EDGAR 10-K Filing

Company CIK: 1631463
Filing Year: 2022
Filename: 1631463_10-K_2022_0001477932-22-000607.json

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ITEM 1. BUSINESS
ITEM 1
BUSINESS
Barrel Energy Inc (“Barrel” or the “Company”) was incorporated on January 27, 2014, under the laws of the State of Nevada. The Company was formed to invest in the energy sector. On September 26, 2014, the Company leased the Bison Property, an unproven oil and gas project in the province of Alberta, Canada. The Bison property is comprised of four sections of interest (land totaling 2,560 acres located in northwestern Alberta in an area called the Peace River Arch an area known for its prolific oil and natural gas wells and is one of the most desirable light oil and natural gas liquids drilling areas in North America.
On October 11, 2018, the Company entered into an Earn-In Agreement with True Grit Resources, a British Columbia corporation (“TGR”), an unrelated third party. In exchange for the stepped payments by the Company, Barrel could earn of to 100% participation interest in certain mineral rights leases that TGR held in Arizona. The Company was to earn a 70% interest by expending a cumulative $1,400,000 on the property and to secure the 100% participation interest. The Company was required to expend a cumulative amount of payments and property expenditures of $2,400,000.
On November 5, 2018, the Company received an extension for the initial payments of $400,000 to maintain the earn in agreement. On January 19, 2019, after a thorough review of supporting information on the project, the Company terminated the earn-in agreement with True Grit Resources.
On April 11, 2019, the Company amended its articles of incorporation to increase its number of authorized shares of common stock to 450,000,000.
On May 14, 2019, Barrel entered into a 10 year land Lease with Crocker Acana, LLC on 602 acres of land in Tehama County, California. The Company’s intent was to farm the land to grow hemp, which required a permit from the Tehama County government. A permit was not acquired and after thorough examination of the State and Federal regulations, the Company has not yet reapplied.
On November 26, 2019, the Company entered into a non-binding Letter of Intent with ZB Holdings, Inc. (“ZB”) to acquire the assets of ZB pursuant to a definitive agreement to be formalized. ZB, with headquarters, manufacturing and distribution facilities located in Katy, Texas, is a consumer products company in the business of producing and marketing sporting goods apparel and safety apparel through a proprietary and trademarked design and production technique. Under the proposed transaction, the Company was to acquire 100% of the assets of ZB, and ZB was to acquire 40% of the fully diluted shares of common stock of the Company. The transaction could be terminated if not completed by March 31, 2020. The transaction was terminated.
In early April, 2020 the Company reviewed the changing business landscape brought about by the Covid-19 pandemic. Oil prices had dropped considerably and the sporting activities nearly came to a full stop with cancellation of events across the country. On April 7, 2020, the Company decided to cease its plans to acquire ZB Holdings and terminate the conditions of the Letter of Intent. On April 7, 2020, the Company also relinquished any further claim or work commitments on the Bison Oil and Gas Project in Northern Alberta.
Barrel’s Main Product and Focus
At present, the Company does not have any production of a commercial product and the Company has not earned any revenues to date. The Company has divested itself of various ventures and future plans are to engage in the exploration and production of supporting products for Electric Vehicles, which would include both battery materials, such as Lithium Carbonate or Lithium Hydroxide, and battery production.
The Company is returning its focus, targeting areas with potential economic concentrations of Lithium, Cobalt and Graphite, that will be in critical demand to service the energy needs of high growth battery materials.
The growth in demand for lithium batteries is predicted to outpace the lithium production in the coming decade. Lithium-ion batteries for the automotive industry are expected to advance demand to nearly unserviceable levels. These industry trends enhance the Company’s new business model.
Market and Industry
Interest in Lithium ore is very high with Lithium being extracted from primarily two sources: pegmatite crystals and lithium salts from brine pools. Currently, the world’s five top producers of Lithium are Australia, Chile, China, Argentina and Zimbabwe.
In 2019 worldwide production totaled approximately 77,000 metric tons, with the top 3 countries contributing the majority of the global production. Much of the current production of Lithium (i.e. Australia) is from conventional mining techniques of ancient Precambrian rocks containing Lithium ore, which is crushed and fed into capital intensive processing plants to upgrade the lithium mineral using gravity, flotation, magnetic and roasting processes.
Alternatively, Lithium production in Chile and Argentina uses a much less capital intense method. Lithium is located beneath flat, arid salt flats. The Lithium leaches from nearby source rocks and concentrated in salty brines, just under the surface. Here, Lithium enriched brines are pumped to settle on hundreds of shallow surface evaporation pools, which produces a thicker Lithium rich liquid. That liquid is treated with sodium carbonate, precipitating lithium carbonate.
Lithium brine development has proven to be faster to start production than the hard rock mine counterparts. Brine is a liquid, which means, drilling to find it is more akin to drilling for water. Once a Lithium Brine is identified, the continuity is more straightforward to understand and quantify than the typically irregular pegmatite body. New direct Lithium extraction techniques being developed will help minimize the environmental impact of Brine production.
Lithium clay deposits represent a significant and as yet untapped natural resource. Along with lithium brines and pegmatites, the clay can supply the exponentially growing lithium battery market for electric vehicles, as well as for laptops and cell phones. Current indications are that lithium clay deposits have favorable economics that are comparable to large lithium brine projects in Argentina and Chile.
