CLRI Cleartronics Inc (PK)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

(Mark One)

 

☒ Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended December 31, 2023

 

☐ Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from   to

 

CLEARTRONIC, INC. (Exact name of registrant as specified in its charter)
000-55329
Florida		65-0958798
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
28050 US Hwy 19N Clearwater, Florida		33761
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code: 813-289-7620

 

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

 

8000 North Federal Highway, Suite 100

Boca Raton, Florida 33487

561-939-3300

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

 

	Large accelerated filer	☐	Accelerated filer	☐
	Non-accelerated filer	☒	Smaller reporting company	☒
			Emerging growth company	☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange Act ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock Par Value $0.00001		CLRI		NONE

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 229,160,695 shares as of February 13, 2024.

 

 

PART I – FINANCIAL INFORMATION

 

Item 1.  Financial Statements

 

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

		December 31, 2023				September 30, 2023
		(unaudited)
Current assets:
Cash and cash equivalents		$	818,525			$	516,955
Accounts receivable, net of an allowance for credit losses of $92,665 as of December 31, 2023 and $63,665 as of September 30, 2023			476,565				545,573
Inventory			27,646				21,913
Prepaid expenses and other current assets			85,575				68,522
Due from related party			53,302				-
Interest receivable - related party			3,427				2,724
Total current assets			1,465,040				1,155,687
Property and Equipment, net			15,168				16,526
Intangible Assets, net			121,392				44,373
Operating lease - right-of-use asset			23,932				29,914
Other assets:
Due from related party			-				53,302
Total other assets			-				53,302
Total assets		$	1,625,532			$	1,299,802
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	49,537			$	85,858
Deferred revenue, current portion			1,459,667				1,105,580
Operating lease liability			25,267				24,580
Total current liabilities			1,534,471				1,216,018
Long term liabilities:
Deferred revenue, net of current portion			68,217				72,100
Operating lease liability - long term			-				6,507
Total long term liabilities			68,217				78,607
Total liabilities			1,602,688				1,294,625
Commitments and Contingencies (See Note 6)
Stockholders'  equity:
Series A preferred stock - $.00001 par value; 1,250,000 shares authorized, 512,996 issued and outstanding, respectively.			5				5
Series B preferred stock - $.00001 par value; 10 shares authorized, 0 shares issued and outstanding, respectively.			-				-
Series C preferred stock - $.00001 par value; 50,000,000 shares authorized, 3,133,503  and 3,133,503 shares issued and outstanding, respectively.			32				32
Series D preferred stock - $.00001 par value; 10,000,000 shares authorized, 670,904 shares issued and outstanding, respectively.			7				7
Series E preferred stock - $.00001 par value, 10,000,000 shares authorized, 3,000,000 shares issued and outstanding, respectively.			30				30
Common stock - $.00001 par value; 5,000,000,000 shares authorized, 229,160,695 and 229,160,695, shares issued and outstanding, respectively.			2,291				2,291
Additional paid-in capital			15,240,104				15,240,104
Accumulated Deficit			(15,219,625	)			(15,237,292	)
Total stockholders'  equity			22,844				5,177
Total liabilities and stockholders' equity		$	1,625,532			$	1,299,802

 

 

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

		For the Three Months Ended December 31, 2023				For the Three Months Ended December 31, 2022
Revenue		$	606,047			$	506,650
Cost of Revenue			95,631				77,491
Gross Profit			510,416				429,159
Operating Expenses:
Selling expenses			120,235				67,831
Administrative expenses			405,998				321,898
Depreciation and amortization expense			1,357				1,080
Research and development			13,559				21,815
Total Operating Expenses			541,149				412,624
Extinguishment of liabilities			44,052				-
Interest income/expense, net			4,348				549
Total Other Income/(Expenses)			48,400				549
Income before income taxes			17,667				17,084
Provision for income taxes from continuing operations			-				-
Net Income			17,667				17,084
Preferred stock dividends Series A Preferred			(10,343	)			(10,344	)
Net income attributable to common stockholders		$	7,324			$	6,740
Net income per common share - basic		$	0.00			$	0.00
Net income per common share - diluted		$	0.00			$	0.00
Weighted Average of number of shares outstanding basic			229,160,695				228,630,043
Weighted Average of number of shares outstanding diluted			599,482,330				599,331,678

 

 

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

 

		For The Three Months Ended December 31, 2023				For The Three Months Ended December 31, 2022
NET INCOME		$	17,667			$	17,084
Cash Flows From Operating Activities
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization expense			1,357				1,080
Amortization of operating lease - right-of-use asset			5,982				-
Extinguishment of liabilities			(44,052	)			-
Provision for credit losses			29,000				-
(Increase) decrease in assets:
Accounts receivable			40,008				(24,752	)
Inventory			(5,733	)			-
Prepaid expenses and other current assets			(17,756	)			-
Due from related party			-				9,280
Increase (decrease) in liabilities:
Accounts payable			7,731				32,933
Deferred revenue			350,204				(223,639	)
Operating lease liability			(5,820	)			-
Net Cash Provided (used) by Operating Activities			378,588				(188,014	)
Cash Flows From Investing  Activities
Purchase of intangible assets			(77,018	)			-
Net Cash Used in Investing Activities			(77,018	)			-
Cash Flows From Financing Activities			-				-
Net (decrease) increase in cash			301,570				(188,014	)
Cash at beginning of period			516,955				468,167
Cash at end of period		$	818,525			$	80,153
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest		$	-			$	666
Cash paid for taxes		$	-			$	690
Supplemental disclosure of non-cash investing and financing activities:
Series C Convertible Preferred shares exchanged for common stock		$	-			$	7

 

 

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

FOR THE THREE MONTHS ENDED DECEMBER 31, 2023

(Unaudited)

 

		Series A Preferred Stock								Series B Preferred Stock								Series C Preferred Stock								Series D Preferred Stock								Series E Preferred Stock								Common Stock								Additional  paid-in				Accumulated				Stockholders'
		Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				capital				deficit				Equity
Balance at September 30, 2023			512,996			$	5				-			$	-				3,133,503			$	32				670,904			$	7				3,000,000			$	30				229,160,695			$	2,291			$	15,240,104			$	(15,237,292	)		$	5,177
Net income for the three months ended December 31 , 2023			-				-				-				-				-				-				-				-				-				-				-				-				-				17,667				17,667
Balance at December 31, 2023 (Unaudited)			512,996			$	5				-			$	-				3,133,503			$	32				670,904			$	7				3,000,000			$	30				229,160,695			$	2,291			$	15,240,104			$	(15,219,625	)		$	22,844

 

 

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

FOR THE THREE MONTHS ENDED DECEMBER 31, 2022

(Unaudited)

 

		Series A Preferred Stock								Series B Preferred Stock								Series C Preferred Stock								Series D Preferred Stock								Series E Preferred Stock								Common Stock								Additional  paid-in				Accumulated				Stockholders'
		Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				capital				deficit				Deficit
Balance at September 30, 2022			512,996			$	5				-			$	-				3,341,503			$	34				670,904			$	7				3,000,000			$	30				228,120,695			$	2,281			$	15,240,112			$	(15,293,848	)		$	(51,379	)
Series C Convertible Preferred shares exchanged for common stock			-				-				-				-				(132,000	)			(1	)			-				-				-				-				660,000				7				(6	)			-				-
Net income for the three months ended December 31, 2022			-				-				-				-				-				-				-				-				-				-				-				-				-				17,084				17,084
Balance at December 31, 2022 (Unaudited)			512,996			$	5				-			$	-				3,209,503			$	33				670,904			$	7				3,000,000			$	30				228,780,695			$	2,288			$	15,240,106			$	(15,276,764	)		$	(34,295	)

 

 

CLEARTRONIC, INC. AND SUBSIDIARY

 

Notes to Condensed Consolidated Financial Statements

December 31, 2023

(Unaudited)

 

NOTE 1 - ORGANIZATION

 

Cleartronic, Inc. (the “Company”) was incorporated in Florida on November 15, 1999. All current operations are conducted through the Company’s wholly owned subsidiary, ReadyOp Communications, Inc. (“ReadyOp”), a Florida corporation incorporated on September 15, 2014. ReadyOp facilitates the marketing and sales of subscriptions to the ReadyOp™ and ReadyMed™ platforms and the AudioMate IP gateways discussed below.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

PRINCIPLES OF CONSOLIDATION

 

The accompanying consolidated financial statements contain the consolidated accounts of Cleartronic, Inc. and its subsidiary, ReadyOp Communications, Inc. All material intercompany transactions and balances have been eliminated.

 

BASIS OF PRESENTATION

 

The financial statements are prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The unaudited interim financial information furnished herein reflects all adjustments, consisting only of normal recurring items, which in the opinion of management are necessary to fairly state the Company’s financial position, results of operations and cash flows for the dates and periods presented and to make such information not misleading.  

 

These unaudited financial statements should be read in conjunction with the Company’s audited financial statements for the year ended September 30, 2023, contained in our General Form for Registration of Securities of Form 10-K as filed with the Securities and Exchange Commission (the “Commission”) on December 21, 2023. The results of operations for the three months ended December 31, 2023, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending September 30, 2024.

 

USE OF ESTIMATES

 

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and operations for the reporting period.

 

Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results.

 

Significant estimates include the assumptions used in valuation of deferred tax assets, estimated useful life of property and equipment, valuation of inventory and allowance for credit losses.

 

CASH AND CASH EQUIVALENTS

 

For financial statement purposes, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.

 

The Company has investments Treasury Bills. The Treasury Bills have remaining terms ranging from four-week month to thirteen weeks on December 31, 2023.

 

Treasury Bills with an original maturity date of three months or less are included within cash and cash equivalents on the balance sheet at December 31, 2023. 

 

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

 

The Company maintains current receivable amounts with most of its customers. The Company regularly monitors and assesses its risk of not collecting amounts owed by customers. This evaluation is based upon an analysis of current and past due amounts, along with relevant history and facts particular to the customer. The Company records its allowance for credit losses based on the results of this analysis. The analysis requires the Company to make significant estimates and as such, changes in facts and circumstances could result in material changes in the allowance for credit losses. The Company considers as past due any receivable balance not collected within its contractual terms.

 

The Company provided $92,665 and $63,665 allowances for doubtful accounts as of December 31, 2023, and September 30, 2023, respectively.

 

PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

Prepaid expenses and other current assets consist primarily of deferred subscriber costs and prepaid expenses. Deferred subscriber costs totaling $25,500 and $38,250 at December 31, 2023 and September 30, 2023, respectively. Prepaid expenses totaling $85,575 and $68,522 at December 31, 2023 and September 30, 2023, respectively.

 

PROPERTY AND EQUIPMENT

 

Property and equipment are recorded at cost and depreciated or amortized using the straight-line method over the estimated useful life of the asset or the underlying lease term for leasehold improvements, whichever is shorter or when the property and equipment is put into service.

 

INTANGIBLE ASSETS

 

The Company’s intangible assets consist of fees paid to outside consulting services and employees that are assisting us in obtaining FedRAMP certification. At December 31, 2023, The Company had intangible assets with a cost of approximately $121,392, with finite lives. The Company amortizes intangible assets with finite lives over the shorter of their estimated useful or legal life. The useful life is reevaluated for each reporting period. For the three months ended December 31, 2023, no amortization expense was recorded.

 

The Company evaluates intangible assets with finite lives for impairment at least annually or when events or changes in circumstances indicate that an impairment may exist. The Company determined that none of its intangible assets were impaired during the three months ended December 31, 2023.

 

CONCENTRATION OF CREDIT RISK

 

The Company currently maintains cash balances at one FDIC-insured banking institution. Deposits held in non interest-bearing transaction accounts which are insured up to a maximum of $250,000 at all FDIC-insured institutions. As of December 31, 2023 and September 30, 2023, the Company had $0 and $118,140, respectively, in excess of FDIC insured limits.

 

RESEARCH AND DEVELOPMENT COSTS

 

The Company expenses research and development costs as incurred.

 

For the three months ended December 31, 2023 and 2022, the Company had $13,559 and $21,815 respectively, in research and development costs.

 

-6- 

 

 

REVENUE RECOGNITION AND DEFERRED REVENUES

 

The Company revenue recognition policy follows guidance from Accounting Standards Codification (“ASC”) 606, Revenue from contract with customers. Revenue is recognized when the Company has transferred promised goods and services to the customer and in the amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount:

 

i. Identification of Contact with a customer;

ii. Identify the performance obligation of the contract

iii. Determine transaction price;

iv. Allocation of the transaction price to the performance obligations; and

v. Recognition of revenue when (or as) the Company satisfies each performance obligation.

