Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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 June 30, 2024

☐ 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 August 12, 2024.

-i-

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


	June 30, 2024			September 30, 2023
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	789,191		$	516,955
Accounts receivable, net of an allowance for credit losses of $72,665 as of June 30, 2024 and $63,665 as of September 30, 2023		406,693			545,573
Inventory		129,910			21,913
Prepaid expenses and other current assets		71,523			68,522
Interest receivable - related party		4,860			2,724
Total current assets		1,402,177			1,155,687

Property and Equipment, net		39,855			16,526
Intangible Assets, net		142,089			44,373

Operating lease - right-of-use asset		11,966			29,914

Other assets:
Due from related party		53,302			53,302
Total other assets		53,302			53,302
Total assets	$	1,649,389		$	1,299,802
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued expenses	$	127,217		$	85,858
Deferred revenue, current portion		1,439,578			1,105,580
Operating lease liability		12,885			24,580
Total current liabilities		1,579,680			1,216,018

Long term liabilities:
Deferred revenue, net of current portion		40,100			72,100
Operating lease liability - long term		-			6,507
Total long term liabilities		40,100			78,607

Total liabilities		1,619,780			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		(15,212,860	)		(15,237,292	)
Total stockholders' equity		29,609			5,177
Total liabilities and stockholders' equity	$	1,649,389		$	1,299,802

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

-1-

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	For the Three Months Ended June 30, 2024			For the Three Months Ended June 30, 2023			For the Nine Months Ended June 30, 2024			For the Nine Months Ended June 30, 2023
Revenue	$	1,005,050		$	560,374		$	2,183,110		$	1,577,692
Cost of Revenue		319,728			132,312			592,975			324,363
Gross Profit		685,322			428,062			1,590,135			1,253,329

Operating Expenses:
Selling expenses		79,913			62,873			218,062			154,521
Administrative expenses		522,515			353,923			1,387,909			970,679
Depreciation and amortization expense		2,293			1,332			5,140			3,694
Research and development		2,000			2,000			18,603			25,815
Total Operating Expenses		606,721			420,128			1,629,714			1,154,709

Gain on the settlement of accounts payable		-			-			44,052			-
Interest income/expense, net		6,255			686			19,959			1,913
Total Other Income/(Expenses)		6,255			686			64,011			1,913

Income before income taxes		84,856			8,620			24,432			100,533

Provision for income taxes from continuing operations		-			-			-			-

Net Income		84,856			8,620			24,432			100,533

Preferred stock dividends Series A Preferred		(10,231	)		(10,231	)		(30,805	)		(30,694	)

Net income attributable to common stockholders	$	74,625		$	(1,611	)	$	(6,373	)	$	69,839

Net income per common share - basic	$	0.00		$	(0.00	)	$	(0.00	)	$	0.00

Net income per common share - diluted	$	0.00		$	0.00		$	0.00		$	0.00

Weighted Average of number of shares outstanding basic		229,160,695			228,826,849			229,160,695			228,745,310

Weighted Average of number of shares outstanding diluted		599,482,330			599,428,484			599,482,330			599,346,945

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

-2-

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)


	For the Nine Months			For the Nine Months
	Ended			Ended
	June 30, 2024			June 30, 2023
NET INCOME	$	24,432		$	100,533
Cash Flows From Operating Activities
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization expense		5,140			3,694
Amortization of operating lease - right-of-use asset		17,948			11,966
Extinguishment of liabilities		(44,052	)		-
Provision for credit losses		9,000			-
(Increase) decrease in assets:
Accounts receivable		129,880			(71,083	)
Inventory		(107,997	)		668
Prepaid expenses and other current assets		(5,137	)		(39,745	)
Increase (decrease) in liabilities:
Accounts payable		85,411			11,942
Deferred revenue		301,998			(42,137	)
Operating lease liability		(18,202	)		(11,072	)
Net Cash Provided (used) by Operating Activities		398,421			(35,234	)

Cash Flows From Investing Activities
Purchase of fixed assets		-			(6,435	)
Purchase of intangible assets		(126,185	)		-
Net Cash Used in Investing Activities		(126,185	)		(6,435	)

Cash Flows From Financing Activities		-			-

Net (decrease) increase in cash		272,236			(41,669	)

Cash at beginning of period		516,955			68,167

Cash at end of period	$	89,191		$	426,498

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	-		$	117
Cash paid for taxes	$	-		$	400

Supplemental disclosure of non-cash investing and financing activities:
Series C Convertible Preferred shares exchanged for common stock	$	-		$	8
Right-of-use asset obtained in exchange for operating lease liability	$	-		$	47,863

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

-3-

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2024

(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 nine months ended June 30, 2024		-		-		-		-		-		-		-		-		-		-		-		-		-		24,432			24,432

Balance at June 30, 2024 (Unaudited)		512,996	$	5		-	$	-		3,133,503	$	32		670,904	$	7		3,000,000	$	30		229,160,695	$	2,291	$	15,240,104	$	(15,212,860	)	$	29,609


Balance at March 31, 2024		512,996	$	5		-	$	-		3,133,503	$	32		670,904	$	7		3,000,000	$	30		229,160,695	$	2,291	$	15,240,104	$	(15,297,716	)	$	(55,247	)

Net income for the three months ended June 30, 2024		-		-		-		-		-		-		-		-		-		-		-		-		-		84,856			84,856

Balance at June 30, 2024 (Unaudited)		512,996	$	5		-	$	-		3,133,503	$	32		670,904	$	7		3,000,000	$	30		229,160,695	$	2,291	$	15,240,104	$	(15,212,860	)	$	29,609

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

-4-

CLEARTRONIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 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, 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		-		-		-		-		(152,000	)		(2	)		-		-		-		-		760,000		8		(6	)		-			-

Net income for the nine months ended June 30, 2023		-		-		-		-		-			-			-		-		-		-		-		-		-			100,533			100,533

Balance at June 30, 2023 (Unaudited)		512,996	$	5		-	$	-		3,189,503		$	32			670,904	$	7		3,000,000	$	30		228,880,695	$	2,289	$	15,240,106		$	(15,193,315	)	$	49,154


Balance at March 31, 2023		512,996	$	5		-	$	-		3,209,503		$	33			670,904	$	7		3,000,000	$	30		228,780,695	$	2,288	$	15,240,106		$	(15,201,935	)	$	40,534

Series C Convertible Preferred shares exchanged for common stock		-		-		-		-		(20,000	)		(1	)		-		-		-		-		100,000		1		-			-			-

Net income for the three months ended June 30, 2023		-		-		-		-		-			-			-		-		-		-		-		-		-			8,620			8,620

Balance at June 30, 2023 (Unaudited)		512,996	$	5		-	$	-		3,189,503		$	32			670,904	$	7		3,000,000	$	30		228,880,695	$	2,289	$	15,240,106		$	(15,193,315	)	$	49,154

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

-5-

CLEARTRONIC, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(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 and nine months ended June 30, 2024, 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.

