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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 

Washington, D.C. 20549

 

 

FORM 10-Q

 

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended March 31, 2024

 

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

 

For the transition period from __________ to __________

 

Commission File Number: 333-174194

  

GRAPHENE & SOLAR TECHNOLOGIES LTD
(Exact name of registrant as specified in its charter)

 

colorado   27-2888719
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)

 

11201 North Tatum Blvd., Suite 300

 Phoenix, AZ 85028

(Address of principal executive offices, including Zip Code)

 

(602) 388-8335 

(Issuer’s telephone number, including area code)

 

(Former name or former address if changed since last report)

 

Check whether the issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act 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, 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 small reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated Filer Accelerated Filer
Non-accelerated filer Smaller reporting company
    Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act

 

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

 

As of May 23, 2024, the registrant had 425,792,610 outstanding shares of common stock. 

 

 

 

GRAPHENE & SOLAR TECHNOLOGIES LIMITED

 

FORM 10-Q

 

TABLE OF CONTENTS

 

 

PART I — FINANCIAL INFORMATION  
Item 1. Condensed Consolidated Balance Sheets (Unaudited) 1
Item 2. Condensed Consolidated Statements of Operations (Unaudited) 2
Item 3. Condensed Consolidated Statements of Changes in Stockholders’ Deficiency (Unaudited) 3
Item 4. Condensed Consolidated Statements of Cash Flows (Unaudited) 4
Item 5. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 10
Item 6. Controls and Procedures. 14
     
PART II — OTHER INFORMATION  
Item 1 Legal Proceedings 16
Item 1A Risk Factors 16
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 16
Item 3 Defaults on Senior Securities 16
Item 4 Mine Safety Disclosures 16
Item 5 Other Information 16
Item 6. Exhibits. 16
     
SIGNATURES 17

 

 

 

 

GRAPHENE & SOLAR TECHNOLOGIES LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

 

       
   March 31, 2024  September 30,
   (Unaudited)  2023
Assets          
Current Assets:          
Cash  $1,520   $1,094 
Prepaid expenses   11,235    11,108 
Total Current Assets   12,755    12,202 
Other Assets:          
Furniture and equipment, net of depreciation $78,106   780    937 
Intellectual property – at cost, net   1    1 
Other intangible assets – at cost   975    975 
Other receivable         4,015 
Total Assets  $14,511   $18,130 
           
Liabilities and Stockholders’ Deficit          
Current Liabilities:          
Accounts payable and other payable  $2,782,472   $2,594,247 
Accrued interest payable   200,298    184,851 
Due to related party   2,376,580    1,985,601 
Notes payable, $60,000 in default   60,000    60,000 
Notes payable – related party   53,543    71,713 
Convertible notes payable, $100,747 in default   100,747    100,747 
Convertible notes payable – related party, net of discount $13,895 and $0   63,933       
Total Current Liabilities   5,637,573    4,997,159 
           
Total Liabilities  $5,637,573   $4,997,159 
           
Stockholders’ Deficit:          
Preferred stock: 10,000,000 shares authorized; $0.00001 par value; no shares issued and outstanding            
Common stock: 500,000,000 shares authorized; $0.00001 par value; 425,142,610 and 421,292,610 shares issued and outstanding   4,258    4,219 
Additional paid-in capital   63,954,890    63,883,853 
Stock Receivable   (795,000)   (795,000)
Stock Payable   51,496    —   
Accumulated deficit   (69,120,540)   (68,375,078)
Accumulated other comprehensive income   281,834    302,977 
Total Stockholders’ Deficit   (5,623,062)   (4,979,029)
           
Total Liabilities and Stockholders’ Deficit  $14,511   $18,130 

 

 

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

1

 

  

GRAPHENE & SOLAR TECHNOLOGIES LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE
INCOME

(Unaudited)

 

             
   Three Months Ending March 31,  Six Months Ending March 31,
   2024  2023  2024  2023
             
Revenue  $     $     $     $   
                     
Operating Expenses:                    
Professional Services   354,920    153,253    697,654    288,107 
General and administrative   14,511    11,847    38,924    54,638 
Total operating expenses   369,431    165,100    736,578    342,745 
                     
Loss from operations   (369,431)   (165,100)   (736,578)   (342,745)
                     
Other Income (Expense):                    
Other income   5,800    10,662    13,840    16,962 
Interest expense   (12,695)   (5,022)   (22,724)   (10,135)
Loss on extinguishment of debt         (40,441)         (40,441)
Total Other Income (Expense)   (6,895)   (34,801)   (8,884)   (33,614)
                     
Net Income (Loss)  $(376,326)  $(199,901)  $(745,462)  $(376,359)
                     
Other Comprehensive Income  $87,987   $16,566   $(21,143)  $(57,889)
                     
Net Comprehensive Loss  $(288,339)  $(183,335)  $(766,605)  $(434,248)
                     
Income (Loss) per share:                    
Basic and diluted  $(0.00)  $(0.00)  $(0.00)  $(0.00)
                     
Weighted average shares outstanding   422,939,605    374,310,750    422,879,932    374,308,086 

 

 

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

  

2

 

 

GRAPHENE & SOLAR TECHNOLOGIES LIMITED

AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIENCY

(Unaudited)

 

Three and Six Months Ended March 31, 2024 and 2023

 

 

                     Accumulated  Total
   Common Stock  Additional  Stock  Stock  Accumulated  Comprehensive  Stockholders’
   Shares  Amount  Paid-in  Receivable  Payable  Deficit  Income  Deficit
Balance, September 30, 2023   421,292,610    4,219    63,883,853    (795,000)         (68,375,078)   302,977    (4,979,029)
Stock Based Compensation   —                        44,400                44,400 
Debt Discount on Notes Payable   600,000    6    11,577          7,096                18,679 
Foreign currency translation adjustment   —                                    (109,130)   (109,130)
Net loss   —                              (369,136)         (369,136)
Balance, December 31, 2023   421,892,610    4,225    63,895,430    (795,000)   51,496    (68,744,214)   193,847    (5,394,216)
Shares issued for cash   500,000    5    4,995                            5,000 
Stock Based Compensation   2,000,000    20    51,980                            52,000 
Debt Discount on Notes Payable   750,000    8    2,485                            2,493 
Foreign currency translation adjustment   —                                    87,987    87,987 
Net loss   —                              (376,326)         (376,326)
Balance, March 31, 2024   425,142,610    4,258    63,954,890    (795,000)   51,496    (69,120,540)   281,834    (5,623,062)

  

 

                     Accumulated  Total
   Common Stock  Additional  Stock  Stock  Accumulated  Comprehensive  Stockholders’
   Shares  Amount  Paid-in  Receivable  Payable  Deficit  Income  Deficit
Balance, September 30, 2022   374,305,480    3,748    63,527,513    (795,000)         (67,070,016)   290,563    (4,043,192)
Foreign currency translation adjustment   —                                    (74,455)   (74,455)
Net loss   —                              (176,458)         (176,458)
Balance, December 31, 2022   374,305,480    3,748    63,527,513    (795,000)         (67,246,474)   216,108    (4,294,105)
Stock Based Compensation   —                                             
Settlement of Notes   237,130    3    65,208                            65,211 
Foreign currency translation adjustment   —                                    16,566    16,566 
Net loss   —                              (199,901)         (199,901)
Balance, March 31, 2023   374,542,610    3,751    63,592,721    (795,000)         (67,446,375)   232,674    (4,412,229)
                                         

  

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

  

3

 

GRAPHENE & SOLAR TECHNOLOGIES LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 

For the Six-Month Period Ended March 31, 2024 and 2023 

(Unaudited)

