Form 10-QT - Transition reports [Rule 13a-10 or 15d-10]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QT

☐	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

☒	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from October 1, 2023 to December 31, 2023

Commission File Number: 000-26533

MASTERMIND, INC.

(Exact name of registrant as specified in its charter)

Nevada		82-3807447
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2221 Peachtree Rd. NE, Suite D-134, Atlanta, GA		30309
(Address of principal executive offices)		(Zip Code)

(678) 420-4000

(Registrant’s telephone number, including area code)

Former Fiscal Year: September 30

Securities registered pursuant to Section 12(b) of the Act: None

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 preceding 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 every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

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 complying with any new or revised financial accounting standards provided pursuant to Section 13(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 ☒

As of February 16, 2024, there were 34,505,520 shares of the registrant’s Common Stock outstanding.

Mastermind, Inc.

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Form 10-QT

		Page
Part I	Financial Information

Item 1	Consolidated Financial Statements (unaudited)
	Consolidated Balance Sheets at December 31, 2023 and September 30, 2023 (Unaudited)	4
	Consolidated Statements of Operations for the three months ended December 31, 2023 and 2022 (Unaudited)	5
	Consolidated Statements of Stockholders’ Equity for the three months ended December 31, 2023 and 2022 (Unaudited)	6
	Consolidated Statements of Cash Flows for the three months ended December 31, 2023 and 2022 (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4	Controls and Procedures	17

Part II	Other Information

Item 1	Legal Proceedings	18
Item 1A	Risk Factors	18
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3	Defaults Upon Senior Securities	18
Item 4	Mine Safety Disclosures	18
Item 5	Other Information	18
Item 6	Exhibits	19

Signatures		20

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Introductory Note to this Transition Report

On February 1, 2024, the Board of Directors of Mastermind, Inc. (the “Company”) approved a change in the Company’s fiscal year end from September 30 to December 31, effective for the fiscal year beginning January 1, 2024 and ending December 31, 2024. As a result of the change in fiscal year end, the Company is filing this Transition Report on Form 10-QT for the period from October 1, 2023 through December 31, 2023. The Company’s 2024 fiscal year will run from January 1, 2024 through December 31, 2024.

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Mastermind, Inc.

Consolidated Balance Sheets

(Unaudited)

	December 31,		September 30,
	2023		2023
ASSETS
Current assets:
Cash and cash equivalents	$	1,137,010	$	1,395,078
Accounts receivable		254,329		677,286
Unbilled receivables		1,679,929		1,624,623
Prepaid expenses and other current assets		29,198		111,778
Total Current Assets		3,100,466		3,808,765

Property and equipment, net		37,898		36,674
TOTAL ASSETS	$	3,138,364	$	3,845,439

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	213,120	$	282,956
Unearned revenues		121,196		133,036
Total Current Liabilities		334,316		415,992

Deferred tax liabilities		223,691		345,812
Total Liabilities		558,007		761,804

Stockholders' Equity
Preferred stock: 1,000,000 shares authorized; $0.001 par value; no shares issued and outstanding		-		-
Common stock: 125,000,000 shares authorized; $0.001 par value; 34,505,520 shares issued and outstanding		34,506		34,506
Additional paid in capital		62,865		62,865
Retained earnings		2,482,986		2,986,264
Total Stockholders' Equity		2,580,357		3,083,635
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	3,138,364	$	3,845,439

The accompanying notes are an integral part of these consolidated financial statements

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Mastermind, Inc.

Consolidated Statements of Operations

(Unaudited)

	Three Months Ended
	December 31,
	2023			2022

Revenues	$	398,458		$	1,041,847
Cost of revenues		298,823			420,592
Gross profit		99,635			621,255

Operating Expenses:
Management consulting		215,725			210,725
Professional fees		32,214			25,165
Wages and benefits		209,227			189,909
General and administrative		202,693			151,293
Total Operating Expenses		659,859			577,092
Income (loss) from operations		(560,224	)		44,163

Other Income (Expense)
Interest income		17,149			1,265
Loss on disposal of leasehold improvements		-			(8,609	)
Total other income (expense)		17,149			(7,344	)

Income (loss) before provision (benefit) for income taxes		(543,075	)		36,819
Provision (benefit) for income taxes		(39,797	)		50,477
Net loss	$	(503,278	)	$	(13,658	)

Basic and diluted income (loss) per common share
Basic	$	(0.01	)	$	(0.00	)
Diluted	$	(0.01	)	$	(0.00	)

Weighted average number of common shares outstanding
Basic		34,505,520			34,505,520
Diluted		34,505,520			34,505,520

The accompanying notes are an integral part of these consolidated financial statements

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Mastermind, Inc.

Consolidated Statements of Stockholders’ Equity

Three Months Ended December 31, 2023 and 2022

(Unaudited)

	Common Stock				Additional Paid in		Retained			Total
	Shares		Amount		Capital		Earnings			Equity
Balance - September 30, 2023		34,505,520	$	34,506	$	62,865	$	2,986,264		$	3,083,635
Net loss		-		-		-		(503,278	)		(503,278	)
Balance - December 31, 2023		34,505,520	$	34,506	$	62,865	$	2,482,986		$	2,580,357

	Common Stock				Additional Paid in		Retained			Total
	Shares		Amount		Capital		Earnings			Equity
Balance - September 30, 2022		34,505,520	$	34,506	$	62,865	$	2,596,963		$	2,694,334
Net loss		-		-		-		(13,658	)		(13,658	)
Balance - December 31, 2022		34,505,520	$	34,506	$	62,865	$	2,583,305		$	2,680,676

The accompanying notes are an integral part of these consolidated financial statements

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Mastermind, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended
	December 31,
	2023			2022

