10-Q

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 June 30, 2016

or 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______.

Commission file number 000-55177

LIBERATED ENERGY, INC.

(Exact name of registrant as specified in its charter)

Nevada	27-4715504
(State or other jurisdiction	(I.R.S. Employer Identification No.)
of incorporation or organization)

2 Coleman Court
Southampton, New Jersey	08088
(Address of principal executive offices)	(Zip Code)

   (845) 610-3817

(Registrant's telephone number including area code)

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days ☒ Yes  ☐No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files)  ☒ Yes    ☐ No

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

Large accelerated filer ☐	Accelerated filer  ☐
Non-accelerated filer ☐   (Do not check if a smaller reporting company)	Smaller reporting company ☒

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

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 2,759,155,725 shares of common stock issued and outstanding as of August 22, 2016.

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TABLE OF CONTENTS

Item #	Description	Page Numbers
	PART I
ITEM 1	FINANCIAL STATEMENTS		3
ITEM 2	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		11
ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		12
ITEM 4	CONTROLS AND PROCEDURES		13
	PART II		13
ITEM 1	LEGAL PROCEEDINGS		13
ITEM 1A	RISK FACTORS		13
ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		13
ITEM 3	DEFAULTS UPON SENIOR SECURITIES		13
ITEM 4	MINE SAFETY DISCLOSURES		13
ITEM 5	OTHER INFORMATION		13
ITEM 6	EXHIBITS		14
	SIGNATURES		15

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

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PART I: FINANCIAL INFORMATION

ITEM 1:         FINANCIAL STATEMENTS

LIBERATED ENERGY, INC

BALANCESHEETS

(Unaudited)

	June 30, 2016			September 30, 2015
ASSETS
Current assets
Cash	$	2,663		$	16,921
Inventory		23,880			23,880
Total current assets		26,543			40,801
Total assets	$	26,543		$	40,801
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable and accrued expense	$	90,114		$	35,754
Note payable		50,000			50,000
Stock payable		50,000			50,000
Convertible notes payable		415,769			271,746
Total liabilities		605,882			407,500
Stockholders’ deficit
Preferred shares, par value $0.001. 100,000,000 authorized; 10,000,000 issued and outstanding		10,000			10,000
Common stock, par value $0.001, authorized 10,000,000,000, issued and outstanding 788,330 and 579,900 as of June 30, 2016 and September 30, 2015, respectively		788			597
Additional paid-in capital		745,515			126,633
Accumulated deficit		(1,335,644	)		(1,083,232	)
Total stockholders’ deficit		(579,340	)		(366,698	)
Total liabilities and stockholders’ equity(deficit)	$	26,543		$	40,801

The accompanying notes are an integral part of the unaudited financial statements.

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LIBERATED ENERGY, INC

STATEMENT OF OPERATIONS

FOR THREE AND NINE MONTHS ENDED JUNE 30,

(UNAUDITED)

	Three Months						Nine Months
	2016			2015			2016			2015
Revenue		--		$	62,132			--		$	62,132
Cost of goods		--			16,981			--			16,981
Gross profit		--			45,151			--			45,151
Operating expenses:
Selling, general and administrative expenses		43,040			80,185			219,158			603,123
Loss from operations		(43,040	)		(35,034	)		(219,158	)		(557,972	)
Other Income(expense)
Interest expense		--			(4,867	)		(33,253	)		(54,020	)
Total other expense		(43,040	)		(4,867	)		(33,253	)		(54,020	)
Net loss	$	(43,040	)	$	(39,901	)		(252,411	)		(611,992	)
Net loss per common share basic and diluted	$	(0.00	)	$	(0.38	)	$	(0.00	)	$	(12.29	)
Weighted average number of common shares outstanding		788,330			105,580						49,816

The accompanying notes are an integral part of the unaudited financial statements.