 

The Company generates revenue primarily through the sale of software licenses and integrated hardware. The portion of the contract that is associated with ongoing hosting and related customer service is amortized monthly over the license period. The Company incurs certain incremental contract costs (referred to as deferred subscriber acquisition costs, net) including selling expenses (primarily commissions) related to acquiring customers. Deferred subscriber acquisition costs, net are included in prepaid and expenses and other current assets on the consolidated balance sheet. Commissions paid in connection with acquiring new customers are determined based on the value of the contractual fees. Deferred subscriber acquisition costs will be expensed as incurred on the date the revenue associated with the cost is recognized.

 

In transactions in which hardware is sold to a customer, the Company recognizes the revenue when the hardware has been shipped to the customer. The hardware supplied by the Company does not require a related software license and can be operated and fully functional without the Company’s software.

 

From time to time clients request special training meetings. We send employees to these meeting and charge our clients on a per diem basis. These charges are recorded as consulting fees on our income statement.

 

Customer billings for services not yet rendered and hardware not yet installed are deferred and recognized as revenue as services are provided. These fees are recorded as current deferred revenue on the consolidated balance sheet as the Company expects to satisfy any remaining performance obligations as well as recognize the related revenue within the next twelve months. Accordingly, the Company has applied the practical expedient regarding deferred revenue to exclude the value of remaining performance obligations if (i) the contract has an original expected term of one year or less or (ii) the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed.

 

Under an agreement with the School District of Hillsborough County Florida, the District has approved an agreement with the Company whereby the Company will provide 500 units of its AudioMate AM360 Radio gateways to a third party, Centegix, which will be installing the gateways under their agreement with the School District. Centegix has paid the Company for the gateways in advance and the deposit is accounted for in deferred revenue. The estimated completion date for the project is August 31, 2024.

 

As of December 31, 2023 and September 30, 2023, respectively, the Company recorded $1,527,884 and $1,177,680, respectively, in deferred revenue.

 

DISAGGREGATED REVENUE

 

The following table sets forth the approximate net sales by primary category:

 

Schedule of disaggregated revenue
		For the three months ended
		December 31, 2023				December 31, 2022
Licensing of ReadyOp Software		$	589,547			$	460,244
Hardware Sales and Consulting			16,500				46,406
Total		$	606,047			$	506,650

 

DEFERRED REVENUE

 

The following table provides a summary of the changes included in deferred revenue during the three months ended December 31, 2023 and year ended September 30, 2023:

 

Schedule of deferred revenue
		For the three months ended December 31, 2023				For the year ended September 30, 2023
Beginning balance		$	1,177,680			$	1,125,511
Additions to deferred liability (1)			606,047				2,184,124
Deductions to deferred liability (2)			(255,843	)			(2,131,955	)
Ending balance		$	1,527,844			$	1,177,680

 

(1)

Customer billings for services not yet rendered and hardware not yet installed

(2)

Revenue recognized in the current year related to the deferred liability

 

EARNINGS PER SHARE

 

Earnings per share (“EPS”) are the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by adding both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants.

 

Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation.

 

-7- 

 

 

As of December 31, 2023 and 2022, we had no options and warrants outstanding.

 

As of December 31, 2023 and 2022, we had 512,996 shares of Series A Convertible Preferred stock outstanding, which are convertible into 51,299,600 shares of common stock.

 

As of December 31, 2023 and 2022, we had 3,133,503 and 3,209,503 shares of Series C Convertible Preferred stock outstanding, respectively, which are convertible into 15,947,515 and 16,707,515 shares of common stock, respectively.

 

As of December 31, 2023 and 2022, we had 670,904 shares of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock.

 

As of December 31, 2023 and 2022, we had 3,000,000 shares of Series E Convertible Preferred stock outstanding which are convertible into 300,000,000 shares of common stock.

 

The table below details the computation of basic and diluted earnings per share (“EPS”) for the three months ended December 31, 2023 and 2022:

 

Schedule of diluted earnings per share
		For the three months ended December 31, 2023				For the three months ended December 31, 2022
Net income attributable to common stockholders for the period		$	7,324			$	6,740
Weighted average number of shares outstanding			229,160,695				228,630,043
Basic earnings per share		$	0.00			$	0.00

 

The following table sets for the computation of diluted earnings per share:

 

Schedule of computation of diluted earnings per share
		For the three months ended December 31, 2023				For the three months ended December 31, 2022
Net income attributable to common stockholders for the period		$	7,324			$	6,740
Add: Preferred stock dividends			10,343				10,344
Adjusted net income		$	17,667			$	17,084
Weighted average number of shares outstanding			229,160,695				228,630,043
Add: Shares issued upon conversion of preferred stock			370,321,635				370,701,635
Weighted average number of common and common equivalent shares			599,482,330				599,331,678
Diluted earnings per share		$	0.00			$	0.00

 

FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The Company measures the fair value of its assets and liabilities under ASC topic 820, “Fair Value Measurements and Disclosures”. ASC 820 defines “fair value” as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There was no impact relating to the adoption of ASC 820 to the Company’s consolidated financial statements.

 

ASC 820 also describes three levels of inputs that may be used to measure fair value:

 

-

Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets.

-

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

-

Level 3: Inputs that are generally observable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

 

Financial instruments consist principally of cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and deferred revenue. The carrying amounts of such financial instruments in the accompanying consolidated balance sheet approximate their fair values due to their relatively short-term nature. The carrying amounts approximate fair value. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments.

 

As of December 31, 2023 and September 30, 2023, we held no assets that were required to be measured at fair value on a recurring basis. There were no transfers between levels in the fair value hierarchy during three months ended December 31, 2023 and year ended September 30, 2023, respectively.

 

INVENTORY

 

Inventory consists of components held for assembly and finished goods held for resale or to be utilized for installation in projects. Inventory is valued at lower of cost or net realizable value on a first-in, first-out basis. The Company’s policy is to record a reserve for technological obsolescence or slow-moving inventory items. The Company only carries finished goods to be shipped along with completed circuit boards and parts necessary for final assembly of finished product. All existing inventory is considered current and usable. The Company recorded no reserve for obsolete inventory as of December 31, 2023 and September 30, 2023, respectively.

 

At December 31, 2023 inventory was $27,646 of raw materials.

 

At September 30, 2023, inventory was $21,913 of raw materials.

 

-8- 

 

 

ADVERTISING COSTS

 

Advertising costs are expensed as incurred. The Company had advertising costs of $22,584 and $13,419 during the three months ended December 31, 2023 and 2022, respectively.

 

RECENT ADOPTED ACCOUNTING PRONOUNCEMENTS

 

Troubled Debt Restructurings and Vintage Disclosures

 

In March 2022, the Financial Accounting Standards Board (the “FASB”) issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminates the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310, Receivables (Topic 310), and requires entities to provide disclosures about current period gross write-offs by year of origination. Also, ASU 2022-02 updates the requirements related to accounting for credit losses under ASC 326, Financial Instruments – Credit Losses (Topic 326), and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022-02 was effective for the Company October 1, 2022. The adoption of ASU 2022-02 did not have a material impact on the Company’s consolidated financial statements.

 

RECENT ISSUED ACCOUNTING PRONOUNCEMENTS

 

The Company continues to monitor new accounting pronouncements issued by the FASB and does not believe any accounting pronouncements issued through the date of this report will have a material impact on the Company’s Financial Statements.

 

In the current year, the Company adjusted its classification of selling and administrative expenses in the Statement of Operations. For comparative purposes, amounts in the prior years have been reclassified to conform to current year presentations. These reclassifications had no effect on previously reported results of operations or retained earnings.

 

LEASE ACCOUNTING

 

We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.

 

We have a lease agreement with lease and non-lease components and have elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, from both a lessee and lessor perspective with the exception of direct sales-type leases and production equipment classes embedded in supply agreements. From a lessor perspective, the timing and pattern of transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately, would be classified as an operating lease.

 

We have elected not to present short-term leases on the balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because our lease does not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments.

 

In general, leases, where we are the lessee, may include options to extend the lease term. These leases may include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.

 

Lease expense for operating leases is recognized on a straight-line basis over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Certain operating leases provide for annual increases to lease payments based on an index or rate. We calculate the present value of future lease payments based on the index or rate at the lease commencement date.

 

Differences between the calculated lease payment and actual payment are expensed as incurred. Amortization of finance lease assets is recognized over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset.

 

On December 2, 2022, and effective on January 1, 2023, the Company signed a two-year lease of 1,145 square feet for our principal offices in Clearwater, Florida. The monthly rent is $2,134 in year one and increases to $2,198 in year two. The lease expires on December 31, 2024.

 

The tables below present information regarding the Company’s operating lease assets and liabilities at December 31, 2023 and September 30, 2023:

 

Schedule of operating lease assets and liabilities
		December 31, 2023				September 30, 2023
Assets
Operating lease -right-of-use assets-non-current		$	23,932			$	29,914
Liabilities
Operating lease liability		$	25,267			$	31,087
Weighted-average remaining lease term (years)			1.00				1.25
Weighted-average discount rate			8	%			8	%
The components of lease expense were as follows:
Operating lease cost
Amorization on right-of-use operating lease asset		$	5,982			$	17,949
Lease liability expense in connection with obligation repayment			584				2,429
Total operating lease costs		$	6,566			$	20,378
Supplemental cash outflows information related to operation lease was as follows:
Operating cash outflows from operating lease (obligation payment)		$	6,402			$	19,206
Right-of-use asset obtained in exchange for new operating lease liability		$	-			$	47,863

 

At December 31, 2023, the Company has no financing leases as defined in ASC 842, “Leases.”

 

-9- 

 

 

Future minimum lease payments required under leases that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2023:

 

Schedule of future minimum lease payments required under leases
2024		$	19,782
2025			6,594
Total undiscounted cash flows			26,376
Less: amount representing interest			(1,109	)
Present value of operating lease liability			25,267
Less: current portion of operation lease liability			(25,267	)
Long-term operating lease liability		$	-

 

NOTE 3 – PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

 

At December 31, 2023 and September 30, 2023, property and equipment, net, is as follows:

 

Schedule of property and equipment net
		For the three months ended December 31, 2023				For the year ended September 30, 2023
Office Equipment		$	28,040			$	28,040
Less: Accumulated Depreciation			(12,872	)			(11,514	)
Total Property and Equipment, net		$	15,168			$	16,526

 

Depreciation expense for the three months ended December 31, 2023 and 2022, was $1,357 and $1,080, respectively.

 

At December 31, 2023 and September 30, 2023, intangible assets, net, is as follows:

 

Schedule of intangible assets
		For the three months ended December 31, 2023				For the year ended September 30, 2023
Intangible Assets			121,392				44,373
Total Intangible Assets, net		$	121,392			$	44,373

 

Amortization expense for the three months ended December 31, 2023 and 2022, was $0 and $0, respectively.

 

NOTE 4 - EQUITY TRANSACTIONS

 

Preferred Stock Dividends

 

As of December 31, 2023 and September 30, 2023, the cumulative arrearage of undeclared dividends for Series A Preferred stock totaled $216,524 and $205,658, respectively and $10,343 for the three months ended December 31, 2023.

 

As of the date of this report, we have 200,000,000 authorized shares of preferred stock, par value $0.00001 per share, of which 7,317,403 shares were issued and outstanding. There are currently 5 series of preferred stock designated as follows:

 

	●	1,250,000 shares have been designated as Series A Preferred Stock, 512,996 of which are issued and outstanding;
	●	10 shares have been designated as Series B Preferred Stock, none of which is issued and outstanding;
	●	50,000,000 shares have been designated as Series C Preferred Stock, 3,133,503 of which are issued and outstanding; and
	●	10,000,000 shares have been designated Series D Preferred stock, of which 670,904 are issued and outstanding; and
	●	10,000,000 shares have been designated Series E Preferred stock, of which 3,000,000 are issued and outstanding.