Lithium (Li) is a soft silver-white metal. With an atomic number of 3, it is the lightest of the metals, only the gases Hydrogen (atomic number 1) and Helium (atomic number 2) being lighter. Light weight Lithium has many applications, but the metal is a perfect replacement of the much heavier Nickel used in most large batteries. Lithium batteries also have a high charge density, a longer life and are rechargeable.
The Lithium market has typically been dominated by the ceramic and medical sector. However, 2015 presented a marked change in the market as the demand for Lithium for the battery market outstripped any other sector.
At the moment, the main lithium-ion battery-makers are Samsung and LG of South Korea, Panasonic and Sony of Japan, and ATL of Hong Kong. China has many battery factories being built furthering the demand for Lithium.
Lithium is not traded publicly and is usually distributed in a chemical form such as Lithium carbonate (Li2CO3. It is sold directly to end users for a negotiated price per ton. The price increased greatly in 2018 and has since contracted, however prices are projected to rise with coming demand.
General Market Trends
For Lithium, Lithium-ion batteries have become the rechargeable battery of choice in cell phones, computers, electric cars and larger scale electric storage. The growth in demand for lithium batteries is predicted to far outpace lithium production in the coming decade. In particular, Lithium-ion batteries for the automotive industry is expected to advance demand to nearly unserviceable levels.
Goldman Sachs predicted that the market consumption could very well triple from the current production by 2025. Just a 1% increase of Electric Vehicles could increase lithium demand by roughly half of the todays lithium production. The largest Lithium producers, SQM, FMC and Albemarle are increasing production, but such efforts are predicted to fall short of the on-coming demand.
Tesla’s mile long Gigafactory started producing powerful Lithium-ion batteries in 2017 with their partner Panasonic. The Gigafactory is expected to supply batteries for the 500,000 cars Tesla hopes to produce by the end of the decade, as well as to power homes. Additionally, Chrysler, Dodge, Ford, GM, Mercedes-Benz, Mitsubishi, Nissan, Saturn, Tesla and Toyota have all announced plans to build lithium-ion battery powered cars. Preorders of the new Tesla model 3 have sold out to 400,000 and are currently in production. Elon Musk has stated that Tesla will have to acquire the entire lithium market to meet the current demands.
Environmental policy data trends point to future energy development that is characterized by being efficient, sustainable and clean. These policy changes and Battery technology innovations such as higher charge density and reductions in weight, charge time and cost have precipitated a pivot in the Auto Industry to Electric Vehicle (EVs).
Key Countries that have announced major policy changes that will affect the sector are:
France & Britain - to end sales of gas and diesel cars by 2040, Germany to follow Scottish Government - phase out gas and diesel cars by 2032
India - announced it would end sales of gas and diesel cars by 2030
Norway & Netherlands - to end sales of gas and diesel cars by 2025
Austria, Denmark, Ireland, Japan, Portugal, Korea and Spain have all set official targets for electric car sales.
China announced it will set a deadline for the end of fossil fuel powered vehicles.
The Demand
Global demand for these key materials is expected to rise dramatically over the next decade. The outlook for Lithium will outstrip production with global demand for Lithium expected to increase 650% by 2027. Market demand for Lithium has been predicted to be 470,000 metric tons by 2025.
Barrel Energy is aware that most analysts see an upcoming bull market for Lithium, Cobalt and Graphite and sourcing of the raw materials for the Lithium-ion battery supply chain is a strategic focus for the company. Lithium is set to be one of the world’s hottest commodities and is attracting the eye of investors who are searching for Battery Metal explorers and production companies that would allow them to get in on the ground floor of the renaissance in Energy Technology.
NEED FOR ANY GOVERNMENT APPROVAL OF PRINCIPAL PRODUCTS
Not applicable.
GOVERNMENT AND INDUSTRY REGULATION
We will be subject to applicable laws and regulations that relate directly or indirectly to our operations including United States securities laws. We will also be subject to regulation by the Alberta Energy Regulator (AER). We will be required to apply to the AER to obtain drilling permits for wells on our Bison leases. We are subject to the guidelines of the area in which we have leased the land to grow hemp and have not been able to commence operations waiting for the jurisdiction to publish the guidelines required to commence operations.
RESEARCH AND DEVELOPMENT ACTIVITIES
Other than time spent researching our proposed business we have not spent any funds on research and development activities to date. We do not currently plan to spend any funds on research and development activities in the future.
EMPLOYEES AND EMPLOYMENT AGREEMENTS
We currently have two employees. Harpreet Sangha acts as our Chairman and Chief Financial Officer and Craig Alford as our Chief Executive Officer. We had employment agreement which all expired on September 30, 2020. The Company has not renewed or created new consulting agreements as of today as the officers will bill for their time until new agreements are in place.

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ITEM 1A. RISK FACTORS
Item 1A: Risk Factors
Not Applicable

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B: Unresolved Staff Comment.
None

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ITEM 2. PROPERTIES
Item 2: Description of Property
Our operations are currently being conducted out of the premises at 8275 S. Eastern Ave- Suite 200 Las Vegas, NV 89123 at no cost to the Company.