Cash flows from operating activities:
Net Loss	$	(503,278	)	$	(13,658	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		3,608			5,970
Loss on disposal of leasehold improvements		-			8,609
Deferred tax		(122,121	)		50,477
Changes in operating assets and liabilities:
Accounts receivable		422,957			(88,852	)
Unbilled receivables		(55,306	)		4,889
Prepaid expenses and other current assets		82,580			(3,935	)
Accounts payable and accrued expenses		(69,836	)		(26,123	)
Unearned revenues		(11,840	)		43,674
Net cash used in operating activities		(253,236	)		(18,949	)

Cash flows from investing activities:
Purchase of property and equipment		(4,832	)		(3,420	)
Net cash used in investing activities		(4,832	)		(3,420	)

Net change in cash		(258,068	)		(22,369	)
Cash, beginning of period		1,395,078			1,735,140
Cash, end of period	$	1,137,010		$	1,712,771

Supplemental Cash Flow Information
Income taxes paid	$	82,324		$	1,417
Interest paid	$	-		$	-

The accompanying notes are an integral part of these consolidated financial statements

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Mastermind, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

1. Business

Mastermind, Inc. (the “Company”, “we”, “us”, or the “organization”) is an involvement marketing service agency that designs, creates and develops branding and marketing campaigns, primarily for large corporate clients with well-known brands. We specialize in customer conversion initiatives that we believe facilitate the involvement of more of the “right customers” with the brands of our clients. We focus on converting prospects to customers. Our programs can take on various forms, including creating and managing content marketing, influencer marketing, social marketing/community management, digital issues management communications, promotions, Augmented Reality Marketing, and UX Analytics & Digital Intelligence.

2. Interim Financial Statements and Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information pursuant to Rule 8-03 of Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations for the three months ended December 31, 2023 and cash flows for the three months ended December 31, 2023, may not necessarily be indicative of results that may be expected for any succeeding period or for the entire fiscal year. These unaudited consolidated financial statements should be read in conjunction with our audited financial statements included in our Annual Report on Form 10-K as of and for the fiscal year ended September 30, 2023 as filed with the Securities and Exchange Commission.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments, which are evaluated on an ongoing basis, and that affect the amounts reported in our unaudited financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to revenue recognition, allowance for doubtful accounts, useful lives and valuation of property and equipment.

There have been no material changes in the Company’s significant accounting policies during the three months ended December 31, 2023, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023.

Cash and Cash Equivalents

Cash includes cash on hand. Cash equivalents include short-term, highly liquid investments, with a remaining maturity at the date of purchase of three months or less for which the risk of changes in value is considered to be insignificant. We have taken the initiative to protect funds by investing into a money market fund that holds highly liquid short-term investments managed by the bank. As of December 31, 2023 and September 30, 2023, cash and cash equivalents consisted of the following:

	December 31,		September 30,
	2023		2023
Cash	$	60,824	$	121,025
Money market funds		1,076,186		1,274,053
	$	1,137,010	$	1,395,078

Periodically, the Company may carry cash balances at financial institutions more than the federally insured limit of $250,000 per institution. The amount in excess of the FDIC insurance as of December 31, 2023, was approximately $826,000. The Company has not experienced losses on these accounts and management believes, based upon the quality of the financial institutions, that the credit risk with regard to these deposits is not significant.

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Reclassifications

Certain prior period amounts have been reclassified to conform with the current period presentation.

Change in Year End

3. Related Party Transactions

On January 3, 2012, we entered into a perpetual license agreement (the “Perpetual License”) with Mastermind Marketing, Inc. (the “Licensor”), which provides for licenses of trademarks, internet domains, and certain intellectual property as defined in the Perpetual License. The Licensor is one of our members and its chief executive officer is also our chief executive officer. The Perpetual License, which may be terminated at any time by either party, is effective January 3, 2012 and provides for aggregate cash payments of $2,100,000 over the calendar years from 2019 through 2039 with no further payments required after December 31, 2039. The Company has recorded amortized expenses related to the license of $27,000 and $15,000 for the three months ended December 31, 2023 and 2022, respectively (Note 5).

On January 3, 2014, we entered into a commercial lease agreement (the “Lease”) with 1450 West Peachtree, LLC, a Georgia limited liability company (the “Landlord”), for the lease of our corporate facility in Atlanta, Georgia. The manager of the Landlord is also our chief executive officer. The term of the original lease was for 10 years from the date of the agreement. During the period ended December 31, 2022 the Company gave notice to our landlord for our leased office space to terminate the agreement as of December 31, 2022 with no payments due thereafter. The landlord agreed to the termination of the lease with no penalties and no additional payments required. Through the period of COVID restrictions, we enhanced our remote work tools, technologies, and practices, working with our team to continue to serve our customers and complete projects. These remote tools and technologies have broadened our available talent pool and removed travel times for our team. The Company has adopted a fully remote work environment and no replacement office space is planned for. During the three months ended December 31, 2023 and 2022 we made lease payments of $0 and $41,422, respectively in satisfaction of our obligation pursuant to the Lease (Note 6).

During the three months ended December 31, 2023, and 2022, we made payments to our three members pursuant to the terms of our operating agreement, as amended, for services rendered to us. The Company recorded expenses to our three members during the three months ended December 31, 2023 and 2022, aggregating $275,576 and $270,418, respectively. As of December 31, 2023 and September 30, 2023, we owed $0 to our three majority stockholders.

4. Property and Equipment

Property and equipment consist of the following:

	December 31,			September 30,
	2023			2023
Furniture, fixtures and office equipment	$	93,135		$	88,303
Less: accumulated depreciation		(55,237	)		(51,629	)
Property and equipment, net	$	37,898		$	36,674

Depreciation expense for the three months ended December 31, 2023 and 2022, were $3,608 and $5,970, respectively.

As of December 31, 2022, the lease pertaining to the leasehold improvements was terminated (Note 6) and the $73,795 cost of leasehold improvements were written off resulting in a loss on disposal of $8,609 included in other income (expense).