 

Pursuant to our Articles of Incorporation establishing our preferred stock:

 

	●	A holder of shares of the Series A Preferred Stock is entitled to the number of votes equal to the number of shares of the Series A Preferred Stock held by such holder multiplied by one on all matters submitted to a vote of our stockholders. Each one share of our Series A Preferred Stock shall be convertible into 100 shares of our common stock. Each holder of Series A Preferred Stock is entitled to receive cumulative dividends at the rate of 8% of $1.00 per annum on each outstanding share of Series A Preferred Stock then held by such holder, on a pro rata basis.
	●	A holder of shares of the Series B Preferred Stock is entitled to one vote per share on all matters submitted to a vote of our stockholders. If at least one share of Series B Preferred Stock is issued and outstanding, then the total aggregate issued shares of Series B Preferred Stock at any given time, regardless of their number, shall have voting rights equal to two times the sum of the total number of shares of our common stock which are issued and outstanding at the time of voting, plus the total number of shares of any shares of our preferred stock which are issued and outstanding at the time of voting. A holder of shares of the Series B Preferred Stock shall have no conversion rights or rights to dividends.
	●	A holder of shares of the Series C Preferred Stock is entitled to the number of votes equal to the number of shares of the Series C Preferred Stock held by such holder multiplied by 5 on all matters submitted to a vote of our stockholders. In addition, the holders of our Series C Preferred Stock shall be entitled to receive dividends when, as and if declared by the Board of Directors, in its sole discretion. No dividends have been declared. Finally, each one share of our Series C Preferred Stock shall be convertible into five shares of our common stock.
	●	A holder of shares of the Series D Preferred Stock is entitled to the number of votes equal to the number of shares of the Series D Preferred Stock held by such holder multiplied by 5 on all matters submitted to a vote of our stockholders. In addition, the holders of our Series D Preferred Stock shall be entitled to receive dividends when, as and if declared by the Board of Directors, in its sole discretion. No dividends have been declared. Finally, each one share of our Series D Preferred Stock shall be convertible into five shares of our common stock.
	●	A holder of shares of the Series E Preferred Stock is entitled to the number of votes equal to the number of shares of the Series E Preferred Stock held by such holder multiplied by 100 on all matters submitted to a vote of our stockholders. In addition, the holders of our Series E Preferred Stock shall be entitled to receive dividends when, as and if declared by the Board of Directors, in its sole discretion. No dividends have been declared. Finally, each one share of our Series E Preferred Stock shall be convertible into 100 shares of our common stock.

 

-10- 

 

 

NOTE 5 - RELATED PARTY TRANSACTIONS

 

Rent expense incurred during the three months ended December 31, 2023 and 2022 was $0 and $2,343, respectively (See Note 6).

 

During the three months ended December 31, 2023 and 2022, the Company paid $12,000 and $9,000, respectively, to a related party consultant.

 

As of December 31, 2022, the Company advanced $53,302 to VoiceInterop, the Company’s former wholly owned subsidiary and now 96% owned by our shareholders. The amount is included in due from related party on the consolidated balance sheet. The amount is due on September 30, 2024, and bears interest at 5% effective October 1, 2022. As of December 31, 2023, the Company recorded $3,427 in interest receivable – related party.

 

NOTE 6 - COMMITMENTS AND CONTINGENCIES

 

Obligation Under Operating Lease

 

On December 2, 2022, and effective on January 1, 2023, the Company signed a two-year lease of 1,145 square feet for our principal offices in Clearwater, Florida. The monthly rent is $2,134 in year one and increases to $2,198 in year two. The lease expires on December 31, 2024. On January 1, 2023, upon adoption of ASC 842, the Company will recognize right-to-use assets as operating leases and operating lease obligations.

 

On December 1, 2021, the Company signed a one year lease approximately 2,000 square feet for our principal offices in Boca Raton, Florida. The monthly rent is $2,200. The lease expired on November 30, 2022.

 

Rent expense incurred during the years ended September 30, 2023 and 2022 was $22,722 and $26,973, respectively.  

 

Revenue and Accounts Receivable Concentration

 

For the three months ended December 31, 2023, one customer accounted for 12.72% of the Company’s revenues.

 

For the three months ended December 31, 2022, one customer accounted for 16% of the Company’s revenues.

 

As of December 31, 2023, no customer accounted for more than 10% of the Company’s total outstanding accounts receivable.

 

As of September 30, 2023, no customer accounted for more than 10% of the Company’s total outstanding accounts receivable.

 

Deferred Revenue Concentration

 

As of December 31, 2023, one customer accounted for more than 33% of the Company’s total outstanding deferred revenue.

 

As of September 30, 2023, no customer accounted for more than 10% of the Company’s total outstanding deferred revenue.

 

Major Supplier and Sole Manufacturing Source

 

The Company relies on no major supplier for its products. The Company has contracted with local manufacturing facilities to provide completed circuit boards used in the assembly of its IP gateway devices. Interruption of adequate supply of components, primarily computer chips, to the manufacturing source presents additional risk to the Company. The Company believes that additional commercial facilities exist at competitive rates to match the resources and capabilities of its existing manufacturing source, but the current worldwide shortage of computer chips does limit our ability to supply our proprietary radio gateways to clients and other buyers.

 

Exclusive Licensing Agreement

 

On May 5, 2017, the Company entered into an Exclusive Licensing Agreement with Sublicensing Terms (the “Agreement”) with the University of South Florida Research Foundation, Inc. (“USFRF”) relating to an exclusive license of certain patent rights in connection with one of USFRF’s U.S. Patent Applications. Both parties recognize that the research and development work provided by the Company was sufficient for USFRF to enter into the Agreement with the Company.

 

The Agreement is effective April 25, 2017 and continues until the later of the date that no Licensed Patent remains a pending application or an enforceable patent or the date on which the Licensee’s obligation to pay royalties expires.

 

The Company agreed to pay USFRF a royalty of 3% for sales of all Licensed Products and Licensed Processes and agreed to pay USFRF minimum royalty payments of $8,000 for fiscal year 2022 and thereafter on the same date, for the life of the agreement.

 

In the event the Company proposes to sell any Equity Securities, then USFRF will have the right to purchase 5% of the securities issued in such offering on the same terms and conditions are offered to other purchasers in such financing. As of December 31, 2023 and 2022, the Company has recorded $9,090 and $3,640 for the minimum royalty for the fiscal year ended 2023 and 2022.

 

NOTE 7 – EXTINGUISHMENT OF LIABILITIES

 

During the three months ended December 31, 2023, the Company recorded a gain on extinguishment of liabilities $44,052 related to amounts due to vendors that exceeded the statute of limitations.

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

FORWARD-LOOKING STATEMENTS

 

The information set forth in this Management’s Discussion and Analysis contains certain “forward-looking statements,” including, among others (i) expected changes in our revenues and profitability, (ii) prospective business opportunities, and (iii) our strategy for financing our business. Forward-looking statements are statements other than historical information or statements of current condition. Some forward-looking statements may be identified by use of terms such as “believes,” “anticipates,” “intends,” or “expects.” These forward-looking statements relate to our plans, objectives, and expectations for future operations. Although we believe that our expectations with respect to the forward-looking statements are based upon reasonable assumptions within the bounds of our knowledge of our business and operations, in light of the risks and uncertainties inherent in all future projections, the inclusion of forward-looking statements in this prospectus should not be regarded as a representation that our objectives or plans will be achieved. In light of the risks and uncertainties, there can be no assurance that actual results, performance, or achievements will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. The foregoing review of important factors should not be construed as exhaustive. We undertake no obligation to release publicly the results of any future revisions we may make to forward-looking statements to reflect events or circumstances after the date of this prospectus or to reflect the occurrence of unanticipated events.

 

Overview

 

Cleartronic, Inc. (the “Company”) was incorporated in Florida on November 15, 1999. All current operations are conducted through the Company’s wholly owned subsidiary, ReadyOp Communications, Inc. (“ReadyOp”), a Florida corporation incorporated on September 15, 2014. ReadyOp facilitates the marketing and sales of subscriptions to the ReadyOp™ and ReadyMed™ platform and the AudioMate IP gateways discussed below.

 

ReadyOp is a proprietary, innovative web-based planning, communications and operations platform for efficiently and effectively planning, managing, communicating, and directing operations and emergency response. ReadyOp is used by local, state and federal government agencies, corporations, school districts, utilities, hospitals and others to manage and report daily operations as well as the ability to handle incidents and emergency situations. ReadyOp is offered as a software as a service (SAAS) program on an annual contract basis although an increasing number of clients have requested multi-year agreements.

 

In March 2018, the Company approved the spin-off of VoiceInterop, Inc. (“Voiceinterop”), one of the Company’s wholly-owned subsidiaries, into a separate company under a Form S-1 registration filed with the United States Securities and Exchange Commission.

 

In October 2019, the Company acquired the ReadyMed software platform from Collabria LLC. ReadyMed is a web-based secure communications platform initially designed for the healthcare industry. This includes hospitals, clinics, doctor’s offices, health insurance companies, workers compensation insurance companies and many other segments of the healthcare industry. The platform provides caregivers with patient tracking capability and allows physicians and other healthcare entities to track patient progress after medical treatment and/or release from hospital care. The software also enables monitoring and reporting of patients in medium and long-term care. Additionally, the platform provides secure communications capabilities and record keeping to track the healing process of patients, record their recovery and monitor their medications. ReadyMed proved beneficial for multiple clients in the healthcare industry due to the impact of the COVID-19 pandemic. The Company offers both the ReadyOp and ReadyMed capabilities to clients and usually refers to the platform as ReadyOp to avoid confusion in the marketplace of two products.

 

FOR THE THREE MONTHS ENDED DECEMBER 31, 2023 COMPARED TO THE THREE MONTHS ENDED DECEMBER 31, 2022

 

Revenue

 

Revenues increased 19.62% to $606,047 for the three months ended December 31, 2023 as compared to $506,650 for the three months ended December 31, 2022. The primary reason for the increase was due to an increase in revenue from the ReadyOp platform from $460,244 in 2022 to $589,547 in 2023. Sales of ReadyOp hardware products increased from $6,125 in 2022 to $16,500 in 2023. Consulting fees and related income decreased from $40,281 in 2022 to $0 in 2023 due to less training activity.

 

Cost of Revenue

 

Cost of revenues increased to $95,631 for the three months ended December 31, 2023 as compared to $77,491 for the three months ended December 31, 2022. Gross profits were $510,416 and $429,159 for the three months ended December 31, 2023 and 2022, respectively.

 

Operating Expenses

 

Operating expenses increased 31.15% to $541,149 for the three months ended December 31, 2023 compared to $412,624 for the three months ended December 31, 2022. The increase was primarily due increases in administrative expense and selling expenses. General and Administrative expenses increased by $84,100 or 26.13% as a result of an increase in consulting expenses and employee holiday bonuses. For the three months ended December 31, 2023, selling expenses were $120,235 compared to $67,831 for the three months ended December 31, 2022 due to an increase in commissions expense, allowance for credit losses and an increase in advertising and travel expenses in connection with the trade show. Research and development expenses were $13,559 for the three months ended December 31, 2023, as compared to $21,815 for the three months ended December 31, 2022. This decrease was primarily indirect research and development costs.

 

Other Income/(Expenses)

 

The Company’s other income increased by $47,851 from other income of $549 during the three months ended December 31, 2022, as compared to $48,400 for the three months ended December 31, 2023. This increase was an increase in interest income on note receivable due from a related party, interest income on treasury bill investments and extinguishment of liabilities of $44,052.

 

Income before Income Taxes

 

The Company’s income before income taxes was $17,667, during the three months ended December 31, 2023, as compared to income of $17,084 for the three months ended December 31, 2022. The increase was primarily due to an increase in cost of revenues, administrative and selling expenses, and offset by an increase in sales of ReadyOp licenses and hardware and extinguishment of liabilities.  The increased costs were partially due to an increase in the costs of the hardware sold and administrative expenses due to salaries.

 

Net Income Attributable to Common Stockholders

 

Net income attributable to common stockholders was $7,324 for the three months ended December 31, 2023 as compared to a net income of $6,740 for the three months ended December 31, 2022. The increase was primarily due to an increase in sales of ReadyOp licenses and hardware and offset by an increase in cost of revenues, administrative and selling expenses. The increased costs were partially due to an increase in the costs of the hardware sold and administrative expenses due to salaries.

 

LIQUIDITY AND CAPITAL RESOURCES

 

For the three months ended December 31, 2023, net cash provided by operations of $378,588 was the result of a net income of $17,667, depreciation expense of $1,357, amortization of operating lease of $5,982, extinguishment of liabilities of $44,052, increase in provision for credit losses of $29,000, increase in prepaid expenses of $17,756, and an increase in accounts payable of $7,731. These were offset by a decrease in accounts receivable of $40,008, a decrease in inventory of $5,733 and an increase in deferred revenue of $350,204.

 

 

For the three months ended December 31, 2022, net cash used in operations of $188,014 was the result of a net income of $17,084, depreciation expense of $1,080, an increase in accounts payable of $32,933, and a decrease in prepaid expenses of $9,280.  These were offset by an increase in accounts receivable of $24,752 and a decrease in deferred revenue of $223,639.

 

Critical Accounting Estimates

 

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended September 30, 2023 for information regarding our critical accounting estimates.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Not applicable.

 

Item 4. Controls and Procedures.

