 will
be paid by direct debit of Howco's bank account of $854, for 245 daily installments payments. The Company will recognize
a principal amount of $210,000 with debt discounts of $63,750, and liquidate the principal balance and related discounts from the
2019 financing. The Company's CEO is a personal guarantor on financing facility. As of September 30, 2020, the principal
balance is $140,854, with unamortized debt discount of $28,944, having a net balance of $111,910.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 25, 2020, the Company entered
into a financing arrangement through its subsidiary Howco with IOU. Howco received $199,405 less fees of $595 and Original Issue
Discount of $22,000 and deferred finance charges of $47,606, for a total of $70,201 to be amortized over the term of the note.
A total of $269,606 will be paid by direct debit of Howco's bank account of $5,173, for 52 weekly payments and 1 payment
of $620. The Company recognized a principal amount of $269,606 with debt discounts of $70,201. The Company's CEO is a personal
guarantor on financing facility. As of September 30, 2020, the principal balance is $243,742, with unamortized debt discount of
$58,110 having a net balance of $185,632.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 11, 2020, the Company issued
a promissory note in the amount of $150,000 to Trillium Partners LP and received the fully amount of the note in cash. The note includes cross-default provisions. The note matures on March 31, 2021 and bears interest of 2%. The principal balance
was $150,000 at September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-family: Times New Roman, Times, Serif"><b>NOTE
15 - <font style="font-variant: small-caps"><u>INCOME TAXES</u></font></b></font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company recognizes deferred tax assets
and liabilities for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation
allowance is established to reduce the deferred tax assets if it is more likely than not that a deferred tax asset will not be
realized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of September 30, 2020, the Company has net operating loss
carryforwards of approximately $12,096,000 to reduce future taxable income. Of the $12,096,000, approximately $9,222,000, can be
used through 2039, and $2,874,438 may be carried forward indefinitely. A valuation allowance for the entire amount of deferred
tax assets has been established as of September 30, 2020 and 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The provision for (benefit from)
income taxes consists of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<br />
September 30,<br />
2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<br />
September 30,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify">Current</td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-indent: -0.125in; text-align: justify">Federal</td><td> </td>
<td style="text-align: justify">$</td>
<td style="text-align: right">            -</td><td> </td><td> </td>
<td style="text-align: justify">$</td>
<td style="text-align: right">           -</td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-indent: -0.125in; text-align: justify">State</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: justify; padding-bottom: 1.5pt"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify">Deferred</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-indent: -0.125in; text-align: justify">Federal</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt">State</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 4pt">Total income tax provision (benefit)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">A reconciliation of the provision for income
taxes at the federal statutory rates of 21% to the Company's provision for income tax is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Year Ended<br /> September 30,<br /> 2020</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Year Ended<br /> September 30,<br /> 2019</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; width: 76%; text-align: justify; text-indent: -9pt; padding-left: 9pt">U.S. Federal (tax benefit) provision at statutory rate</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">(908,947</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">1,494,183</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">State (tax benefit) income taxes, net of federal benefit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(365,743</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(601,231</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">Permanent differences</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">719,942</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,017,899</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">True up</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,323,938</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(575,537</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">Change in Federal tax rate</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Changes in valuation allowance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,769,189</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,653,052</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 0.25in">Total</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Deferred income taxes reflect the net tax
effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for income tax purposes. The following table presents the significant components of the Company's deferred tax
assets and liabilities for the periods presented: </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: justify"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">September 30,<br /> 2020</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">September 30,<br /> 2019</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: italic bold 10pt Times New Roman, Times, Serif; text-align: justify">Deferred Tax Assets</td><td style="font-size: 10pt"> </td>
<td colspan="2" style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt"> </td><td style="font-size: 10pt"> </td>
<td colspan="2" style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; width: 76%; text-align: justify; text-indent: -9pt; padding-left: 0.25in">Stock-based compensation</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">811,285</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">845,730</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 0.25in">Accrued salary - unpaid</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">768,803</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">569,388</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 0.25in">Net operating losses</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,562,416</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,496,575</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Other</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 27pt">Total deferred tax assets</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,142,504</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,911,693</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Valuation allowance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,142,504</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(6,911,693</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Net deferred tax assets</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; text-indent: -9pt; padding-left: 9pt"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: italic bold 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -9pt; padding-left: 9pt">Deferred Tax Liabilities</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Identifiable intangibles - Howco Purchase</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 27pt">Total deferred tax liabilities</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 27pt">Net deferred tax</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company determines its valuation allowance
on deferred tax assets by considering both positive and negative evidence in order to ascertain whether it is more likely than
not that deferred tax assets will be realized. Realization of deferred tax assets is dependent upon the generation of future taxable
income, if any, the timing and amount of which are uncertain. Due to the history of losses the Company has generated in the past,
the Company believes that it is not more likely than not that all of the deferred tax assets in the U.S. can be realized as of
September 30, 2020 and 2019, accordingly, the Company has recorded a full valuation allowance on its U.S. deferred tax assets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company files income tax returns in
the United States on federal basis and various states. The Company is not currently under any international or any United States
federal, state and local income tax examinations for any taxable years. All of the Company's net operating losses are subject
to tax authority adjustment upon examination.</p>
1653052
-1769189
-575537
2323938
1017899
719942
-601231
-365743
1494183
-908947
6911693
5142504
6911693
5142504
5496575
3562416
569388
768803
845730
811285
The Company has net operating loss carryforwards of approximately $12,096,000 to reduce future taxable income. Of the $12,096,000, approximately $9,222,000, can be used through 2039, and $2,874,438 may be carried forward indefinitely. A valuation allowance for the entire amount of deferred tax assets has been established as of September 30, 2020 and 2019.