       
   2024  2023
Cash flows from operating activities          
Net Income (loss)  $(745,462)  $(376,359)
Adjustments to reconcile net income/(loss) to net cash from operating activities:          
Stock-based compensation   96,400       
Depreciation expense   167    169 
Amortization of intangibles            
Amortization of discount   7,277       
Loss on Settlement of Debt         40,441 
Accounts payable related party            
Impairment of assets            
Change in operating assets and liabilities:          
Accounts payable   181,316    88,344 
Accrued interest payable   15,447    10,134 
Other Receivables   4,015    (1,921)
Pre-Payments            
Due to related parties   377,000    195,304 
Net cash used in operating activities   (63,840)   (43,888)
           
Cash flows from investing activities          
Cash paid for purchase of fixed assets            
Net cash used in investing activities            
           
Cash flows from financing activities          
Proceeds from issuance of common stock   5,000       
Due to Affiliates         41,892 
Issuance of convertible note – related party   59,658       
Net cash from financing activities   64,658    41,892 
           
Effect of currency translations to cash flow   (392)   9,488 
Net change in cash and cash equivalents   426    7,492 
Beginning of period   1,094    2,857 
End of period  $1,520   $10,349 
           

 

Supplemental cash flow information  Quarter ended March 31,
   2024  2023
Interest paid  $     $   
Taxes  $     $   
Noncash investing and financing activities:          
Settlement of Debt for Common Stock  $     $24,770 
Issuance of Common Stock as Debt Discount  $21,172   $   

 

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

 

4

 

 

GRAPHENE & SOLAR TECHNOLOGIES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

NOTE 1 – BASIS OF PRESENTATION

 

These consolidated financial statements of Graphene & Solar Technologies Limited (GSTX or the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). In the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. These financial statements should be read along with Graphene & Solar Technologies audited financial statements as of September 30, 2023.

 

Going Concern – The Company has incurred cumulative net losses since inception of $69,120,540 at March 31, 2024. Accordingly, it requires capital to fund working capital deficits and for future operating activities to take place. The Company’s ability to raise new funds through the future issuances of debt or common stock is unknown. The obtainment of additional financing, the successful development of a plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability of the Company to continue its operations is dependent on management’s plans, which include the raising of capital through debt and/or equity markets, with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. The Company may need to incur additional liabilities with certain related parties to sustain the Company’s existence. There can be no assurance that the Company will be able to raise any additional capital and therefore raise doubt about the Company’s ability to continue as a going concern.

 

Future issuances of the Company’s equity or debt securities will be required for the Company to finance operations and continue as a going concern. The financial statements do not include any adjustments that may result from the outcome of these uncertainties.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

 

Principles of Consolidation and Basis of Presentation — The consolidated financial statements include the accounts of Graphene & Solar Technologies Limited and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

 

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). A summary of the significant accounting policies applied in the preparation of the accompanying financial statements can be found in the Company’s Annual Report in form 10-K for the year ended September 30, 2023.

 

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Significant estimates include but are not limited to the estimated useful lives of equipment for purposes of depreciation and the valuation of common shares issued for services, equipment, and the liquidation of liabilities.

 

Cash and Cash Equivalents – Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of March 31, 2024 and 2023, the Company had $1,520 and $10,349 in cash, respectively, and no cash equivalents.

 

5

 

 

Derivative Financial Instruments – The Company accounts for freestanding contracts that are settled in a company’s own stock, including common stock warrants, to be designated as an equity instrument or generally as a liability. A contract so designated is carried at fair value on a company’s balance sheet, with any changes in fair value recorded as a gain or loss in a company’s results of operations.

 

The Company records all derivatives on the balance sheet at fair value, adjusted at the end of each reporting period to reflect any material changes in fair value, with any such changes classified as changes in derivatives valuation in the statement of operations. The calculation of the fair value of derivatives utilizes highly subjective and theoretical assumptions that can materially affect fair values from period to period. The recognition of these derivative amounts does not have any impact on cash flows.

 

At the date of the conversion of any convertible debt, the pro rata fair value of the related embedded derivative liability is transferred to additional paid-in capital.

 

There was no derivative activity in fiscal quarter ending March 31, 2024. Therefore, no derivative liabilities were recorded during the quarter ended March 31, 2024.

 

Stock-Based Compensation ASC 718, “Compensation - Stock Compensation,” prescribes accounting and reporting standards for all share-based payment transactions in which employee and non-employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees and non-employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values on the grant date. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

During the quarter ended March 31, 2024, the Company issued 3,250,000 shares of the Company’s common stock.

 

Total stock-based compensation expense was $96,400 for the six-months ended March 31, 2024.

 

Foreign Currency Translations – The functional currency of the Company’s foreign subsidiary is primarily the respective local currency. Assets and liabilities of the Company’s foreign subsidiary are translated into U.S. Dollars at the year-end exchange rate, and revenues and expenses are translated at average monthly exchange rates. Translation gains and losses are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. All other foreign currency transaction gains and losses are included in other (income) expense, net.

 

Earnings Per Share - Basic earnings per share have been calculated based upon the weighted-average number of common shares outstanding. Diluted earnings per share were not calculated as such potential shares would be anti-dilutive.

 

Reclassifications - Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net loss, working capital or equity previously reported. 

 

NOTE 3 – NOTES PAYABLE

 

The Company’s indebtedness as of March 31, 2024 and September 30, 2023 were as follows:

       
Description  March 31,
2024
  September 30, 2023
       
Convertible notes  $100,747   $100,747 
Convertible notes – related party, net of discount $13,895   63,933       
Notes Payable  $60,000   $60,000 
Notes Payable – Related Parties  $53,543   $71,713 

 

6

 

Notes Payable and Other Loans

 

During 2015 and 2016, the Company executed promissory notes payable with six individuals with an aggregate principal balance of $60,000. The notes were due on demand and included interest at 10%. As of March 31, 2024 and September 30, 2023, the total promissory notes payable balance was $111,718 and $108,710 including accrued interest of $51,718 and $48,710, respectively. On January 15, 2019, the holder of a note with a principal balance of $10,000 made demand for payment. To date, the note has not been paid.

 

During the year ended September 30, 2020 a Company Advisor, loaned the Company $5,781. The loan is a demand note at zero interest.

 

Convertible Notes Payable

 

As of March 31, 2024 and September 30, 2023, noteholders representing $70,747 in outstanding principal had not requested the exchange of shares of common stock. As of March 31, 2024 and September 30, 2023, the exchange obligation payable was $184,830 and $179,510 including accrued interest of $114,083 and $108,762, respectively. As of March 31, 2024 and September 30, 2023, the exchange obligation was for 55,840 shares and 54,233 shares of common stock, respectively.

 

On February 1, 2016, the Company issued convertible secured note payable of $30,000 to an individual. The note was due on January 31, 2017 and included interest at 10%. The note was convertible at discretion of the holder into common shares of the Company at the rate of $0.50 per shares. The Company has not extended the maturity date and the note is in default. As of March 31, 2024 and September 30, 2023, the total convertible note payable balance was $54,501 and $52,997, including accrued interest of $24,501 and $22,997 respectively. As of March 31, 2024 and September 30, 2023, the exchange obligation was for 109,002 shares and 105,994 shares of common stock, respectively.

 

Convertible Notes Payable – Related Party

 

During the quarter ended December 31, 2023, the Company entered into an agreement to issue convertible notes payable with an accredited investor. Notably, there exists a professional relationship between the Company and the investor, facilitated by a mutual director serving on the boards of both entities. These notes carry an aggregate principal balance of $50,000 and accrue interest at a rate of 10% per annum. Their maturity dates are set for October 2024 and December 2024. Additionally, the notes offer the option for conversion into common shares of the Company at the discretion of the holder, with a conversion rate of $0.10 per share. As of March 31, 2024, the total balance of promissory notes payable stood at $51,952, inclusive of accrued interest totaling $1,952. Moreover, the exchange obligation associated with these notes amounted to 519,520 shares of common stock. In return for providing the loan, the Company authorized the issuance of 1,000,000 shares of common stock to the lender. By the end of March 31, 2024, 600,000 shares had been issued, leaving 400,000 shares unissued – see NOTE 8. The Company recorded an initial debt discount of $18,679 upon the issuance of the notes, with subsequent amortization of debt discount totaling $7,217.