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LIBERATED ENERGY, INC

STATEMENTS OF CASH FLOWS

FOR NINE MONTHS ENDED JUNE 30,

(Unaudited)

	2016			2015
Cash Flows From Operating Activities:
Net loss	$	(252,411	)	$	(611,922	)
Adjustments to reconcile net loss to net cash used in operating activities:
Write down of assets		--			11,701
Stock based compensation		--			158,650
Changes in operating assets and liabilities:
Inventory		--			16,981
Prepaid		--			5,000
Accounts payable and accrued expense		68,152			8,818
Deferred revenue		--			(43,565	)
Net cash used in operating activities		(184,259	)		(454,407	)
Cash Flows From Financing Activities:
Loan from stockholder					4,000
Debt issued to pay accounts payable		8,000
Proceeds from issuance of convertible debt		162,001			290,500
Net cash provided by financing activities		170,001			294,500
Net change in cash		(14,258	)		(159,907	)
Cash at beginning of period		16,921			162,354
Cash at end of period	$	2,663		$	2,447
Non-Cash Transactions
Common stock issued for convertible debt conversion	$	39,769		$	412,380

The accompanying notes are an integral part of the unaudited financial statements.

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LIBERATED ENERGY, INC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - BASIS OF PRESENTATION AND ORGANIZATION

Liberated Energy, Inc. (the “Company”), formerly known as Mega World Food Holdings Company is a Nevada corporation formed on September 14, 2010.

On January 19, 2013, pursuant to a Common Stock Purchase Agreement, dated January 7, 2013, Perpetual Wind Power Corporation, a privately held corporation formed under the laws of the State of Delaware on July 1, 2010, acquired 24,500,000 non-registered shares of the Company from its shareholders, thereby owning 24,500,000 out of a total of 25,000,000 issued and outstanding shares of the Company. Thereafter, the Company acquired from Perpetual Wind Power Corporation its patented wind and solar powered turbine technology for 2,500,000 newly issued shares of the Company which were distributed in a dividend to its shareholders and Perpetual Wind Power Corporation returned to treasury its 24,500,000 shares it acquired from the Company's shareholders. As a result of this transaction, the Company had on January 19, 2013, 3,000,000 shares issued and outstanding. On February 14, 2013, the Company changed its name from Mega World Food Holding Company to Liberated Energy, Inc. and underwent a 24 for 1 stock split, whereby the Company's outstanding shares increased from 3,000,000 to 72,000,000.

On January 19, 2013, the Company disposed of its wholly-owned subsidiary, Mega World Food Limited (HK).  Mega World Food Limited (HK) was incorporated on June 24, 2010 and was in the business of selling frozen vegetables in all areas of the world except China.  From inception, Mega World Food Limited (HK) only incurred setting up, formation or organization activities.  Upon disposal, the Company ceased these operations and accordingly, the Company’s financial statements have been prepared with the net assets, results of operations, and cash flows of this business displayed separately as “discontinued operations.”

Effective January 19, 2013, the Company’s business is the sale of alternative energy products and services.

On February 4, 2015 the Company increased their number of authorized preferred shares from 10,000,000 to 100,000,000 and authorized common shares from 250,000,000 to 900,000,000.

On July 6, 2016, the Company adopted a 1-for-3,500 reverse split of the Company’s common stock that as of June 30, 2016 was not yet effective.

Bases of Presentation

The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2016. The accompanying unaudited financial statements should be read in conjunction with the financial statements and related notes included in the Company’s 2015 Annual Report filed with the SEC for yearend September 30, 2015.

The Company has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements.  The adoption of this ASU allows the Company to remove the inception to date information and all references to exploration stage.

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NOTE 2 - GOING CONCERN

As shown in the accompanying financial statements, the Company has a negative working capital of $579,339 and an accumulated deficit of $1,335,644 as of June 30, 2016. The Company’s ability to generate net income and positive cash flows is dependent on the ability to grow its operating entity as well as the ability to raise additional capital. Management is following strategic plans to accomplish these objectives, but success is not guaranteed. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The Company maintains its books and records on the accrual basis of accounting.  The accompanying financial statements have been prepared on that basis, in which revenues and gains are recognized when earned and expenses and losses are recognized when incurred.