5. Licensing Agreements

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In consideration for the Perpetual License, we agreed to pay the following fees through calendar year 2039:

Fiscal Years Ending December 31,	Amount
2024	$	60,000
2025		60,000
2026		120,000
2027		120,000
2028		120,000
Thereafter		1,320,000
	$	1,800,000

6. Operating Lease Right-of-Use Assets and Operating Lease Liabilities

Operating lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is our incremental borrowing rate, estimated to be 5.5%, as the interest rate implicit in our lease is not readily determinable. Operating lease expense is recognized pursuant to ASC Topic 842 Leases (Topic 842) over the lease term. During the three months ended December 31, 2023 and 2022, the Company recorded rent expense of $0 and $41,422, respectively.

In adopting Topic 842, the Company has elected the ‘package of practical expedients’, which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company. In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less. During the year ended September 30, 2020, upon adoption of ASC Topic 842 for the 10-year commercial lease with 1450 West Peachtree, LLC for our leased office space, the Company recorded right-of-use assets and lease liabilities of $461,740.

During the period ended December 31, 2022 the Company gave notice to our landlord for our leased office space to terminate the agreement as of December 31, 2022 with no payments due thereafter. The landlord agreed to the termination of the lease with no penalties and no additional payments required. Through the period of COVID restrictions, we enhanced our remote work tools, technologies, and practices, working with our team to continue to serve our customers and complete projects. These remote tools and technologies have broadened our available talent pool and removed travel times for our team. The Company has adopted a fully remote work environment and no replacement office space is planned for.

The right-of-use assets and lease liabilities for December 31, 2023 were $0 and $0, respectively and for September 30, 2023 were $0 and $0, respectively.

7. Commitments and Contingencies

Litigation

On February 11, 2022, a Complaint and Demand for Jury Trial (the “Complaint”) was filed by a plaintiff (the “Plaintiff”) in the United States District Court for the Eastern District of Pennsylvania. The Complaint named Mastermind, Inc. (“the Company”) and Daniel Dodson, the Company’s Chief Executive Officer, (the “CEO”). The Company and the CEO are collectively referred to herein as “Defendants”. The Complaint includes alleged breach of contract and alleged breach of implied contract by the Defendants related to the Plaintiff’s allegations that he was entitled to 3,000,000 shares of common stock of the Company from the reverse merger transaction completed on February 14, 2018. The Defendants successfully had the Complaint transferred to the United States District Court for the Northern District of Georgia.

In September of 2023, the court dismissed in part the breach of contract claims against the CEO and the Company. The alleged breach of implied contract by the Defendants is pending further litigation. The Defendants will contest the complaint and strongly believe they will prevail.

Other than the above we are not a party to any other legal proceedings, other than ordinary routine litigation incidental to our business, which we believe will not have a material effect on our financial position or results of operations.

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8. Income Taxes

Prior to February 14, 2018, the effective date of the Business Combination, no provision for income taxes was made since we were treated as a partnership for income tax purposes and the income or loss was passed through to our members.

We are required to file federal and state income tax returns in the United States. The preparation of these tax returns requires us to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. In consultation with our tax advisors, we base our tax returns on interpretations that are believed to be reasonable under the circumstances. We have estimated our provision for income taxes in accordance with the Tax Act and guidance available as of the date of this filing. The tax returns, however, are subject to routine reviews by the various federal and state taxing authorities in the jurisdictions in which we file tax returns. As part of these reviews, a taxing authority may disagree with respect to the income tax positions taken by us (“uncertain tax positions”) and, therefore, may require us to pay additional taxes. As required under applicable accounting rules, we accrue an amount for our estimate of additional income tax liability, including interest and penalties, which we could incur as a result of the ultimate or effective resolution of the uncertain tax positions. We account for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized.

There were no unrecognized material tax benefits at December 31, 2023, and September 30, 2023. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. There were no accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the periods presented. We have determined we have no uncertain tax positions.

Tax returns are subject to examination by the federal and state taxing authorities for generally three years after filed. There are no income tax examinations currently in process.

The Company files its income tax returns on the cash basis of accounting utilizing a December 31 tax year end. Deferred tax assets relating to current liabilities result from accounts payable and accrued expenses and unearned revenues which are not currently deductible for tax purposes. Deferred tax liabilities relating to current assets result from accounts receivables, unbilled receivables and prepaid expenses which are not currently recognized as income for tax reporting purposes.

As of December 31, 2023, the Company has $472,183 of net operating loss carryforwards on tax basis, which is prepared on cash basis, that are available to offset future taxable income. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

9. Stockholders’ Equity

Preferred Stock

As of December 31, 2023, and September 30, 2023, we were authorized to issue a total 1,000,000 shares of preferred stock. There were no shares of Preferred Stock issued or outstanding as of December 31, 2023, and September 30, 2023.

Common Stock

As of December 31, 2023, and September 30, 2023, we were authorized to issue a total of 125,000,000 shares of common stock. As of December 31, 2023, and September 30, 2023, there were 34,505,520 shares of common stock issued and outstanding, respectively.

During the three months ended December 31, 2023 and 2022, the Company did not issue any shares of common stock.

Dividends

During the three months ended December 31, 2023 and 2022, there were no dividends declared or paid.

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Common Stock Options

During the three months ended December 31, 2023 and 2022, there were no stock options exercised or issued.

A 2018 Equity Incentive Plan consisting of four million (4,000,000) shares of Common Stock was adopted by written consent of holders of 85% of the voting securities. No options or shares have been issued under this plan as of December 31, 2023 and September 30, 2023.

10. Concentration of Credit Risk and Major Customers

For the three months ended December 31, 2023, three customers represented approximately 46%, 39% and 16%, respectively, of our total revenues. For the three months ended December 31, 2022, three customers represented approximately 49%, 31% and 14%, respectively, of our total revenues.