 

During the quarter ended March 31, 2024, the Company entered into agreements to issue a convertible notes payable with a director serving on the board. The notes carry an aggregate principal balance of $27,828 and accrue interest at a rate of 10% per annum. Their maturity dates are set for March 2025. Additionally, the notes offer the option for conversion into common shares of the Company at the discretion of the holder, with a conversion rate of $0.10 per share. As of March 31, 2024, the total balance of promissory notes payable stood at $29,300, inclusive of accrued interest totaling $1,472. Moreover, the exchange obligation associated with these notes amounted to 293,000 shares of common stock. In return for providing the loan, the Company authorized the issuance of 500,000 shares of common stock to the lender. By the end of March 31, 2024, 500,000 shares had been issued. The Company recorded an initial debt discount of $2,493 upon the issuance of the notes, with subsequent amortization of debt discount totaling $60.

 

Related Party Loans

 

On December 5, 2022, the Company entered into a Promissory Loan Note with Mr. Andrew Liang, in the amount of US$20,000, with a maturity date of December 5, 2023. The loan will accrue interest at the rate of 10% per annum.

7

 

 

On February 28, 2023, the Company entered into a Promissory Loan Note with MI Labs Pty Ltd, in the amount of US$50,000 (of which $31,943 was received by the company as of March 31, 2024) with a maturity date of February 28, 2024. The loan will accrue interest at the rate 10% per annum.

 

NOTE 4 – RELATED PARTY

 

MI Labs Pty Ltd, a management company controlled by Mr. Jason May, the Company’s Chief Executive Officer and a Company Director, provides management services to the Company for which the Company is charged $25,000 monthly. During the three months ended March 31, 2024, the Company incurred charges to operations of $75,000 with respect to this arrangement.

 

CSA Liang Pty Ltd, a management company controlled by Mr. Andrew Liang, a Company Director, provided corporate advisor services to the Company for which the Company was charged $5,000 monthly. During the three months ended March 31, 2024, the Company incurred charges to operations of $15,000 with respect to this arrangement.

 

Sativus Investments, a management company controlled by Mr. Paul Saffron, the Company’s Chief Operations Officer, provides management services to the Company for which the Company is charged $20,000 monthly. During the three months ended March 31, 2024, the Company incurred charges to operations of $60,000 with respect to this arrangement.

 

Pagemark Limited, a management company controlled by Mr. David Halstead, a Company Director, entered into a convertible note agreement with the Company – see NOTE 3.

 

Allegro Investments Limited entered into a convertible note agreement with the Company. The Company and Allegro Investments Limited share a professional relationship wherein a director serves on the boards of both entities – see NOTE 3.

 

During the quarters ended March 31, 2024 and 2023, stock-based compensation expense relating to directors, officers, affiliates and related parties was $52,000 (2,000,000 shares) and $0 (no shares), respectively.

 

NOTE 5 – STOCKHOLDERS’ EQUITY

 

3,850,000 new common shares were issued during the six- month period ending March 31, 2024. The Company has a total of 5,778,367 shares that remain approved, reserved and outstanding and not yet issued by the Transfer Agent at March 31, 2024.

 

Mr. Jason May was granted 2,000,000 shares per annum, per the terms of his consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Mr. Paul Saffron was granted 2,000,000 shares per annum, per the terms of his consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Ms. Kristine Woo was granted 2,000,000 shares per annum, per the terms of her consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

NOTE 6 – COMMITMENTS & CONTINGENCIES

 

Contingencies

 

From time to time, we may be involved in routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The ultimate amount of liability, if any, for any claims of any type (either alone or in the aggregate) may materially and adversely affect our financial condition, results of operations and liquidity. In addition, the ultimate outcome of any litigation is uncertain. Any outcome, whether favorable or unfavorable, may materially and adversely affect us due to legal costs and expenses, diversion of management attention and other factors. We expense legal costs in the period incurred. We cannot assure you that additional contingencies of a legal nature or contingencies having legal aspects will not be asserted against us in the future, and these matters could relate to prior, current or future transactions or events. As of March 31, 2024, there were no pending or threatened litigation against the Company.

8

 

 

NOTE 7 – INTANGIBLE ASSETS/PATENTS

 

We amortize capitalized patent costs for internally generated patents on a straight-line basis for 7 years, which represents the estimated useful lives of the patents. The seven-year estimated useful life for internally generated patents is based on our assessment of such factors as: the integrated nature of the portfolios being licensed, the overall makeup of the portfolio over time, and the length of license agreements for such patents. The estimated useful lives of acquired patents and patent rights, however, have been and will continue to be based on a separate analysis related to each acquisition and may differ from the estimated useful lives of internally generated patents. The average estimated useful life of acquired patents is 6.7 years. We assess the potential impairment to all capitalized net patent costs when events or changes in circumstances indicate that the carrying amount of our patent portfolio may not be recoverable.

 

Components of intangible assets are as follows:

       
   March 30, 2024  March 30, 2023
Patents   1    1 
Accumulated amortization            
Total patent costs, net   1    1 

 

NOTE 8 – SUBSEQUENT EVENTS

 

On July 28, 2023, Mr. Juan Hilsaca signed a consulting agreement with the Company and was granted 250,000 shares. The Company issued 250,000 shares on April 12, 2024, per the terms of the agreement.

 

On December 13, 2023, the Company entered into an agreement to issue a convertible note payable with an accredited investor. Per the terms of the agreement, the lender was granted 1,000,000 shares. 600,000 shares were issued in the previous quarter – see NOTE 3. The remaining 400,000 shares were issued on April 25, 2024.

 

Mr. Jason May was granted 2,000,000 shares per annum, per the terms of his consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Mr. Paul Saffron was granted 2,000,000 shares per annum, per the terms of his consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Ms. Kristine Woo was granted 2,000,000 shares per annum, per the terms of her consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Mr. Thomas Chang was granted a maximum of 1,000,000 shares per annum subject to performance in fiscal years 2021/2022, 2022/2023 and 2023/2024 to a total of 3,000,000 shares. 1,000,000 shares were issued during the 2021/2022 fiscal year. As of this filing date, the remaining 2,000,000 shares have been approved but remain unissued.

 

The Company has evaluated events occurring subsequent to March 31, 2024 through to the date these financial statements were issued and has identified no additional events requiring disclosure.

 

9

 

 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF OPERATION

 

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes, and other financial information included in this Form 10-Q.

 

Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. Although the forward-looking statements in this Quarterly Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

 

FORWARD LOOKING STATEMENTS

 

The information contained in this Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including among other things, statements regarding our capital needs, business strategy and expectations. Any statement which does not contain a historical fact may be deemed to be a forward-looking statement. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. In evaluating forward looking statements, you should consider various factors outlined in our Form 10-K report for the year ended September 30, 2023, filed with the U.S. Securities Exchange Commission (“SEC”) and, from time to time, in other reports we file with the SEC. These factors may cause our actual results to differ materially from any forward-looking statement. We disclaim any obligation to publicly update these statements or disclose any difference between our actual results and those reflected in these statements.

 

Overview

 

We are primarily focused on providing the materials and technologies for a greener future. GSTX has a portfolio of projects in the cleantech are with:

 

  Patented and novel technologies.

 

  Proven products with exclusive geographical distribution rights.

 

  Ground-breaking new innovations.

 

  Mineral resources that critical to the high-tech supply chain.

 

These investments focus on global opportunities, multi-billion-dollar industries, with a significant positive environmental impact. GSTX is focused on projects with exceptionally strong business opportunities, taking advantage of the environmental and supply chain challenges the world faces at present. GSTX is currently focused on supplying advanced materials to existing manufacturers and water harvesting products to market.

 

Advanced Materials

A portfolio of proprietary technologies for upstream manufacturing material supply into high tech markets including solar, semiconductor, defense.

 

  The Dragonfly range of transparent conductive thin films.

 

  High purity quartz sand production.

 

  High purity graphite production.