 

An evaluation was conducted by the registrant’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of December 31, 2023. Based on that evaluation, the CEO and CFO concluded that the registrant’s controls and procedures were effective as of such date to ensure that information required to be disclosed in the reports that the registrant files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

 

Change in Internal Controls over Financial Reporting

 

During this quarter, there was no change in the registrant’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a–15 or Rule 15d–15 under the Securities Exchange Act of 1934 that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

Cleartronic is not engaged in any litigation at the present time and management is unaware of any claims or complaints that could result in future litigation. Management will seek to minimize disputes with the Company’s customers but recognizes the inevitability of legal action in today’s business environment as an unfortunate price of conducting business.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

 The registrant claimed exemption from the registration provisions of the Securities Act of 1933 with respect to the securities pursuant to Section 4(2) thereof in as much as no public offering was involved. The shares were not offered or sold by means of: (i) any advertisement, article, notice or other communication published in any newspaper, magazine or similar medium, or broadcast over television or radio, (ii) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising, or (iii) any other form of general solicitation or advertising and the purchases were made for investment and not with a view to distribution. Each of the purchasers was, at the time of the purchaser’s respective purchase, an accredited investor, as that term is defined in Regulation D under the Securities Act of 1933 and had access to sufficient information concerning the registrant and the offering.

 

Item 3. Defaults Upon Senior Securities

 

None

 

Item 5. Other Information

 

None

 

Item 6. Exhibits.

 

Exhibit No.		Identification of Exhibit
3.1**		Articles of Incorporation, filed as exhibit 3.01 to the registrant’s registration statement on Form SB-2 on July 3, 2006, Commission File Number 333-135585.
3.2**		Articles of Amendment to Articles of Incorporation filed March 12, 2001, filed as exhibit 3.02 to the registrant’s registration statement on Form SB-2 on July 3, 2006, Commission File Number 333-135585.
3.3**		Articles of Amendment to Articles of Incorporation filed October 4, 2004, filed as exhibit 3.03 to the registrant’s registration statement on Form SB-2 on July 3, 2006, Commission File Number 333-135585.
3.4**		Articles of Amendment to Articles of Incorporation filed March 31, 2005, filed as exhibit 3.04 to the registrant’s registration statement on Form SB-2 on July 3, 2006, Commission File Number 333-135585.
3.5**		Articles of Amendment to Articles of Incorporation filed May 9, 2008, filed as exhibit 3.02 to the registrant’s registration statement on Form S-1 on May 28, 2008, Commission File Number 333-135585.
3.6**		Articles of Amendment to Articles of Incorporation filed June 28, 2010, filed as exhibit 3.7 to the registrant’s Form 10-Q on February 14, 2011, Commission File Number 333-135585.
3.7**		Articles of Amendment to Articles of Incorporation filed May 6, 2011, filed as exhibit 3.1 to the registrant’s Form 8-K on May 6, 2011, Commission File Number 333-135585.
3.8**		Articles of Amendment to Articles of Incorporation filed April 19, 2012, filed as exhibit 3.09 to the registrant’s Form 10-Q on May 14, 2012, Commission File Number 333-135585.
3.9**		Articles of Amendment to Articles of Incorporation filed September 7, 2012, filed as exhibit 3.1 to the registrant’s Form 8-K on September 7, 2012, Commission File Number 333-135585.
3.10**		Articles of Amendment to Articles of Incorporation filed September 19, 2012, filed as exhibit 3.1 to the registrant’s Form 8-K on September 19, 2012, Commission File Number 333-135585.
3.11**		Articles of Amendment to Articles of Incorporation filed October 5, 2012, filed as exhibit 3.1 to the registrant’s Form 8-K on October 5, 2012, Commission File Number 333-135585.
3.12**		Articles of Amendment to Articles of Incorporation filed December 28, 2013, filed as exhibit 3.12 to the registrant’s Form 8-K on January 14, 2014, Commission File Number 333-135585.
3.13**		Bylaws, filed as exhibit 3.05 to the registrant’s registration statement on Form SB-2 on July 3, 2006, Commission File Number 333-135585.
3.14**		Amended and Restated Bylaws, filed as exhibit 3.1 to the registrant’s Form 8-K on July 26, 2010, Commission File Number 333-135585.
10.1**		Employment Agreement dated October 5, 2012, between Larry M. Reid and the registrant, filed as exhibit 10.1 to the registrant’s Form 8-K on October 12, 2012, Commission File Number 333-135585.

 

 

10.2**		Lease Agreement dated November 30, 2014, between BGNP Associates, LLC and Cleartronic, Inc, filed as Exhibit 10.10 to the registrant’s Form 10-K on January 13, 2015, Commission File Number 000-55329
10.3**		Employment Agreement dated March 13, 2015, between Larry M. Reid and the registrant, filed as Exhibit 10.1 to the registrant’s Form 8-K on March 18, 2015, Commission File Number 000-55329
10.4**		Subscription Agreement between registrant and private accredited investor dated March 31, 2015 for purchase of 278,743 shares of Series D Convertible Preferred stock, filed as exhibit 10.1 to the registrant’s Form 8-K on April 10, 2015, Commission File Number 000-55329
10.5**		Subscription Agreement between registrant and private accredited investor dated March 31, 2015 for purchase of 270,024 shares of Series D Convertible Preferred stock, filed as exhibit 10.2 to the registrant’s Form 8-K on April 10, 2015, Commission File Number 000-55329
10.6**		Subscription Agreement between registrant and private accredited investor dated March 31, 2015 for purchase of 278,743 shares of Series D Convertible Preferred stock, filed as exhibit 10.3 to the registrant’s Form 8-K on April 10, 2015, Commission File Number 000-55329
10.7**		Promissory Note date November 24, 2015 in the original amount of $50,000 issued to Mr. Marc Moore filed as exhibit 10.18 to the registrant’s Form 10-K on January 13, 2016, Commission File 000-55329.
10.8**		Asset Purchase Agreement dated November 29, 2016 between the registrant and Collabria LLC. Filed as an exhibit to the registrant’s Form 8-K on December 5, 2016.
10.9**		Employment Agreement dated November 28, 2016 between the registrant and Mr. Moore.
10.10**		Promissory Note dated September 27, 2017 in the amount of $35,000 issued to Richard Martin.
10.11**		Promissory Note dated October 12, 2017 in the amount of $15,000 issued to Richard Martin
10.12**		Installment Note dated September 30, 2019 in the amount of $75,279 issued to Richard Martin
10.13**		Lease Agreement dated December 1, 2018, between BGNP Associates, LLC and VoiceInterop, Inc.
10.14**		Promissory Note dated December 2, 2019 in the amount of $50,000 issued to Mr. John F. Marek.
31.1*		Certification of Michael M. Moore, Chief Executive Officer of Cleartronic, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Larry M. Reid, Chief Financial Officer and Principal Accounting Officer of Cleartronic, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Michael M. Moore, Chief Executive Officer of Cleartronic, Inc.,pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of Larry M. Reid, Chief Financial Officer and Principal Accounting Officer of Cleartronic, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.
101		XBRL Instance Document (XBRL tags are embedded within the Inline iXBRL document)

____________

*Filed herewith.

**Previously filed.

 

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	CLEARTRONIC, INC.
February 14, 2024
	By:	/s/ Michael M. Moore
		Michael M. Moore
		Principal Executive Officer
	By:	/s/ Larry M. Reid
		Larry M. Reid
		Principal Financial Officer and
		Chief Accounting Officer

 

 

Exhibit 31.1

CERTIFICATION

 

I, Michael M. Moore, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Cleartronic, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. I am the only certifying officer responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report)

that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the Board of Directors:

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: February 14, 2024

  

/s/ Michael M. Moore

Michael M. Moore, Principal Executive Officer

 

Exhibit 31.2

CERTIFICATION

 

I, Larry Reid, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Cleartronic, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. I am the only certifying officer responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the Board of Directors:

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: February 14, 2024

 

/s/ Larry M. Reid

Larry Reid, Principal Financial Officer

 

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Cleartronic, Inc. (the "Company"), does hereby certify, to such officer's knowledge, that the Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

February 14, 2024

 

By:  /s/ Michael M. Moore

Michael M. Moore

Principal Executive Officer

 

By:  /s/ Larry M. Reid

Larry M. Reid

Principal Financial Officer 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Cleartronic, Inc. (the "Company"), does hereby certify, to such officer's knowledge, that the Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

February 14, 2024

 

By:  /s/ Michael M. Moore

Michael M. Moore

Principal Executive Officer

 

By:  /s/ Larry M. Reid

Larry M. Reid

Principal Financial Officer 

 

v3.24.0.1

Cover - shares	3 Months Ended
	Dec. 31, 2023	Feb. 12, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--09-30
Entity File Number	000-55329
Entity Registrant Name	CLEARTRONIC, INC.
Entity Central Index Key	0001362516
Entity Tax Identification Number	65-0958798
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	28050 US Hwy 19N
Entity Address, City or Town	Clearwater
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33761
City Area Code	813
Local Phone Number	289-7620
Title of 12(b) Security	Common stock Par Value $0.00001
Trading Symbol	CLRI
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		229,160,695

v3.24.0.1

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 818,525	$ 516,955
Accounts receivable, net of an allowance for credit losses of $92,665 as of December 31, 2023 and $63,665 as of September 30, 2023	476,565	545,573
Inventory	27,646	21,913
Prepaid expenses and other current assets	85,575	68,522
Due from related party	53,302
Interest receivable - related party	3,427	2,724
Total current assets	1,465,040	1,155,687
Property and Equipment, net	15,168	16,526
Intangible Assets, net	121,392	44,373
Operating lease - right-of-use asset	23,932	29,914
Other assets:
Due from related party		53,302
Total other assets		53,302
Total assets	1,625,532	1,299,802
Current liabilities:
Accounts payable and accrued expenses	49,537	85,858
Deferred revenue, current portion	1,459,667	1,105,580
Operating lease liability	25,267	24,580
Total current liabilities	1,534,471	1,216,018
Long term liabilities:
Deferred revenue, net of current portion	68,217	72,100
Operating lease liability - long term		6,507
Total long term liabilities	68,217	78,607
Total liabilities	1,602,688	1,294,625
Stockholders'  equity:
Common stock - $.00001 par value; 5,000,000,000 shares authorized, 229,160,695 and 229,160,695, shares issued and outstanding, respectively.	2,291	2,291
Additional paid-in capital	15,240,104	15,240,104
Accumulated Deficit	(15,219,625)	(15,237,292)
Total stockholders'  equity	22,844	5,177
Total liabilities and stockholders' equity	1,625,532	1,299,802
Series A Preferred Stock [Member]
Stockholders'  equity:
Preferred stock, value	5	5
Series B Preferred Stock [Member]
Stockholders'  equity:
Preferred stock, value
Series C Preferred Stock [Member]
Stockholders'  equity:
Preferred stock, value	32	32
Series D Preferred Stock [Member]
Stockholders'  equity:
Preferred stock, value	7	7
Series E Preferred Stock [Member]
Stockholders'  equity:
Preferred stock, value	$ 30	$ 30

v3.24.0.1

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Accounts receivable, allowance for credit loss, current	$ 92,665	$ 63,665
Common stock, par or stated value per share	$ 0.00001	$ 0.00001
Common stock, shares authorized	5,000,000,000	5,000,000,000
Common stock, shares, issued	229,160,695	229,160,695
Common stock, shares, outstanding	229,160,695	229,160,695
Series A Preferred Stock [Member]
Preferred stock, par or stated value per share	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	1,250,000	1,250,000
Preferred stock, shares issued	512,996	512,996
Preferred stock, shares outstanding	512,996	512,996
Series B Preferred Stock [Member]
Preferred stock, par or stated value per share	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10	10
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series C Preferred Stock [Member]
Preferred stock, par or stated value per share	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	3,133,503	3,133,503
Preferred stock, shares outstanding	3,133,503	3,133,503
Series D Preferred Stock [Member]
Preferred stock, par or stated value per share	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	670,904	670,904
Preferred stock, shares outstanding	670,904	670,904
Series E Preferred Stock [Member]
Preferred stock, par or stated value per share	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	3,000,000	3,000,000
Preferred stock, shares outstanding	3,000,000	3,000,000

v3.24.0.1

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Revenue	$ 606,047	$ 506,650
Cost of Revenue	95,631	77,491
Gross Profit	510,416	429,159
Operating Expenses:
Selling expenses	120,235	67,831
Administrative expenses	405,998	321,898
Depreciation and amortization expense	1,357	1,080
Research and development	13,559	21,815
Total Operating Expenses	541,149	412,624
Extinguishment of liabilities	44,052
Interest income/expense, net	4,348	549
Total Other Income/(Expenses)	48,400	549
Income before income taxes	17,667	17,084
Provision for income taxes from continuing operations
Net Income	17,667	17,084
Preferred stock dividends Series A Preferred	(10,343)	(10,344)
Net income attributable to common stockholders	$ 7,324	$ 6,740
Net income per common share - basic	$ 0.00	$ 0.00
Net income per common share - diluted	$ 0.00	$ 0.00
Weighted Average of number of shares outstanding basic	229,160,695	228,630,043
Weighted Average of number of shares outstanding diluted	599,482,330	599,331,678