As of December 31, 2023, three customers represented approximately 64%, 26% and 9%, respectively of our outstanding accounts receivable and unbilled receivables.

As of September 30, 2023, three customers represented approximately 52%, 26% and 21%, respectively of our outstanding accounts receivable and unbilled receivables.

11. Subsequent Events

The Company has evaluated subsequent events through the date the financial statements were issued. The Company has determined that there are no such events that warrant disclosure or recognition in the consolidated financial statements presented herein, except for the change in fiscal year end as previously discussed (Note 2).

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

Forward-Looking Statements

This Transition Report on Form 10-QT contains certain statements that are “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Litigation Reform Act”). These forward-looking statements and other information are based on our beliefs as well as assumptions made by us using information currently available.

The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or using other similar expressions.

In accordance with the provisions of the Litigation Reform Act, we are making investors aware that such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially from those contemplated by the forward-looking statements contained in this Transition Report on Form 10-QT. For example, we may encounter competitive, technological, financial and business challenges making it more difficult than expected to continue to develop and market our products; the market may not accept our existing and future products; we may not be able to retain our customers; we may be unable to retain existing key management personnel; and there may be other material adverse changes in our operations or business. Certain important factors affecting the forward-looking statements made herein also include, but are not limited to (i) continued downward pricing pressures in our targeted markets, (ii) the continued acquisition of our customers by certain of our competitors, and (iii) continued periods of net losses, which could require us to find additional sources of financing to fund operations, implement our financial and business strategies, meet anticipated capital expenditures and fund research and development costs. In addition, assumptions relating to budgeting, marketing, product development and other management decisions are subjective in many respects and thus susceptible to interpretations and periodic revisions based on actual experience and business developments, the impact of which may cause us to alter our marketing, capital expenditure or other budgets, which may in turn affect our financial position and results of operations. For all of these reasons, the reader is cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date hereof. We assume no responsibility to update any forward-looking statements as a result of new information, future events, or otherwise except as required by law. For further information, you are encouraged to review our filings with the Securities and Exchange Commission (“SEC”), including our Current Report on Form 8-K, as filed with the SEC on February 22, 2018, as amended on April 20, 2018, and risk factors as discussed therein under Item 2.01.

Overview

Mastermind, Inc. is a digital marketing agency that plans, executes and analyzes digital marketing initiatives for clients in numerous industries including Fashion, Automotive, Spirits & Beer, Business-to-business, Consumer Electronics, Banking & Financial Services, Consumer Packaged Goods, Food & Beverage, Healthcare, Home Improvement, Restaurants, Retail, Technology, and Communications. Mastermind offers a unique approach to digital and social marketing called Involvement Marketing (IM). IM is aimed at involving more people with each clients’ brand in ways that inspire them to take an action (e.g.- becoming aware of the brand, trying it, purchasing more of it, and/or even becoming an advocate for the brand through social media). Mastermind’s Involvement Marketing initiatives encompass anyone, or combination of tactics including Content Marketing, Digital/Mobile Marketing, Influencer Marketing, Social Marketing & Community Management, Promotion Marketing, Digital/Social Issues Management, UX Analytics & Digital Intelligence, and Augmented Reality Marketing.

Mastermind has assembled a team of highly experienced, cross-functional marketing experts to develop and execute Involvement Marketing initiatives (see key executive bios). These experts have extensive backgrounds in digital/social marketing & media, content development, influencer marketing, promotion, digital contingency communications & PR, research, strategy, creative message development, and analytics. Mastermind has also developed a disciplined approach to Involvement Marketing that ensures the right tactic(s) is employed to best achieve the objective and that it is executed flawlessly. The team is led by our senior executives described in our 10-K as of and for the fiscal year ended September 30, 2023.

Mastermind has worked with some of the most widely recognized brands in in dozens of industries. While the agency does not have a client in every industry currently, its experience provides the confidence of potential major clients to consider hiring Mastermind. Mastermind works with clients on both a project-basis and ongoing services basis. Mastermind is developing innovative marketing technology initiatives with the potential to drive more interest from potential clients in the next few years.

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Change in Year End

Critical Accounting Policies

Our significant accounting policies are described in Note 2 to the financial statements which are included in our Annual Report on Form 10-K as of and for the fiscal year ended September 30, 2023. Our discussion and analysis of our financial condition and results of operations are based upon these financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an on-going basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In the past, actual results have not been materially different from our estimates. However, results may differ from these estimates under different assumptions or conditions.

Results of Operations

Three Months Ended December 31, 2023 vs. December 31, 2022

	Three Months Ended
	December 31,
	2023			2022			Change			%
Revenues	$	398,458		$	1,041,847		$	(643,389	)	(61.8		%)
Cost of revenues		298,823			420,592			(121,769	)	(29.0		%)
Gross Profit		99,635			621,255			(521,620	)	(84.0		%)
Operating expenses
Management consulting		215,725			210,725			5,000			2.4	%
Professional fees		32,214			25,165			7,049			28.0	%
Wages and benefits		209,227			189,909			19,318			10.2	%
General and administrative		202,693			151,293			51,400			34.0	%
Total operating expenses		659,859			577,092			82,767			14.3	%
Income (loss) from operations		(560,224	)		44,163			(604,387	)	(1,368.5		%)
Other income (expense)
Interest income		17,149			1,265			15,884			1,255.7	%
Loss on disposal of leasehold improvements		-			(8,609	)		8,609		(100.0		%)
Total other income (expense)		17,149			(7,344	)		24,493		(333.5		%)
Income (loss) before provision (benefit) for income taxes	$	(543,075	)	$	36,819		$	(579,894	)	(1,575.0		%)

Revenues

Revenues for the three months ended December 31, 2023 were $398,458 as compared with $1,041,847 for the comparable prior year period, a decrease of $643,389 or 61.8%. The decrease is attributable to the timing of project work being completed, and also the revenue being recognized for direct expenses (media, influencer fees, etc.) attributable to jobs. These fluctuations in work accomplished and revenue being recognized for direct expenses are normal occurrences in our business. During this transition period, the Company primarily worked on completing current projects while awaiting finalized client workorders and statement of work for upcoming year 2024 projects. The Company expects a stabilization to our usual levels once finalized workorders for fiscal year 2024 are issued by clients as supported by our backlog.