RECLASSIFICATIONS

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no material effect on the consolidated results of operations, stockholders’ equity, or cash flows.

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-weeks to thirteen weeks on June 30, 2024.

Treasury Bills with an original maturity date of three months or less are included within cash and cash equivalents on the balance sheet at June 30, 2024.

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 $72,665 and $63,665 allowances for doubtful accounts as of June 30, 2024, 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 totaled $51,000 and $38,250 at June 30, 2024 and September 30, 2023, respectively. Prepaid expenses totaled $71,523 and $68,522 at June 30, 2024 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 June 30, 2024, the Company had intangible assets with a cost of approximately $248,618, 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 nine months ended June 30, 2024, no amortization expense was recorded due to the software not placed in service and still in the process of being completed.

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 nine months ended June 30, 2024.

-6-

CONCENTRATION OF CREDIT RISK

The Company currently maintains cash balances at one FDIC-insured banking institution. Deposits held in non interest-bearing transaction accounts are insured up to a maximum of $250,000 at all FDIC-insured institutions. As of June 30, 2024 and September 30, 2023, the Company had $129,161 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 June 30, 2024 and 2023, the Company had $2,000 and $2,000 respectively, in research and development costs.

For the nine months ended June 30, 2024 and 2023, the Company had $18,603 and $25,815 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 to in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount:

i. Establishment of a contract with the 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 meetings 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. As of June 30, 2024, the Company delivered 250 units of its AudioMate AM360 Radio gatewayws and recognized hardware and sales revenue of $250,000. The estimated completion date for the project is August 31, 2024.

As of June 30, 2024 and September 30, 2023, respectively, the Company recorded $1,479,678 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
	June 30, 2024		June 30, 2023
Licensing of ReadyOp Software	$	702,446	$	527,074
Hardware Sales and Consulting		302,604		33,300
Total	$	1,005,050	$	560,374

	For the nine months ended
	June 30, 2024		June 30, 2023
Licensing of ReadyOp Software	$	1,842,411	$	1,480,287
Hardware Sales and Consulting		340,699		97,405
Total	$	2,183,110	$	1,577,692

DEFERRED REVENUE

The following table provides a summary of the changes included in deferred revenue during the nine months ended June 30, 2024 and year ended September 30, 2023:

Schedule of deferred revenue
	For the nine months ended June 30, 2024			For the year ended September 30, 2023
Beginning balance	$	1,177,680		$	1,125,511
Additions to deferred liability (1)		2,183,110			2,184,124
Deductions to deferred liability (2)		(1,881,112	)		(2,131,955	)
Ending balance	$	1,479,678		$	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

-7-

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 June 30, 2024 and 2023, we had no options and warrants outstanding.

As of June 30, 2024 and 2023, 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 June 30, 2024 and 2023, we had 3,133,503 shares of Series C Convertible Preferred stock outstanding which are convertible into 15,947,515 and shares of common stock.

As of June 30, 2024 and 2023, we had 670,904 shares of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock.

As of June 30, 2024 and 2023, 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 and nine months ended June 30, 2024 and 2023:

Schedule of diluted earnings per share
	For the three months ended June 30, 2024		For the three months ended June 30, 2023
Net income (loss) attributable to common stockholders for the period	$	74,625	$	(1,611	)

Weighted average number of shares outstanding		229,160,695		228,826,849

Basic earnings per share	$	0.00	$	0.00

	For the nine months ended June 30, 2024			For the nine months ended June 30, 2023
Net (loss) income attributable to common stockholders for the period	$	(6,373	)	$	69,839

Weighted average number of shares outstanding		229,160,695			228,745,310

Basic earnings per share	$	0.00		$	0.00

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


	For the three months ended June 30, 2024		For the three months ended June 30, 2023
Net income (loss) attributable to common stockholders for the period	$	74,625	$	(1,611	)
Add: Preferred stock dividends		10,231		10,231

Adjusted net income	$	84,856	$	8,620

Weighted average number of shares outstanding		229,160,695		228,826,849
Add: Shares issued upon conversion of preferred stock		370,321,635		370,601,635
Weighted average number of common and common equivalent shares		599,482,330		599,428,484

Diluted earnings per share	$	0.00	$	0.00

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	For the nine months ended June 30, 2024			For the nine months ended June 30, 2023
Net (loss) income attributable to common stockholders for the period	$	(6,373	)	$	69,839
Add: Preferred stock dividends		30,805			30,694

Adjusted net income	$	24,432		$	100,533

Weighted average number of shares outstanding		229,160,695			228,745,310
Add: Shares issued upon conversion of preferred stock		370,321,635			370,601,635
Weighted average number of common and common equivalent shares		599,482,330			599,346,945

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 June 30, 2024 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 the three and nine months ended June 30, 2024 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 June 30, 2024 and September 30, 2023, respectively.

At June 30, 2024 inventory was $129,910 of raw materials and finished goods.

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

ADVERTISING COSTS

Advertising costs are expensed as incurred. The Company had advertising costs of $94,974 and $46,693 during the three months ended June 30, 2024 and 2023, respectively.

Advertising costs are expensed as incurred. The Company had advertising costs of $157,266 and $77,460 during the nine months ended June 30, 2024 and 2023, 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.

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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 June 30, 2024 and September 30, 2023:


	June 30, 2024			September 30, 2023
Assets

Operating lease -right-of-use assets-non-current	$	11,966		$	29,914

Liabilities

Operating lease liability	$	12,885		$	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	$	17,949		$	17,949
Lease liability expense in connection with obligation repayment		1,389			2,429
Total operating lease costs	$	19,338		$	20,378

Supplemental cash outflows information related to operation lease was as follows:

Operating cash outflows from operating lease (obligation payment)	$	19,590		$	19,206
Right-of-use asset obtained in exchange for new operating lease liability	$	-		$	47,863

At June 30, 2024, 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 June 30, 2024:


2024 (6 Months)	$	6,594
2025		6,594
Total undiscounted cash flows		13,188
Less: amount representing interest		(303	)
Present value of operating lease liability		12,885
Less: current portion of operation lease liability		(12,885	)
Long-term operating lease liability	$	-

NOTE 3 – PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

At June 30, 2024 and September 30, 2023, property and equipment, net, is as follows:

Schedule of property and equipment net
	For the nine months ended June 30, 2024			For the year ended September 30, 2023
Office Equipment	$	56,509		$	28,040
Less: Accumulated Depreciation		(16,654	)		(11,514	)
Total Property and Equipment, net	$	39,855		$	16,526

Depreciation expense for the three months ended June 30, 2024 and 2023, was $2,293 and $1,332, respectively.

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Depreciation expenses for the nine months ended June 30, 2024 and 2023, was $5,140 and $3,694, respectively.

