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Subsequent Events
12 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
Subsequent Event

Note 17 – Subsequent Events


On December 16, 2019, the Company received an incentive prepayment totaling R$65,000,000 (approximately $15,973,857 USD) in connection with the Strategic Alliance and Incentive Program Agreement (the “Program Agreement”) entered into as of June 12, 2019 by and among (i) banQi Instituição de Pagamento Ltda (formerly known as Airfox Serviços e Intermediações Ltda) (“Airfox Brazil” or “banQi Ltda”) (ii) Via Varejo, and (iii) Mastercard Brasil Soluções de Pagamento Ltda (“Mastercard Brasil”).


Pursuant to the Program Agreement, Airfox Brazil, as a licensee of MasterCard International, Inc. and a business partner of Mastercard Brasil, entered into the Incentive Program (as defined in the Incentive Agreement) in order to issue, expand and boost the prepaid card base of Airfox Brazil as well as the number of transactions and sales revenue generated by MasterCard Cards. The Program Agreement stipulates that such funds shall not be used for any other purpose.


On October 31, 2019, banQi Instituição de Pagamento Ltda (formerly known as Airfox Serviços e Intermediações LTDA) entered into a Loan Agreement with Via Varejo (the “Lender”) whereby the Company borrowed R$10,000,000 (approximately $2.5 million USD) from Via Varejo. Principal plus interest is payable at the maturity date and matures 181 days from the date the Loan Agreement was executed. The loan was repaid in full on December 17, 2019 in the amount of R$10,167,740 (approximately $2.5 million USD).


In conjunction with the Settlement Agreement, Potential AirToken Claimants are entitled to return their AirTokens to our Company and receive a refund in the amount of consideration paid, plus interest, less the amount of any income received thereon. Pursuant to the Settlement Agreement, as modified in May 2019, our Company timely distributed the claim forms on June 28, 2019. The claims period closed on September 28, 2019. All forms were processed in accordance with the terms and provisions set forth by the Settlement Agreement. We received claim forms from 174 Potential AirToken Claimants during the claims period and we determined to approve payment on 163 out of the 174 claims, which is approximately 93% of the claim forms received during the claims period. On December 11, 2019 we commenced the process of notifying, via email only, all 174 Potential AirToken Claimants of our resolution of their claim.


On or before December 28, 2019 we paid all approved claims to approved claimants who returned their AirTokens to us (approximately 93.5% of the total dollar amount of all approved claim refunds). All amounts were refunded in cash. All remaining approved claims to approved claimants will be paid upon return to our Company of approved claimants’ AirTokens. The total dollar amount of all approved claim refunds, including interest computed at the rate of 6% compounded monthly, is $3,289,607. The refunds were funded from Airfox’s existing cash and cash equivalent reserves.