Gross Profit

Gross profit for the three months ended December 31, 2023 was $99,635 or 25% of revenues, compared with $621,255 or 60% of revenues, for the comparable prior year period. The decrease in gross profit dollars was due to lower revenues and customer projects in the current period. The decrease in gross margin percentage is primarily a result of lower revenues, less productivity and the Company having more projects with higher direct expenses in the three months ended December 31, 2023, compared to same period of last year. Outside services as they related to client projects, will fluctuate based on client work being performed. During the transition period, the Company primarily worked on completing current projects while awaiting finalized client workorders for upcoming fiscal year 2024 projects. Direct cost includes expenses for media, sponsorship fees, etc. Gross profit will fluctuate from year to year based on the types of work assigned to the Company by its clients.

Table of Contents

Operating Expenses

Total operating expenses for the three months ended December 31, 2023 were $659,859 as compared with $577,092 for the comparable prior year period, an increase of $82,767 or 14.3%. The increase was primarily a result of an increase in general and administrative expenses of $51,400 and an increase in wages and benefits of $19,318. The increase in general and administrative expenses primarily consisted of $92,583 in mergers and acquisitions expenses, offset by $41,422 in lower rent, as a result of lease termination on December 31, 2022, and a decrease in new business development cost of $12,728. The distribution to management increased by $5,000, which is usually decided based on a combination of the Company’s operation results and performance of the Company’s management group and their respective member companies. In addition, professional fees (including public company expenses) increased by $7,049.

Income (Loss) from Operations

Income (loss) from operations was a loss of $560,224 for the three months ended December 31, 2023 as compared to an income of $44,163 for the comparable prior year period. The decrease in income from operations of $604,387 was primarily related to decreased revenue recognized by $643,389.

Other Income and Expense, Net

Other income and expense, net for the three months ended December 31, 2023 was an income of $17,149 as compared to an expense of $7,344 for the comparable prior year period. The income was primarily due to interest income, offsetting by the loss on disposal of leasehold improvements.

Income (Loss) Before Provision (Benefit) for Income Taxes

Income (loss) before provision (benefit) for income taxes for the three months ended December 31, 2023 was a loss of $543,075 as compared to an income of $36,819 for the comparable prior year period.

Provision (Benefit) for Income Taxes

Benefit for income taxes for the three months ended December 31, 2023 was $39,797 as compared to a provision of $50,477 for the comparable prior year period. The benefit is primarily a result of pretax loss due to decreased revenues. Provision for income taxes is estimated quarterly applying both federal and state tax rates.

Liquidity and Capital Resources

	December 31,		September 30,
	2023		2023		Change			%
Cash and cash equivalents	$	1,137,010	$	1,395,078	$	(258,068	)	(18.5	%)

Current assets	$	3,100,466	$	3,808,765	$	(708,299	)	(18.6	%)
Current liabilities	$	334,316	$	415,992	$	(81,676	)	(19.6	%)
Working capital	$	2,766,150	$	3,392,773	$	(626,623	)	(18.5	%)

As of December 31, 2023, we had cash and cash equivalents of $1,137,010, a decrease of $258,068, or 18.5% when compared with a balance of $1,395,078 as of September 30, 2023.

	Three Months Ended December 31,			Three Months Ended December 31,
	2023			2022			Change			%
Cash used in operating activities	$	(253,236	)	$	(18,949	)	$	(234,287	)		1,236.4	%
Cash used in investing activities	$	(4,832	)	$	(3,420	)	$	(1,412	)		41.3	%
Cash provided by financing activities	$	-		$	-		$	-			-
Net Change in Cash During Period	$	(258,068	)	$	(22,369	)	$	(235,699	)		1,053.7	%

Table of Contents

During the three months ended December 31, 2023, $253,236 was used in operating activities as compared with net cash used in operating activities of $18,949 for the comparable prior year period. Our uses of cash for operating activities have primarily consisted of salaries and wages for our employees; costs incurred in connection with performance on client projects; material, management consulting and professional fees. The sources of our cash flows from operating activities have consisted primarily of payments received from clients in connection with the performance on contractually agreed-upon projects. Net cash flows from operating activities for the current period were a result of the net loss of $503,278, depreciation expense of $3,608, change of deferred tax of $122,121 and changes in current assets and liabilities of $368,555.

During the three months ended December 31, 2022, $18,949 was used in operating activities, which was a result of the net loss of $13,658, loss on disposal of leasehold improvements of $8,609, depreciation expense of $5,970, change of deferred tax of $50,477 and changes in current assets and liabilities of $70,347.

During the three months ended December 31, 2023 and 2022 we purchased $4,832 and $3,420 in computer equipment, respectively.

During the three months ended December 31, 2023, and 2022, the Company did not have any cash flow activity from financing activities.

The ability to attract additional capital investments for more rapid expansion in the future will depend on many factors, including the availability of credit, rate of revenue growth, ability to acquire new client opportunities, the timing of new service product introductions and enhancements to existing services/products, and the opportunities to acquire complimentary businesses that may be made available to us from time-to-time. We believe that as of December 31, 2023, our cash position and cash flows from our operations will be sufficient to fund our working capital and planned strategic activities, excluding acquisitions, if any, for at least the next twelve months.