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ITEM 3. LEGAL PROCEEDINGS
Item 3: Legal Proceedings
On November 12, 2018, Barrel Energy, Inc (“Barrel Energy”) entered into a convertible promissory note with Crownbridge Partners, LLC (“Crownbridge”) with the principal amount of $36,000.00 and an effective annual interest rate of 5%. The note had an Original Issue Discount of $3,500.00 to cover accounting fees, due diligence fees, monitoring, and other transactional costs incurred in connection with the purchase and sale of the note, bringing the purchase price on the note to $32,500.00. The note also allowed Crownbridge the right to convert any outstanding amount on the note after 180 days from the issuance date. The conversion provision on the note provided a conversion discount of 45%. On March 12, 2021, Barrel Energy entered into a settlement agreement with Crownbridge, calling for the cancellation of 8,330,420 shares, and cancelling all debts and obligations owed under the note. As of 12/31/2021, pursuant to the Crownbridge engagement letter, the amount due to the firm from Barrel Energy is $199,930.08 dollars based upon a contractual provision, awarding the firm a percentage of the savings of the settlement. The $199,930.08 is derived from the taking the cancelled 8,330,420 shares and multiplying it by 16%, the value of the Barrel Energy stock trading on the date of the settlement agreement (March 12, 2021), and then multiplying that amount by 15%, which represents the percentage of savings the firm is entitled to that was agreed upon in the Crownbridge engagement letter.
On May 16, 2019, Barrel Energy entered into a convertible promissory note with FirstFire Global Opportunities Fund, LLC (“FirstFire”) with the principal amount of $125,000.00 and an effective annual interest rate of 7%. The note had an Original Issue Discount of $12,500.00 to cover accounting fees, due diligence fees, monitoring, and other transactional costs incurred in connection with the purchase and sale of the note, bringing the purchase price on the note to $112,500.00. The note also allowed FirstFire the right to convert any outstanding amount on the note after 180 days from the issuance date. The conversion provision on the note provided a conversion discount of 40%. On March 12, 2021, Barrel Energy entered into a settlement agreement with FirstFire, calling for the cancellation of 1,157,000 shares, and cancelling all debts and obligations owed under the note. As of 12/31/2021, pursuant to the FirstFire engagement letter, the amount due to the firm from Barrel Energy is $27,768.00 dollars based upon a contractual provision, awarding the firm a percentage of the savings of the settlement. The $27,768.00 is derived from the taking the cancelled 1,157,000 shares and multiplying it by 16%, the value of the Barrel Energy stock trading on the date of the settlement agreement (March 12, 2021), and then multiplying that amount by 15%, which represents the percentage of savings the firm is entitled to that was agreed upon in the FirstFire engagement letter.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4: Mine Safety Disclosures
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5: Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities
Our shares of common stock are currently trading on the Over the Counter Market under the Symbol “BRLL”. Our shares of common stock were initially approved for quotation on the OTC Bulletin Board and commenced trading on July 6, 2017.
The following quotations, obtained from www.nasdaq.com, reflect the high and low bids for our common shares.
The high and low bid prices of our common stock for the periods indicated below are as follows:
Quarter Ended
High
Low
September 30, 2019
$ 0.145
$ 0.06
June 30, 2019
0.51
0.08
March 31, 2019
1.65
0.40
December 31, 2018
3.00
0.12
September 30, 2020
0.0077
0.0021
June 30, 2020
0.0135
0.0020
March 31, 2020
0.200
0.002
December 31, 2019
0.250
0.100
(1)
Over-the-counter market quotations reflect inter-dealer prices without retail mark-up, mark-down or commission, and may not represent actual transactions.
Holders
As of September 30, 2020, there were 97 holders of record of the Common Stock.
Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities
Our Certificate of Incorporation authorizes the issuance of up to 450,000,000 shares of common stock, par value $0.001 per share. The common stock is listed on the OTC Pink Sheet market and initial trade commenced on July 6, 2017.
During the year ended September 30, 2020 the Company issued 800,000 shares of common stock with a value of $100,000 for note conversion.
During the year ended September 30, 2020 the Company issued 2,000,000 shares of common stock with a value of $40,000 for cash.
During the year ended September 30, 2020 the Company issued 257,736,366 shares of common stock with a value of $405,849 for the conversion of convertible debt.
During the year ended September 30, 2020 the Company agreed to issue 10,000,000 shares of common stock with a value of $40,000 for the inducement to extend a note payable. The shares have not been issued as of September 30, 2020 and are carried as a stock not issued.
During the year ended September 30, 2020, 10,000,000 shares of common stock were returned by a relate party to Treasury.
Preferred Stock
Our Certificate of Incorporation, as amended, authorizes the issuance of up to 450,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”). The Company has not yet issued any of its preferred stock.
Dividends
We have not paid any dividends on our common stock to date and do not intend to pay dividends prior to the completion of a business combination. The payment of dividends in the future will be contingent upon our revenues and earnings, if any, capital requirements and general financial condition subsequent to completion of a business combination. The payment of any dividends subsequent to a business combination will be within the discretion of our then board of directors. It is the present intention of our board of directors to retain all earnings, if any, for use in our business operations and, accordingly, our board does not anticipate declaring any dividends in the foreseeable future.
Securities Authorized for Issuance under Equity Compensation Plans
The Company does not have any equity compensation plans or any individual compensation arrangements with respect to its common stock or preferred stock. The issuance of any of our common or preferred stock is within the discretion of our Board of Directors, which has the power to issue any or all of our authorized but unissued shares without stockholder approval.
The Company’s Board of Directors has the power to issue any or all of the authorized but unissued Common Stock without stockholder approval. The Company currently has no commitments to issue any shares of common stock. However, the Company will, in all likelihood, issue a substantial number of additional shares in connection with a business combination. Since the Company expects to issue additional shares of common stock in connection with a business combination, existing stockholders of the Company may experience substantial dilution in their shares. However, it is impossible to predict whether a business combination will ultimately result in dilution to existing shareholders. If the target has a relatively weak balance sheet, a business combination may result in significant dilution. If a target has a relatively strong balance sheet, there may be little or no dilution.