v3.24.0.1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement of Cash Flows [Abstract]
NET INCOME	$ 17,667	$ 17,084
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization expense	1,357	1,080
Amortization of operating lease - right-of-use asset	5,982
Extinguishment of liabilities	(44,052)
Provision for credit losses	29,000
(Increase) decrease in assets:
Accounts receivable	40,008	(24,752)
Inventory	(5,733)
Prepaid expenses and other current assets	(17,756)
Due from related party		9,280
Increase (decrease) in liabilities:
Accounts payable	7,731	32,933
Deferred revenue	350,204	(223,639)
Operating lease liability	(5,820)
Net Cash Provided (used) by Operating Activities	378,588	(188,014)
Cash Flows From Investing  Activities
Purchase of intangible assets	(77,018)
Net Cash Used in Investing Activities	(77,018)
Cash Flows From Financing Activities
Net (decrease) increase in cash	301,570	(188,014)
Cash at beginning of period	516,955	468,167
Cash at end of period	818,525	80,153
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest		666
Cash paid for taxes		690
Supplemental disclosure of non-cash investing and financing activities:
Series C Convertible Preferred shares exchanged for common stock		$ 7

v3.24.0.1

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Preferred Stock Series A [Member]	Preferred Stock Series B [Member]	Preferred Stock Series C [Member]	Preferred Stock Series D [Member]	Preferred Stock Series E [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Sep. 30, 2022	$ 5		$ 34	$ 7	$ 30	$ 2,281	$ 15,240,112	$ (15,293,848)	$ (51,379)
Beginning balance, shares at Sep. 30, 2022	512,996		3,341,503	670,904	3,000,000	228,120,695
Series C Convertible Preferred shares exchanged for common stock			$ (1)			$ 7	(6)
Series C Convertible Preferred shares exchanged for common stock, shares			(132,000)			660,000
Net income								17,084	17,084
Ending balance, value at Dec. 31, 2022	$ 5		$ 33	$ 7	$ 30	$ 2,288	15,240,106	(15,276,764)	(34,295)
Ending balance, shares at Dec. 31, 2022	512,996		3,209,503	670,904	3,000,000	228,780,695
Beginning balance, value at Sep. 30, 2023	$ 5		$ 32	$ 7	$ 30	$ 2,291	15,240,104	(15,237,292)	5,177
Beginning balance, shares at Sep. 30, 2023	512,996		3,133,503	670,904	3,000,000	229,160,695
Net income								17,667	17,667
Ending balance, value at Dec. 31, 2023	$ 5		$ 32	$ 7	$ 30	$ 2,291	$ 15,240,104	$ (15,219,625)	$ 22,844
Ending balance, shares at Dec. 31, 2023	512,996		3,133,503	670,904	3,000,000	229,160,695

v3.24.0.1

ORGANIZATION	3 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	NOTE 1 - ORGANIZATION   Cleartronic, Inc. (the “Company”) was incorporated in Florida on November 15, 1999. All current operations are conducted through the Company’s wholly owned subsidiary, ReadyOp Communications, Inc. (“ReadyOp”), a Florida corporation incorporated on September 15, 2014. ReadyOp facilitates the marketing and sales of subscriptions to the ReadyOp™ and ReadyMed™ platforms and the AudioMate IP gateways discussed below.

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   PRINCIPLES OF CONSOLIDATION   The accompanying consolidated financial statements contain the consolidated accounts of Cleartronic, Inc. and its subsidiary, ReadyOp Communications, Inc. All material intercompany transactions and balances have been eliminated.   BASIS OF PRESENTATION   The financial statements are prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The unaudited interim financial information furnished herein reflects all adjustments, consisting only of normal recurring items, which in the opinion of management are necessary to fairly state the Company’s financial position, results of operations and cash flows for the dates and periods presented and to make such information not misleading.     These unaudited financial statements should be read in conjunction with the Company’s audited financial statements for the year ended September 30, 2023, contained in our General Form for Registration of Securities of Form 10-K as filed with the Securities and Exchange Commission (the “Commission”) on December 21, 2023. The results of operations for the three months ended December 31, 2023, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending September 30, 2024.   USE OF ESTIMATES   In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and operations for the reporting period.   Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results.   Significant estimates include the assumptions used in valuation of deferred tax assets, estimated useful life of property and equipment, valuation of inventory and allowance for credit losses.   CASH AND CASH EQUIVALENTS   For financial statement purposes, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.   The Company has investments Treasury Bills. The Treasury Bills have remaining terms ranging from four-week month to thirteen weeks on December 31, 2023.   Treasury Bills with an original maturity date of three months or less are included within cash and cash equivalents on the balance sheet at December 31, 2023.    ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES   The Company maintains current receivable amounts with most of its customers. The Company regularly monitors and assesses its risk of not collecting amounts owed by customers. This evaluation is based upon an analysis of current and past due amounts, along with relevant history and facts particular to the customer. The Company records its allowance for credit losses based on the results of this analysis. The analysis requires the Company to make significant estimates and as such, changes in facts and circumstances could result in material changes in the allowance for credit losses. The Company considers as past due any receivable balance not collected within its contractual terms.   The Company provided $92,665 and $63,665 allowances for doubtful accounts as of December 31, 2023, and September 30, 2023, respectively.   PREPAID EXPENSES AND OTHER CURRENT ASSETS   Prepaid expenses and other current assets consist primarily of deferred subscriber costs and prepaid expenses. Deferred subscriber costs totaling $25,500 and $38,250 at December 31, 2023 and September 30, 2023, respectively. Prepaid expenses totaling $85,575 and $68,522 at December 31, 2023 and September 30, 2023, respectively.   PROPERTY AND EQUIPMENT   Property and equipment are recorded at cost and depreciated or amortized using the straight-line method over the estimated useful life of the asset or the underlying lease term for leasehold improvements, whichever is shorter or when the property and equipment is put into service.   INTANGIBLE ASSETS   The Company’s intangible assets consist of fees paid to outside consulting services and employees that are assisting us in obtaining FedRAMP certification. At December 31, 2023, The Company had intangible assets with a cost of approximately $121,392, with finite lives. The Company amortizes intangible assets with finite lives over the shorter of their estimated useful or legal life. The useful life is reevaluated for each reporting period. For the three months ended December 31, 2023, no amortization expense was recorded.   The Company evaluates intangible assets with finite lives for impairment at least annually or when events or changes in circumstances indicate that an impairment may exist. The Company determined that none of its intangible assets were impaired during the three months ended December 31, 2023.   CONCENTRATION OF CREDIT RISK   The Company currently maintains cash balances at one FDIC-insured banking institution. Deposits held in non interest-bearing transaction accounts which are insured up to a maximum of $250,000 at all FDIC-insured institutions. As of December 31, 2023 and September 30, 2023, the Company had $0 and $118,140, respectively, in excess of FDIC insured limits.   RESEARCH AND DEVELOPMENT COSTS   The Company expenses research and development costs as incurred.   For the three months ended December 31, 2023 and 2022, the Company had $13,559 and $21,815 respectively, in research and development costs.   REVENUE RECOGNITION AND DEFERRED REVENUES   The Company revenue recognition policy follows guidance from Accounting Standards Codification (“ASC”) 606, Revenue from contract with customers. Revenue is recognized when the Company has transferred promised goods and services to the customer and in the amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount:   i. Identification of Contact with a customer; ii. Identify the performance obligation of the contract iii. Determine transaction price; iv. Allocation of the transaction price to the performance obligations; and v. Recognition of revenue when (or as) the Company satisfies each performance obligation.   The Company generates revenue primarily through the sale of software licenses and integrated hardware. The portion of the contract that is associated with ongoing hosting and related customer service is amortized monthly over the license period. The Company incurs certain incremental contract costs (referred to as deferred subscriber acquisition costs, net) including selling expenses (primarily commissions) related to acquiring customers. Deferred subscriber acquisition costs, net are included in prepaid and expenses and other current assets on the consolidated balance sheet. Commissions paid in connection with acquiring new customers are determined based on the value of the contractual fees. Deferred subscriber acquisition costs will be expensed as incurred on the date the revenue associated with the cost is recognized.   In transactions in which hardware is sold to a customer, the Company recognizes the revenue when the hardware has been shipped to the customer. The hardware supplied by the Company does not require a related software license and can be operated and fully functional without the Company’s software.   From time to time clients request special training meetings. We send employees to these meeting and charge our clients on a per diem basis. These charges are recorded as consulting fees on our income statement.   Customer billings for services not yet rendered and hardware not yet installed are deferred and recognized as revenue as services are provided. These fees are recorded as current deferred revenue on the consolidated balance sheet as the Company expects to satisfy any remaining performance obligations as well as recognize the related revenue within the next twelve months. Accordingly, the Company has applied the practical expedient regarding deferred revenue to exclude the value of remaining performance obligations if (i) the contract has an original expected term of one year or less or (ii) the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed.   Under an agreement with the School District of Hillsborough County Florida, the District has approved an agreement with the Company whereby the Company will provide 500 units of its AudioMate AM360 Radio gateways to a third party, Centegix, which will be installing the gateways under their agreement with the School District. Centegix has paid the Company for the gateways in advance and the deposit is accounted for in deferred revenue. The estimated completion date for the project is August 31, 2024.   As of December 31, 2023 and September 30, 2023, respectively, the Company recorded $1,527,884 and $1,177,680, respectively, in deferred revenue.   DISAGGREGATED REVENUE   The following table sets forth the approximate net sales by primary category:   Schedule of disaggregated revenue                     For the three months ended       December 31, 2023     December 31, 2022   Licensing of ReadyOp Software   $ 589,547     $ 460,244   Hardware Sales and Consulting     16,500       46,406   Total   $ 606,047     $ 506,650     DEFERRED REVENUE   The following table provides a summary of the changes included in deferred revenue during the three months ended December 31, 2023 and year ended September 30, 2023:   Schedule of deferred revenue                     For the three months ended December 31, 2023     For the year ended September 30, 2023   Beginning balance   $ 1,177,680     $ 1,125,511   Additions to deferred liability (1)     606,047       2,184,124   Deductions to deferred liability (2)     (255,843 )     (2,131,955 ) Ending balance   $ 1,527,844     $ 1,177,680     (1) Customer billings for services not yet rendered and hardware not yet installed (2) Revenue recognized in the current year related to the deferred liability   EARNINGS PER SHARE   Earnings per share (“EPS”) are the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by adding both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants.   Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation.   As of December 31, 2023 and 2022, we had no options and warrants outstanding.   As of December 31, 2023 and 2022, we had 512,996 shares of Series A Convertible Preferred stock outstanding, which are convertible into 51,299,600 shares of common stock.   As of December 31, 2023 and 2022, we had 3,133,503 and 3,209,503 shares of Series C Convertible Preferred stock outstanding, respectively, which are convertible into 15,947,515 and 16,707,515 shares of common stock, respectively.   As of December 31, 2023 and 2022, we had 670,904 shares of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock.   As of December 31, 2023 and 2022, we had 3,000,000 shares of Series E Convertible Preferred stock outstanding which are convertible into 300,000,000 shares of common stock.   The table below details the computation of basic and diluted earnings per share (“EPS”) for the three months ended December 31, 2023 and 2022:   Schedule of diluted earnings per share                     For the three months ended December 31, 2023     For the three months ended December 31, 2022   Net income attributable to common stockholders for the period   $ 7,324     $ 6,740                     Weighted average number of shares outstanding     229,160,695       228,630,043                     Basic earnings per share   $ 0.00     $ 0.00     The following table sets for the computation of diluted earnings per share:   Schedule of computation of diluted earnings per share                     For the three months ended December 31, 2023     For the three months ended December 31, 2022   Net income attributable to common stockholders for the period   $ 7,324     $ 6,740   Add: Preferred stock dividends     10,343       10,344                     Adjusted net income   $ 17,667     $ 17,084                     Weighted average number of shares outstanding     229,160,695       228,630,043   Add: Shares issued upon conversion of preferred stock     370,321,635       370,701,635   Weighted average number of common and common equivalent shares     599,482,330       599,331,678                     Diluted earnings per share   $ 0.00     $ 0.00     FAIR VALUE OF FINANCIAL INSTRUMENTS   The Company measures the fair value of its assets and liabilities under ASC topic 820, “Fair Value Measurements and Disclosures”. ASC 820 defines “fair value” as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There was no impact relating to the adoption of ASC 820 to the Company’s consolidated financial statements.   ASC 820 also describes three levels of inputs that may be used to measure fair value:   - Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. - Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. - Level 3: Inputs that are generally observable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.   Financial instruments consist principally of cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and deferred revenue. The carrying amounts of such financial instruments in the accompanying consolidated balance sheet approximate their fair values due to their relatively short-term nature. The carrying amounts approximate fair value. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments.   As of December 31, 2023 and September 30, 2023, we held no assets that were required to be measured at fair value on a recurring basis. There were no transfers between levels in the fair value hierarchy during three months ended December 31, 2023 and year ended September 30, 2023, respectively.   INVENTORY   Inventory consists of components held for assembly and finished goods held for resale or to be utilized for installation in projects. Inventory is valued at lower of cost or net realizable value on a first-in, first-out basis. The Company’s policy is to record a reserve for technological obsolescence or slow-moving inventory items. The Company only carries finished goods to be shipped along with completed circuit boards and parts necessary for final assembly of finished product. All existing inventory is considered current and usable. The Company recorded no reserve for obsolete inventory as of December 31, 2023 and September 30, 2023, respectively.   At December 31, 2023 inventory was $27,646 of raw materials.   At September 30, 2023, inventory was $21,913 of raw materials.   ADVERTISING COSTS   Advertising costs are expensed as incurred. The Company had advertising costs of $22,584 and $13,419 during the three months ended December 31, 2023 and 2022, respectively.   RECENT ADOPTED ACCOUNTING PRONOUNCEMENTS   Troubled Debt Restructurings and Vintage Disclosures   In March 2022, the Financial Accounting Standards Board (the “FASB”) issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminates the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310, Receivables (Topic 310), and requires entities to provide disclosures about current period gross write-offs by year of origination. Also, ASU 2022-02 updates the requirements related to accounting for credit losses under ASC 326, Financial Instruments – Credit Losses (Topic 326), and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022-02 was effective for the Company October 1, 2022. The adoption of ASU 2022-02 did not have a material impact on the Company’s consolidated financial statements.   RECENT ISSUED ACCOUNTING PRONOUNCEMENTS   The Company continues to monitor new accounting pronouncements issued by the FASB and does not believe any accounting pronouncements issued through the date of this report will have a material impact on the Company’s Financial Statements.   In the current year, the Company adjusted its classification of selling and administrative expenses in the Statement of Operations. For comparative purposes, amounts in the prior years have been reclassified to conform to current year presentations. These reclassifications had no effect on previously reported results of operations or retained earnings.   LEASE ACCOUNTING   We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.   We have a lease agreement with lease and non-lease components and have elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, from both a lessee and lessor perspective with the exception of direct sales-type leases and production equipment classes embedded in supply agreements. From a lessor perspective, the timing and pattern of transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately, would be classified as an operating lease.   We have elected not to present short-term leases on the balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because our lease does not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments.   In general, leases, where we are the lessee, may include options to extend the lease term. These leases may include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.   Lease expense for operating leases is recognized on a straight-line basis over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Certain operating leases provide for annual increases to lease payments based on an index or rate. We calculate the present value of future lease payments based on the index or rate at the lease commencement date.   Differences between the calculated lease payment and actual payment are expensed as incurred. Amortization of finance lease assets is recognized over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset.   On December 2, 2022, and effective on January 1, 2023, the Company signed a two-year lease of 1,145 square feet for our principal offices in Clearwater, Florida. The monthly rent is $2,134 in year one and increases to $2,198 in year two. The lease expires on December 31, 2024.   The tables below present information regarding the Company’s operating lease assets and liabilities at December 31, 2023 and September 30, 2023:   Schedule of operating lease assets and liabilities                     December 31, 2023     September 30, 2023   Assets                                   Operating lease -right-of-use assets-non-current   $ 23,932     $ 29,914                     Liabilities                                   Operating lease liability   $ 25,267     $ 31,087                     Weighted-average remaining lease term (years)     1.00       1.25                     Weighted-average discount rate     8 %     8 %                   The components of lease expense were as follows:                                   Operating lease cost                                   Amorization on right-of-use operating lease asset   $ 5,982     $ 17,949   Lease liability expense in connection with obligation repayment     584       2,429   Total operating lease costs   $ 6,566     $ 20,378                     Supplemental cash outflows information related to operation lease was as follows:                                   Operating cash outflows from operating lease (obligation payment)   $ 6,402     $ 19,206   Right-of-use asset obtained in exchange for new operating lease liability   $ -     $ 47,863     At December 31, 2023, the Company has no financing leases as defined in ASC 842, “Leases.”   Future minimum lease payments required under leases that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2023:   Schedule of future minimum lease payments required under leases         2024   $ 19,782   2025     6,594   Total undiscounted cash flows     26,376   Less: amount representing interest     (1,109 ) Present value of operating lease liability     25,267   Less: current portion of operation lease liability     (25,267 ) Long-term operating lease liability   $ -