At June 30, 2024 and September 30, 2023, intangible assets, net, is as follows:

Schedule of intangible assets
	For the nine months ended June 30, 2024		For the year ended September 30, 2023
Intangible Assets		142,089		44,373
Total Intangible Assets, net	$	142,089	$	44,373

Amortization expense for the three and nine months ended June 30, 2024 and 2023, was $0 and $0, respectively.

NOTE 4 - EQUITY TRANSACTIONS

Preferred Stock Dividends

As of June 30, 2024 and September 30, 2023, the cumulative arrearage of undeclared dividends for Series A Preferred stock totaled $236,463 and $205,658, respectively and $30,805 for the nine months ended June 30, 2024.

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.

NOTE 5 - RELATED PARTY TRANSACTIONS

Rent expense incurred during the three months ended June 30, 2024 and 2023 was $0 and $0, respectively (See Note 6).

Rent expense incurred during the nine months ended June 30, 2024 and 2023 was $0 and $2,343, respectively (See Note 6).

During the three months ended June 30, 2024 and 2023, the Company paid $9,000 and $9,000, respectively, to a related party consultant.

During the nine months ended June 30, 2024 and 2023, the Company paid $30,000 and $27,000, respectively, to a related party consultant.

As of June 30, 2024, the Company advanced $53,302 to VoiceInterop, the Company’s former wholly owned subsidiary and now 96% owned by our shareholders. The advance was related to certain expenses paid on VoiceInterop behalf by the Company. 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, 2023. As of June 30, 2024, the Company recorded $4,860 in interest receivable – related party.

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NOTE 6 - COMMITMENTS AND CONTINGENCIES

Legal Proceedings

From time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of the Company’s business activities. The Company is not aware of any claim or litigation, the outcome of which, if determined adversely to the Company, would have a material effect on the Company’s financial position or results of operations.

Obligation Under Operating Lease

On December 2, 2023, 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, 2023.

Rent expense incurred during the three months ended June 30, 2024 and 2023 was $8,536 and $6,793, respectively.

Rent expense incurred during the nine months ended June 30, 2024 and 2023 was $21,266 and $19,944, respectively.

Revenue and Accounts Receivable Concentration

For the three months ended June 30, 2024, one customer accounted for 27% of the Company’s revenues.

For the nine months ended June 30, 2024, two customer accounted for 22.95% of the Company’s revenues.

For the nine months ended June 30, 2023, one customer accounted for 17.23% of the Company’s revenues.

As of June 30, 2024, 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 June 30, 2024, one customer accounted for more than 16.90% 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 2023 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 June 30, 2024 and 2023, the Company has recorded $12,010 and $7,640 for the minimum royalty for the fiscal year ended 2024 and 2023.

NOTE 7 – EXTINGUISHMENT OF LIABILITIES

During the nine months ended June 30, 2024, the Company recorded a gain on extinguishment of liabilities $44,052 related to amounts due to vendors.

NOTE 8 – SUBSEQUENT EVENT

On August 1, 2024, the Company announced that it had completed the acquisition of the assets, client list, and employee group of Alastar, Inc. (“Alastar”), a company formerly owned jointly by Advanced Technology International and the South Carolina Research Authority, a South Carolina nonprofit corporation. Through this transaction, the Compnay acquired all intellectual properties, trademarks, software platforms, and other assets of Alastar, along with its clients and employee group. The immediate financial impact on the Company will be an increase in revenue and cash, which will be offset by an increase in deferred revenue. No liabilities of Alastar were assumed by the Company.

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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 JUNE 30, 2024 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2023

Revenue

Revenues increased 79.35% to $1,005,050 for the three months ended June 30, 2024 as compared to $560,374 for the three months ended June 30, 2023. The primary reason for the increase was due to an increase in revenue from the ReadyOp platform from $527,074 in 2023 to $702,446 in 2024. In addition, Sales of ReadyOp hardware products increased from $15,200 in 2023 to $288,204 in 2024. Consulting fees and related income decreased from $18,100 in 2023 to $14,400 in 2024 due to less training activity.

Cost of Revenue

Cost of revenues increased to $319,728 for the three months ended June 30, 2024 as compared to $132,312 for the three months ended June 30, 2023. Gross profits were $685,322 and $428,062 for the three months ended June 30, 2024 and 2023, respectively. The primary reason for the increase was due to an increase in ReadyOp hardware product sales.

Operating Expenses

Operating expenses increased 44.41% to $606,721 for the three months ended June 30, 2024 compared to $420,128 for the three months ended June 30, 2023. The increase was primarily due increases in administrative expense and selling expenses. Administrative expenses increased by $168,592 or 47.64% as a result of an increase in consulting expenses and employee salaries, due to new hires. For the three months ended June 30, 2024, selling expenses were $79,913 compared to $62,873 for the three months ended June 30, 2023, due to an increase in advertising and travel expenses in connection with trade show appearances. Research and development expenses were $2,000 for the three months ended June 30, 2024, as compared to $2,000 for the three months ended June 30, 2023.

Other Income/(Expenses)

The Company’s other income increased by $5,569 from other income of $686 during the three months ended June 30, 2023, as compared to $6,255 for the three months ended June 30, 2024. This increase was an increase in interest income on note receivable due from a related party and interest income on treasury bill investments.

Income before Income Taxes

The Company’s income before income taxes was $84,856, during the three months ended June 30, 2024, as compared to income of $8,620 for the three months ended June 30, 2023. 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. 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 $74,625 for the three months ended June 30, 2024 as compared to a net loss of $1,611 for the three months ended June 30, 2023. 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.

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FOR THE NINE MONTHS ENDED JUNE 30, 2024 COMPARED TO THE NINE MONTHS ENDED JUNE 30, 2023

Revenue

Revenues increased 38.37% to $2,183,110 for the nine months ended June 30, 2024 as compared to $1,577,692 for the nine months ended June 30, 2023. The primary reason for the increase was due to an increase in revenue from the ReadyOp platform from $1,480,287 in 2023 to $1,842,411 in 2024. Sales of ReadyOp hardware products increased from $37,325 in 2023 to $326,299 in 2024. Consulting fees and related income decreased from $60.080 in 2023 to $14,400 in 2024 due to less training activity.

Cost of Revenue

Cost of revenues increased to $592,975 for the nine months ended June 30, 2024 as compared to $324,363 for the nine months ended June 30, 2023. Gross profits were $1,590,135 and $1,253,329 for the nine months ended June 30, 2024 and 2023, respectively. The primary reason for the increase was due to an increase in ReadyOp hardware product sales.