Any potential future sale of equity or debt securities may result in dilution to our stockholders, and we cannot be certain that additional public or private financing will be available in amounts or on terms acceptable to us, or at all. If we are required to raise additional financing, but are unable to obtain such financing, we may be required to delay, reduce the scope of, or eliminate one or more aspects of our operations or business development activities.

Off-Balance Sheet Arrangements

As of December 31, 2023, we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on an evaluation under the supervision and with the participation of our management, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were not effective as of December 31, 2023, to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our management concluded that, as of December 31, 2023, our internal control over financial reporting was not effective due to (i) insufficient segregation of duties in the finance and accounting functions due to limited personnel; and (ii) inadequate corporate governance policies. In the future, subject to working capital limitations, we intend to take appropriate and reasonable steps to make improvements to remediate these deficiencies.

Changes in Internal Control Over Financial Reporting

There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) under the Exchange Act) during the fiscal period to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II. Other Information

Item1. Legal Proceedings

On February 11, 2022, a Complaint and Demand for Jury Trial (the “Complaint”) was filed by a plaintiff (the “Plaintiff”) in the United States District Court for the Eastern District of Pennsylvania. The Complaint named Mastermind, Inc. (“the Company”) and Daniel Dodson, the Company’s Chief Executive Officer, (the “CEO”). The Company and the CEO are collectively referred to herein as “Defendants”. The Complaint includes alleged breach of contract and alleged breach of implied contract by the Defendants related to the Plaintiff’s allegations that he was entitled to 3,000,000 shares of common stock of the Company from the reverse merger transaction completed on February 14, 2018. The Defendants successfully got the Complaint transferred to the United States District Court for the Northern District of Georgia.

Other than the above, we are not a party to any legal proceedings, other than ordinary routine litigation incidental to our business, which we believe will not have a material effect on our financial position or results of operations.

Item 1A. Risk Factors

Not applicable for smaller reporting companies.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

The following exhibits are filed or furnished with this report:

Exhibit No.		Description
31.1*		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*		Certification of Principal Executive, Financial and Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS**		Inline XBRL Instance Document
101.SCH**		Inline XBRL Taxonomy Extension Schema
101.CAL**		Inline XBRL Taxonomy Extension Calculation
101.DEF**		Inline XBRL Taxonomy Extension Definitions
101.LAB**		Inline XBRL Taxonomy Extension Label
101.PRE**		Inline XBRL Taxonomy Extension Presentation
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

___________

* Included herewith

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Mastermind, Inc.

Date: February 16, 2024	By:	/s/ Daniel A. Dodson
		Daniel A. Dodson Chief Executive Officer (Principal Executive, Financial and Accounting Officer)

nullnullnull

Cover - shares	3 Months Ended
Cover - shares	Dec. 31, 2023	Feb. 16, 2024
Cover [Abstract]
Entity Registrant Name	MASTERMIND, INC.
Entity Central Index Key	0001088638
Document Type	10-QT
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Dec. 31, 2023
Entity Filer Category	Non-accelerated Filer
Entity Common Stock Shares Outstanding		34,505,520
Document Period Start Date	Oct. 01, 2023
Document Quarterly Report	false
Document Transition Report	true
Entity File Number	000-26533
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	82-3807447
Entity Address Address Line 1	2221 Peachtree Rd. NE
Entity Address Address Line 2	Suite D-134
Entity Address City Or Town	Atlanta
Entity Address State Or Province	GA
Entity Address Postal Zip Code	30309
City Area Code	678
Local Phone Number	420-4000
Entity Interactive Data Current	Yes

Consolidated Balance Sheets - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 1,137,010	$ 1,395,078
Accounts receivable	254,329	677,286
Unbilled receivables	1,679,929	1,624,623
Prepaid expenses and other current assets	29,198	111,778
Total Current Assets	3,100,466	3,808,765
Property and equipment, net	37,898	36,674
TOTAL ASSETS	3,138,364	3,845,439
Current liabilities:
Accounts payable and accrued expenses	213,120	282,956
Unearned revenues	121,196	133,036
Total Current Liabilities	334,316	415,992
Deferred tax liabilities	223,691	345,812
Total Liabilities	558,007	761,804
Stockholders' Equity
Preferred stock: 1,000,000 shares authorized; $0.001 par value; no shares issued and outstanding	0	0
Common stock: 125,000,000 shares authorized; $0.001 par value; 34,505,520 shares issued and outstanding	34,506	34,506
Additional paid in capital	62,865	62,865
Retained earnings	2,482,986	2,986,264
Total Stockholders' Equity	2,580,357	3,083,635
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 3,138,364	$ 3,845,439

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2023	Sep. 30, 2023
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	34,505,520	34,505,520
Common stock, shares outstanding (in shares)	34,505,520	34,505,520

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Consolidated Statements of Operations (Unaudited)
Revenues	$ 398,458	$ 1,041,847
Cost of revenues	298,823	420,592
Gross profit	99,635	621,255
Operating Expenses:
Management consulting	215,725	210,725
Professional fees	32,214	25,165
Wages and benefits	209,227	189,909
General and administrative	202,693	151,293
Total Operating Expenses	659,859	577,092
Income (loss) from operations	(560,224)	44,163
Other Income (Expense)
Interest income	17,149	1,265
Loss on disposal of leasehold improvements	0	(8,609)
Total other income (expense)	17,149	(7,344)
Income (loss) before provision (benefit) for income taxes	(543,075)	36,819
Provision (benefit) for income taxes	(39,797)	50,477
Net loss	$ (503,278)	$ (13,658)
Basic and diluted income (loss) per common share
Basic	$ (0.01)	$ (0.00)
Diluted	$ (0.01)	$ (0.00)
Weighted average number of common shares outstanding
Basic	34,505,520	34,505,520
Diluted	34,505,520	34,505,520