v3.24.0.1

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS	3 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS	NOTE 3 – PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS   At December 31, 2023 and September 30, 2023, property and equipment, net, is as follows:   Schedule of property and equipment net                     For the three months ended December 31, 2023     For the year ended September 30, 2023   Office Equipment   $ 28,040     $ 28,040   Less: Accumulated Depreciation     (12,872 )     (11,514 ) Total Property and Equipment, net   $ 15,168     $ 16,526     Depreciation expense for the three months ended December 31, 2023 and 2022, was $1,357 and $1,080, respectively.   At December 31, 2023 and September 30, 2023, intangible assets, net, is as follows:   Schedule of intangible assets                     For the three months ended December 31, 2023     For the year ended September 30, 2023   Intangible Assets     121,392       44,373   Total Intangible Assets, net   $ 121,392     $ 44,373     Amortization expense for the three months ended December 31, 2023 and 2022, was $0 and $0, respectively.

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EQUITY TRANSACTIONS	3 Months Ended
	Dec. 31, 2023
Equity [Abstract]
EQUITY TRANSACTIONS	NOTE 4 - EQUITY TRANSACTIONS   Preferred Stock Dividends   As of December 31, 2023 and September 30, 2023, the cumulative arrearage of undeclared dividends for Series A Preferred stock totaled $216,524 and $205,658, respectively and $10,343 for the three months ended December 31, 2023.   As of the date of this report, we have 200,000,000 authorized shares of preferred stock, par value $0.00001 per share, of which 7,317,403 shares were issued and outstanding. There are currently 5 series of preferred stock designated as follows:     ● 1,250,000 shares have been designated as Series A Preferred Stock, 512,996 of which are issued and outstanding;   ● 10 shares have been designated as Series B Preferred Stock, none of which is issued and outstanding;   ● 50,000,000 shares have been designated as Series C Preferred Stock, 3,133,503 of which are issued and outstanding; and   ● 10,000,000 shares have been designated Series D Preferred stock, of which 670,904 are issued and outstanding; and   ● 10,000,000 shares have been designated Series E Preferred stock, of which 3,000,000 are issued and outstanding.   Pursuant to our Articles of Incorporation establishing our preferred stock:     ● A holder of shares of the Series A Preferred Stock is entitled to the number of votes equal to the number of shares of the Series A Preferred Stock held by such holder multiplied by one on all matters submitted to a vote of our stockholders. Each one share of our Series A Preferred Stock shall be convertible into 100 shares of our common stock. Each holder of Series A Preferred Stock is entitled to receive cumulative dividends at the rate of 8% of $1.00 per annum on each outstanding share of Series A Preferred Stock then held by such holder, on a pro rata basis.         ● A holder of shares of the Series B Preferred Stock is entitled to one vote per share on all matters submitted to a vote of our stockholders. If at least one share of Series B Preferred Stock is issued and outstanding, then the total aggregate issued shares of Series B Preferred Stock at any given time, regardless of their number, shall have voting rights equal to two times the sum of the total number of shares of our common stock which are issued and outstanding at the time of voting, plus the total number of shares of any shares of our preferred stock which are issued and outstanding at the time of voting. A holder of shares of the Series B Preferred Stock shall have no conversion rights or rights to dividends.         ● A holder of shares of the Series C Preferred Stock is entitled to the number of votes equal to the number of shares of the Series C Preferred Stock held by such holder multiplied by 5 on all matters submitted to a vote of our stockholders. In addition, the holders of our Series C Preferred Stock shall be entitled to receive dividends when, as and if declared by the Board of Directors, in its sole discretion. No dividends have been declared. Finally, each one share of our Series C Preferred Stock shall be convertible into five shares of our common stock.         ● A holder of shares of the Series D Preferred Stock is entitled to the number of votes equal to the number of shares of the Series D Preferred Stock held by such holder multiplied by 5 on all matters submitted to a vote of our stockholders. In addition, the holders of our Series D Preferred Stock shall be entitled to receive dividends when, as and if declared by the Board of Directors, in its sole discretion. No dividends have been declared. Finally, each one share of our Series D Preferred Stock shall be convertible into five shares of our common stock.         ● A holder of shares of the Series E Preferred Stock is entitled to the number of votes equal to the number of shares of the Series E Preferred Stock held by such holder multiplied by 100 on all matters submitted to a vote of our stockholders. In addition, the holders of our Series E Preferred Stock shall be entitled to receive dividends when, as and if declared by the Board of Directors, in its sole discretion. No dividends have been declared. Finally, each one share of our Series E Preferred Stock shall be convertible into 100 shares of our common stock.

v3.24.0.1

RELATED PARTY TRANSACTIONS	3 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5 - RELATED PARTY TRANSACTIONS   Rent expense incurred during the three months ended December 31, 2023 and 2022 was $0 and $2,343, respectively (See Note 6).   During the three months ended December 31, 2023 and 2022, the Company paid $12,000 and $9,000, respectively, to a related party consultant.   As of December 31, 2022, the Company advanced $53,302 to VoiceInterop, the Company’s former wholly owned subsidiary and now 96% owned by our shareholders. The amount is included in due from related party on the consolidated balance sheet. The amount is due on September 30, 2024, and bears interest at 5% effective October 1, 2022. As of December 31, 2023, the Company recorded $3,427 in interest receivable – related party.

v3.24.0.1

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 6 - COMMITMENTS AND CONTINGENCIES   Obligation Under Operating Lease   On December 2, 2022, and effective on January 1, 2023, the Company signed a two-year lease of 1,145 square feet for our principal offices in Clearwater, Florida. The monthly rent is $2,134 in year one and increases to $2,198 in year two. The lease expires on December 31, 2024. On January 1, 2023, upon adoption of ASC 842, the Company will recognize right-to-use assets as operating leases and operating lease obligations.   On December 1, 2021, the Company signed a one year lease approximately 2,000 square feet for our principal offices in Boca Raton, Florida. The monthly rent is $2,200. The lease expired on November 30, 2022.   Rent expense incurred during the years ended September 30, 2023 and 2022 was $22,722 and $26,973, respectively.     Revenue and Accounts Receivable Concentration   For the three months ended December 31, 2023, one customer accounted for 12.72% of the Company’s revenues.   For the three months ended December 31, 2022, one customer accounted for 16% of the Company’s revenues.   As of December 31, 2023, no customer accounted for more than 10% of the Company’s total outstanding accounts receivable.   As of September 30, 2023, no customer accounted for more than 10% of the Company’s total outstanding accounts receivable.   Deferred Revenue Concentration   As of December 31, 2023, one customer accounted for more than 33% of the Company’s total outstanding deferred revenue.   As of September 30, 2023, no customer accounted for more than 10% of the Company’s total outstanding deferred revenue.   Major Supplier and Sole Manufacturing Source   The Company relies on no major supplier for its products. The Company has contracted with local manufacturing facilities to provide completed circuit boards used in the assembly of its IP gateway devices. Interruption of adequate supply of components, primarily computer chips, to the manufacturing source presents additional risk to the Company. The Company believes that additional commercial facilities exist at competitive rates to match the resources and capabilities of its existing manufacturing source, but the current worldwide shortage of computer chips does limit our ability to supply our proprietary radio gateways to clients and other buyers.   Exclusive Licensing Agreement   On May 5, 2017, the Company entered into an Exclusive Licensing Agreement with Sublicensing Terms (the “Agreement”) with the University of South Florida Research Foundation, Inc. (“USFRF”) relating to an exclusive license of certain patent rights in connection with one of USFRF’s U.S. Patent Applications. Both parties recognize that the research and development work provided by the Company was sufficient for USFRF to enter into the Agreement with the Company.   The Agreement is effective April 25, 2017 and continues until the later of the date that no Licensed Patent remains a pending application or an enforceable patent or the date on which the Licensee’s obligation to pay royalties expires.   The Company agreed to pay USFRF a royalty of 3% for sales of all Licensed Products and Licensed Processes and agreed to pay USFRF minimum royalty payments of $8,000 for fiscal year 2022 and thereafter on the same date, for the life of the agreement.   In the event the Company proposes to sell any Equity Securities, then USFRF will have the right to purchase 5% of the securities issued in such offering on the same terms and conditions are offered to other purchasers in such financing. As of December 31, 2023 and 2022, the Company has recorded $9,090 and $3,640 for the minimum royalty for the fiscal year ended 2023 and 2022.

v3.24.0.1

EXTINGUISHMENT OF LIABILITIES	3 Months Ended
	Dec. 31, 2023
Extinguishment Of Liabilities
EXTINGUISHMENT OF LIABILITIES	NOTE 7 – EXTINGUISHMENT OF LIABILITIES   During the three months ended December 31, 2023, the Company recorded a gain on extinguishment of liabilities $44,052 related to amounts due to vendors that exceeded the statute of limitations.