34000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Long-Lived Assets</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-lived assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment is determined by
comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from use
of the assets and their ultimate disposition. In instances where impairment is determined to exist, the Company writes down the
asset to its fair value based on the present value of estimated future cash flows.</p>
117061
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 2 <font style="font-variant: small-caps">- <u>SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN</u></font></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Principles of Consolidation</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
include the accounts of Bantec, Inc. and its wholly-owned subsidiaries, Drone USA, LLC (inactive), Bantec Construction LLC (inactive),
and Howco. All significant intercompany accounts and transactions have been eliminated in consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Going Concern</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability of assets and the
satisfaction of liabilities in the normal course of business. For the year ended September 30, 2020, the Company has incurred a
net loss of $4,328,318 and used cash in operations of $491,000. The working capital deficit, stockholders' deficit and accumulated
deficit was $16,214,281, $17,944,973 and $31,074,769, respectively, at September 30, 2020. Furthermore, on September 6, 2019 the
Company received a default notice on its payment obligations under the senior secured credit facility agreement (see Note 10),
defaulted on its Note Payable – Seller in September 2017 and has since defaulted on other promissory notes. As of September
30, 2020 the Company has received demands for payment of past due amounts from several consultants and service providers. It is
management's opinion that these matters raise substantial doubt about the Company's ability to continue as a going concern for
a period of twelve months from the issuance date of this report. The ability of the Company to continue as a going concern is dependent
upon management's ability to further implement its business plan and raise additional capital as needed from the sales of stock
or debt. The Company has continued to implement cost-cutting measures and restructuring or setting up payment plans with vendors
and service providers and plans to raise equity through a private placement, and restructure or repay its secured obligations.
The accompanying consolidated financial statements do not include any adjustments that might be required should the Company be
unable to continue as a going concern.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Use of Estimates</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of consolidated financial statements
in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the allowance
for bad debt on accounts receivable, reserves on inventory, valuation of goodwill and intangible assets for impairment analysis,
valuation of the lease liability and related right-of-use asset, valuation of stock-based compensation, the valuation of derivative
liabilities and the valuation allowance on deferred tax assets. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Fair Value Measurements</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the FASB <i>Fair Value
Measurements</i> standard, as they apply to its financial instruments. This standard defines fair value, outlines a framework for
measuring fair value, and details the required disclosures about fair value measurements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair value is defined as the price that would
be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement
date. The standard establishes a hierarchy in determining the fair value of an asset or liability. The fair value hierarchy has
three levels of inputs, both observable and unobservable. Level 1 inputs include quoted market prices for identical assets or liabilities
in an active market that the Company has the ability to access at the measurement date. Level 2 inputs are market data, other than
Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities,
quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs
are unobservable and corroborated by little or no market data. The standard requires the utilization of the lowest possible level
of input to determine fair value and carrying amounts of current liabilities approximate fair value due to their short-term nature.
The Company accounts for certain instruments at fair value using level 3 valuation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-left: 9pt; text-indent: -9pt"> </td>
<td style="text-align: center"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>At September 30, 2020</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>At September 30, 2019</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; padding-left: 9pt; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></font></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level 1</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level 2</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level 3</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level 1</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level 2</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level 3</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 28%; padding-left: 9pt; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Derivative Liability</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">128,628</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">128,628</font></td>
<td style="width: 1%"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A roll-forward of the level 3 valuation financial
instruments is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"> </td>
<td style="padding-bottom: 1.5pt; padding-left: 10pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative<br />
Liabilities</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Balance at September 30, 2018</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">258,296</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Charged to derivative expense on assignment and restatement of note</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">15,971</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Classified as initial debt discount on assignment and restatement of note</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">62,500</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Reduction of derivative recorded as gain on extinguishment upon conversions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(78,471</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Warrant exercises (partial)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(138,430</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Fair Value adjustment - warrants</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">9,355</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Fair Value adjustments - convertible note</font></td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(593</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Balance at September 30, 2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">128,628</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Changes and adjustments during the year ended September 30, 2020</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Balance at September 30, 2020</font></td>
<td> </td>
<td style="border-bottom: black 4.5pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">128,628</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrants were issued to a convertible note
holder in November and December 2017 and initially determined to be equity instruments and recorded as note discount and as additional
paid in capital. On June 4, 2018 the anti-dilutive provision of the warrants took effect and based on the new conversion formula
management determined the warrant became a derivative liability and reclassified the Fair Value on June 4, 2018 from additional
paid-in capital to derivative liability with fair market value changes recognized in operations for each reporting date. The derivative
liability associated with the warrants is $119,777 and the derivative liability for convertible notes is $8,851 at September 30,
2020. (See Notes 10 and 12).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Cash and Cash Equivalents</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash equivalents consist of liquid investments
with maturities of three months or less at the time of purchase. There are no cash equivalents at the balance sheet dates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Accounts Receivable</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Trade receivables are recorded at net realizable
value consisting of the carrying amount less the allowance for doubtful accounts, as needed. Factors used to establish an allowance
include the credit quality of the customer and whether the balance is significant. The Company may also use the direct write-off
method to account for uncollectible accounts that are not received. Using the direct write-off method, trade receivable balances
are written off to bad debt expense when an account balance is deemed to be uncollectible.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Inventory</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory consists of finished goods, which
are purchased directly from manufacturers. The Company utilizes a just in time type of inventory system where products are ordered
from the vendor only when the Company has received sales order from its customers. Inventory is stated at the lower of cost and
net realizable value on a first-in, first-out basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Property & Equipment</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at cost and
depreciated over their estimated useful lives. Maintenance and repairs are charged to expense as incurred. When assets are retired
or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included
in income in the year of disposition. The Company examines the possibility of decreases in the value of these assets when events
or changes in circumstances reflect the fact that their recorded value may not be recoverable. The assets are fully operational
drones used as demonstration units and each unit exceeds management's threshold for capitalization of $2,000. The Company depreciates
these demonstration units over a period of 3 years. Depreciation expense was $11,088 and $11,280 in 2020 and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-indent: -0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Goodwill and Intangible Assets</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's goodwill and tradename assets
are deemed to have indefinite lives and, accordingly, are not amortized, but are evaluated for impairment at least annually, but
more often whenever changes in facts and circumstances occur which may indicate that the carrying value may not be recoverable.