Operating Expenses

Operating expenses increased 41.14% to $1,629,714 for the nine months ended June 30, 2024 compared to $1,154,709 for the nine months ended June 30, 2023. The increase was primarily due to increases in administrative and selling expenses. General and Administrative expenses increased by $417,230 or 42.98% as a result of an increase in consulting expenses and employee salaries, due to new hires. For the nine months ended June 30, 2024, selling expenses were $218,062 compared to $154,521 for the nine months ended June 30, 2024 due to an increase allowance for credit losses and advertising and travel expenses in connection with trade show appearances. Research and development expenses were $18,603 for the nine months ended June 30, 2024, as compared to $25,815 for the nine months ended June 30, 2023. This decrease was primarily indirect research and development costs.

Other Income/(Expenses)

The Company’s other income increased by $62,098 from other income of $1,913 during the nine months ended June 30, 2023, as compared to $64,011 for the nine months ended June 30, 2024. This increase was an increase in interest income on a 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 $24,432, during the nine months ended June 30, 2024, as compared to income of $100,533 for the nine months ended June 30, 2023. 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 hardware sold and administrative expenses due to increased salaries for new employee hires.

Net Income Attributable to Common Stockholders

Net loss attributable to common stockholders was $6,373 for the nine months ended June 30, 2024 as compared to a net income of $69,839 for the nine months ended June 30, 2023. The decrease 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 nine months ended June 30, 2024, net cash provided by operations of $398,421 was the result of a net income of $24,432, depreciation expense of $5,140, amortization of operating lease of $17,948, extinguishment of liabilities of $44,052, increase in provision for credit losses of $9,000, increase in prepaid expenses of $5,137, a decrease in accounts receivable of $129,880, an increase in inventory of $107,997 . These were offset by an increase in accounts payable of $85,411 and an increase in deferred revenue of $301,988.

For the nine months ended June 30, 2023, net cash used in operations of $35,234 was the result of a net income of $100,533, depreciation expense of $3,694, amortization of operating lease of $11,966, an increase in accounts payable of $11,942, and a decrease in inventory of $668. These were offset by an increase in accounts receivable of $71,083, increase in prepaid expenses of $39,745 and a decrease in deferred revenue of $42,137.

Net cash used in investing activities was $126,185 and $6,435 for the nine months ended June 30, 2024 and 2023, respectively, which was for the purchase of intangible and fixed assets.

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 June 30, 2024. 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.

-14-

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.

-15-

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.

August 13, 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

-16-

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

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: August 13, 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.;

(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:

(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: August 13, 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 June 30, 2024 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.

August 13, 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

August 13, 2024

By: /s/ Michael M. Moore

Michael M. Moore

Principal Executive Officer

By: /s/ Larry M. Reid

Larry M. Reid

Principal Financial Officer

Cover - shares	9 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 12, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q3
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

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2024	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 789,191	$ 516,955
Accounts receivable, net of an allowance for credit losses of $72,665 as of June 30, 2024 and $63,665 as of September 30, 2023	406,693	545,573
Inventory	129,910	21,913
Prepaid expenses and other current assets	71,523	68,522
Interest receivable - related party	4,860	2,724
Total current assets	1,402,177	1,155,687
Property and Equipment, net	39,855	16,526
Intangible Assets, net	142,089	44,373
Operating lease - right-of-use asset	11,966	29,914
Other assets:
Due from related party	53,302	53,302
Total other assets	53,302	53,302
Total assets	1,649,389	1,299,802
Current liabilities:
Accounts payable and accrued expenses	127,217	85,858
Deferred revenue, current portion	1,439,578	1,105,580
Operating lease liability	12,885	24,580
Total current liabilities	1,579,680	1,216,018
Long term liabilities:
Deferred revenue, net of current portion	40,100	72,100
Operating lease liability - long term		6,507
Total long term liabilities	40,100	78,607
Total liabilities	1,619,780	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	(15,212,860)	(15,237,292)
Total stockholders' equity	29,609	5,177
Total liabilities and stockholders' equity	1,649,389	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

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Sep. 30, 2023
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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenue	$ 1,005,050	$ 560,374	$ 2,183,110	$ 1,577,692
Cost of Revenue	319,728	132,312	592,975	324,363
Gross Profit	685,322	428,062	1,590,135	1,253,329
Operating Expenses:
Selling expenses	79,913	62,873	218,062	154,521
Administrative expenses	522,515	353,923	1,387,909	970,679
Depreciation and amortization expense	2,293	1,332	5,140	3,694
Research and development	2,000	2,000	18,603	25,815
Total Operating Expenses	606,721	420,128	1,629,714	1,154,709
Gain on the settlement of accounts payable			44,052
Interest income/expense, net	6,255	686	19,959	1,913
Total Other Income/(Expenses)	6,255	686	64,011	1,913
Income before income taxes	84,856	8,620	24,432	100,533
Provision for income taxes from continuing operations
Net Income	84,856	8,620	24,432	100,533
Preferred stock dividends Series A Preferred	(10,231)	(10,231)	(30,805)	(30,694)
Net income attributable to common stockholders	$ 74,625	$ (1,611)	$ (6,373)	$ 69,839
Net income per common share - basic	$ 0.00	$ (0.00)	$ (0.00)	$ 0.00
Net income per common share - diluted	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted Average of number of shares outstanding basic	229,160,695	228,826,849	229,160,695	228,745,310
Weighted Average of number of shares outstanding diluted	599,482,330	599,428,484	599,482,330	599,346,945

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Statement of Cash Flows [Abstract]
NET INCOME	$ 24,432	$ 100,533
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization expense	5,140	3,694
Amortization of operating lease - right-of-use asset	17,948	11,966
Extinguishment of liabilities	(44,052)
Provision for credit losses	9,000
(Increase) decrease in assets:
Accounts receivable	129,880	(71,083)
Inventory	(107,997)	668
Prepaid expenses and other current assets	(5,137)	(39,745)
Increase (decrease) in liabilities:
Accounts payable	85,411	11,942
Deferred revenue	301,998	(42,137)
Operating lease liability	(18,202)	(11,072)
Net Cash Provided (used) by Operating Activities	398,421	(35,234)
Cash Flows From Investing Activities
Purchase of fixed assets		(6,435)
Purchase of intangible assets	(126,185)
Net Cash Used in Investing Activities	(126,185)	(6,435)
Cash Flows From Financing Activities
Net (decrease) increase in cash	272,236	(41,669)
Cash at beginning of period	516,955	68,167
Cash at end of period	89,191	426,498
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest		117
Cash paid for taxes		400
Supplemental disclosure of non-cash investing and financing activities:
Series C Convertible Preferred shares exchanged for common stock		8
Right-of-use asset obtained in exchange for operating lease liability		$ 47,863