Issuer Purchases of Equity Securities
None

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ITEM 6. SELECTED FINANCIAL DATA
Item 6: Selected Financial Data
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operation
Overview
The following discussion should be read in conjunction with our audited financial statements and the related notes for the years ended September 30, 2020 and 2019, that appear elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to those discussed below and elsewhere in this annual report, particularly in the section entitled “Risk Factors”.
Our financial statements are stated in United States Dollars and are prepared in accordance United States Generally Accepted Accounting Principles.
Results of Operations
The following results of operations, cash flows and changes in our financial position are for years ended September 30, 2020 and 2019.
The Company had no revenue for the years ended September 30, 2020 and 2019.
Operating expenses during the years ended September 30, 2020 were $1,041,610 and $1,100,880 for 2019. The decrease in expenses in year ended September 30, 2020 was due mostly to a reduction in consulting, professional and marketing costs offset by an increase in accrued rent expense of $377,170.
Other expense during the year ended September 30, 2020 was $1,703,954 compared to other expense of $616,496 for the same period in 2019. Other expense in 2020 primarily consisted of interest expense of $30,526 change in fair value of derivative liability of $1,380,545, financing costs of $120,530, amortization of debt discount of $132,793 and loss on debt settlement of $27,927. The change in fair value of derivative liability was the significant difference between 2020 and 2019.
The Company incurred a net loss of $2,745,564 in the year ending September 30, 2020, compared to a net loss of $1,717,376 for the same period in 2019.
Liquidity and Capital Resources
As of September 30, 2020, the Company had current assets of zero. The company has $1,762,299 in current liabilities, resulting in negative working capital of $1,762,299. As of September 30, 2020, the Company had an accumulative deficit of $21,206,197 of which $16,363,600 was a deemed dividend based on a down round of warrant conversion prices.
Cash used in operating activities was $140,549 for the year ended September 30, 2020 compared to $683,639 for the year ended September 30, 2019. The increase in the loss to $2,745,564 in 2020 from $1,717,376 in 2019 was offset by increased change in fair value of derivative liability of $1,380,545 plus increased accounts payable of $615,045 in 2020 was primary in reducing cash used by $543,090 from 2019 to 2020.
Cash provided by financing activities as of September 30, 2020 was $126,510 which was the repayment of advances from related parties of $35,500 plus cash from the sale of common stock of $40,000, proceeds from issuance of convertible notes of $89,000 and notes payable of $33,125 compared to cash provided of $668,554 in 2019 which was mainly due to proceeds from the sale of common stock for cash of $323,643 plus proceeds from convertible debt of $229,000, note payable of $100,000 and advances from related party of $15,911.
The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has an accumulated deficit of $21,206,197 and negative working capital (excess of current liabilities over current assets) of $1,762,299. The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the company’s ability to continue as a going concern for at least one year from the issuance of these financial statements. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders. There can be no assurance however that the Company will be able to raise additional capital when needed, or at terms deemed acceptable, if at all. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
Contractual Obligations
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.
Accounting Policies
The Company’s financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America.
The Company has elected a fiscal year ending on September 30.
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Foreign currency translation
The Company’s functional currency and reporting currency is in U.S. dollars. The financial statements of the Company are translated to U.S. dollars in accordance with ASC-830-Foreign Currency Matters”. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.
Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. The Company’s significant estimates include the fair value of common stock issued for services, fair value of derivative liability, deemed dividend down round, the valuation of right to use asset and lease liability and valuation allowance for deferred tax assets.. Actual results could differ from those estimates.
Income Taxes
Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized.
The Company accounts for income taxes under the provisions of Financial Accounting Standards Board) Accounting Standards Codification 740, Accounting for Income Taxes. It prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the Company has applied a more-likely-than-not recognition threshold for all tax uncertainties. The guidance only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the various taxing authorities.
The Company classifies penalties and interest related to unrecognized tax benefits as income tax expense in the Statements of Operations.
Basic and diluted net loss per share
Basic loss per share is calculated as net loss to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted loss per share for the period equals basic loss per share as the effect of any stock based compensation awards or stock warrants would be antidilutive. As of September 30, 2020 the potential shares at conversion outstanding was 69,518,520 consisting of conversion of debt to common stock from derivative calculation of approximately 67,916,234 and conversion warrants to common stock of 1,602,286 compared to a total of 25,155,126 for the year ended September 30, 2019.
Stock-Based Compensation
The Company accounts for stock-based compensation to employees and consultants in accordance with FASB ASC 718. Stock-based compensation to employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of stock-based payments using the Black Scholes option-pricing model for common stock options and warrants and the closing price of the Company’s common stock for common share issuances.
Gain (Loss) on Modification/Extinguishment of Debt
In accordance with ASC 470, a modification or an exchange of debt instruments that adds or eliminates a conversion option that was substantive at the date of the modification or exchange is considered a substantive change and is measured and accounted for as extinguishment of the original instrument along with the recognition of a gain or loss. Additionally, under ASC 470, a substantive modification of a debt instrument is deemed to have been accomplished with debt instruments that are substantially different if the present value of the cash flows under the terms of the new debt instrument is at least 10 percent different from the present value of the remaining cash flows under the terms of the original instrument. A substantive modification is accounted for as an extinguishment of the original instrument along with the recognition of a gain or loss.
Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases which requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases with terms greater than 12 months. In July 2018, the FASB issued ASU 2018-10 Leases, Codification Improvements and ASU 2018-11 Leases, Targeted Improvements, to provide additional guidance for the adoption of ASU 2016-02. ASU 2018-10 clarifies certain provisions and corrects unintended applications of the guidance such as the application of implicit rate, lessee reassessment of lease classification, and certain transition adjustments that should be recognized to earnings rather than to stockholders’ (deficit) equity. ASU 2018-11 provides an alternative transition method and practical expedient for separating contract components for the adoption of ASU 2016-02. ASU 2016-02, ASU 2018-10, ASU 2018-11, (collectively, “Topic 842”) are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. In December 2019, the Company adopted Topic 842 and made the following elections:
·
The Company did not elect the hindsight practical expedient, for all leases.
·
The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases.
·
In March 2018, the FASB approved an optional transition method that allows companies to use the effective date as the date of initial application on transition. The Company elected this transition method, and as a result, will not adjust its comparative period financial information or make the newly required lease disclosures for periods before the effective date.
·
The Company elected to not separate lease and non-lease components, for all leases.
On October 1, 2019, the Company recorded a Right of Use Asset of $4,104,985, a corresponding Lease Liability of $4,330,735 in accordance with Topic 842.
The FASB recently issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to reduce complexity in applying GAAP to certain financial instruments with characteristics of liabilities and equity. The guidance in ASU 2020-06 simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. The guidance in ASC 470-20 applies to convertible instruments for which the embedded conversion features are not required to be bifurcated from the host contract and accounted for as derivatives. These amendments are expected to result in more freestanding financial instruments qualifying for equity classification (and, therefore, not accounted for as derivatives), as well as fewer embedded features requiring separate accounting from the host contract. The amendments in ASU 2020-06 further revise the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. The amendments in ASU 2020-06 are effective for public entities for fiscal years beginning after December 15, 2021 with early adoption permitted (for “emerging growth company” beginning after December 15, 2023). The Company will be evaluating the impact this standard will have on the Company’s financial statements.
Derivative Instruments
Derivative financial instruments are recorded in the accompanying balance sheets at fair value in accordance with ASC 815. When the Company enters into a financial instrument such as a debt or equity agreement (the “host contract”), the Company assesses whether the economic characteristics of any embedded features are clearly and closely related to the primary economic characteristics of the remainder of the host contract. When it is determined that (i) an embedded feature possesses economic characteristics that are not clearly and closely related to the primary economic characteristics of the host contract, and (ii) a separate, stand-alone instrument with the same terms would meet the definition of a financial derivative instrument, then the embedded feature is bifurcated from the host contract and accounted for as a derivative instrument. The estimated fair value of the derivative feature is recorded in the accompanying balance sheets separately from the carrying value of the host contract. Subsequent changes in the estimated fair value of derivatives are recorded as a gain or loss in the Company’s statements of operations.
Fair Value of Financial Instruments
The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and shareholder loans. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.
Financial assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels:
Level 1- Quoted market prices in active markets for identical assets or liabilities at the measurement date.
Level 2- quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.
Level 3- Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Deemed Dividend
The Company issues instruments which contain a provision for the change in conversion price should a new instrument issued hold a conversion price lower than the conversion price of the instrument issued earlier. The provision lowers the conversion price to the new instrument triggering the down round feature and creates a deemed dividend. The deemed dividend is added to the net income or loss for the period and used in calculating the earnings per share for the period.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A: Quantitative and Qualitative Disclosures about Market Risk
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8: Financial Statements and Supplementary Data
Please see the financial statements beginning on page located elsewhere in this annual report on Form 10-K and incorporated herein by reference.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
On April 29, 2021, Fruci & Associates II, PLLC (“Fruci”) was dismissed as the Company’s independent registered public accounting firm.
Fruci issued audit reports on the Company’s financial statements for the year ended September 30, 2019.
The Fruci report on the financial statements of the Company for the fiscal year ended September 30, 2019 did not contain an adverse opinion or a disclaimer of opinion, or were qualified or modified as to uncertainty, audit scope, or accounting principles.
The Fruci report on the financial statements of the Company for the fiscal year ended September 30, 2019 contained a going concern explanatory paragraph.
During the Company’s three most recent fiscal years and any subsequent interim period preceding Fruci’s dismissal, there were no reportable events or disagreements with Fruci on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement(s), if not resolved to the satisfaction of Fruci, would have caused the Company to make reference to the subject matter of the disagreement(s) in connection with this report.
The Company has provided a copy of this disclosure to Fruci and requested that Fruci furnish the Company with a letter, within the time periods prescribed by Item 304(a)(3) of Regulation S-K of Securities and Exchange Act of 1934, addressed to the Securities and Exchange Commission stating whether Fruci agrees with the statements made by the Company and, if not, stating the respects in which Fruci does not agree.
On May 20, 2021, the Board of Directors of the Company approved the appointment of and engaged RBSM, LLP (“RBSM”) as the Company’s new independent registered public accounting firm, subject to the completion of final acceptance procedures.
During the two most recent fiscal years and the interim period preceding our engagement of RBSM, we did not consult with them on any matter described in Item 304(a)(2) of Regulation S-K.