The customer list was initially deemed to have a life of 4 years and was being amortized. Goodwill and intangible assets were determined
to be impaired at September 30, 2019. (See Note 5.)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Long-Lived Assets</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-lived assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment is determined by
comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from use
of the assets and their ultimate disposition. In instances where impairment is determined to exist, the Company writes down the
asset to its fair value based on the present value of estimated future cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45.35pt; text-indent: -0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Deferred Financing Costs</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All unamortized deferred financing costs related
to the Company's borrowings are presented in the consolidated balance sheets as a direct deduction from the related debt. Amortization
of these costs is reported as <i>interest and financing costs</i> included in the consolidated statement of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45.35pt; text-indent: -0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Revenue Recognition</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective October 1, 2018, the Company adopted
Accounting Standards Codification ("ASC") 606, Revenue From Contracts With Customers, which is effective for public business
entities with annual reporting periods beginning after December 15, 2017. This new revenue recognition standard (new guidance)
has a five-step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine the transaction
price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied. The Company's
initial application of ASC 606 did not have a material impact on its financial statements and disclosures and there was no cumulative
effect of the adoption of ASC 606.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company sells a variety of products to
government entities. The purchase orders received specifies each item and its manufacturer; the Company only needs to fulfill the
performance obligation by shipping the specified items. No other performance obligations exist under the terms of the contracts.
The Company recognizes revenue for the agreed upon sales price when the product is shipped to the customer, which satisfies the
performance obligation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company sells drones and related products
manufactured by third parties to various parties. The Company also offers technical services related to drone utilization and performs
other services. The Company began offering insulation jackets for commercial and government facilities to insulate and monitor
heating and cooling equipment. Contracts for drone related products and services and insulating jacket related sales will be evaluated
using the five-step process outline above. There have been no material sales for drone products or other services for which full
compliance with performance obligations has not been met. Sales of insulation jackets have not yet commenced. Upon significant
sales for drone products and services and insulation jackets, the Company will disaggregate sales by these lines of business and
within the lines of business to the extent that the product or service has different revenue recognition characteristics.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Stock-based compensation</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stock-based compensation is accounted for based
on the requirements of ASC 718 – <i>"Compensation –Stock Compensation</i>", which requires recognition in
the financial statements of the cost of employee and director services received in exchange for an award of equity instruments
over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting
period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based
on the grant-date fair value of the award. The Company utilizes the Black-Sholes option pricing model and uses the simplified method
to determine expected term because of lack of sufficient exercise history. Additionally, effective October 1, 2016, the Company
adopted the Accounting Standards Update No. 2016-09 ("ASU 2016-09"<i>), Improvements to Employee Share-Based Payment
Accounting</i>. Among other changes, ASU 2016-09 permits the election of an accounting policy for forfeitures of share-based payment
awards, either to recognize forfeitures as they occur or estimate forfeitures over the vesting period of the award. The Company
has elected to recognize forfeitures as they occur and the cumulative impact of this change did not have any effect on the Company's
consolidated financial statements and related disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of October 1, 2018, the Company has early
adopted ASU 2018-7 Compensation-Stock Compensation which conforms the accounting for non-employees to the accounting treatment
for employees. The new standard replaces using a fair value as of each reporting date with use of the calculated fair value as
of the grant date. The implementation of the standard provides for the use of the fair market value as of the adoption date, rather
than using the value as of the original grant date. Therefore, the values calculated and reported at September 30, 2018 become
a proxy for the grant date value. The Company utilizes the Black-Sholes option pricing model and uses the simplified method to
determine expected term because of lack of sufficient exercise history. There was no cumulative effect on the adoption date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Shipping and Handling Costs</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has included freight-out as a component
of cost of sales, which amounted to $95,634 and $134,826 for the years ended September 30, 2020 and 2019, respectively. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Convertible Notes with Fixed Rate Conversion
Options</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company may enter into convertible notes,
some of which contain, predominantly, fixed rate conversion features, whereby the outstanding principal and accrued interest may
be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion.
This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible
note liability at its fixed monetary amount by measuring and recording a premium, as applicable, on the Note date with a charge
to interest expense in accordance with ASC 480 - "Distinguishing Liabilities from Equity".</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Derivative Liabilities</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has certain financial instruments
that are derivatives or contain embedded derivatives. The Company evaluates all its financial instruments to determine if those
contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance
with ASC 810-10-05-4 and 815-40. This accounting treatment requires that the carrying amount of any derivatives be recorded
at fair value at issuance and marked-to-market at each balance sheet date. In the event that the fair value is recorded as
a liability, as is the case with the Company, the change in the fair value during the period is recorded as either other income
or expense. Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion,
repayment or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or
loss on extinguishment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Lease Accounting</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued a new accounting
standard on leases. The new standard, among other changes, will require lessees to recognize a right-of-use asset and a lease liability
on the balance sheet for all leases. The lease liability will be measured at the present value of the lease payments over the lease
term. The right-of-use asset will be measured at the lease liability amount, adjusted for lease prepayments, lease incentives received
and the lessee's initial direct costs (e.g. commissions). The new standard is effective for annual reporting periods beginning
after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption will require a
modified retrospective approach for leases that exist or are entered into after the beginning of the earliest period presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's subsidiary has renewed the lease
for the warehouse and office facility in Vancouver, Washington in May 2020 effective June 1, 2020, which extends through May 30,
2023, and is accounted for under ASC 842. The corporate office is an annual arrangement which provides for a single office in a
shared office environment and is exempt from ASC 842 treatment. During the year ended September 30, 2020 the Company recognized
a lease liability of $156,554 and the related right-of-use asset for the same amount and will amortize both over the life of the
lease.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Income Taxes</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's current provision for income
taxes is based upon its estimated taxable income in each of the jurisdictions in which it operates, after considering the impact
on taxable income of temporary differences resulting from different treatment of items for tax and financial reporting purposes.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit
carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in
the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax
assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible.
Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized,
a valuation allowance against the deferred tax assets would be established in the period such determination was made. The Company
follows the accounting for uncertainty in income taxes guidance, which clarifies the accounting and disclosures for uncertainty
in income taxes recognized in the Company's financial statements and prescribes a recognition threshold and measurement attribute
for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also
provides guidance on derecognition and measurement of a tax position taken or expected to be taken in a tax return.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company currently has no federal or state
tax examinations in progress. As of September 30, 2020, the Company's tax returns for the tax years 2020, 2019 and 2018 remain
subject to audit, primarily by the Internal Revenue Service.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company did not have material unrecognized
tax benefits as of September 30, 2020 and 2019 and does not expect this to change significantly over the next 12 months. The Company
will recognize interest and penalties accrued on any unrecognized tax benefits as a component of provision for income taxes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Net Loss Per Share</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic loss per share is calculated by dividing
the loss attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted loss per share
reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock that shared in the earnings (loss) of the Company. Diluted loss per
share is computed by dividing the loss available to stockholders by the weighted average number of shares outstanding for the period
and dilutive potential shares outstanding unless such dilutive potential shares would result in anti-dilution. As of September
30, 2020, 17,755 options were outstanding of which 14,427 were exercisable, 25,484,484 warrants were outstanding and exercisable,
and related party convertible debt and accrued interest totaling $1,304,258 was convertible into 526,400,307 shares of common stock.
Additionally, as of September 30, 2020, the outstanding principal balance, including accrued interest of the third-party convertible
debt, totaled $7,628,312 and was convertible into 2,068,874,026 shares of common stock. It should be noted that contractually the
limitations on the third-party notes (and the related warrant) limit the number of shares converted to to either 4.99% or 9.99%
of the then outstanding shares. As of September 30, 2020, and 2019, potentially dilutive securities consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30,<br />
2020</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30,<br />
2019</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Stock options</font></td>
<td style="width: 1%"> </td>
<td style="border-bottom: black 4.5pt double; width: 1%"> </td>
<td style="border-bottom: black 4.5pt double; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">17,755</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="border-bottom: black 4.5pt double; width: 1%"> </td>
<td style="border-bottom: black 4.5pt double; width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">17,775</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Warrants</font></td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,484,484</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,198,271</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Related party convertible debt and accrued interest</font></td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">526,400,307</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">11,162,896</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Third party convertible debt (including senior debt)</font></td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,068,874,206</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">83,780,049</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 0.25in; text-align: justify; text-indent: -9pt"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,620,776,752</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">96,158,991</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Segment Reporting</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company uses "the management approach"
in determining reportable operating segments. The management approach considers the internal organization and reporting used by
the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining
the Company's reportable segments. The Company's chief operating decision maker is the chief executive officer of the Company,
who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. As
of September 30, 2020, the Company did not report any segment information since the Company only generates sales from its subsidiary,
Howco.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Reclassification</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Two loan amounts under long term liabilities
have been combined into one line item at September 30, 2019 to conform with 2020 presentation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> <i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Recent Accounting Pronouncements</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On August 5, 2020,
the Financial Accounting Standards Board (FASB) issued accounting standards update (ASU) No. 2020-06, <i>Debt—Debt with
Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)</i>.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The amendments in
the ASU remove certain separation models for convertible debt instruments and convertible preferred stock that require the separation
of a convertible debt instrument into a debt component and an equity or derivative component. The ASU also amends the derivative
scope exception guidance for contracts in an entity's own equity. The amendments remove three settlement conditions that are required
for equity contracts to qualify for the derivative scope exception.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">In addition to the
above, the ASU expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share
calculations that are impacted by the amendments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The ASU is effective
for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding smaller reporting
companies as defined by the SEC, for fiscal years beginning after December 15, 2021. Early adoption is permitted. The FASB noted
that an entity should adopt the guidance as of the beginning of its annual fiscal year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Entities may elect to adopt the amendments
through either a modified retrospective method of transition or a fully retrospective method of transition. If an entity has convertible
instruments that include a down round feature, early adoption of the ASU is permitted for fiscal years beginning after December
15, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not believe that any other
recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated
financial statements.</p>
50000
263000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Going Concern</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial
statements have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability of assets
and the satisfaction of liabilities in the normal course of business. For the year ended September 30, 2020, the Company has incurred
a net loss of $4,328,318 and used cash in operations of $491,000. The working capital deficit, stockholders' deficit and
accumulated deficit was $16,214,281, $17,944,973 and $31,074,769, respectively, at September 30, 2020. Furthermore, on September
6, 2019 the Company received a default notice on its payment obligations under the senior secured credit facility agreement (see
Note 10), defaulted on its Note Payable – Seller in September 2017 and has since defaulted on other promissory notes. As
of September 30, 2020 the Company has received demands for payment of past due amounts from several consultants and service providers.