 

10

 

Water Technologies

A portfolio of products and technologies for providing clean drinkable water for consumers and industry.

 

  Ambient water harvesting equipment.

 

  The company is also exploring opportunities in water remediation, oils spill clean-up.

 

The Company is also exploring acquisition opportunities for Critical Resources Assets (Minerals with identified supply chain risk), zero emission fossil fuel replacement, green hydrogen, and ammonia production.

 

Operational Overview.

 

US Thin Films

 

US Thin-Film Corporation, a 100% owned subsidiary of GSTX holds a Patent Portfolio (IP) relating to the novel leading-edge production of conductive transparent thin films. The thin films are based on a conductive nanoparticle technology, an innovative conductive coating that self-assembles into a random mesh-like network pattern when coated, providing excellent electrical conductivity, high transparency, and flexibility. The Technology was founded and developed in Israel and has built up significant R&D profile for over 15 years with more than USD $90 Million invested. The technology has won several international touchscreen technology awards.

 

Applications of the proprietary thin film in existing electronics applications outperforms current materials. Key applications include: Electromagnetic Interference (EMI) Shielding, Flexible Transparent Antennas (4G/5G communications), Transparent Heaters (windows, goggles, etc), Touch Displays (monitors, phones, tablets), Photovoltaic, OLED Lighting, Flexible Displays, Sensors, and numerous other electronic applications

 

The US Thin-Film technology is superior to traditional/existing technology with multiple times the electrical conductivity of conventional ITO based transparent conductive films with a simple manufacturing method protected by the company’s patent portfolio.

 

The company is presently in discussions with several contract manufacturing groups to produce initial samples of its thin film technology, branded Dragonfly film, for product qualification and pre-sales activity purposes.

 

Water Harvesting

 

Water scarcity is at the center of the world’s most significant challenges. The United Nations estimates approximately 30% of the world’s population will face severe water shortages by 2025. Many people do not realise that the atmosphere, the air we breathe, contains a significant amount of water. Humidity is water in the air. Air can hold 1-2 ounces of water per cubic yard. At any one instant, the Earth’s atmosphere contains 37.5 trillion gallons of water vapor – enough to cover the entire surface of the planet with 1.5 inches of rain if condensed.

 

In parallel, massive population growth and urbanisation has led to an unprecedented demand for fresh water. Investment in infrastructure has been woefully inadequate, resulting in severe and critical water stress globally.

 

There are an estimated 13 trillion litres (3.4 trillion gal) of water floating in the atmosphere at any one time. There is 6 times as much fresh water in the air as in all rivers and lakes in the world.

 

The Company is continuing commercialization of a unique water harvesting technology utilizing modular, self-contained units that can be solar or grid powered, and deployed in urban and rural environments. The water harvesters will extract moisture from the ambient air and lect as 100% pure fresh water. Each domestic water harvester will be capable of generating 30-50 liters (8-13 gal) of pure fresh water per day for personal use, with commercial models lecting up to 50,000 liters (13,000 gal) per day. The 100% pure H20 extracted from the atmosphere is also suitable for industrial use in green hydrogen production and pharmaceutical, semiconductor processing plants.

 

11

 

A 100% operational subsidiary has been established for the water harvesting products. It will trade as Adaquo, which is a Latin verb meaning to supply water. The company has engaged the services of two industry veterans (20+ years experience) to assist with commercialization of the technology.

 

Whilst still undertaking in house development of the company’s proprietary solid-state technology, the company is also exploring opportunities to license and distribute existing products that have been market proven on an exclusive geographical basis.

 

Quartz Material.

 

The company has significant technical expertise and experience in the high purity quartz sector. Initially, the company focused upon acquiring resources and developing high purity silica (99.9% purity) into commercial grade high purity quartz sand (HPQS 99.997% purity). HPQS is essential for the production of semiconductors and photovoltaic solar panels.

 

Although the enterprise was successful in identifying substantial resources and valuable customers in Japan, China, South Korea, Taiwan and South-East Asia, the company was unable to secure funding to scale to meet demand for HPQS product, largely due to complications with the onset of Covid-19 in March 2020. The COVID Pandemic saw significant disruption to the global solar and semiconductor manufacturing sector. This had significant flow on effects to HPQS market. It is anticipated that by mid-2023 the sector will be substantially recovered to pre-covid levels of production and associated demand for raw materials. At present manufacturing levels of solar cells are showing strong growth and a swift recovery.

 

The company is presently re-engaging with past acquisition opportunities and customers in the HPQ sector. At present there is a significant production shortfall for the material and prices/volumes are showing strong growth. The company is continuing to pursue the development of an Australian based production facility.

 

Graphene Material.

 

Graphene, a new material, was discovered in 2004 by two UK based Russian university professors who were awarded the Nobel Prize in 2010 for their discovery. Graphene is a 2D material, (one atom thickness) made from graphite/carbon atoms, and whilst still largely unknown to the world is rapidly becoming a new industrial revolution in its own right with more than 8,800 patent applications for graphene and graphene enabled product applications having been filed recently. We have taken an early-stage leading-edge position in this evolving new technological field of graphene enabling and enhancement, specifically to focus upon development of graphene enabled photovoltaic solar panels.

 

Graphene is the world’s thinnest and strongest material ever, with remarkable electrical, thermal, and optical properties being the most conductive material ever scientifically measured. A sheet of graphene material is only one single atom in thickness and is referred to as a 2D nano-material having almost no measurable depth, only length and width. Graphene is also highly transparent and can be easily flexed and stretched 25% of its size without breaking. However, it is also 200 times stronger than steel and harder than a diamond. Graphene material is completely impermeable, even a helium atom (the smallest) cannot pass through graphene. The advent of graphene and the introduction of the extraordinary benefits from combining graphene with existing materials and products.

 

Our main focus remains dedicated to our original premise of producing low cost, high grade, high purity graphene for industrial sales to existing materials groups.

 

12

 

 

Results of Operations

 

For the fiscal quarters ended March 31, 2024 and 2023, we generated no revenues, and thus no cost of sales or gross profits.

 

For the fiscal quarter ended March 31, 2024 and 2023, we incurred $369,431 and $165,100 respectively in operating expenses.

 

For the fiscal quarter ended March 31, 2024 we recorded other expenses of $12,695, while in the fiscal quarter ended March 31, 2023, we incurred expenses of $45,463; both items are represented by accrued interest on debt.

 

For the fiscal quarter ended March 31, 2024, we recorded other income of $5,800, while in the fiscal quarter ended March 31, 2023, we recorded other income of $10,662.

 

For the fiscal quarter ended March 31, 2024, $0 was recognized as loss on extinguishment of debt, while in the fiscal quarter ended March 31, 2023 we recorded $40,441.

 

For the six months ended March 31, 2024, we reported net loss before taxes of $745,462, while in the six months ended March 31, 2023, we reported a net loss before taxes of $376,359. Since there were no tax obligations in either year, net income / loss in each year was the same as that reported before taxes.

 

For the periods ended September 30, 2023 and March 31, 2024, our cash positions were $1,094 and $1,520, respectively.

 

As of March 31, 2024, we had total current liabilities of $5,637,573 while as of September 30, 2023, we had total current liabilities of $4,997,159 an increase of about 11%. Accrued interest payable increased from $184,851 to $200,298, all attributable to accruals on the loans and the convertible notes payable.

 

Liquidity and Capital Resources

 

As of March 31, 2024, we had $12,755 in total current assets and $5,637,573 in total current liabilities. Accordingly, we had a working capital deficit of $5,624,818.

 

Cash used in operating activities was $63,840 for the six months ended March 31, 2024, as compared to $43,888 cash used in operating activities for the six months ended March 31, 2023.

 

Net cash provided by financing activities was $64,658 for the six months ended March 31, 2024, as compared to $41,892 for the quarter ended March 31, 2023.

 

13

 

 

Off-Balance Sheet Arrangements

 

There are no off-balance sheet arrangements.