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Retained Earnings
Balance, shares at Sep. 30, 2022		34,505,520
Balance, amount at Sep. 30, 2022	$ 2,694,334	$ 34,506	$ 62,865	$ 2,596,963
Net loss	(13,658)	$ 0	0	(13,658)
Balance, shares at Dec. 31, 2022		34,505,520
Balance, amount at Dec. 31, 2022	2,680,676	$ 34,506	62,865	2,583,305
Balance, shares at Sep. 30, 2023		34,505,520
Balance, amount at Sep. 30, 2023	3,083,635	$ 34,506	62,865	2,986,264
Net loss	(503,278)	$ 0	0	(503,278)
Balance, shares at Dec. 31, 2023		34,505,520
Balance, amount at Dec. 31, 2023	$ 2,580,357	$ 34,506	$ 62,865	$ 2,482,986

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net Loss	$ (503,278)	$ (13,658)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	3,608	5,970
Loss on disposal of leasehold improvements	0	8,609
Deferred tax	(122,121)	50,477
Changes in operating assets and liabilities:
Accounts receivable	422,957	(88,852)
Unbilled receivables	(55,306)	4,889
Prepaid expenses and other current assets	82,580	(3,935)
Accounts payable and accrued expenses	(69,836)	(26,123)
Unearned revenues	(11,840)	43,674
Net cash used in operating activities	(253,236)	(18,949)
Cash flows from investing activities:
Purchase of property and equipment	(4,832)	(3,420)
Net cash used in investing activities	(4,832)	(3,420)
Net change in cash	(258,068)	(22,369)
Cash, beginning of period	1,395,078	1,735,140
Cash, end of period	1,137,010	1,712,771
Supplemental Cash Flow Information
Income taxes paid	82,324	1,417
Interest paid	$ 0	$ 0

Business

3 Months Ended

Dec. 31, 2023

Business

Business

1. Business

Interim Financial Statements and Basis of Presentation

3 Months Ended

Dec. 31, 2023

Interim Financial Statements and Basis of Presentation

Interim Financial Statements and Basis of Presentation

2. Interim Financial Statements and Basis of Presentation

Cash and Cash Equivalents

	December 31,		September 30,
	2023		2023
Cash	$	60,824	$	121,025
Money market funds		1,076,186		1,274,053
	$	1,137,010	$	1,395,078

Reclassifications

Certain prior period amounts have been reclassified to conform with the current period presentation.

Change in Year End

Related Party Transactions

3 Months Ended

Dec. 31, 2023

Related Party Transactions

Related Party Transactions

3. Related Party Transactions

Property and Equipment

3 Months Ended

Dec. 31, 2023

Property and Equipment

Property and Equipment

4. Property and Equipment

Property and equipment consist of the following:

	December 31,			September 30,
	2023			2023
Furniture, fixtures and office equipment	$	93,135		$	88,303
Less: accumulated depreciation		(55,237	)		(51,629	)
Property and equipment, net	$	37,898		$	36,674

Depreciation expense for the three months ended December 31, 2023 and 2022, were $3,608 and $5,970, respectively.

Licensing Agreements

3 Months Ended

Dec. 31, 2023

Licensing Agreements

Licensing Agreements

5. Licensing Agreements

In consideration for the Perpetual License, we agreed to pay the following fees through calendar year 2039:

Fiscal Years Ending December 31,	Amount
2024	$	60,000
2025		60,000
2026		120,000
2027		120,000
2028		120,000
Thereafter		1,320,000
	$	1,800,000

Operating lease rightofuse assets and operating lease liabilities

3 Months Ended

Dec. 31, 2023

Operating lease rightofuse assets and operating lease liabilities

Operating lease right-of-use assets and operating lease liabilities

6. Operating Lease Right-of-Use Assets and Operating Lease Liabilities

The right-of-use assets and lease liabilities for December 31, 2023 were $0 and $0, respectively and for September 30, 2023 were $0 and $0, respectively.

Commitments and Contingencies

3 Months Ended

Dec. 31, 2023

Commitments and Contingencies

Commitments and Contingencies

7. Commitments and Contingencies

Litigation

Income Taxes

3 Months Ended

Dec. 31, 2023

Income Taxes

Income Taxes

8. Income Taxes

Tax returns are subject to examination by the federal and state taxing authorities for generally three years after filed. There are no income tax examinations currently in process.

Stockholders Equity

3 Months Ended

Dec. 31, 2023

Stockholders Equity

Stockholders' Equity

9. Stockholders’ Equity

Preferred Stock

Common Stock

During the three months ended December 31, 2023 and 2022, the Company did not issue any shares of common stock.

Dividends

During the three months ended December 31, 2023 and 2022, there were no dividends declared or paid.

Common Stock Options

During the three months ended December 31, 2023 and 2022, there were no stock options exercised or issued.

Concentration of Credit Risk and Major Customers

3 Months Ended

Dec. 31, 2023

Concentration of Credit Risk and Major Customers

Concentration of Credit Risk and Major Customers

10. Concentration of Credit Risk and Major Customers

As of December 31, 2023, three customers represented approximately 64%, 26% and 9%, respectively of our outstanding accounts receivable and unbilled receivables.

As of September 30, 2023, three customers represented approximately 52%, 26% and 21%, respectively of our outstanding accounts receivable and unbilled receivables.

Subsequent Events

3 Months Ended

Dec. 31, 2023

Subsequent Events

Subsequent Events

11. Subsequent Events

Interim Financial Statements and Basis of Presentation (Policies)

3 Months Ended

Dec. 31, 2023

Interim Financial Statements and Basis of Presentation

Cash and Cash Equivalents

	December 31,		September 30,
	2023		2023
Cash	$	60,824	$	121,025
Money market funds		1,076,186		1,274,053
	$	1,137,010	$	1,395,078

Reclassifications

Certain prior period amounts have been reclassified to conform with the current period presentation.