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A: Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
For purposes of this section, the term disclosure controls and procedures mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934, as amended (the “Act”) (15 U.S.C. 78a et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. As of the end of the period covered by this Annual Report, The Company carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our CEO and CFO has concluded that the Company’s disclosure controls and procedures are not effective because of the identification of a material weakness in our internal control over financial reporting which is identified below.
Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system was designed 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. Because of inherent limitations, a system of 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 due to change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Our management conducted an evaluation of the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). Based on its evaluation, our management concluded that there are material weaknesses in our internal control over financial reporting and thus, are not effective as of September 30, 2020. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.
The material weaknesses relate to the following:
·
Lack of a formal review process that includes multiple levels of review, as all accounting and financial reporting functions are performed by our Chief Financial Officer and the work is only reviewed quarterly by an outside audit firm
·
Lack of Audit Committee, independent directors and financial experts
·
Lack of effective control instituted over financial disclosures and report process
These weaknesses are due to the company’s lack of working capital to hire additional staff. To remedy the material weaknesses, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.
This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to the attestation by the Company’s registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only management’s report in this annual report.
Changes in Internal Controls over Financial Reporting
The Company has not yet made any changes in our internal controls over financial reporting that occurred during the period covered by this report on Form 10-K that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
Item 9B: Other Information
Not applicable.
PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10: Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act
Directors of the corporation are elected by the stockholders to a term of one year and serve until a successor is elected and qualified. Officers of the corporation are appointed by the Board of Directors to a term of one year and serves until a successor is duly appointed and qualified, or until he or she is removed from office. The Board of Directors has no nominating, auditing or compensation committees. The name, address, age and position of our officers and director is set forth below:
Name and Address
Age
Position(s)
Harpreet Sangha
Chairman & Director
8275 S. Eastern Ave
Suite 200
Las Vegas, NV 89123
Craig Alford
CEO & Director
8275 S Eastern Ave
Suite 200
Las Vegas, NV 89123
Lowell Holden
Director
8275 S Eastern Ave
Suite 200
Las Vegas, NV 89123
Stuart Philip Hensman
Director
8275 S Eastern Ave
Suite 200
Las Vegas, NV 89123
Manra Singh Janda
Director
8275 S Eastern A
Suite 200
Las Vegas NV 89123
On August 31, 2018, Harpreet Sangha and Craig Alford were appointed to the Board of Directors of Barrel Energy, Inc. (the “Company”). Mr. Sangha was named Chairman of the Board, Chief Executive Officer, Chief Financial Officer There are no family relationships between the officers and directors. Gurm Sangha resigned as President and remained as a Director of the Company as well as the Corporate Secretary.
On June 7, 2019, Sonny Manra Singh Janda was elected as a Director of the Company.
On June 17, 2019, Lowell Holden was appointed Chief Financial Officer and a Director of the Company. Harpreet Sangha resigned as Chief Executive Officer and Chief Financial Officer remaining as Chairman and a Director of the Company and Craig Alford became Chief Executive Officer of the Company.
On October 23, 2018, Gurminder Sangha resigned as President, Corporate Secretary and Director of Barrel Energy, Inc. On November 12, 2018 Jurgen Wolf resigned as Chief Financial Officer and Director of the Company. Gurminder Sangha and Jurgen Wolf held their offices/positions since the inception of the Company until their resignation.
On August 24, 2020, the Company accepted Manraj Singh Janda’s resignation as a director of the Company.
On October 1, 2020, Lowell Holden resigned as CFO and a director of the Company.
HARPREET SANGHA: CHAIRMAN, CHIEF FINANCIAL OFFICER AND DIRECTOR
Mr. Sangha has been a founder, CEO and board member of several public companies and brings 32 years of entrepreneurial, operational and capital market experience to the Company. Currently, Mr. Sangha serves as Chairman of the Board of Black Cactus Global, Inc. (OTC: BLGI) and also as its CFO. Mr. Sangha has been an officer and director of Black Cactus since 2014. In 1986, he started his career as Investment Advisor and gained his affinity for raising capital for numerous startups and early stage public companies. Mr. Sangha departed this position in March 2006 to apply his unique ability of bringing capital to early stage projects and founded Douglas Lake Minerals. In the role of CEO, his leadership in Douglas Lake overcame rigorous operational challenges in the African environment and brought the value of the company to $240 million. He has also served as CEO, Secretary, and director of Sharprock Resources Inc. (OTCBB: SHRK) where he raised capital to explore a preproduction gold project in the Chukotka Region of Russia. He joined Rango Energy, Inc. in 2012 as Chairman of the Board and Chief Executive Officer. Mr. Sangha has established many valuable contacts and relationships with institutional clients worldwide.
CRAIG ALFORD: CHIEF EXCUTIVE OFFICER AND DIRECTOR
Mr. Alford has joined the Company as its President and Chief Executive Officer. Mr. Alford has been involved for over 28 years in mineral and oil and gas exploration. Mr. Alford has worked throughout North and South America, several Central Asian Republics, Russia, Australia and Africa. This experience has included independent consulting assignments, and positions within the management of major and junior company exploration companies. Mr. Alford has worked as a consultant for Conoco Philips (COP:NYSE) and Canadian Natural Resources Ltd (CNQ:TSX) within Canada. Mr. Alford holds both a Bachelor of Science (Honors) and a Master of Science in Geology and is a professional geologist registered with the Association of Ontario (APGO).