 

Critical Accounting Policies and Estimates

 

For a discussion of our accounting policies and related items, please see the Notes to the Financial Statements, included in Item 1.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

 

Not applicable.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

An evaluation was carried out under the supervision and with the participation of our management, including our Principal Executive and Interim Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report on Form 10-Q. Disclosure controls and procedures are procedures designed with the objective of ensuring that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, such as this Form 10-Q, is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and is communicated to our management, including our Principal Executive [and Financial Officer], or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on that evaluation, our management concluded that, as of December 31, 2020, our disclosure controls and procedures were not effective.

 

Management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2020, based on the framework established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 (“COSO”).

 

As of period covered by this Quarterly Report on Form 10-Q, we have concluded that our internal control over financial reporting was ineffective. The Company’s assessment identified certain material weaknesses which are set forth below:

 

Functional Controls and Segregation of Duties

 

Because of the Company’s limited resources, there are limited controls over information processing.

 

There is an inadequate segregation of duties consistent with control objectives. Our Company’s management is composed of a small number of individuals resulting in a situation where limitations on segregation of duties exist. In order to remedy this situation, we would need to hire additional staff to provide greater segregation of duties. Currently, it is not feasible to hire additional staff to obtain optimal segregation of duties. Management will reassess this matter in the following year to determine whether improvement in segregation of duty is feasible.

 

Accordingly, as the result of identifying the above material weakness we have concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by the Company’s internal controls.

  

14

 

 

Management’s Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting and for the assessment of the effectiveness of internal control over financial reporting. As defined by the Securities and Exchange Commission, internal control over financial reporting is a process designed by, or under the supervision of our Principal Executive and Financial Officer and implemented by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements in accordance with U.S. generally accepted accounting principles.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Roger May, our previous Principal Executive Officer, evaluated the effectiveness of our internal control over financial reporting as of December 31, 2020 based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, or the COSO Framework (2013). Management’s assessment included an evaluation of the design of our internal control over financial reporting and testing of the operational effectiveness of those controls.

 

Changes in Internal Control Over Financial Reporting

 

There was no change in our internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

Management has addressed the underlying causes for our weaknesses in internal control since early FY 2020. Our efforts to raise both debt and equity capital soon will allow us to undertake additional engagement of external independent consultants to assist with the processing of data and drafting financial reports on a timely basis in future reporting periods.

  

15

 

 

PART II

 

ITEM 1. LEGAL PROCEEDINGS

 

None.

 

ITEM 1A. RISK FACTORS

 

Our business is subject to numerous risks and uncertainties including but not limited to those discussed in “Risk Factors” in our annual report on Form 10-K.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

Please see Note 5 to our Financial Statements.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

None.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

Exhibits

 

31.1 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
31.2 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
32.1 Certification pursuant to Section 906 of the Sarbanes-Oxley Act.
   
32.2 Certification pursuant to Section 906 of the Sarbanes-Oxley Act.

 

16

 

 

SIGNATURES

 

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

 

  GRAPHENE & SOLAR TECHNOLOGIES LIMITED
     
Date: May 24, 2024 By: /s/ Jason May
    Chief Executive Officer and Director

 

 

17

 

 

 

 

 

 

 

 

   

 

   

EXHIBIT 31.1

 

CERTIFICATIONS

 

I, Jason May, certify that;

 

1. I have reviewed this quarterly report on Form 10-Q of Graphene & Solar Technologies Limited;
   
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 the 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. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-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 our 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 our 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 our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     

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

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  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: May 24, 2024 By: /s/ Jason May
    Jason May
    Chief Executive Officer and Director

 

 

 

 

 

EXHIBIT 31.2

 

CERTIFICATIONS

 

I, David AB Halstead, certify that;

 

1. I have reviewed this quarterly report on Form 10-Q of Graphene & Solar Technologies Limited;
   
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 the 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. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-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 our 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 our 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 our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  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: May 24, 2024 By: /s/ David AB Halstead
    David AB Halstead
Chief Financial Officer and Director

  

 

 

 

EXHIBIT 32.1

 

In connection with the Quarterly Report of Graphene & Solar Technologies Limited (the “Company”) on Form 10-Q for the period ending March 31, 2024 as filed with the Securities and Exchange Commission (the “Report”), Jason May, the Chief Executive Officer and Director of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

 

  (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
     
  (2) The information contained in the Report fairly presents, in all material respects the financial condition and results of operations of the Company.

 

Date: May 24, 2024 By: /s/ Jason May
    Jason May
    Chief Executive Officer and Director

 

 

 

EXHIBIT 32.2

 

In connection with the Quarterly Report of Graphene & Solar Technologies Limited (the “Company”) on Form 10-Q for the period ending March 31, 2024 as filed with the Securities and Exchange Commission (the “Report”), David A.B. Halstead, the Chief Financial Officer and Director of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

 

  (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
     
  (2) The information contained in the Report fairly presents, in all material respects the financial condition and results of operations of the Company.

 

Date: May 24, 2024 By: /s/ David Halstead
    David Halstead,
    Chief Financial Officer and Director

 

 

 

 