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION   The accompanying consolidated financial statements contain the consolidated accounts of Cleartronic, Inc. and its subsidiary, ReadyOp Communications, Inc. All material intercompany transactions and balances have been eliminated.
BASIS OF PRESENTATION	BASIS OF PRESENTATION   The financial statements are prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The unaudited interim financial information furnished herein reflects all adjustments, consisting only of normal recurring items, which in the opinion of management are necessary to fairly state the Company’s financial position, results of operations and cash flows for the dates and periods presented and to make such information not misleading.     These unaudited financial statements should be read in conjunction with the Company’s audited financial statements for the year ended September 30, 2023, contained in our General Form for Registration of Securities of Form 10-K as filed with the Securities and Exchange Commission (the “Commission”) on December 21, 2023. The results of operations for the three months ended December 31, 2023, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending September 30, 2024.
USE OF ESTIMATES	USE OF ESTIMATES   In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and operations for the reporting period.   Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results.   Significant estimates include the assumptions used in valuation of deferred tax assets, estimated useful life of property and equipment, valuation of inventory and allowance for credit losses.
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS   For financial statement purposes, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.   The Company has investments Treasury Bills. The Treasury Bills have remaining terms ranging from four-week month to thirteen weeks on December 31, 2023.   Treasury Bills with an original maturity date of three months or less are included within cash and cash equivalents on the balance sheet at December 31, 2023.
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES	ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES   The Company maintains current receivable amounts with most of its customers. The Company regularly monitors and assesses its risk of not collecting amounts owed by customers. This evaluation is based upon an analysis of current and past due amounts, along with relevant history and facts particular to the customer. The Company records its allowance for credit losses based on the results of this analysis. The analysis requires the Company to make significant estimates and as such, changes in facts and circumstances could result in material changes in the allowance for credit losses. The Company considers as past due any receivable balance not collected within its contractual terms.   The Company provided $92,665 and $63,665 allowances for doubtful accounts as of December 31, 2023, and September 30, 2023, respectively.
PREPAID EXPENSES AND OTHER CURRENT ASSETS	PREPAID EXPENSES AND OTHER CURRENT ASSETS   Prepaid expenses and other current assets consist primarily of deferred subscriber costs and prepaid expenses. Deferred subscriber costs totaling $25,500 and $38,250 at December 31, 2023 and September 30, 2023, respectively. Prepaid expenses totaling $85,575 and $68,522 at December 31, 2023 and September 30, 2023, respectively.
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT   Property and equipment are recorded at cost and depreciated or amortized using the straight-line method over the estimated useful life of the asset or the underlying lease term for leasehold improvements, whichever is shorter or when the property and equipment is put into service.
INTANGIBLE ASSETS	INTANGIBLE ASSETS   The Company’s intangible assets consist of fees paid to outside consulting services and employees that are assisting us in obtaining FedRAMP certification. At December 31, 2023, The Company had intangible assets with a cost of approximately $121,392, with finite lives. The Company amortizes intangible assets with finite lives over the shorter of their estimated useful or legal life. The useful life is reevaluated for each reporting period. For the three months ended December 31, 2023, no amortization expense was recorded.   The Company evaluates intangible assets with finite lives for impairment at least annually or when events or changes in circumstances indicate that an impairment may exist. The Company determined that none of its intangible assets were impaired during the three months ended December 31, 2023.
CONCENTRATION OF CREDIT RISK	CONCENTRATION OF CREDIT RISK   The Company currently maintains cash balances at one FDIC-insured banking institution. Deposits held in non interest-bearing transaction accounts which are insured up to a maximum of $250,000 at all FDIC-insured institutions. As of December 31, 2023 and September 30, 2023, the Company had $0 and $118,140, respectively, in excess of FDIC insured limits.
RESEARCH AND DEVELOPMENT COSTS	RESEARCH AND DEVELOPMENT COSTS   The Company expenses research and development costs as incurred.   For the three months ended December 31, 2023 and 2022, the Company had $13,559 and $21,815 respectively, in research and development costs.
REVENUE RECOGNITION AND DEFERRED REVENUES	REVENUE RECOGNITION AND DEFERRED REVENUES   The Company revenue recognition policy follows guidance from Accounting Standards Codification (“ASC”) 606, Revenue from contract with customers. Revenue is recognized when the Company has transferred promised goods and services to the customer and in the amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount:   i. Identification of Contact with a customer; ii. Identify the performance obligation of the contract iii. Determine transaction price; iv. Allocation of the transaction price to the performance obligations; and v. Recognition of revenue when (or as) the Company satisfies each performance obligation.   The Company generates revenue primarily through the sale of software licenses and integrated hardware. The portion of the contract that is associated with ongoing hosting and related customer service is amortized monthly over the license period. The Company incurs certain incremental contract costs (referred to as deferred subscriber acquisition costs, net) including selling expenses (primarily commissions) related to acquiring customers. Deferred subscriber acquisition costs, net are included in prepaid and expenses and other current assets on the consolidated balance sheet. Commissions paid in connection with acquiring new customers are determined based on the value of the contractual fees. Deferred subscriber acquisition costs will be expensed as incurred on the date the revenue associated with the cost is recognized.   In transactions in which hardware is sold to a customer, the Company recognizes the revenue when the hardware has been shipped to the customer. The hardware supplied by the Company does not require a related software license and can be operated and fully functional without the Company’s software.   From time to time clients request special training meetings. We send employees to these meeting and charge our clients on a per diem basis. These charges are recorded as consulting fees on our income statement.   Customer billings for services not yet rendered and hardware not yet installed are deferred and recognized as revenue as services are provided. These fees are recorded as current deferred revenue on the consolidated balance sheet as the Company expects to satisfy any remaining performance obligations as well as recognize the related revenue within the next twelve months. Accordingly, the Company has applied the practical expedient regarding deferred revenue to exclude the value of remaining performance obligations if (i) the contract has an original expected term of one year or less or (ii) the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed.   Under an agreement with the School District of Hillsborough County Florida, the District has approved an agreement with the Company whereby the Company will provide 500 units of its AudioMate AM360 Radio gateways to a third party, Centegix, which will be installing the gateways under their agreement with the School District. Centegix has paid the Company for the gateways in advance and the deposit is accounted for in deferred revenue. The estimated completion date for the project is August 31, 2024.   As of December 31, 2023 and September 30, 2023, respectively, the Company recorded $1,527,884 and $1,177,680, respectively, in deferred revenue.
DISAGGREGATED REVENUE	DISAGGREGATED REVENUE   The following table sets forth the approximate net sales by primary category:   Schedule of disaggregated revenue                     For the three months ended       December 31, 2023     December 31, 2022   Licensing of ReadyOp Software   $ 589,547     $ 460,244   Hardware Sales and Consulting     16,500       46,406   Total   $ 606,047     $ 506,650
DEFERRED REVENUE	DEFERRED REVENUE   The following table provides a summary of the changes included in deferred revenue during the three months ended December 31, 2023 and year ended September 30, 2023:   Schedule of deferred revenue                     For the three months ended December 31, 2023     For the year ended September 30, 2023   Beginning balance   $ 1,177,680     $ 1,125,511   Additions to deferred liability (1)     606,047       2,184,124   Deductions to deferred liability (2)     (255,843 )     (2,131,955 ) Ending balance   $ 1,527,844     $ 1,177,680     (1) Customer billings for services not yet rendered and hardware not yet installed (2) Revenue recognized in the current year related to the deferred liability
EARNINGS PER SHARE	EARNINGS PER SHARE   Earnings per share (“EPS”) are the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by adding both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants.   Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation.   As of December 31, 2023 and 2022, we had no options and warrants outstanding.   As of December 31, 2023 and 2022, we had 512,996 shares of Series A Convertible Preferred stock outstanding, which are convertible into 51,299,600 shares of common stock.   As of December 31, 2023 and 2022, we had 3,133,503 and 3,209,503 shares of Series C Convertible Preferred stock outstanding, respectively, which are convertible into 15,947,515 and 16,707,515 shares of common stock, respectively.   As of December 31, 2023 and 2022, we had 670,904 shares of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock.   As of December 31, 2023 and 2022, we had 3,000,000 shares of Series E Convertible Preferred stock outstanding which are convertible into 300,000,000 shares of common stock.   The table below details the computation of basic and diluted earnings per share (“EPS”) for the three months ended December 31, 2023 and 2022:   Schedule of diluted earnings per share                     For the three months ended December 31, 2023     For the three months ended December 31, 2022   Net income attributable to common stockholders for the period   $ 7,324     $ 6,740                     Weighted average number of shares outstanding     229,160,695       228,630,043                     Basic earnings per share   $ 0.00     $ 0.00     The following table sets for the computation of diluted earnings per share:   Schedule of computation of diluted earnings per share                     For the three months ended December 31, 2023     For the three months ended December 31, 2022   Net income attributable to common stockholders for the period   $ 7,324     $ 6,740   Add: Preferred stock dividends     10,343       10,344                     Adjusted net income   $ 17,667     $ 17,084                     Weighted average number of shares outstanding     229,160,695       228,630,043   Add: Shares issued upon conversion of preferred stock     370,321,635       370,701,635   Weighted average number of common and common equivalent shares     599,482,330       599,331,678                     Diluted earnings per share   $ 0.00     $ 0.00
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS   The Company measures the fair value of its assets and liabilities under ASC topic 820, “Fair Value Measurements and Disclosures”. ASC 820 defines “fair value” as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There was no impact relating to the adoption of ASC 820 to the Company’s consolidated financial statements.   ASC 820 also describes three levels of inputs that may be used to measure fair value:   - Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. - Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. - Level 3: Inputs that are generally observable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.   Financial instruments consist principally of cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and deferred revenue. The carrying amounts of such financial instruments in the accompanying consolidated balance sheet approximate their fair values due to their relatively short-term nature. The carrying amounts approximate fair value. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments.   As of December 31, 2023 and September 30, 2023, we held no assets that were required to be measured at fair value on a recurring basis. There were no transfers between levels in the fair value hierarchy during three months ended December 31, 2023 and year ended September 30, 2023, respectively.
INVENTORY	INVENTORY   Inventory consists of components held for assembly and finished goods held for resale or to be utilized for installation in projects. Inventory is valued at lower of cost or net realizable value on a first-in, first-out basis. The Company’s policy is to record a reserve for technological obsolescence or slow-moving inventory items. The Company only carries finished goods to be shipped along with completed circuit boards and parts necessary for final assembly of finished product. All existing inventory is considered current and usable. The Company recorded no reserve for obsolete inventory as of December 31, 2023 and September 30, 2023, respectively.   At December 31, 2023 inventory was $27,646 of raw materials.   At September 30, 2023, inventory was $21,913 of raw materials.
ADVERTISING COSTS	ADVERTISING COSTS   Advertising costs are expensed as incurred. The Company had advertising costs of $22,584 and $13,419 during the three months ended December 31, 2023 and 2022, respectively.
RECENT ADOPTED ACCOUNTING PRONOUNCEMENTS	RECENT ADOPTED ACCOUNTING PRONOUNCEMENTS   Troubled Debt Restructurings and Vintage Disclosures   In March 2022, the Financial Accounting Standards Board (the “FASB”) issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminates the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310, Receivables (Topic 310), and requires entities to provide disclosures about current period gross write-offs by year of origination. Also, ASU 2022-02 updates the requirements related to accounting for credit losses under ASC 326, Financial Instruments – Credit Losses (Topic 326), and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022-02 was effective for the Company October 1, 2022. The adoption of ASU 2022-02 did not have a material impact on the Company’s consolidated financial statements.
RECENT ISSUED ACCOUNTING PRONOUNCEMENTS	RECENT ISSUED ACCOUNTING PRONOUNCEMENTS   The Company continues to monitor new accounting pronouncements issued by the FASB and does not believe any accounting pronouncements issued through the date of this report will have a material impact on the Company’s Financial Statements.   In the current year, the Company adjusted its classification of selling and administrative expenses in the Statement of Operations. For comparative purposes, amounts in the prior years have been reclassified to conform to current year presentations. These reclassifications had no effect on previously reported results of operations or retained earnings.
LEASE ACCOUNTING	LEASE ACCOUNTING   We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.   We have a lease agreement with lease and non-lease components and have elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, from both a lessee and lessor perspective with the exception of direct sales-type leases and production equipment classes embedded in supply agreements. From a lessor perspective, the timing and pattern of transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately, would be classified as an operating lease.   We have elected not to present short-term leases on the balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because our lease does not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments.   In general, leases, where we are the lessee, may include options to extend the lease term. These leases may include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.   Lease expense for operating leases is recognized on a straight-line basis over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Certain operating leases provide for annual increases to lease payments based on an index or rate. We calculate the present value of future lease payments based on the index or rate at the lease commencement date.   Differences between the calculated lease payment and actual payment are expensed as incurred. Amortization of finance lease assets is recognized over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset.   On December 2, 2022, and effective on January 1, 2023, the Company signed a two-year lease of 1,145 square feet for our principal offices in Clearwater, Florida. The monthly rent is $2,134 in year one and increases to $2,198 in year two. The lease expires on December 31, 2024.   The tables below present information regarding the Company’s operating lease assets and liabilities at December 31, 2023 and September 30, 2023:   Schedule of operating lease assets and liabilities                     December 31, 2023     September 30, 2023   Assets                                   Operating lease -right-of-use assets-non-current   $ 23,932     $ 29,914                     Liabilities                                   Operating lease liability   $ 25,267     $ 31,087                     Weighted-average remaining lease term (years)     1.00       1.25                     Weighted-average discount rate     8 %     8 %                   The components of lease expense were as follows:                                   Operating lease cost                                   Amorization on right-of-use operating lease asset   $ 5,982     $ 17,949   Lease liability expense in connection with obligation repayment     584       2,429   Total operating lease costs   $ 6,566     $ 20,378                     Supplemental cash outflows information related to operation lease was as follows:                                   Operating cash outflows from operating lease (obligation payment)   $ 6,402     $ 19,206   Right-of-use asset obtained in exchange for new operating lease liability   $ -     $ 47,863     At December 31, 2023, the Company has no financing leases as defined in ASC 842, “Leases.”   Future minimum lease payments required under leases that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2023:   Schedule of future minimum lease payments required under leases         2024   $ 19,782   2025     6,594   Total undiscounted cash flows     26,376   Less: amount representing interest     (1,109 ) Present value of operating lease liability     25,267   Less: current portion of operation lease liability     (25,267 ) Long-term operating lease liability   $ -