LOWELL HOLDEN: DIRECTOR
Lowell Holden has been the Chief Financial Officer and Chief Accounting Officer of the Company since June, 2019. Since 1983, Mr. Holden has owned and operated his own consulting firm, LS Enterprises, Inc., which provides business consulting, accounting and other services to businesses. Mr. Holden has a broad range of business experience including managing, securing financing, structuring of transactions, and is experienced and knowledgeable in managing relationships with customers, financing institutions and stockholders. Presently Mr. Holden serves as the Chief Financial Officer and Director of Nascent Biotech, Inc (NBIO,) Chief Financial Officer of Skkynet Cloud Systems, Inc (SKKY) and Chief Financial Officer and Director of EMR Technology, Chief Executive Officer and Director of PTS, Inc (PTSH). Mr. Holden also has a background in assisting companies in fulfilling their financial auditing and SEC reporting requirements. Mr. Lowell Holden has a Bachelor of Science degree from Iowa State University.
STUART PHILIP HENSMAN
Stuart Philip Hensman, age 72, holds a Bachelor of Arts degree, from the University of Winnipeg and a Master of Science From Loughborough University, U.K. Mr. Hensman was chairman and CEO of Scotia Capital (USA) based in New York from 2000 to 2002. He was previously Managing Director (Equities) for Scotia Capital Inc based in London from 1987 to 1999. Before working for Scotia, Mr. Hensman was an investment analyst and portfolio manager for Sun Life Assurance Co. in Toronto from 1981 to 1986.
Conflict of Interest
The Officer and Directors of the Company will devote time to the Company however; there will be occasions when the time requirements of the Company’s business conflict with the demands of their other business and investment activities. Such conflicts may require that the Company attempt to employ additional personnel. There is no assurance that the services of such persons will be available or that they can be obtained upon terms favorable to the Company.
There is no procedure in place which would allow the Officer and Director to resolve potential conflicts in an arms-length fashion. Accordingly, they will be required to use their discretion to resolve them in a manner which they consider appropriate.
The Company’s Officer and Directors may actively negotiate or otherwise consent to the purchase of a portion of his common stock as a condition to, or in connection with, a proposed merger or acquisition transaction. It is anticipated that a substantial premium over the initial cost of such shares may be paid by the purchaser in conjunction with any sale of shares by the Company’s Officer and Directors which is made as a condition to, or in connection with, a proposed merger or acquisition transaction. The fact that a substantial premium may be paid to the Company’s Officer and Directors to acquire his shares creates a potential conflict of interest for him, in satisfying his fiduciary duties to the Company and its other shareholders. Even though such a sale could result in a substantial profit to them, they would be legally required to make the decision based upon the best interests of the Company and the Company’s other shareholders, rather than their own personal pecuniary benefit.
Compliance with Section 16(a) of the Exchange Act
Section 16(a) of the Exchange Act requires the Company’s directors and officers, and persons who beneficially own more than 10% of a registered class of the Company’s equity securities, to file reports of beneficial ownership and changes in beneficial ownership of the Company’s securities with the SEC on Forms 3, 4 and 5. Officers, directors and greater than 10% stockholders are required by SEC regulation to furnish the Company with copies of all Section 16(a) forms they file.
Based solely on the Company’s review of the copies of the forms received by it during the fiscal year ended September 30, 2019 and written representations that no other reports were required, the Company believes that no person who, at any time during such fiscal year, was a director, officer, or beneficial owner of more than 10% of the Company’s common stock failed to comply with all Section 16(a) filing requirements during such fiscal years.
Code of Ethics
We have not adopted a Code of Business Conduct and Ethics that applies to our principal executive officer, principal financial officer, and principal accounting officer or controller, or persons performing similar functions in that our sole officer and director serve in these capacities.
Nominating Committee
There is no nominating committee.
Audit Committee
There is no audit committee.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11: Executive Compensation.
Currently, our officers and directors are serving with set annual compensation as noted in the table below.
The officers and directors are reimbursed for any out-of-pocket expenses that they incur on our behalf. We also do not currently have any benefits, such as health or life insurance, available to our employees.
SUMMARY COMPENSATION TABLE
Name
Years
Fees
Earned
Paid in
Cash($)
Stock
Awards($)
Option
Awards($)
Non-Equity
Incentive
Plan
Compensation($)
Nonqualified
Deferred
Compensation
Earnings($)
All Other
Compensation($)
Total($)
Stuart Hensman,
Director
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Lowell Holden,
CFO and Director (3)
72,000
18,000
--
--
--
--
--
--
--
--
--
--
72,000
18,000
Harpreet Sangha,
Chairman and
Director (1)
180,000
193,000
--
--
--
--
--
--
--
--
--
--
--
--
--
--
180,000
193,000
---
Craig Alford,
CEO and Director (2)
132,000
82,000
--
--
--
--
--
--
--
--
--
--
132,000
82,000
Sonny Manra Singh Janda,
Director
--
--
--
--
--
--
--
--
--
--
--
--
--
--
(1)
Mr. Sangha received $51,500 in cash and accrued $128,500 in compensation for a total of $180,000.
(2)
Mr. Alford accrued $132,000 in compensation and received no cash.
(3)
Mr. Holden through Mayday Management accrued $72,000 in compensation and received no cash.
Options
There have been no individual grants of stock options to purchase our common stock made to the executive officer named in the Summary Compensation Table.