v3.24.1.1.u2
Cover - shares
3 Months Ended
Mar. 31, 2024
May 23, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2024  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2024  
Current Fiscal Year End Date --09-30  
Entity File Number 333-174194  
Entity Registrant Name GRAPHENE & SOLAR TECHNOLOGIES LTD  
Entity Central Index Key 0001497649  
Entity Tax Identification Number 27-2888719  
Entity Incorporation, State or Country Code CO  
Entity Address, Address Line One 11201 North Tatum Blvd.  
Entity Address, Address Line Two Suite 300  
Entity Address, City or Town Phoenix  
Entity Address, State or Province AZ  
Entity Address, Postal Zip Code 85028  
City Area Code 602  
Local Phone Number 388-8335  
Entity Current Reporting Status Yes  
Entity Interactive Data Current No  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Elected Not To Use the Extended Transition Period false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   425,792,610
v3.24.1.1.u2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2024
Sep. 30, 2023
Current Assets:    
Cash $ 1,520 $ 1,094
Prepaid expenses 11,235 11,108
Total Current Assets 12,755 12,202
Other Assets:    
Furniture and equipment, net of depreciation $78,106 780 937
Intellectual property – at cost, net 1 1
Other intangible assets – at cost 975 975
Other receivable 4,015
Total Assets 14,511 18,130
Current Liabilities:    
Accounts payable and other payable 2,782,472 2,594,247
Accrued interest payable 200,298 184,851
Due to related party 2,376,580 1,985,601
Notes payable, $60,000 in default 60,000 60,000
Notes payable – related party 53,543 71,713
Convertible notes payable, $100,747 in default 100,747 100,747
Convertible notes payable – related party, net of discount $13,895 and $0 63,933
Total Current Liabilities 5,637,573 4,997,159
Total Liabilities 5,637,573 4,997,159
Preferred stock: 10,000,000 shares authorized; $0.00001 par value; no shares issued and outstanding
Common stock: 500,000,000 shares authorized; $0.00001 par value; 425,142,610 and 421,292,610 shares issued and outstanding 4,258 4,219
Additional paid-in capital 63,954,890 63,883,853
Stock Receivable (795,000) (795,000)
Accumulated deficit (69,120,540) (68,375,078)
Accumulated other comprehensive income 281,834 302,977
Total Stockholders’ Deficit (5,623,062) (4,979,029)
Total Liabilities and Stockholders’ Deficit $ 14,511 $ 18,130
v3.24.1.1.u2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
Mar. 31, 2024
Sep. 30, 2023
Statement of Financial Position [Abstract]    
Furniture and equipment, net of depreciation $ 78,106  
Debt Instrument, Unamortized Discount, Current $ 13,895 $ 0
Preferred stock, authorized 10,000,000 10,000,000
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, issued 0 0
Preferred stock, outstanding 0 0
Common stock, authorized 500,000,000 500,000,000
Common stock, par value $ 0.00001 $ 0.00001
Common stock, issued 425,142,610 421,292,610
Common stock, outstanding 425,142,610 421,292,610
v3.24.1.1.u2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($)
3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Income Statement [Abstract]        
Revenue
Operating Expenses:        
Professional Services 354,920 153,253 697,654 288,107
General and administrative 14,511 11,847 38,924 54,638
Total operating expenses 369,431 165,100 736,578 342,745
Loss from operations (369,431) (165,100) (736,578) (342,745)
Other Income (Expense):        
Other income 5,800 10,662 13,840 16,962
Interest expense (12,695) (5,022) (22,724) (10,135)
Loss on extinguishment of debt (40,441) (40,441)
Total Other Income (Expense) (6,895) (34,801) (8,884) (33,614)
Net Income (Loss) (376,326) (199,901) (745,462) (376,359)
Other Comprehensive Income        
Net Comprehensive Loss $ (288,339) $ (183,335) $ (766,605) $ (434,248)
Income (Loss) per share:        
Basic and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average shares outstanding 422,939,605 374,310,750 422,879,932 374,308,086
v3.24.1.1.u2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS DEFICIENCY - USD ($)
3 Months Ended 6 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2024
Mar. 31, 2023
Balance, December 31, 2022 $ (5,394,216) $ (4,979,029) $ (4,294,105) $ (4,043,192) $ (4,979,029) $ (4,043,192)
Stock Based Compensation 52,000 44,400      
Debt Discount on Notes Payable 2,493 18,679        
Foreign currency translation adjustment 87,987 (109,130) 16,566 (74,455)    
Net loss (376,326) (369,136) (199,901) (176,458) (745,462) (376,359)
Shares issued for cash 5,000          
Balance, March 31, 2023 (5,623,062) (5,394,216) (4,412,229) (4,294,105) (5,623,062) (4,412,229)
Settlement of Notes     65,211      
Common Stock [Member]            
Balance, December 31, 2022 $ 4,225 $ 4,219 $ 3,748 $ 3,748 $ 4,219 $ 3,748
Balance, shares 421,892,610 421,292,610 374,305,480 374,305,480 421,292,610 374,305,480
Stock Based Compensation $ 20      
Debt Discount on Notes Payable 8 6        
Balance, shares 750,000 600,000        
Foreign currency translation adjustment    
Net loss    
Shares issued for cash $ 5          
Shares issued for cash, shares 500,000          
Stock-based compensation, shares 2,000,000          
Balance, March 31, 2023 $ 4,258 $ 4,225 $ 3,751 $ 3,748 $ 4,258 $ 3,751
Balance, shares 425,142,610 421,892,610 374,542,610 374,305,480 425,142,610 374,542,610
Settlement of Notes     $ 3      
Settlement of notes     237,130      
Additional Paid-in Capital [Member]            
Balance, December 31, 2022 $ 63,895,430 $ 63,883,853 $ 63,527,513 $ 63,527,513 $ 63,883,853 $ 63,527,513
Stock Based Compensation 51,980      
Debt Discount on Notes Payable 2,485 11,577        
Foreign currency translation adjustment    
Net loss    
Shares issued for cash 4,995          
Balance, March 31, 2023 63,954,890 63,895,430 63,592,721 63,527,513 63,954,890 63,592,721
Settlement of Notes     65,208      
Stock Receivable [Member]            
Balance, December 31, 2022 (795,000) (795,000) (795,000) (795,000) (795,000) (795,000)
Stock Based Compensation      
Debt Discount on Notes Payable        
Foreign currency translation adjustment    
Net loss    
Shares issued for cash          
Balance, March 31, 2023 (795,000) (795,000) (795,000) (795,000) (795,000) (795,000)
Settlement of Notes          
Stock Payable [Member]            
Balance, December 31, 2022 51,496
Stock Based Compensation 44,400      
Debt Discount on Notes Payable 7,096        
Foreign currency translation adjustment    
Net loss    
Shares issued for cash          
Balance, March 31, 2023 51,496 51,496 51,496
Settlement of Notes          
Retained Earnings [Member]            
Balance, December 31, 2022 (68,744,214) (68,375,078) (67,246,474) (67,070,016) (68,375,078) (67,070,016)
Stock Based Compensation      
Debt Discount on Notes Payable        
Foreign currency translation adjustment    
Net loss (376,326) (369,136) (199,901) (176,458)    
Shares issued for cash          
Balance, March 31, 2023 (69,120,540) (68,744,214) (67,446,375) (67,246,474) (69,120,540) (67,446,375)
Settlement of Notes          
AOCI Attributable to Parent [Member]            
Balance, December 31, 2022 193,847 302,977 216,108 290,563 302,977 290,563
Stock Based Compensation      
Debt Discount on Notes Payable        
Foreign currency translation adjustment 87,987 (109,130) 16,566 (74,455)    
Net loss    
Shares issued for cash          
Balance, March 31, 2023 $ 281,834 $ 193,847 232,674 $ 216,108 $ 281,834 $ 232,674
Settlement of Notes          
v3.24.1.1.u2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from operating activities    
Net Income (loss) $ (745,462) $ (376,359)
Adjustments to reconcile net income/(loss) to net cash from operating activities:    
Stock-based compensation 96,400
Depreciation expense 167 169
Amortization of intangibles
Amortization of discount 7,277
Loss on Settlement of Debt 40,441
Accounts payable related party
Impairment of assets
Change in operating assets and liabilities:    
Accounts payable 181,316 88,344
Accrued interest payable 15,447 10,134
Other Receivables 4,015 (1,921)
Pre-Payments
Due to related parties 377,000 195,304
Net cash used in operating activities (63,840) (43,888)
Cash paid for purchase of fixed assets
Net cash used in investing activities
Cash flows from financing activities    
Proceeds from issuance of common stock 5,000
Due to Affiliates 41,892
Issuance of convertible note – related party 59,658
Net cash from financing activities 64,658 41,892
Effect of currency translations to cash flow (392) 9,488
Net change in cash and cash equivalents 426 7,492
Beginning of period 1,094 2,857
End of period 1,520 10,349
Supplemental cash flow information    
Taxes
Noncash investing and financing activities:    
Settlement of Debt for Common Stock 24,770
Issuance of Common Stock as Debt Discount $ 21,172
v3.24.1.1.u2
BASIS OF PRESENTATION
3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
BASIS OF PRESENTATION

NOTE 1 – BASIS OF PRESENTATION

 

These consolidated financial statements of Graphene & Solar Technologies Limited (GSTX or the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). In the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. These financial statements should be read along with Graphene & Solar Technologies audited financial statements as of September 30, 2023.

 

Going Concern – The Company has incurred cumulative net losses since inception of $69,120,540 at March 31, 2024. Accordingly, it requires capital to fund working capital deficits and for future operating activities to take place. The Company’s ability to raise new funds through the future issuances of debt or common stock is unknown. The obtainment of additional financing, the successful development of a plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability of the Company to continue its operations is dependent on management’s plans, which include the raising of capital through debt and/or equity markets, with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. The Company may need to incur additional liabilities with certain related parties to sustain the Company’s existence. There can be no assurance that the Company will be able to raise any additional capital and therefore raise doubt about the Company’s ability to continue as a going concern.

 

Future issuances of the Company’s equity or debt securities will be required for the Company to finance operations and continue as a going concern. The financial statements do not include any adjustments that may result from the outcome of these uncertainties.

 

v3.24.1.1.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

 

Principles of Consolidation and Basis of Presentation — The consolidated financial statements include the accounts of Graphene & Solar Technologies Limited and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

 

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). A summary of the significant accounting policies applied in the preparation of the accompanying financial statements can be found in the Company’s Annual Report in form 10-K for the year ended September 30, 2023.

 

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Significant estimates include but are not limited to the estimated useful lives of equipment for purposes of depreciation and the valuation of common shares issued for services, equipment, and the liquidation of liabilities.

 

Cash and Cash Equivalents – Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of March 31, 2024 and 2023, the Company had $1,520 and $10,349 in cash, respectively, and no cash equivalents.