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Schedule of disaggregated revenue	Schedule of disaggregated revenue                     For the three months ended       December 31, 2023     December 31, 2022   Licensing of ReadyOp Software   $ 589,547     $ 460,244   Hardware Sales and Consulting     16,500       46,406   Total   $ 606,047     $ 506,650
Schedule of deferred revenue	Schedule of deferred revenue                     For the three months ended December 31, 2023     For the year ended September 30, 2023   Beginning balance   $ 1,177,680     $ 1,125,511   Additions to deferred liability (1)     606,047       2,184,124   Deductions to deferred liability (2)     (255,843 )     (2,131,955 ) Ending balance   $ 1,527,844     $ 1,177,680     (1) Customer billings for services not yet rendered and hardware not yet installed (2) Revenue recognized in the current year related to the deferred liability
Schedule of diluted earnings per share	Schedule of diluted earnings per share                     For the three months ended December 31, 2023     For the three months ended December 31, 2022   Net income attributable to common stockholders for the period   $ 7,324     $ 6,740                     Weighted average number of shares outstanding     229,160,695       228,630,043                     Basic earnings per share   $ 0.00     $ 0.00
Schedule of computation of diluted earnings per share	Schedule of computation of diluted earnings per share                     For the three months ended December 31, 2023     For the three months ended December 31, 2022   Net income attributable to common stockholders for the period   $ 7,324     $ 6,740   Add: Preferred stock dividends     10,343       10,344                     Adjusted net income   $ 17,667     $ 17,084                     Weighted average number of shares outstanding     229,160,695       228,630,043   Add: Shares issued upon conversion of preferred stock     370,321,635       370,701,635   Weighted average number of common and common equivalent shares     599,482,330       599,331,678                     Diluted earnings per share   $ 0.00     $ 0.00
Schedule of operating lease assets and liabilities	Schedule of operating lease assets and liabilities                     December 31, 2023     September 30, 2023   Assets                                   Operating lease -right-of-use assets-non-current   $ 23,932     $ 29,914                     Liabilities                                   Operating lease liability   $ 25,267     $ 31,087                     Weighted-average remaining lease term (years)     1.00       1.25                     Weighted-average discount rate     8 %     8 %                   The components of lease expense were as follows:                                   Operating lease cost                                   Amorization on right-of-use operating lease asset   $ 5,982     $ 17,949   Lease liability expense in connection with obligation repayment     584       2,429   Total operating lease costs   $ 6,566     $ 20,378                     Supplemental cash outflows information related to operation lease was as follows:                                   Operating cash outflows from operating lease (obligation payment)   $ 6,402     $ 19,206   Right-of-use asset obtained in exchange for new operating lease liability   $ -     $ 47,863
Schedule of future minimum lease payments required under leases	Schedule of future minimum lease payments required under leases         2024   $ 19,782   2025     6,594   Total undiscounted cash flows     26,376   Less: amount representing interest     (1,109 ) Present value of operating lease liability     25,267   Less: current portion of operation lease liability     (25,267 ) Long-term operating lease liability   $ -

v3.24.0.1

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment net	Schedule of property and equipment net                     For the three months ended December 31, 2023     For the year ended September 30, 2023   Office Equipment   $ 28,040     $ 28,040   Less: Accumulated Depreciation     (12,872 )     (11,514 ) Total Property and Equipment, net   $ 15,168     $ 16,526
Schedule of intangible assets	Schedule of intangible assets                     For the three months ended December 31, 2023     For the year ended September 30, 2023   Intangible Assets     121,392       44,373   Total Intangible Assets, net   $ 121,392     $ 44,373

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Product Information [Line Items]
Total disaggregated revenue	$ 606,047	$ 506,650
Licensing Of Ready Op Software [Member]
Product Information [Line Items]
Total disaggregated revenue	589,547	460,244
Hardware Sales And Consulting [Member]
Product Information [Line Items]
Total disaggregated revenue	$ 16,500	$ 46,406

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)		3 Months Ended	12 Months Ended
		Dec. 31, 2023	Sep. 30, 2023
Accounting Policies [Abstract]
Beginning balance		$ 1,177,680	$ 1,125,511
Additions to deferred liability	[1]	606,047	2,184,124
Deductions to deferred liability	[2]	(255,843)	(2,131,955)
Ending balance		$ 1,527,844	$ 1,177,680
[1] Customer billings for services not yet rendered and hardware not yet installed [2] Revenue recognized in the current year related to the deferred liability

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Net income attributable to common stockholders for the period	$ 7,324	$ 6,740
Weighted average number of shares outstanding	229,160,695	228,630,043
Basic earnings per share	$ 0.00	$ 0.00

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Net income attributable to common stockholders for the period	$ 7,324	$ 6,740
Add: Preferred stock dividends	10,343	10,344
Adjusted net income	$ 17,667	$ 17,084
Weighted average number of shares outstanding	229,160,695	228,630,043
Add: Shares issued upon conversion of preferred stock	370,321,635	370,701,635
Weighted average number of common and common equivalent shares	599,482,330	599,331,678
Diluted earnings per share	$ 0.00	$ 0.00

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023
Accounting Policies [Abstract]
Operating lease -right-of-use assets-non-current	$ 23,932	$ 29,914
Operating lease liability	$ 25,267	$ 31,087
Operating Lease, Weighted Average Remaining Lease Term	1 year	1 year 3 months
Weighted-average discount rate	8.00%	8.00%
Amorization on right-of-use opeating lease asset	$ 5,982	$ 17,949
Lease liability expense in connection with obligation repayment	584	2,429
Total operating lease costs	6,566	20,378
Operating cash outflows from operating lease (obligation payment)	6,402	19,206
Right-of-use asset obtained in exchange for new operating lease liability		$ 47,863

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Accounting Policies [Abstract]
2024	$ 19,782
2025	6,594
Total undiscounted cash flows	26,376
Less: amount representing interest	(1,109)
Present value of operating lease liability	25,267
Less: current portion of operation lease liability	(25,267)	$ (24,580)
Long-term operating lease liability

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	3 Months Ended
	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 USD ($) shares	Sep. 30, 2023 USD ($) shares	Jan. 01, 2023 ft²
Allowance for doubtful accounts	$ 92,665		$ 63,665
Deferred subscriber cost	25,500		38,250
Prepaid expenses	85,575		68,522
Finite-Lived Intangible Assets, Net	121,392		44,373
Amortization of Intangible Assets	0
Fdic insured amount	250,000
Amount of fdic insurance limits	0	$ 118,140
Research and development cost	13,559	$ 21,815
Deferred revenue	$ 1,527,884		1,177,680
Option outstanding | shares	0	0
Warrant outstanding | shares	0	0
Inventory, raw materials	$ 27,646		$ 21,913
Advertising expense	22,584	$ 13,419
Area of land | ft²				1,145
Payments for rent	2,134
Increase (decrease) in prepaid rent	$ 2,198
Series A Convertible Preferred Stock [Member]
Preferred stock, shares outstanding | shares	512,996	512,996
Convertible preferred stock, shares issued upon conversion | shares	51,299,600	51,299,600
Series C Preferred Stock [Member]
Preferred stock, shares outstanding | shares	3,133,503	3,209,503	3,133,503
Convertible preferred stock, shares issued upon conversion | shares	15,947,515	16,707,515
Series D Preferred Stock [Member]
Preferred stock, shares outstanding | shares	670,904	670,904	670,904
Convertible preferred stock, shares issued upon conversion | shares	3,354,520	3,354,520
Series E Preferred Stock [Member]
Preferred stock, shares outstanding | shares	3,000,000	3,000,000	3,000,000
Convertible preferred stock, shares issued upon conversion | shares	300,000,000	300,000,000

v3.24.0.1

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Office Equipment	$ 28,040	$ 28,040
Less: Accumulated Depreciation	(12,872)	(11,514)
Total Property and Equipment, net	$ 15,168	$ 16,526

v3.24.0.1

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS (Details 1) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Intangible Assets	$ 121,392	$ 44,373
Total Intangible Assets, net	$ 121,392	$ 44,373

v3.24.0.1

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,357	$ 1,080
Amortization expense	$ 0	$ 0

v3.24.0.1

EQUITY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Cumulative dividends	$ 216,524	$ 205,658
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Cumulative dividends	$ 10,343
Preferred stock, shares authorized	1,250,000	1,250,000
Preferred Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Preferred stock, shares outstanding	512,996	512,996
Preferred stock, shares issued	512,996	512,996
Common stock dividends, shares	100
Cumulative dividend percentage	8.00%
Preferred stock, per share amounts of preferred dividends in arrears	$ 1.00
Preferred Stock Dividends [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	200,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.00001
Preferred stock, shares outstanding	7,317,403
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	10	10
Preferred Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Preferred stock, shares outstanding	0	0
Preferred stock, shares issued	0	0
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Preferred stock, shares outstanding	3,133,503	3,133,503	3,209,503
Preferred stock, shares issued	3,133,503	3,133,503
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Preferred stock, shares outstanding	670,904	670,904	670,904
Preferred stock, shares issued	670,904	670,904
Series E Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Preferred stock, shares outstanding	3,000,000	3,000,000	3,000,000
Preferred stock, shares issued	3,000,000	3,000,000
Common stock dividends, shares	100

v3.24.0.1

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Rent expense	$ 0	$ 2,343
Related party costs	12,000	9,000
Advanced amounts		$ 53,302
Related Party [Member]
Related Party Transaction [Line Items]
Interest receivable related party	$ 3,427
Subsidiaries [Member] | Voice Interop Inc [Member]
Related Party Transaction [Line Items]
Ownership percentage		96.00%
Interest rate	5.00%

v3.24.0.1

COMMITMENTS AND CONTINGENCIES (Details Narrative)			3 Months Ended		12 Months Ended
	Dec. 02, 2022 USD ($) ft²	Dec. 01, 2021 USD ($) ft²	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Product Information [Line Items]
Area of leased facility | ft²	1,145	2,000
Monthly rental cost	$ 2,134	$ 2,200
Monthly rent	$ 2,198
Lease expiration date		Nov. 30, 2022
Royalty Expense			$ 9,090	$ 3,640
Southern Florida Research Foundation [Member]
Product Information [Line Items]
Royalty Percentage			3.00%
Percentage Of Right To Purchase Securities			5.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member]
Product Information [Line Items]
Concentration risk, percentage			12.72%	16.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | No Customer [Member]
Product Information [Line Items]
Concentration risk, percentage			10.00%		10.00%
Deferred Revenues [Member] | Customer Concentration Risk [Member] | One Customer [Member]
Product Information [Line Items]
Concentration risk, percentage			33.00%		10.00%
Obligation Under Operating Lease [Member]
Product Information [Line Items]
Rental expense					$ 22,722	$ 26,973

v3.24.0.1

EXTINGUISHMENT OF LIABILITIES (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Extinguishment Of Liabilities
Gain on extinguishment of liabilities	$ 44,052

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