Use of Estimates

The presentation of financial statements in conformity with generally accepted accounting principles in the United States of America 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.

Cash and Cash Equivalents

For the purpose of the statement of cash flows, cash and cash equivalents include all cash balances, which are not subject to withdrawal restrictions or penalties, and highly liquid investments and debt instruments with a maturity of three months or less from the date of purchase.

Fair Value of Financial Instruments

Our short-term financial instruments, including cash, other assets and accounts payable and accrued expenses consist primarily of instruments without extended maturities, the fair value of which, based on management’s estimates, reasonably approximate their book value. The fair value of our notes and advances payable is based on management estimates and reasonably approximates their book value based on their current maturity.

Net Loss per Common Share

The Company computes per share amounts in accordance with Statement of Financial Accounting Standards (SFAS) ASC 260, Earnings per Share (EPS). ASC 260 requires presentation of basic and diluted EPS. Basic EPS is computed by dividing the income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock and common stock equivalents outstanding during the periods.

Stock-Based Compensation

The Company accounts for its stock based awards in accordance with Accounting Standards Codification subtopic 718-10, Compensation (“ASC 718-10”), which requires a fair value measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including restricted stock awards. We estimate the fair value of stock using the stock price on date of the approval of the award. The fair value is then expensed over the requisite service periods of the awards, which is generally the date at which the counterparty’s performance is complete and the related amount recognized in our statements of operations.

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Revenue and Cost Recognition

The Company not generated revenue during the three and nine months period ended June 30, 2016 and 2015. It is the Company’s policy that revenue from product sales or services will be recognized in accordance with ASC 605 “Revenue Recognition”. Four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product was not delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

Income Taxes

The Company utilizes ASC 740 “Income Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes primarily relate to the recognition of debt costs and stock based compensation expense. The adoption of ASC 740-10 did not have a material impact on the Company's results of operations or financial condition.

NOTE 3 – FAIR VALUE MEASUREMENTS

As defined in (Financial Accounting Standards Board ASC 820), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

The three levels of the fair value hierarchy are as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

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Management has determined based on note conversion history that the fair value of the notes is equal to their face value.

NOTE 4 – RELATED PARTY

On February 4, 2015 the Company issued to an officer and director of the Company 10,000,000 shares with a value of $10,000 of series A preferred stock for service. Each share has 10 votes on all matters of the Company in which the shareholders can vote.

NOTE 5 - EQUITY

During the nine months ended June 30, 2016 the Company issued 208,430 shares of commons stock with a value of $39,769 for the conversion of convertible debt

NOTE 6– CONVERTIBLE DEBT

On November 5, 2015, the Company issued a Convertible Note (the “Note”) to Carebourn Capital, LP for a principle amount of $28,000 with an interest rate of 12% per annum. The note matures on August 5, 2016. The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On December 21, 2015, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $21,000 with an interest rate of 12% per annum. The note matures on September 16, 2016. The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On March 11, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $18,000 with net proceeds of $15,000 and with an interest rate of 12% per annum. The note matures on December 11, 2016. The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On March 14, 2016 the Company issued a Convertible Note to LG Capital Funding, LP for a principle amount of $17,000 with an interest rate of 12% per annum. The note matures on March 14, 2017. The note is convertible by the holder at a discount of 45% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On May 17, 2016 the Company issued a Convertible Note Craig Savin for a principle amount of $15,000 with an interest rate of 12% per annum. The note matures on March 14, 2017. The note is convertible by the holder at a discount of 45% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On May 26, 2016 the Company issued a Convertible Note to LG Capital Funding, LP for a principle amount of $17,000 with an interest rate of 12% per annum. The note matures on March 14, 2017. The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion. Net proceeds to the Company are $15,000 after deduction of legal fees of $2,000.