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Preferred Stock Series A [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		$ (2)			$ 8	(6)
Series C Convertible Preferred shares exchanged for common stock, shares		(152,000)			760,000
Net income							100,533	100,533
Ending balance, value at Jun. 30, 2023	$ 5	$ 32	$ 7	$ 30	$ 2,289	15,240,106	(15,193,315)	49,154
Ending balance, shares at Jun. 30, 2023	512,996	3,189,503	670,904	3,000,000	228,880,695
Beginning balance, value at Mar. 31, 2023	$ 5	$ 33	$ 7	$ 30	$ 2,288	15,240,106	(15,201,935)	40,534
Beginning balance, shares at Mar. 31, 2023	512,996	3,209,503	670,904	3,000,000	228,780,695
Series C Convertible Preferred shares exchanged for common stock		$ (1)			$ 1
Series C Convertible Preferred shares exchanged for common stock, shares		(20,000)			100,000
Net income							8,620	8,620
Ending balance, value at Jun. 30, 2023	$ 5	$ 32	$ 7	$ 30	$ 2,289	15,240,106	(15,193,315)	49,154
Ending balance, shares at Jun. 30, 2023	512,996	3,189,503	670,904	3,000,000	228,880,695
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							24,432	24,432
Ending balance, value at Jun. 30, 2024	$ 5	$ 32	$ 7	$ 30	$ 2,291	15,240,104	(15,212,860)	29,609
Ending balance, shares at Jun. 30, 2024	512,996	3,133,503	670,904	3,000,000	229,160,695
Beginning balance, value at Mar. 31, 2024	$ 5	$ 32	$ 7	$ 30	$ 2,291	15,240,104	(15,297,716)	(55,247)
Beginning balance, shares at Mar. 31, 2024	512,996	3,133,503	670,904	3,000,000	229,160,695
Net income							84,856	84,856
Ending balance, value at Jun. 30, 2024	$ 5	$ 32	$ 7	$ 30	$ 2,291	$ 15,240,104	$ (15,212,860)	$ 29,609
Ending balance, shares at Jun. 30, 2024	512,996	3,133,503	670,904	3,000,000	229,160,695

ORGANIZATION

9 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

NOTE 1 - ORGANIZATION

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION

BASIS OF PRESENTATION

USE OF ESTIMATES

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.

RECLASSIFICATIONS

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-weeks to thirteen weeks on June 30, 2024.

Treasury Bills with an original maturity date of three months or less are included within cash and cash equivalents on the balance sheet at June 30, 2024.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

The Company provided $72,665 and $63,665 allowances for doubtful accounts as of June 30, 2024, and September 30, 2023, respectively.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PROPERTY AND EQUIPMENT

INTANGIBLE ASSETS

CONCENTRATION OF CREDIT RISK

RESEARCH AND DEVELOPMENT COSTS

The Company expenses research and development costs as incurred.

For the three months ended June 30, 2024 and 2023, the Company had $2,000 and $2,000 respectively, in research and development costs.

For the nine months ended June 30, 2024 and 2023, the Company had $18,603 and $25,815 respectively, in research and development costs.

REVENUE RECOGNITION AND DEFERRED REVENUES

i. Establishment of a contract with the 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.

As of June 30, 2024 and September 30, 2023, respectively, the Company recorded $1,479,678 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
	June 30, 2024		June 30, 2023
Licensing of ReadyOp Software	$	702,446	$	527,074
Hardware Sales and Consulting		302,604		33,300
Total	$	1,005,050	$	560,374

	For the nine months ended
	June 30, 2024		June 30, 2023
Licensing of ReadyOp Software	$	1,842,411	$	1,480,287
Hardware Sales and Consulting		340,699		97,405
Total	$	2,183,110	$	1,577,692

DEFERRED REVENUE

The following table provides a summary of the changes included in deferred revenue during the nine months ended June 30, 2024 and year ended September 30, 2023:

Schedule of deferred revenue
	For the nine months ended June 30, 2024			For the year ended September 30, 2023
Beginning balance	$	1,177,680		$	1,125,511
Additions to deferred liability (1)		2,183,110			2,184,124
Deductions to deferred liability (2)		(1,881,112	)		(2,131,955	)
Ending balance	$	1,479,678		$	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

As of June 30, 2024 and 2023, we had no options and warrants outstanding.

As of June 30, 2024 and 2023, 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 June 30, 2024 and 2023, we had 3,133,503 shares of Series C Convertible Preferred stock outstanding which are convertible into 15,947,515 and shares of common stock.

As of June 30, 2024 and 2023, we had 670,904 shares of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock.

As of June 30, 2024 and 2023, 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 and nine months ended June 30, 2024 and 2023:

Schedule of diluted earnings per share
	For the three months ended June 30, 2024		For the three months ended June 30, 2023
Net income (loss) attributable to common stockholders for the period	$	74,625	$	(1,611	)

Weighted average number of shares outstanding		229,160,695		228,826,849

Basic earnings per share	$	0.00	$	0.00

	For the nine months ended June 30, 2024			For the nine months ended June 30, 2023
Net (loss) income attributable to common stockholders for the period	$	(6,373	)	$	69,839

Weighted average number of shares outstanding		229,160,695			228,745,310

Basic earnings per share	$	0.00		$	0.00

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


	For the three months ended June 30, 2024		For the three months ended June 30, 2023
Net income (loss) attributable to common stockholders for the period	$	74,625	$	(1,611	)
Add: Preferred stock dividends		10,231		10,231

Adjusted net income	$	84,856	$	8,620

Weighted average number of shares outstanding		229,160,695		228,826,849
Add: Shares issued upon conversion of preferred stock		370,321,635		370,601,635
Weighted average number of common and common equivalent shares		599,482,330		599,428,484

Diluted earnings per share	$	0.00	$	0.00

	For the nine months ended June 30, 2024			For the nine months ended June 30, 2023
Net (loss) income attributable to common stockholders for the period	$	(6,373	)	$	69,839
Add: Preferred stock dividends		30,805			30,694

Adjusted net income	$	24,432		$	100,533

Weighted average number of shares outstanding		229,160,695			228,745,310
Add: Shares issued upon conversion of preferred stock		370,321,635			370,601,635
Weighted average number of common and common equivalent shares		599,482,330			599,346,945

Diluted earnings per share	$	0.00		$	0.00

FAIR VALUE OF FINANCIAL INSTRUMENTS

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.

INVENTORY

At June 30, 2024 inventory was $129,910 of raw materials and finished goods.

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

ADVERTISING COSTS

Advertising costs are expensed as incurred. The Company had advertising costs of $94,974 and $46,693 during the three months ended June 30, 2024 and 2023, respectively.

Advertising costs are expensed as incurred. The Company had advertising costs of $157,266 and $77,460 during the nine months ended June 30, 2024 and 2023, respectively.