 

 

Derivative Financial Instruments – The Company accounts for freestanding contracts that are settled in a company’s own stock, including common stock warrants, to be designated as an equity instrument or generally as a liability. A contract so designated is carried at fair value on a company’s balance sheet, with any changes in fair value recorded as a gain or loss in a company’s results of operations.

 

The Company records all derivatives on the balance sheet at fair value, adjusted at the end of each reporting period to reflect any material changes in fair value, with any such changes classified as changes in derivatives valuation in the statement of operations. The calculation of the fair value of derivatives utilizes highly subjective and theoretical assumptions that can materially affect fair values from period to period. The recognition of these derivative amounts does not have any impact on cash flows.

 

At the date of the conversion of any convertible debt, the pro rata fair value of the related embedded derivative liability is transferred to additional paid-in capital.

 

There was no derivative activity in fiscal quarter ending March 31, 2024. Therefore, no derivative liabilities were recorded during the quarter ended March 31, 2024.

 

Stock-Based Compensation ASC 718, “Compensation - Stock Compensation,” prescribes accounting and reporting standards for all share-based payment transactions in which employee and non-employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees and non-employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values on the grant date. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

During the quarter ended March 31, 2024, the Company issued 3,250,000 shares of the Company’s common stock.

 

Total stock-based compensation expense was $96,400 for the six-months ended March 31, 2024.

 

Foreign Currency Translations – The functional currency of the Company’s foreign subsidiary is primarily the respective local currency. Assets and liabilities of the Company’s foreign subsidiary are translated into U.S. Dollars at the year-end exchange rate, and revenues and expenses are translated at average monthly exchange rates. Translation gains and losses are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. All other foreign currency transaction gains and losses are included in other (income) expense, net.

 

Earnings Per Share - Basic earnings per share have been calculated based upon the weighted-average number of common shares outstanding. Diluted earnings per share were not calculated as such potential shares would be anti-dilutive.

 

Reclassifications - Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net loss, working capital or equity previously reported. 

 

v3.24.1.1.u2
NOTES PAYABLE
3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 3 – NOTES PAYABLE

 

The Company’s indebtedness as of March 31, 2024 and September 30, 2023 were as follows:

       
Description  March 31,
2024
  September 30, 2023
       
Convertible notes  $100,747   $100,747 
Convertible notes – related party, net of discount $13,895   63,933       
Notes Payable  $60,000   $60,000 
Notes Payable – Related Parties  $53,543   $71,713 

 

Notes Payable and Other Loans

 

During 2015 and 2016, the Company executed promissory notes payable with six individuals with an aggregate principal balance of $60,000. The notes were due on demand and included interest at 10%. As of March 31, 2024 and September 30, 2023, the total promissory notes payable balance was $111,718 and $108,710 including accrued interest of $51,718 and $48,710, respectively. On January 15, 2019, the holder of a note with a principal balance of $10,000 made demand for payment. To date, the note has not been paid.

 

During the year ended September 30, 2020 a Company Advisor, loaned the Company $5,781. The loan is a demand note at zero interest.

 

Convertible Notes Payable

 

As of March 31, 2024 and September 30, 2023, noteholders representing $70,747 in outstanding principal had not requested the exchange of shares of common stock. As of March 31, 2024 and September 30, 2023, the exchange obligation payable was $184,830 and $179,510 including accrued interest of $114,083 and $108,762, respectively. As of March 31, 2024 and September 30, 2023, the exchange obligation was for 55,840 shares and 54,233 shares of common stock, respectively.

 

On February 1, 2016, the Company issued convertible secured note payable of $30,000 to an individual. The note was due on January 31, 2017 and included interest at 10%. The note was convertible at discretion of the holder into common shares of the Company at the rate of $0.50 per shares. The Company has not extended the maturity date and the note is in default. As of March 31, 2024 and September 30, 2023, the total convertible note payable balance was $54,501 and $52,997, including accrued interest of $24,501 and $22,997 respectively. As of March 31, 2024 and September 30, 2023, the exchange obligation was for 109,002 shares and 105,994 shares of common stock, respectively.

 

Convertible Notes Payable – Related Party

 

During the quarter ended December 31, 2023, the Company entered into an agreement to issue convertible notes payable with an accredited investor. Notably, there exists a professional relationship between the Company and the investor, facilitated by a mutual director serving on the boards of both entities. These notes carry an aggregate principal balance of $50,000 and accrue interest at a rate of 10% per annum. Their maturity dates are set for October 2024 and December 2024. Additionally, the notes offer the option for conversion into common shares of the Company at the discretion of the holder, with a conversion rate of $0.10 per share. As of March 31, 2024, the total balance of promissory notes payable stood at $51,952, inclusive of accrued interest totaling $1,952. Moreover, the exchange obligation associated with these notes amounted to 519,520 shares of common stock. In return for providing the loan, the Company authorized the issuance of 1,000,000 shares of common stock to the lender. By the end of March 31, 2024, 600,000 shares had been issued, leaving 400,000 shares unissued – see NOTE 8. The Company recorded an initial debt discount of $18,679 upon the issuance of the notes, with subsequent amortization of debt discount totaling $7,217.

 

During the quarter ended March 31, 2024, the Company entered into agreements to issue a convertible notes payable with a director serving on the board. The notes carry an aggregate principal balance of $27,828 and accrue interest at a rate of 10% per annum. Their maturity dates are set for March 2025. Additionally, the notes offer the option for conversion into common shares of the Company at the discretion of the holder, with a conversion rate of $0.10 per share. As of March 31, 2024, the total balance of promissory notes payable stood at $29,300, inclusive of accrued interest totaling $1,472. Moreover, the exchange obligation associated with these notes amounted to 293,000 shares of common stock. In return for providing the loan, the Company authorized the issuance of 500,000 shares of common stock to the lender. By the end of March 31, 2024, 500,000 shares had been issued. The Company recorded an initial debt discount of $2,493 upon the issuance of the notes, with subsequent amortization of debt discount totaling $60.

 

Related Party Loans

 

On December 5, 2022, the Company entered into a Promissory Loan Note with Mr. Andrew Liang, in the amount of US$20,000, with a maturity date of December 5, 2023. The loan will accrue interest at the rate of 10% per annum.

 

On February 28, 2023, the Company entered into a Promissory Loan Note with MI Labs Pty Ltd, in the amount of US$50,000 (of which $31,943 was received by the company as of March 31, 2024) with a maturity date of February 28, 2024. The loan will accrue interest at the rate 10% per annum.

 

v3.24.1.1.u2
RELATED PARTY
3 Months Ended
Mar. 31, 2024
Related Party Transactions [Abstract]  
RELATED PARTY

NOTE 4 – RELATED PARTY

 

MI Labs Pty Ltd, a management company controlled by Mr. Jason May, the Company’s Chief Executive Officer and a Company Director, provides management services to the Company for which the Company is charged $25,000 monthly. During the three months ended March 31, 2024, the Company incurred charges to operations of $75,000 with respect to this arrangement.

 

CSA Liang Pty Ltd, a management company controlled by Mr. Andrew Liang, a Company Director, provided corporate advisor services to the Company for which the Company was charged $5,000 monthly. During the three months ended March 31, 2024, the Company incurred charges to operations of $15,000 with respect to this arrangement.

 

Sativus Investments, a management company controlled by Mr. Paul Saffron, the Company’s Chief Operations Officer, provides management services to the Company for which the Company is charged $20,000 monthly. During the three months ended March 31, 2024, the Company incurred charges to operations of $60,000 with respect to this arrangement.

 

Pagemark Limited, a management company controlled by Mr. David Halstead, a Company Director, entered into a convertible note agreement with the Company – see NOTE 3.

 

Allegro Investments Limited entered into a convertible note agreement with the Company. The Company and Allegro Investments Limited share a professional relationship wherein a director serves on the boards of both entities – see NOTE 3.

 

During the quarters ended March 31, 2024 and 2023, stock-based compensation expense relating to directors, officers, affiliates and related parties was $52,000 (2,000,000 shares) and $0 (no shares), respectively.

