Annual report pursuant to Section 13 and 15(d)

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

12 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

NOTE 10 - DISCONTINUED OPERATIONS

In March 2018, the Company approved the spin-off VoiceInterop into a separate company under a Form S-1 registration to be filed with the United States Securities and Exchange Commission.

On April 23, 2018, the board of Directors declared a stock dividend for certain shareholders of the Company. The Company distributed to its shareholders owning Common Stock and Series C and D Preferred stock an aggregate of 17,819,827 shares of shares of Common Stock of VoiceInterop. Each common shareholder received .075 shares of VoiceInterop common stock for each one (1) share of Cleartronic stock held by the shareholder, and each shareholder of Series C and D Preferred stock received 0.375 shares of VoiceInterop common stock for each one (1) share of Series C or Series D Preferred stock held by the shareholder.

On November 14, 2019, VoiceInterop, Inc.'s, S-1 Registration Statement was declared effective by Securities and Exchange Commission. On February 14, 2020, the distribution of shares was approved by FINRA and completed and deconsolidation was completed. The Company recorded $225,316 to additional paid in capital for deconsolidation of VoiceInterop, Inc. and discontinued operations are not presented.

The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the period from October 1, 2019 to February 14, 2020.


	For the period
	From October 1, 2019 to
	February 14, 2020 (Deconsolidation Date)
Revenue	$	27,698
Cost of Revenue		12,383
Gross Profit		15,315

Operating Expenses:
Selling expenses		3,862
Administrative expenses		24,151
Professional Fees		50,007
Total Operating Expenses		78,020

Loss from operations		(62,705)

Other Income (Expense)
Other Income		5,750
Interest and other expense		(7,981)
Total Other Expense		(2,231)

Loss Before Income Taxes		(64,936)
Provision for Income Taxes		-
Loss from discontinued operations	$	(64,936)

F-14

On February 14, 2020, the Company recorded $225,316 to additional paid in capital for deconsolidation of VoiceInterop, Inc. and discontinued operations are not presented.


	February 14, 2020
	(Deconsolidation Date)
Current assets:
Cash	$	2,279
Accounts Receivable		4,780
Operating lease asset, net		62,226

Total Assets from discontinued operations	$	69,285

Current liabilities:
Accounts payable and accrued expenses	$	92,236
Operating lease liability, current		33,941
Deferred revenue, current portion		17,357
Installment loan, net, current portion		31,269
Due to related parties		11,362
Due to unrelated parties		68,000
Total Current liabilities from discontinued operations		254,165

Long Term Liabilities
Deferred revenue, net of current		8,263
Operating lease liability, net of current		32,173
Total Long term liabilities from discontinued operations		40,436

Total Liabilities from discontinued operations	$	294,601

Loan Payable - related party

During the year ended September 30, 2020, the Company owed $16,262 to two officers, of which $7,262 is included in liabilities from discontinued operations. The loan is non-interest bearing and payable on demand. As of September 30, 2020, the loan balance of $9,000 was paid in full and $7,262 included in liabilities from discontinued operations was deconsolidated as of February 14, 2020.

Operating lease asset and liability

The Company leases its office space from VoiceInterop the Company's former wholly owned subsidiary and now 96% owned by our shareholders. On February 14, 2020, VoiceInterop was deconsolidated and is no longer our subsidiary. Rent expense paid to the related party was $17,901 and $31,532 for the years ended September 30, 2021 and 2020, respectively.

As of February 14, 2020, the operating lease liabilities of $66,114 and lease assets of $62,226 were included in liabilities from discontinued operations and were deconsolidated.