It is management's opinion that these matters raise substantial doubt about the Company's ability to continue as a
going concern for a period of twelve months from the issuance date of this report. The ability of the Company to continue as a
going concern is dependent upon management's ability to further implement its business plan and raise additional capital
as needed from the sales of stock or debt. The Company has continued to implement cost-cutting measures and restructuring or setting
up payment plans with vendors and service providers and plans to raise equity through a private placement, and restructure or repay
its secured obligations. The accompanying consolidated financial statements do not include any adjustments that might be required
should the Company be unable to continue as a going concern.</p>
114194
100000
1527262
1598246
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
9 -<u>CONVERTIBLE NOTES PAYABLE – RELATED PARTY OFFICER AND HIS AFFILIATES</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Convertible
Notes</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
related party officer and his affiliates convertible notes balance consisted of the following at September 30, 2020 and 2019:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Principal</font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">945,227</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">887,439</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt"><font style="font: 10pt Times New Roman, Times, Serif">Premiums</font></td><td style="padding-bottom: 1.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">846,085</font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">32,000</font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,791,312</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">919,439</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 1.5pt"><font style="font: 10pt Times New Roman, Times, Serif">Current
portion, including premiums</font></td><td style="padding-bottom: 1.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(64,000</font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; padding-bottom: 4pt"><font style="font: 10pt Times New Roman, Times, Serif">Long
term</font></td><td style="padding-bottom: 4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 4pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 4pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,791,312</font></td><td style="padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 4pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 4pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">855,439</font></td><td style="padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Most
of the related party notes included a cross-default clause which in event of a default on another note holder’s note causes
a default on the related party notes. The CEO has amended those notes effective September 30, 2020 to remove the clauses.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has a $840,000 convertible note payable ("Note 1") to a related party entity controlled by the Company's CEO. Note 1 bear's
interest at an annual rate of 7% with an original maturity date of June 11, 2017, which has been extended to June 11, 2022, at
which time all unpaid principal and interest is due. The holder of Note 1 has the option to convert the outstanding principal
and accrued interest, in whole or in part, into shares of common stock at a conversion price equal to the volume weighted average
price per share of common stock for the 30-day period prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 15, 2020, the Company amended the above Note 1 first issued to AIG and subsequently assigned to Pike Falls LLC (entities
controlled by the Company's CEO) in amount of $840,000, with a principal and accrued interest balance of $688,444, and $210,409,
respectively at June 30, 2020. The amendment changes conversion terms, which now state the note principal and interest may be
converted to common stock at 50% of the lowest closing bid price during thirty days prior to conversion, increases the interest
rate to 10%, and has a maturity date of January 7, 2022. The change in conversion terms has been treated as a debt extinguishment
and the modified note is treated stock settled debt under ASC 480, and a put premium of $688,444 was recognized with a charge
to loss on debt extinguishment. As of September 30, 2020, Note 1 has been partially converted and the principal balance was $377,194
and accrued interest was $221,323.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has a convertible note payable (for an unspecified amount) with the Company's CEO. This line of credit ("LoC") bears interest
at an annual rate of 7% with a maturity date of December 31, 2017, at which time all unpaid principal and interest was due. On
December 15, 2017 the due date was extended to July 2, 2018 and then in July, 2018, the due date was extended to June 30, 2019,
and on December 23, 2018 the maturity date of the LoC was extended to September 23, 2024. The holder of the LoC has the option
to convert the outstanding principal and accrued interest, in whole or in part, into shares of common stock at a conversion price
equal to the volume weighted average price per share of common stock for the 30-day period prior to conversion. During the year
ended September 30, 2020 the Company was advanced $64,940 and repaid $132,803, on this LoC. As of September 30, 2020 and 2019,
the LoC has not been converted, the balance was $99,142 and $166,995, and accrued interest was $31,260 and $21,838, respectively.
This LoC is considered a stock settled debt in accordance with ASC 480 and the fixed monetary amount is equal to the principal
amount based on the conversion formula.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
July 2, 2019, the Company issued a convertible note payable ("Note 2") to an affiliate of the Company's CEO for a $15,000, cash
loan. The funds were paid directly to a vendor to the Company. The note had an original maturity of June 9, 2020, however the
note was amended effective September 30, 2020 and new maturity is May 31, 2022. The note bears interest at 10% and may be converted
to the Company's common stock at 50% of the lowest closing bid in the 20 trading days prior to notification of conversion. The
Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $15,000
with a charge to interest expense for the note. The note principal and put premium were $15,000, and $15,000, at September 30,
2020 and 2019. Accrued interest was $1,843, at September 30, 2020.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
September 13, 2019, the Company issued a convertible note payable to an entity controlled by the Company's CEO for a $17,000,
cash loan. The note had an original maturity of June 9, 2020, however the note was amended effective September 30, 2020 and
the new maturity is May 31, 2022. The note bears interest at 10% and may be converted to the Company's common stock at 50% of
the lowest closing bid in the 20 trading days prior to notification of conversion. The Company has accounted for the
convertible promissory note as stock settled debt under ASC 480 and recorded debt premium of $17,000 with a charge to
interest expense for the notes. The note principal and put premium were $17,000, and $17,000, at September 30, 2020 and 2019.