RECENT ADOPTED ACCOUNTING PRONOUNCEMENTS

Troubled Debt Restructurings and Vintage Disclosures

RECENT ISSUED ACCOUNTING PRONOUNCEMENTS

LEASE ACCOUNTING

The tables below present information regarding the Company’s operating lease assets and liabilities at June 30, 2024 and September 30, 2023:


	June 30, 2024			September 30, 2023
Assets

Operating lease -right-of-use assets-non-current	$	11,966		$	29,914

Liabilities

Operating lease liability	$	12,885		$	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	$	17,949		$	17,949
Lease liability expense in connection with obligation repayment		1,389			2,429
Total operating lease costs	$	19,338		$	20,378

Supplemental cash outflows information related to operation lease was as follows:

Operating cash outflows from operating lease (obligation payment)	$	19,590		$	19,206
Right-of-use asset obtained in exchange for new operating lease liability	$	-		$	47,863

At June 30, 2024, 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 June 30, 2024:


2024 (6 Months)	$	6,594
2025		6,594
Total undiscounted cash flows		13,188
Less: amount representing interest		(303	)
Present value of operating lease liability		12,885
Less: current portion of operation lease liability		(12,885	)
Long-term operating lease liability	$	-

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

9 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

NOTE 3 – PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

At June 30, 2024 and September 30, 2023, property and equipment, net, is as follows:

Schedule of property and equipment net
	For the nine months ended June 30, 2024			For the year ended September 30, 2023
Office Equipment	$	56,509		$	28,040
Less: Accumulated Depreciation		(16,654	)		(11,514	)
Total Property and Equipment, net	$	39,855		$	16,526

Depreciation expense for the three months ended June 30, 2024 and 2023, was $2,293 and $1,332, respectively.

Depreciation expenses for the nine months ended June 30, 2024 and 2023, was $5,140 and $3,694, respectively.

At June 30, 2024 and September 30, 2023, intangible assets, net, is as follows:

Schedule of intangible assets
	For the nine months ended June 30, 2024		For the year ended September 30, 2023
Intangible Assets		142,089		44,373
Total Intangible Assets, net	$	142,089	$	44,373

Amortization expense for the three and nine months ended June 30, 2024 and 2023, was $0 and $0, respectively.

EQUITY TRANSACTIONS

9 Months Ended

Jun. 30, 2024

Equity [Abstract]

EQUITY TRANSACTIONS

NOTE 4 - EQUITY TRANSACTIONS

Preferred Stock Dividends

●

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:

●

RELATED PARTY TRANSACTIONS

9 Months Ended

Jun. 30, 2024

RELATED PARTY TRANSACTIONS

NOTE 5 - RELATED PARTY TRANSACTIONS

Rent expense incurred during the three months ended June 30, 2024 and 2023 was $0 and $0, respectively (See Note 6).

Rent expense incurred during the nine months ended June 30, 2024 and 2023 was $0 and $2,343, respectively (See Note 6).

During the three months ended June 30, 2024 and 2023, the Company paid $9,000 and $9,000, respectively, to a related party consultant.

During the nine months ended June 30, 2024 and 2023, the Company paid $30,000 and $27,000, respectively, to a related party consultant.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 6 - COMMITMENTS AND CONTINGENCIES

Legal Proceedings

Obligation Under Operating Lease

Rent expense incurred during the three months ended June 30, 2024 and 2023 was $8,536 and $6,793, respectively.

Rent expense incurred during the nine months ended June 30, 2024 and 2023 was $21,266 and $19,944, respectively.

Revenue and Accounts Receivable Concentration

For the three months ended June 30, 2024, one customer accounted for 27% of the Company’s revenues.

For the nine months ended June 30, 2024, two customer accounted for 22.95% of the Company’s revenues.

For the nine months ended June 30, 2023, one customer accounted for 17.23% of the Company’s revenues.

As of June 30, 2024, 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 June 30, 2024, one customer accounted for more than 16.90% 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

Exclusive Licensing Agreement

EXTINGUISHMENT OF LIABILITIES

9 Months Ended

Jun. 30, 2024

Extinguishment Of Liabilities

EXTINGUISHMENT OF LIABILITIES

NOTE 7 – EXTINGUISHMENT OF LIABILITIES

During the nine months ended June 30, 2024, the Company recorded a gain on extinguishment of liabilities $44,052 related to amounts due to vendors.

SUBSEQUENT EVENT

9 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENT

NOTE 8 – SUBSEQUENT EVENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

PRINCIPLES OF CONSOLIDATION

PRINCIPLES OF CONSOLIDATION

BASIS OF PRESENTATION

BASIS OF PRESENTATION

USE OF ESTIMATES

USE OF ESTIMATES

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.

RECLASSIFICATIONS

RECLASSIFICATIONS

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-weeks to thirteen weeks on June 30, 2024.

Treasury Bills with an original maturity date of three months or less are included within cash and cash equivalents on the balance sheet at June 30, 2024.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

The Company provided $72,665 and $63,665 allowances for doubtful accounts as of June 30, 2024, and September 30, 2023, respectively.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

INTANGIBLE ASSETS

INTANGIBLE ASSETS

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK

RESEARCH AND DEVELOPMENT COSTS

RESEARCH AND DEVELOPMENT COSTS

The Company expenses research and development costs as incurred.

For the three months ended June 30, 2024 and 2023, the Company had $2,000 and $2,000 respectively, in research and development costs.

For the nine months ended June 30, 2024 and 2023, the Company had $18,603 and $25,815 respectively, in research and development costs.

REVENUE RECOGNITION AND DEFERRED REVENUES

REVENUE RECOGNITION AND DEFERRED REVENUES

i. Establishment of a contract with the 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.

As of June 30, 2024 and September 30, 2023, respectively, the Company recorded $1,479,678 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
	June 30, 2024		June 30, 2023
Licensing of ReadyOp Software	$	702,446	$	527,074
Hardware Sales and Consulting		302,604		33,300
Total	$	1,005,050	$	560,374

	For the nine months ended
	June 30, 2024		June 30, 2023
Licensing of ReadyOp Software	$	1,842,411	$	1,480,287
Hardware Sales and Consulting		340,699		97,405
Total	$	2,183,110	$	1,577,692

DEFERRED REVENUE

DEFERRED REVENUE

The following table provides a summary of the changes included in deferred revenue during the nine months ended June 30, 2024 and year ended September 30, 2023:

Schedule of deferred revenue
	For the nine months ended June 30, 2024			For the year ended September 30, 2023
Beginning balance	$	1,177,680		$	1,125,511
Additions to deferred liability (1)		2,183,110			2,184,124
Deductions to deferred liability (2)		(1,881,112	)		(2,131,955	)
Ending balance	$	1,479,678		$	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

As of June 30, 2024 and 2023, we had no options and warrants outstanding.

As of June 30, 2024 and 2023, 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 June 30, 2024 and 2023, we had 3,133,503 shares of Series C Convertible Preferred stock outstanding which are convertible into 15,947,515 and shares of common stock.

As of June 30, 2024 and 2023, we had 670,904 shares of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock.