Director Compensation
Directors are permitted to receive fixed fees and other compensation for their services as directors. The Board of Directors has the authority to fix the compensation of directors. No amounts have been paid to, or accrued to, our director in such capacity.
Employment Agreements
The Company is not a party to any employment agreements.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
(a) Security ownership of certain beneficial owners.
The following table sets forth the number of shares of Common Stock owned of record and beneficially by executive officers, directors and persons who hold 5% or more of the outstanding Common Stock of the Company. Also included are the shares held by all executive officers and directors as a group.
Name and Address
Amount and Nature of
Beneficial Ownership
Percentage of Class
Harpreet Sangha
8275 S Eastern Ave, Suite 200
Las Vegas, NV 89123
9,000,000
2.76 %
Craig Alford
8275 S Eastern Ave, Suite 200
Las Vegas, NV 89123
4,000,000
1.23 %
Sonny Manra Singh Janda
8275 S Eastern Ave, Suite 200
Las Vegas, NV 89123
3,500,000
1.07 %
Lowell Holden
8275 S Eastern Ave, Suite 200
Las Vegas, NV 89123
All Officers and Directors as a group
16,500,000
5.06 %

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13: Certain Relationships and Related Transactions
During the years ended September 30, 2019 and 2018 the Company’s operations conducted out of the premises at 14890 66a Ave., Surrey, B.C. V3S 9Y6 Canada. Mr. Gurm Sangha, the former President, Director made these premises available to the Company rent-free.
During the year ended September 30, 2019 the Company paid or accrued related parties consulting fees of $538,176 of which Harp Sangha was paid and accrued $193,000, Craig Alford was paid and accrued $82,000 and Lowell Holden through Mayday Management accrued $18,000. Under the terms of their consulting agreements Mr. Alford is entitled to $82,000 for the period and Mr. Sangha $180,000 and Lowell Holden (Mayday Management) is entitled to $18,000. As of September 30, 2019 the Company owed the related parties $121,425 in accrued consulting.
During the period ended September 30, 2019 Harpreet Sangha, the Company’s Chairman and Chief Financial Officer, entered into an agreement and purchased 10,000,000 shares of the Company’s common stock for $10,000 and Craig Alford, the Company’s President, who entered into an agreement and purchased 4,000,000 shares of the Company’s common stock for $4,000. On June 24, 2020 Harpreet Sangha returned the 10,000,000 shares to the Company.
During the year ended September 30, 2019, the Company signed a land lease agreement for the production of hemp. The lease is a 10 year lease with annual payments of $602,000 and was modified for the initial payments of $301,000 each in May and June 2020. A director of the Company is related to the owner of the land leased. (See Note 12: Operating Lease)
On June 26, 2020, the Company issued a convertible note to Harp Sangha for $21,500 which matures one year from date of issuance. The note bears interest of 8% per annum and is convertible into common stock of the Company at $0.10 per share. The note has accrued interest of $448 as of September 30, 2020.
On July 17, 2020 the Company issued a convertible note to Harp Sangha, Chairman and CFO of the Company for $25,000 which matures one year from date of issuance. The note bears interest of 8% per annum and is convertible into common stock of the Company at $0.10 per share. As of September 30, 2020 the outstanding balances included principal of $25,000 plus interest of $411.
On August 11, 2020 the Company issued a convertible note to Harp Sangha, Chairman and CFO of the Company for $45,000 which matures one year from date of issuance. The note bears interest of 8% per annum and is convertible into common stock of the Company at $0.10 per share. As of September 30, 2020 the outstanding balances included principal of $45,000 plus interest of $493.
During the year ended September 30, 2020 the Company accrued $332,400 and paid $51,600 in consulting fees for three officers. As of September 30, 2020, the total accrual of $451,837 is due the related parties.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14: Principal Accounting Fees and Services
The following table presents for the fiscal years 2020 and 2019 the aggregate fees billed in connection with the audits of our financial statements and other professional services rendered by our independent registered public accounting firm Fruci & Associates II, PLLC.
Audit fees
$ -
$ 23,250
Audit related fees
--
11,000
Tax fees
--
--
All other fees
--
--
The following table presents for the fiscal years 2020 and 2019 the aggregate fees billed in connection with the audits of our financial statements and other professional services rendered by our independent registered public accounting firm RBSM, LLP during the periods listed below.
Audit fees
$ 18,000
$ --
Audit related fees
7,000
--
Tax fees
--
--
All other fees
--
--
Audit fees consist of fees billed for professional services rendered for the audit of our financial statements and review of the interim financial statements included in quarterly reports and services that are normally provided by the above auditors in connection with statutory and regulatory fillings or engagements.
In the absence of a formal audit committee, the full Board of Directors pre-approves all audit and non-audit services to be performed by the independent registered public accounting firm in accordance with the rules and regulations promulgated under the Securities Exchange Act of 1934, as amended. The Board of Directors pre-approved 100% of the audit, audit-related and tax services performed by the independent registered public accounting firm for the fiscal year ended September 30, 2020.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15 - Exhibits, Financial Statement Schedules.
(a) Exhibits:
Exhibit
Number
Description
(31)
Section 302 Certifications
31.1*
Section 302 Certification under Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer
(32)
Section 906 Certification
32.1*
Section 906 Certification under Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer
101**
Interactive Data Files
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema Document.
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document.
(b) The following documents are filed as part of the report:
1.
Financial Statements: Balance Sheets, Statements of Operations, Statement of Stockholder’s Equity, Statements of Cash Flows, and Notes to Financial Statements.