Accrued interest was $1,799, at September 30, 2020.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 30, 2018 the Company issued a promissory note to the CEO for a $400,000, cash loan. The note bears interest at 12% per
annum, matures on January 7, 2024 and required monthly payment of principal of $5,000 with a balloon payment at maturity.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 14, 2020, the Company amended the above note first issued to Michael Bannon (the Company's CEO) on December 30, 2018, in
amount of $400,000, with a principal and interest balance of $367,500, and $76,619, respectively at September 30, 2020. The amendment
adds conversion terms, which state the note principal and interest may be converted to common stock at 50% of the lowest closing
bid price during thirty days prior to conversion, and reduces the interest rate to 10%, and extends the maturity date to January
7, 2024. The change in conversion terms has been treated as a debt extinguishment and the new note is considered a stock settled
debt under ASC 480, and put premium of $367,500 has been recognized with a charge to interest expense.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
January 19, 2019 the Company issued a, promissory note to the CEO for a $200,000, cash loan. The note bears interest at 12% per
annum, matures on September 23, 2021 and requires monthly payments of $2,500 principal.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 14, 2020, the Company amended the note first issued to Michael Bannon (the Company's CEO) on January 19, 2019, in amount
of $200,000, with a principal and interest balance of $195,000, and $17,947. The amendment adds conversion terms, which state
the note principal and interest may be converted to common stock at 50% of the lowest closing bid price during thirty days prior
to conversion, and reduces the note interest rate to 10%, and extends the maturity date to April 15, 2026. The change in conversion
terms has been treated as a debt extinguishment and the new note is considered a stock settled debt under ASC 480, and put premium
of $195,000 has been recognized with a charge to loss on debt extinguishment. During 2020, $14,250 was repaid and $180,750 was
converted to common stock. The note principal balance of $195,000 has been fully extinguished at September 30, 2020 and accrued
interest was $20,855.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
July 1, 2019, the Company entered into a purchase order financing agreements with an entity controlled by the Company's CEO ("Pike
Falls") for a cash advances to Howco. The advances are to be for 100% of the face value of the purchase orders to be repaid with
accounts receivable related to the sales of the products underlying the purchase orders. Pike Falls receives 4% of the purchase
price for the first 45 days and .00086% per day thereafter on the unpaid balance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 15, 2020, the Company issued a convertible note payable to Michael Bannon (the Company's CEO) in the principal amount of
$69,391, in replacement for the amounts owed to an entity controlled by Mr. Bannon (above) The new note interest rate is 10%,
and it matures on January 31, 2022. The new note principal and interest may be converted into the Company's common stock at 50%
of the lowest closing bid price in the thirty days preceding the conversion notice. This issuance is treated as a debt extinguishment
of the old note and the new note conversion terms have been treated as stock settled debt under ASC 480, and put premium of $69,391
has been recognized with a charge to interest expense. The principal and accrued interest were $69,391 and $5,332 respectively
as of September 30, 2020.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-family: Times New Roman, Times, Serif"><b>NOTE
16 - <font style="font-variant: small-caps"><u>COMMITMENTS AND CONTINGENCIES</u></font></b></font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><u>Contingencies</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Legal Matters</i> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On February 6, 2018 the Company sent a
letter to the previous owners of Howco Distributing Co. ("Howco") alleging that they made certain financial misrepresentations
under the terms of the Stock Purchase Agreement by which the Company acquired control of Howco during 2016. The Company claimed
that the previous owners took excessive amounts of cash from the business prior to the close of the merger. On March 13, 2018 the
Company filed a lawsuit against the previous owners by issuing a summons. On April 12, 2018, the Company received the Defendants'
answer. On July 22, 2019, the Company was granted a dismissal without prejudice of the lawsuit filed against the previous owners
of Howco. The Company and the previous owners are in discussion to settle the matter as of September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">In connection with the merger in fiscal
2016, with Texas Wyoming Drilling, Inc., a vendor has a claim for unpaid bills of approximately $75,000 against the Company. The
Company and its legal counsel believe the Company is not liable for the claim pursuant to its indemnification clause in the merger
agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 11, 2019, the Supreme Court
of the State of New York issued a summons to the former CFO of the Company, to appear before the court to answer the Company's
complaint seeking payment under a personal guarantee of the defendant to provide half of any compensation paid to the former Chief
Strategy Officer. The Company is seeking $300,000 from the defendant relating to the November 27, 2018 settlement agreement with
the former Chief Strategy Office for $600,000. The former CFO has responded to the suit and has filed a motion to dismiss the Company's
suit during August of 2019. The judge presiding ruled to dismiss the defendant's motion. Currently, the Company is in discussion
with the former CFO's legal counsel to resolve the matter.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On April 10, 2019, a former service provider
filed a complaint with three charges with the Superior Court Judicial District of New Haven, CT seeking payment for professional
services. The Company has previously recognized expenses of $218,637, which remain unpaid in accounts payable. The Company has
retained an attorney who is currently working to address the complaint. On August 9, 2019 the Company filed a motion to dismiss
the charge of unjust enrichment. The judge granted the Company's motion to dismiss. The Company, through its attorney, is
working to negotiate a settlement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">During the year ended September 30, 2019,
two vendors (The Equity Group and Toppan Vintage) have asserted claims for past due amounts of approximately $59,000, arising from
services provided. The Company has fully recognized in accounts payable the amounts associated with these claims and expects to
resolve the matters to satisfaction of all parties. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The Impact of COVID-19</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is a wholesale vendor to the Department of Defense
through its wholly owned subsidiary, Howco and is directly involved in distribution and integration of advanced low altitude UAV
systems, services and products. Both the wholesale vendor and the integration/distribution aspects of the Company's business
have been affected due to the COVID-19 social distancing requirements mandated by the federal, state and local governments where
the Company's operations occur. For some businesses, like the Company's, much of the integration and distribution of
its core products and delivery of its core services cannot always be done through "virtual" means, and even when this
is possible, it requires significant capital and time to achieve. During the year ended September 30, 2020 sales and shipments
at Howco have continued at a lower rate than during the year ended September 30, 2019. It is anticipated that there may be a higher
impact on the Company's operations of COVID-19 being realized during the year ended September 30, 2020, however the Company
cannot assess the financial impact of the related COVID-19 restrictions as compared to other economic and business factors.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><u>Settlements</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On January 29, 2018, the Company entered
into a settlement agreement and mutual release with a vendor who had provided public relations and other consulting services whereby
the Company shall pay to this vendor an aggregate amount of $60,000 of which $30,000 was paid on February 2, 2018. The Company
was to have paid ten monthly payments of $3,000 per month beginning on February 29, 2018. The vendor is to return 400 common shares
of the Company's common stock which will be cancelled upon satisfaction of the liability. The liability is recorded at $21,000
as of September 30, 2020 and 2019. The Company is in discussion with the vendor to address the past due amounts.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 13, 2018 the Company and a
vendor agreed to settle $161,700 in past due professional fees for a convertible note in the amount of $90,000. The note bears
interest at 5% and matures in July 2019, and has a fixed discount conversion feature. The note is now past due and remains unconverted
at September 30, 2020; however there is no default interest of penalty associated with the default. The accrued balance as accounts
payable of $71,700 was recognized as a gain on debt extinguishment upon receipt of the waiver and release from the vendor.</p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During 2016, Company entered into an employment
agreement with the Company's former Chief Strategy Officer which provided for annual base compensation of $400,000 for a
period of three years and provided for other additional benefits as defined in the agreement including a signing bonus of $100,000
payable during the first year of employment. During November 2018 the Company reached an agreement and executed a related stipulation
and payment terms agreement stemming from the 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 were due starting on January 15, through December 15, 2019.