As of June 30, 2024 and 2023, 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 and nine months ended June 30, 2024 and 2023:

Schedule of diluted earnings per share
	For the three months ended June 30, 2024		For the three months ended June 30, 2023
Net income (loss) attributable to common stockholders for the period	$	74,625	$	(1,611	)

Weighted average number of shares outstanding		229,160,695		228,826,849

Basic earnings per share	$	0.00	$	0.00

	For the nine months ended June 30, 2024			For the nine months ended June 30, 2023
Net (loss) income attributable to common stockholders for the period	$	(6,373	)	$	69,839

Weighted average number of shares outstanding		229,160,695			228,745,310

Basic earnings per share	$	0.00		$	0.00

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


	For the three months ended June 30, 2024		For the three months ended June 30, 2023
Net income (loss) attributable to common stockholders for the period	$	74,625	$	(1,611	)
Add: Preferred stock dividends		10,231		10,231

Adjusted net income	$	84,856	$	8,620

Weighted average number of shares outstanding		229,160,695		228,826,849
Add: Shares issued upon conversion of preferred stock		370,321,635		370,601,635
Weighted average number of common and common equivalent shares		599,482,330		599,428,484

Diluted earnings per share	$	0.00	$	0.00

	For the nine months ended June 30, 2024			For the nine months ended June 30, 2023
Net (loss) income attributable to common stockholders for the period	$	(6,373	)	$	69,839
Add: Preferred stock dividends		30,805			30,694

Adjusted net income	$	24,432		$	100,533

Weighted average number of shares outstanding		229,160,695			228,745,310
Add: Shares issued upon conversion of preferred stock		370,321,635			370,601,635
Weighted average number of common and common equivalent shares		599,482,330			599,346,945

Diluted earnings per share	$	0.00		$	0.00

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

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.

INVENTORY

INVENTORY

At June 30, 2024 inventory was $129,910 of raw materials and finished goods.

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

ADVERTISING COSTS

ADVERTISING COSTS

Advertising costs are expensed as incurred. The Company had advertising costs of $94,974 and $46,693 during the three months ended June 30, 2024 and 2023, respectively.

Advertising costs are expensed as incurred. The Company had advertising costs of $157,266 and $77,460 during the nine months ended June 30, 2024 and 2023, respectively.

RECENT ADOPTED ACCOUNTING PRONOUNCEMENTS

RECENT ADOPTED ACCOUNTING PRONOUNCEMENTS

Troubled Debt Restructurings and Vintage Disclosures

RECENT ISSUED ACCOUNTING PRONOUNCEMENTS

RECENT ISSUED ACCOUNTING PRONOUNCEMENTS

LEASE ACCOUNTING

LEASE ACCOUNTING

The tables below present information regarding the Company’s operating lease assets and liabilities at June 30, 2024 and September 30, 2023:


	June 30, 2024			September 30, 2023
Assets

Operating lease -right-of-use assets-non-current	$	11,966		$	29,914

Liabilities

Operating lease liability	$	12,885		$	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	$	17,949		$	17,949
Lease liability expense in connection with obligation repayment		1,389			2,429
Total operating lease costs	$	19,338		$	20,378

Supplemental cash outflows information related to operation lease was as follows:

Operating cash outflows from operating lease (obligation payment)	$	19,590		$	19,206
Right-of-use asset obtained in exchange for new operating lease liability	$	-		$	47,863

At June 30, 2024, 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 June 30, 2024:


2024 (6 Months)	$	6,594
2025		6,594
Total undiscounted cash flows		13,188
Less: amount representing interest		(303	)
Present value of operating lease liability		12,885
Less: current portion of operation lease liability		(12,885	)
Long-term operating lease liability	$	-

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of disaggregated revenue

Schedule of disaggregated revenue
	For the three months ended
	June 30, 2024		June 30, 2023
Licensing of ReadyOp Software	$	702,446	$	527,074
Hardware Sales and Consulting		302,604		33,300
Total	$	1,005,050	$	560,374

	For the nine months ended
	June 30, 2024		June 30, 2023
Licensing of ReadyOp Software	$	1,842,411	$	1,480,287
Hardware Sales and Consulting		340,699		97,405
Total	$	2,183,110	$	1,577,692

Schedule of deferred revenue

Schedule of deferred revenue
	For the nine months ended June 30, 2024			For the year ended September 30, 2023
Beginning balance	$	1,177,680		$	1,125,511
Additions to deferred liability (1)		2,183,110			2,184,124
Deductions to deferred liability (2)		(1,881,112	)		(2,131,955	)
Ending balance	$	1,479,678		$	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 June 30, 2024		For the three months ended June 30, 2023
Net income (loss) attributable to common stockholders for the period	$	74,625	$	(1,611	)

Weighted average number of shares outstanding		229,160,695		228,826,849

Basic earnings per share	$	0.00	$	0.00

	For the nine months ended June 30, 2024			For the nine months ended June 30, 2023
Net (loss) income attributable to common stockholders for the period	$	(6,373	)	$	69,839

Weighted average number of shares outstanding		229,160,695			228,745,310

Basic earnings per share	$	0.00		$	0.00

Schedule of computation of diluted earnings per share


	For the three months ended June 30, 2024		For the three months ended June 30, 2023
Net income (loss) attributable to common stockholders for the period	$	74,625	$	(1,611	)
Add: Preferred stock dividends		10,231		10,231

Adjusted net income	$	84,856	$	8,620

Weighted average number of shares outstanding		229,160,695		228,826,849
Add: Shares issued upon conversion of preferred stock		370,321,635		370,601,635
Weighted average number of common and common equivalent shares		599,482,330		599,428,484

Diluted earnings per share	$	0.00	$	0.00

	For the nine months ended June 30, 2024			For the nine months ended June 30, 2023
Net (loss) income attributable to common stockholders for the period	$	(6,373	)	$	69,839
Add: Preferred stock dividends		30,805			30,694

Adjusted net income	$	24,432		$	100,533

Weighted average number of shares outstanding		229,160,695			228,745,310
Add: Shares issued upon conversion of preferred stock		370,321,635			370,601,635
Weighted average number of common and common equivalent shares		599,482,330			599,346,945

Diluted earnings per share	$	0.00		$	0.00

Schedule of operating lease assets and liabilities


	June 30, 2024			September 30, 2023
Assets

Operating lease -right-of-use assets-non-current	$	11,966		$	29,914

Liabilities

Operating lease liability	$	12,885		$	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	$	17,949		$	17,949
Lease liability expense in connection with obligation repayment		1,389			2,429
Total operating lease costs	$	19,338		$	20,378

Supplemental cash outflows information related to operation lease was as follows:

Operating cash outflows from operating lease (obligation payment)	$	19,590		$	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


2024 (6 Months)	$	6,594
2025		6,594
Total undiscounted cash flows		13,188
Less: amount representing interest		(303	)
Present value of operating lease liability		12,885
Less: current portion of operation lease liability		(12,885	)
Long-term operating lease liability	$	-

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of property and equipment net