Change in Year End

Interim Financial Statements and Basis of Presentation (Tables)

3 Months Ended

Dec. 31, 2023

Interim Financial Statements and Basis of Presentation

Schedule of cash and cash equivalents

	December 31,		September 30,
	2023		2023
Cash	$	60,824	$	121,025
Money market funds		1,076,186		1,274,053
	$	1,137,010	$	1,395,078

Property and Equipment (Tables)

3 Months Ended

Dec. 31, 2023

Property and Equipment

Summary of property and equipment

	December 31,			September 30,
	2023			2023
Furniture, fixtures and office equipment	$	93,135		$	88,303
Less: accumulated depreciation		(55,237	)		(51,629	)
Property and equipment, net	$	37,898		$	36,674

Licensing Agreements (Tables)

3 Months Ended

Dec. 31, 2023

License Agreement [Member] | Licensor [Member]

Perpetual license agreement

Fiscal Years Ending December 31,	Amount
2024	$	60,000
2025		60,000
2026		120,000
2027		120,000
2028		120,000
Thereafter		1,320,000
	$	1,800,000

Interim Financial Statements and Basis of Presentation (Details) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Interim Financial Statements and Basis of Presentation
Cash	$ 60,824	$ 121,025
Money Market Funds	1,076,186	1,274,053
Cash and cash equivalents net	$ 1,137,010	$ 1,395,078

Interim Financial Statements and Basis of Presentation (Details Narrative )	Dec. 31, 2023 USD ($)
Interim Financial Statements and Basis of Presentation
Federally insured limit	$ 250,000
Amount in excess of the FDIC insurance	$ 826,000

Related Party Transactions (Details Narrative) - USD ($)		3 Months Ended		12 Months Ended
	Jan. 03, 2014	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Sep. 30, 2023	Jan. 03, 2012
Related Party Transaction, Expenses from Transactions with Related Party		$ 275,576	$ 270,418
Finite-Lived License Agreements, Gross						$ 2,100,000
Amortized Expense		27,000	15,000
Landlord [Member]
Operating Lease, Expense		$ 0	$ 41,422	$ 41,422
Commercial lease, term of contract	10 years
License Agreement [Member] \| Licensor [Member]
Due to Related Parties				$ 0	$ 0

Property and Equipment (Details) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Property and Equipment
Furniture, fixtures and office equipment	$ 93,135	$ 88,303
Less: accumulated depreciation	(55,237)	(51,629)
Property and equipment, net	$ 37,898	$ 36,674

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended	15 Months Ended
Property and Equipment (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2022
Depreciation Expences	$ 3,608	$ 5,970		$ 5,970
Loss on disposition			$ (8,609)
Leasehold improvements
Writeoff Leasehold Improvements		$ 73,795	$ 73,795	$ 73,795

Licensing Agreements (Details) - License Agreement [Member] - Licensor [Member]	Dec. 31, 2023 USD ($)
2024	$ 60,000
2025	60,000
2026	120,000
2027	120,000
2028	120,000
Thereafter	1,320,000
Total	$ 1,800,000

Licensing Agreements (Details Narrative) - USD ($)	3 Months Ended
Licensing Agreements (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Jan. 03, 2012
Licensing Agreements
Amortized Expense	$ 27,000	$ 15,000
Finite-Lived License Agreements, Gross			$ 2,100,000

Operating Lease RightofUse Assets and Operating Lease Liabilities (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Sep. 30, 2020	Sep. 30, 2023
Right-of-use assets and lease liabilities				$ 461,740
Right of use asset	$ 0				$ 0
Lease term				10 years
Lease Liabilities	$ 0				$ 0
Interest rate	5.50%
Landlord [Member]
Operating Lease, Expense	$ 0	$ 41,422	$ 41,422

Commitments and Contingencies (Details Narrative)	Feb. 11, 2022 shares
Commitments and Contingencies
Shares of common stock	3,000,000

Income Taxes (Details Narrative)	Dec. 31, 2023 USD ($)
Income Taxes
Net operating loss carryforwards	$ 472,183

Stockholders Equity (Details Narrative) - shares	Dec. 31, 2023	Sep. 30, 2023
Common Stock, Shares Authorized (in shares)	125,000,000	125,000,000
Common Stock, Shares, Issued, Total (in shares)	34,505,520	34,505,520
Common Stock, Shares, Outstanding, Ending Balance (in shares)	34,505,520	34,505,520
Preferred Stock, Shares Authorized (in shares)	1,000,000	1,000,000
The 2018 Equity Incentive Plan [Member]
Common Stock, Capital Shares Reserved For Future (in shares) Issuance	4,000,000
Percentage of voting securities	85.00%

Concentration of Credit Risk and Major Customers (Details Narrative) - Customer Concentration Risk [Member] - integer	3 Months Ended		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Revenue from Contract with Customer Benchmark [Member]
Number of Major Customers		3
Revenue from Contract with Customer Benchmark [Member] \| Customer 1 [Member]
Concentration Risk, Percentage	46.00%	49.00%
Revenue from Contract with Customer Benchmark [Member] \| Customer 2 [Member]
Concentration Risk, Percentage	39.00%	31.00%
Revenue from Contract with Customer Benchmark [Member] \| Customer 3 [Member]
Concentration Risk, Percentage	16.00%	14.00%
Accounts Receivable [Member]
Number of Major Customers	3		3
Accounts Receivable [Member] \| Customer 1 [Member]
Concentration Risk, Percentage	64.00%		52.00%
Accounts Receivable [Member] \| Customer 2 [Member]
Concentration Risk, Percentage	26.00%		26.00%
Accounts Receivable [Member] \| Customer 3 [Member]
Concentration Risk, Percentage	9.00%		21.00%

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