As of December 31, and September 30, 2019, unpaid balance related to the settlement were $54,000 and $131,724, respectively. The
amount owed under the settlement was approximately $54,000, at December 31, 2019, which was paid on February 27, 2020, to the US
Department of Treasury for taxes and other Federal obligations withheld along with employer payroll taxes.</p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 30, 2020, a Howco vendor filed
a lawsuit seeking payment of past due invoices totaling $276,430 and finance charges of $40,212. The Company has recorded the liability
for the invoices in the normal course of business. Management at Howco as well as a consultant are in negotiation with the vendor
and their legal counsel and expect to settlement the matter.</p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">As of September 30, 2020, the Company has
received demand for payment of past due amounts for services by several consultants and service providers.</p>
<p style="margin: 0pt 0; font-size: 7pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><u>Commitments</u></p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Lease Obligations</i></p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The Company entered into an agreement with
a manufacturer in Pismo Beach, California. The agreement provides for certain services to be provided by the manufacturer as needed
by the Company. The agreement has an initial term of three years with one year renewals. In connection with this agreement, the
Company has agreed to sublease space based in San Luis Obispo, California from the manufacturer for the purposes of the development
and manufacturing of unmanned aerial vehicles. The lease provides for base monthly rent of approximately $15,000 for the initial
term to be increased to $16,500 per month upon extension. The lease term begins February 1, 2017 and expires January 31, 2019 with
the option to extend the term an additional 24 months. However, the Company never took possession of the premises and in July 2017,
the Company made a decision to not take possession of the premises. The Company is in default of the rent payments and had received
oral demand for payments. As of September 30, 2020, the Company has not made any of the required monthly rent payments in connection
with this agreement. During fiscal 2017, the Company had expensed and accrued into accounts payable the remaining amounts due under
the term of the lease for a total accrual of $360,000 pursuant to ASC 420-10-30. This balance remains accrued as of September 30,
2020 and September 30, 2019.</p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On April 16, 2020 the Company's subsidiary
Howco renewed its office and warehouse lease in Vancouver, WA for a term commencing on June 1, 2020 extending through June 1, 2023
at an initial monthly rent of approximately $5,154. The lease requires monthly payments including base rent plus CAM with annual
increases. </p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognized a right-of-use asset
of and a lease liability of $156,554, which represents the fair value of the lease payments calculated as present value of the
minimum lease payments using a discount rate of 10% on date of the lease renewal in accordance with ASC 842. The asset and liability
will be amortized as monthly payments are made and lease expense will be recognized on a straight-line basis over the term of the
lease.</p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">Right of use asset (ROU) is summarized below:</font></p>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30,<br /> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">Operating lease at inception - June 2, 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">156,554</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Less accumulated reduction</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(17,778</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt">Balance ROU asset as of September 30, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">138,776</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt 0; font-size: 7pt; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Operating lease liability related to the ROU asset is summarized below:</p>
<p style="margin: 0; font-size: 7pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">Operating lease liabilities at inception - June 2, 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">156,554</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Reduction of lease liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(17,383</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Total lease liabilities - September 30, 2020</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">139,171</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Less: current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(52,180</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Lease liabilities, non-current</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">86,991</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0; font-size: 7pt"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Non-cancellable operating lease total future payments at September 30, 2020 are summarized below:</font></p>
<p style="margin: 0; font-size: 7pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left; padding-bottom: 4pt">Total minimum operating lease payments</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">168,483</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt">Less discount to fair value</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(29,312</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Total lease liability at September 30, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">139,171</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Future minimum lease
payments under non-cancellable operating leases at September 30, 2020 are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left">Years ending September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 87%; text-align: left">2021</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">62,185</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">2022</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">63,369</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: left">2023</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">42,929</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Total minimum non-cancelable operating lease payments</font></td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">168,483</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the years ended September 30, 2020 and
2019, rent expense for all leases amounted to $67,356 and $59,737, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">In December 2019, the Company relocated
its primary office to 195 Paterson Avenue, Little Falls, New Jersey, under a one-year lease with a renewal option having monthly
payments of $500.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Profit Sharing Plan (for Howco)</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On April 13, 2018, Howco announced to its
employees a Company-wide profit sharing program. The employee profit share is equal to their annual salary divided by the Company's
total annual payroll and multiplied by 10% of net income for the fiscal year. During the years ended September 30, 2020 and 2019
the employees earned $0 and $0, under this plan.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Notice of Default</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On September 6, 2019, the Company received
a notice of default under its senior secured credit facility with TCA, for non-payment of amounts due among other matters. Left
uncured the default remedies include seizure of operating assets such as the Company's subsidiary. Additionally, the default
may trigger cross default provisions under other agreements with other creditors.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On December 30, 2019, the Company failed
to pay the principal and accrued interest on its February 27, 2019, convertible note payable to Redstart Holdings Corp upon its
maturity. Legal counsel for the note holder submitted a demand notice for payment for 150% of the remaining principal balance of
$63,000, amounting to $94,500, plus accrued interest. The Company recorded the default penalty with a charge to interest expense
and increased the principal of the note as of December 30, 2019. The Company also recognized the additional put premium of $22,810,
related to the increased principal as interest expense for stock settled debt.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">During the year ended September 30, 2020,
Crown Bridge Partners notified the Company of a default on their convertible note dated March 1, 2019. The principal was increased
by charges of $17,500 for technical default effective June 30, 2020 and an additional put premium was calculated to be $26,250.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Directors' & Officers'
Insurance Policy Expiration</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On October 11, 2019, the Company's
insurance policy covering directors and officers expired and the carrier declined to renew the policy. The Company is working with
its broker and other carriers to obtain coverage. This lapse of insurance coverage exposes the Company to the risk associated with
its indemnification of its officers against legal actions by third parties as outlined in the officers' employment agreements
as amended on September 16, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-family: Times New Roman, Times, Serif"><b>NOTE
18 - <font style="font-variant: small-caps"><u>SUBSEQUENT EVENTS</u></font></b></font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Legal Matters</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 30, 2020, a Howco vendor filed
a lawsuit seeking payment of past due invoices totaling $276,430 and finance charges of $40,212. The Company has recorded the liability
for the invoices in the normal course of business. Management at Howco as well as a consultant are in negotiation with the vendor
and their legal counsel and expect to settlement the matter.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Shares Issued for Subscription</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Between October 7 and December 23, 2020,
the Company issued 322,550,196 shares of common stock to Trillium Partners LP for $564,463 of cash under the terms of the S-1A
offering statement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Shares Issued – Employees and
Non-employees</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 22, 2020, the Company issued
10,000,000 shares of common stock to a consultant for services rendered, which were valued at $0.0034, based on the stock price
on the date of the grant. The cost of $34,000 was charged to consulting expense</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 22, 2020, the Company granted
1,000,000 shares of common stock to an employee, which were valued at $0.0034, based on the stock price on the date of the grant.