Schedule of property and equipment net
	For the nine months ended June 30, 2024			For the year ended September 30, 2023
Office Equipment	$	56,509		$	28,040
Less: Accumulated Depreciation		(16,654	)		(11,514	)
Total Property and Equipment, net	$	39,855		$	16,526

Schedule of intangible assets

Schedule of intangible assets
	For the nine months ended June 30, 2024		For the year ended September 30, 2023
Intangible Assets		142,089		44,373
Total Intangible Assets, net	$	142,089	$	44,373

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Product Information [Line Items]
Total disaggregated revenue	$ 1,005,050	$ 560,374	$ 2,183,110	$ 1,577,692
Licensing Of Ready Op Software [Member]
Product Information [Line Items]
Total disaggregated revenue	702,446	527,074	1,842,411	1,480,287
Hardware Sales And Consulting [Member]
Product Information [Line Items]
Total disaggregated revenue	$ 302,604	$ 33,300	$ 340,699	$ 97,405

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)

9 Months Ended

12 Months Ended

Jun. 30, 2024

Sep. 30, 2023

Accounting Policies [Abstract]

Beginning balance

$ 1,177,680

$ 1,125,511

Additions to deferred liability

^[1]

2,183,110

2,184,124

Deductions to deferred liability

^[2]

(1,881,112)

(2,131,955)

Ending balance

$ 1,479,678

$ 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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Net (loss) income attributable to common stockholders for the period	$ 74,625	$ (1,611)	$ (6,373)	$ 69,839
Weighted average number of shares outstanding	229,160,695	228,826,849	229,160,695	228,745,310
Basic earnings per share	$ 0.00	$ (0.00)	$ (0.00)	$ 0.00

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Net (loss) income attributable to common stockholders for the period	$ 74,625	$ (1,611)	$ (6,373)	$ 69,839
Add: Preferred stock dividends	10,231	10,231	30,805	30,694
Adjusted net income	$ 84,856	$ 8,620	$ 24,432	$ 100,533
Weighted average number of shares outstanding	229,160,695	228,826,849	229,160,695	228,745,310
Add: Shares issued upon conversion of preferred stock	370,321,635	370,601,635	370,321,635	370,601,635
Weighted average number of common and common equivalent shares	599,482,330	599,428,484	599,482,330	599,346,945
Diluted earnings per share	$ 0.00	$ 0.00	$ 0.00	$ 0.00

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Operating lease -right-of-use assets-non-current	$ 11,966	$ 29,914
Operating lease liability	$ 12,885	$ 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	$ 17,949	$ 17,949
Lease liability expense in connection with obligation repayment	1,389	2,429
Total operating lease costs	19,338	20,378
Operating cash outflows from operating lease (obligation payment)	19,590	19,206
Right-of-use asset obtained in exchange for new operating lease liability		$ 47,863

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($)	Jun. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
2024 (6 Months)	$ 6,594
2025	6,594
Total undiscounted cash flows	13,188
Less: amount representing interest	(303)
Present value of operating lease liability	12,885
Less: current portion of operation lease liability	(12,885)	$ (24,580)
Long-term operating lease liability

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	3 Months Ended		9 Months Ended
	Jun. 30, 2024 USD ($) shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2024 USD ($) shares	Jun. 30, 2023 USD ($) shares	Sep. 30, 2023 USD ($) shares	Jan. 02, 2023 ft²
Allowance for doubtful accounts	$ 72,665		$ 72,665		$ 63,665
Deferred subscriber cost	51,000		51,000		38,250
Prepaid expenses	71,523		71,523		68,522
Amortization of Intangible Assets			0
Fdic insured amount	250,000		250,000
Amount of fdic insurance limits	129,161		129,161		118,140
Research and development cost	2,000	$ 2,000	18,603	$ 25,815
Deferred revenue	$ 1,479,678		$ 1,479,678		1,177,680
Option outstanding \| shares	0	0	0	0
Warrant outstanding \| shares	0	0	0	0
Inventory, raw materials and finished goods	$ 129,910		$ 129,910		$ 21,913
Advertising expense	$ 94,974	$ 46,693	157,266	$ 77,460
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	512,996	512,996
Convertible preferred stock, shares issued upon conversion \| shares	51,299,600	51,299,600	51,299,600	51,299,600
Series C Preferred Stock [Member]
Preferred stock, shares outstanding \| shares	3,133,503	3,133,503	3,133,503	3,133,503	3,133,503
Convertible preferred stock, shares issued upon conversion \| shares	15,947,515	15,947,515	15,947,515	15,947,515
Series D Preferred Stock [Member]
Preferred stock, shares outstanding \| shares	670,904	670,904	670,904	670,904	670,904
Convertible preferred stock, shares issued upon conversion \| shares	3,354,520	3,354,520	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	3,000,000	3,000,000
Convertible preferred stock, shares issued upon conversion \| shares	300,000,000	300,000,000	300,000,000	300,000,000

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS (Details) - USD ($)	Jun. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Office Equipment	$ 56,509	$ 28,040
Less: Accumulated Depreciation	(16,654)	(11,514)
Total Property and Equipment, net	$ 39,855	$ 16,526

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS (Details 1) - USD ($)	Jun. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Intangible Assets	$ 142,089	$ 44,373
Total Intangible Assets, net	$ 142,089	$ 44,373

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 2,293	$ 1,332	$ 5,140	$ 3,694
Amortization expense	$ 0	$ 0	$ 0	$ 0

EQUITY TRANSACTIONS (Details Narrative) - USD ($)	9 Months Ended
EQUITY TRANSACTIONS (Details Narrative) - USD ($)	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023
Class of Stock [Line Items]
Cumulative dividends	$ 236,463	$ 205,658
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Cumulative dividends	$ 30,805
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	3,133,503
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

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Rent expense	$ 0	$ 0	$ 0	$ 2,343
Related party costs	9,000	$ 9,000	30,000	$ 27,000
Advanced amounts	53,302		53,302
Related Party [Member]
Related Party Transaction [Line Items]
Interest receivable related party	$ 4,860		$ 4,860
Subsidiaries [Member] \| Voice Interop Inc [Member]
Related Party Transaction [Line Items]
Ownership percentage	96.00%		96.00%
Interest rate	5.00%		5.00%

COMMITMENTS AND CONTINGENCIES (Details Narrative)			3 Months Ended		9 Months Ended		12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details Narrative)	Dec. 02, 2023 USD ($) ft²	Dec. 01, 2021 USD ($) ft²	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2023
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, 2023
Royalty Expense					$ 7,640	$ 12,010
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			27.00%			17.23%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Two Customer [Member]
Product Information [Line Items]
Concentration risk, percentage					22.95%
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					16.90%		10.00%
Obligation Under Operating Lease [Member]
Product Information [Line Items]
Rental expense			$ 8,536	$ 6,793	$ 21,266	$ 19,944

EXTINGUISHMENT OF LIABILITIES (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Extinguishment Of Liabilities
Gain on extinguishment of liabilities	$ 44,052

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