 

v3.24.1.1.u2
STOCKHOLDERS’ EQUITY
3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 5 – STOCKHOLDERS’ EQUITY

 

3,850,000 new common shares were issued during the six- month period ending March 31, 2024. The Company has a total of 5,778,367 shares that remain approved, reserved and outstanding and not yet issued by the Transfer Agent at March 31, 2024.

 

Mr. Jason May was granted 2,000,000 shares per annum, per the terms of his consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Mr. Paul Saffron was granted 2,000,000 shares per annum, per the terms of his consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Ms. Kristine Woo was granted 2,000,000 shares per annum, per the terms of her consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

v3.24.1.1.u2
COMMITMENTS & CONTINGENCIES
3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS & CONTINGENCIES

NOTE 6 – COMMITMENTS & CONTINGENCIES

 

Contingencies

 

From time to time, we may be involved in routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The ultimate amount of liability, if any, for any claims of any type (either alone or in the aggregate) may materially and adversely affect our financial condition, results of operations and liquidity. In addition, the ultimate outcome of any litigation is uncertain. Any outcome, whether favorable or unfavorable, may materially and adversely affect us due to legal costs and expenses, diversion of management attention and other factors. We expense legal costs in the period incurred. We cannot assure you that additional contingencies of a legal nature or contingencies having legal aspects will not be asserted against us in the future, and these matters could relate to prior, current or future transactions or events. As of March 31, 2024, there were no pending or threatened litigation against the Company.

 

v3.24.1.1.u2
INTANGIBLE ASSETS/PATENTS
3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS/PATENTS

NOTE 7 – INTANGIBLE ASSETS/PATENTS

 

We amortize capitalized patent costs for internally generated patents on a straight-line basis for 7 years, which represents the estimated useful lives of the patents. The seven-year estimated useful life for internally generated patents is based on our assessment of such factors as: the integrated nature of the portfolios being licensed, the overall makeup of the portfolio over time, and the length of license agreements for such patents. The estimated useful lives of acquired patents and patent rights, however, have been and will continue to be based on a separate analysis related to each acquisition and may differ from the estimated useful lives of internally generated patents. The average estimated useful life of acquired patents is 6.7 years. We assess the potential impairment to all capitalized net patent costs when events or changes in circumstances indicate that the carrying amount of our patent portfolio may not be recoverable.

 

Components of intangible assets are as follows:

       
   March 30, 2024  March 30, 2023
Patents   1    1 
Accumulated amortization            
Total patent costs, net   1    1 

 

v3.24.1.1.u2
SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2024
Subsequent Events  
SUBSEQUENT EVENTS

NOTE 8 – SUBSEQUENT EVENTS

 

On July 28, 2023, Mr. Juan Hilsaca signed a consulting agreement with the Company and was granted 250,000 shares. The Company issued 250,000 shares on April 12, 2024, per the terms of the agreement.

 

On December 13, 2023, the Company entered into an agreement to issue a convertible note payable with an accredited investor. Per the terms of the agreement, the lender was granted 1,000,000 shares. 600,000 shares were issued in the previous quarter – see NOTE 3. The remaining 400,000 shares were issued on April 25, 2024.

 

Mr. Jason May was granted 2,000,000 shares per annum, per the terms of his consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Mr. Paul Saffron was granted 2,000,000 shares per annum, per the terms of his consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Ms. Kristine Woo was granted 2,000,000 shares per annum, per the terms of her consulting agreement. As of this filing date, the shares have been approved but remain unissued.

 

Mr. Thomas Chang was granted a maximum of 1,000,000 shares per annum subject to performance in fiscal years 2021/2022, 2022/2023 and 2023/2024 to a total of 3,000,000 shares. 1,000,000 shares were issued during the 2021/2022 fiscal year. As of this filing date, the remaining 2,000,000 shares have been approved but remain unissued.

 

The Company has evaluated events occurring subsequent to March 31, 2024 through to the date these financial statements were issued and has identified no additional events requiring disclosure.

v3.24.1.1.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Policies)
3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation — The consolidated financial statements include the accounts of Graphene & Solar Technologies Limited and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

 

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). A summary of the significant accounting policies applied in the preparation of the accompanying financial statements can be found in the Company’s Annual Report in form 10-K for the year ended September 30, 2023.

Use of Estimates

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Significant estimates include but are not limited to the estimated useful lives of equipment for purposes of depreciation and the valuation of common shares issued for services, equipment, and the liquidation of liabilities.

 

Cash and Cash Equivalents – Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of March 31, 2024 and 2023, the Company had $1,520 and $10,349 in cash, respectively, and no cash equivalents.

Derivative Financial Instruments

Derivative Financial Instruments – The Company accounts for freestanding contracts that are settled in a company’s own stock, including common stock warrants, to be designated as an equity instrument or generally as a liability. A contract so designated is carried at fair value on a company’s balance sheet, with any changes in fair value recorded as a gain or loss in a company’s results of operations.

 

The Company records all derivatives on the balance sheet at fair value, adjusted at the end of each reporting period to reflect any material changes in fair value, with any such changes classified as changes in derivatives valuation in the statement of operations. The calculation of the fair value of derivatives utilizes highly subjective and theoretical assumptions that can materially affect fair values from period to period. The recognition of these derivative amounts does not have any impact on cash flows.

 

At the date of the conversion of any convertible debt, the pro rata fair value of the related embedded derivative liability is transferred to additional paid-in capital.

 

There was no derivative activity in fiscal quarter ending March 31, 2024. Therefore, no derivative liabilities were recorded during the quarter ended March 31, 2024.

Stock-Based Compensation

Stock-Based Compensation ASC 718, “Compensation - Stock Compensation,” prescribes accounting and reporting standards for all share-based payment transactions in which employee and non-employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees and non-employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values on the grant date. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

During the quarter ended March 31, 2024, the Company issued 3,250,000 shares of the Company’s common stock.

 

Total stock-based compensation expense was $96,400 for the six-months ended March 31, 2024.

Foreign Currency Translations

Foreign Currency Translations – The functional currency of the Company’s foreign subsidiary is primarily the respective local currency. Assets and liabilities of the Company’s foreign subsidiary are translated into U.S. Dollars at the year-end exchange rate, and revenues and expenses are translated at average monthly exchange rates. Translation gains and losses are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. All other foreign currency transaction gains and losses are included in other (income) expense, net.

Earnings Per Share

Earnings Per Share - Basic earnings per share have been calculated based upon the weighted-average number of common shares outstanding. Diluted earnings per share were not calculated as such potential shares would be anti-dilutive.

Reclassifications

Reclassifications - Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net loss, working capital or equity previously reported. 

v3.24.1.1.u2
NOTES PAYABLE (Tables)
3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Schedule of notes payable

       
Description  March 31,
2024
  September 30, 2023
       
Convertible notes  $100,747   $100,747 
Convertible notes – related party, net of discount $13,895   63,933       
Notes Payable  $60,000   $60,000 
Notes Payable – Related Parties  $53,543   $71,713 
v3.24.1.1.u2
INTANGIBLE ASSETS/PATENTS (Tables)
3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of finite lived intangible assets

       
   March 30, 2024  March 30, 2023
Patents   1    1 
Accumulated amortization            
Total patent costs, net   1    1 
v3.24.1.1.u2
NOTES PAYABLE (Details) - USD ($)
Mar. 31, 2024
Sep. 30, 2023
Debt Disclosure [Abstract]    
Convertible notes $ 100,747 $ 100,747
Convertible notes – related party, net of discount $13,895 63,933
Notes Payable 60,000 60,000
Notes Payable – Related Parties $ 53,543 $ 71,713
v3.24.1.1.u2
INTANGIBLE ASSETS/PATENTS (Details) - USD ($)
Mar. 31, 2024
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Patents $ 1 $ 1
Accumulated amortization
Total patent costs, net $ 1 $ 1

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