The cost of $3,400 was charged to compensation expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 22, 2020, the Company granted
5,000,000 shares of common stock to an employee, which were valued at $0.0034, based on the stock price on the date of the grant.
The cost of $17,000 was charged to compensation expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Shares Issued for Conversions of Convertible
Notes</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Between October 26 – 30, 2020, Geneva Roth Remark Holdings
Inc. converted principal of $60,000 and accrued interest of $3,000 from its convertible note dated April 20, 2020 into 36,006,192
shares of common stock at contracted prices. Following the conversions, the balance of principal and accrued interest was $0.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On November 24, 2020, Livingston Asset
Management LLC converted principal of $17,000, accrued interest of $1,924 and fees of $1,025 into 16,623,800 shares of common stock
at contracted prices. Following the conversion, the October 1, 2019 fee note principal and accrued interest were $0.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On December 1, 2020, Livingston Asset Management
LLC converted principal of $17,000, accrued interest of $1,799 and fees of $1,025 into 16,503,483 shares of common stock at contracted
prices. Following the conversion, the November 1, 2019 fee note principal and accrued interest were $0.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On December 11, 2020, Tri-Bridge Ventures
LLC converted principal of $35,000 and accrued interest of $1,550 into 29,007,611 shares of common stock at contracted prices.
Following the conversion, the May 14, 2020 note principal and accrued interest were $0.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On December 15, 2020, Livingston Asset
Management LLC converted principal of $17,000, accrued interest of $1,770 and fees of $1,025 into 19,794,860 shares of common stock
at contracted prices. Following the conversion, the December 1, 2019 fee note principal and accrued interest were $0.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On December 16, 2020, Alpha Capital Anstalt
converted principal of $21,300, into 16,384,615 shares of common stock at contracted prices. Following the conversion, the February
20, 2020 securities purchase agreement note principal was $70,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Between December 15 – 16, 2020, Geneva Roth Remark Holdings
Inc. converted principal of $53,000 and accrued interest of $2,650 from its convertible note dated June 9, 2020 into 46,375,000
shares of common stock at contracted prices. Following the conversions, the balance of principal and accrued interest was $0.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Convertible Notes Issued</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On October 18, 2020 the Company issued
a convertible promissory note to an attorney for services in the amount of $6,000. The note bears interest at 12%, matures in six
months and is convertible into the Company's common stock at 50% of the lowest closing bid price on the 30 trading days immediately
preceding the notice of conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 2, 2020, the Company executed
a convertible promissory note issued to Geneva Roth Remark Holdings for $53,500, having a 10% annual interest rate, maturity of
November 2, 2021, and conversion right to a 40% discount to the lowest traded price in the 20 days prior to delivery of a conversion
notice. The note was funded for $50,000, with $3,500, disbursed for legal and execution fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On November 18, 2020 the Company issued
a convertible promissory note to an attorney for services in the amount of $6,000. The note bears interest at 12% and is convertible
into the Company's common stock at 50% of the lowest closing bid price on the 30 trading days immediately preceding the notice
of conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On December 15, 2020, the Company executed
a convertible promissory note issued to Geneva Roth Remark Holdings for $43,500, having a 10% annual interest rate, maturity of
December 15, 2021, and conversion right to a 40% discount to the lowest traded price in the 20 days prior to delivery of a conversion
notice. The note was funded for $40,000, with $3,500, disbursed for legal and execution fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">On December 18, 2020 the Company issued
a convertible promissory note to an attorney for services in the amount of $6,000. The note bears interest at 12% and is convertible
into the Company's common stock at 50% of the lowest closing bid price on the 30 trading days immediately preceding the notice
of conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Related Party Note Issued by Howco</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A promissory note was issued to the CEO on December 22, 2020
by Howco for $50,000, for a cash loan to Howco, having weekly payments of $2,580 for twenty-five weeks, which include a total of
$14,500 of interest.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Note Repayments</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Since September 30, 2020, the Company has
repaid three convertible notes payable ($18,000) to an attorney for monthly fees and $50,000, to Trillium Partners LP, as partial
repayment on their note dated September 11, 2020. The Company will recognize $18,000, of gain on debt extinguishment as a result
of the repayments of fee notes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since September 30, 2020 the Company has
repaid $50,000 on the promissory note issued to Trillium Partner LP on September 11, 2020, leaving an unpaid principal balance
of $100,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since September 30, 2020 the Company has repaid $263,000 of
the related party convertible promissory note as amended issued to the CEO. The principal balance on Note 1 is $114,194</p>
40212
276430