On June 14, 2016 the Company issued a Convertible Note Craig Savin for a principle amount of $5,000 with an interest rate of 12% per annum. The note matures on March 14, 2017. The note is convertible by the holder at a discount of 45% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

9

As the market value of the Company’ stock is below it par value, Management has concluded that the benefit of the conversion feature is zero and has not allocate a value to the conversion.

As of June 30, 2016 the Company outstanding liability of convertible debt was $415,769. The liability was as follows:

Carebourn Capital LP	$	57,896
JMJ Capital		15,213
Craig Savin		20,000
JSJ Capital		2,179
LG Capital, LLC		240,480
Tonqquist Capital		80,000
Total	$	415,769

NOTE 7 – SUBSEQUENT EVENTS

On July 6, 2016, the Company adopted a 1-for-3,500 reverse split of the Company’s common stock. The company is proceeding with the necessary filings to affect the reverse split.

On July 25, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $23,000 with an interest rate of 12% per annum. The note matures on July 25, 2017. The note is convertible by the holder at a discount of 45% of the lowest three trading price of the Company’s stock for the 20 days prior to the conversion.

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ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD LOOKING INFORMATION

This section and other parts of this Form 10-Q quarterly report includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, that involves risks and uncertainties. All statements other than statements of historical facts, included in this Form 10-Q that address activities, events, or developments that we expect or anticipate will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strength, goals, expansion and growth of our business and operations, plans, references to future success, reference to intentions as to future matters, and other such matters are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors that we believe are appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks, uncertainties, and other factors, many of which are beyond our control.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, we do not assume responsibility for the accuracy and completeness of such forward-looking statements. We are under no duty to update any of the forward-looking statements after the date of this report to conform such statements to actual results.

Overview

Liberated Energy, Inc. is a Nevada corporation formed on September 14, 2011.  We were incorporated as Mega World Food Holding Company for the purpose of selling frozen vegetable products in all areas of the world except China.

On January 19, 2013, pursuant to a Common Stock Purchase Agreement, dated January 7, 2013, Perpetual Wind Power Corporation, a privately held corporation formed under the laws of the State of Delaware on July 1, 2010, acquired 24,500,000 non-registered shares of the Company from its shareholders, thereby owning 24,500,000 out of a total of 25,000,000 issued and outstanding shares of the Company. Thereafter, the Company acquired from Perpetual Wind Power Corporation its patented wind and solar powered turbine technology for 2,500,000 newly issued shares of the Company which were distributed in a dividend to its shareholders and Perpetual Wind Power Corporation returned to treasury its 24,500,000 shares it acquired from the Company's shareholders. As a result of this transaction, the Company had on January 19, 2013, 3,000,000 shares issued and outstanding. On February 14, 2013, the Company changed its name from Mega World Food Holding Company to Liberated Energy, Inc. and underwent a 24 for 1 stock split, whereby the Company's outstanding shares increased from 3,000,000 to 72,000,000.

On February 4, 2015 the Company increased their number of authorized preferred shares from 10,000,000 to 100,000,000 and authorized common shares from 250,000,000 to 900,000,000.

On July 6, 2016, the Company affected a 1-for-3,500 reverse split of the Company’s common stock.

Our goal is to develop new products related to alternative energy and bring them to the marketplace.  Our primary areas of focus are in the areas of (1) wind energy for home and commercial use, (2) wind and solar energy for outdoor illumination for home, commercial and municipal use, (3) electromagnetic energy applications, and (4) an additive to convert water into a high BTU energy source.

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Certain statements contained below are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

Results of Operations

Revenue

During the three and nine months ended June 30, 2016 the Company had no revenue compared to $62,132 both in the same periods in 2015.

Operation and Administrative Expenses

During the three and nine months ended June 30, 2016 the Company incurred general and administrative expense of $43,040 and $219,158 compared to $80,185 and $603,123 in the same periods in 2015, respectively. Lower general expense in 2016 attributed to the lower general and administrative in 2016 over 2015

Net Loss

The net loss for the three and nine months ended June 30, 2016 was $43,040 and $252,411 compared to $39,901 and $611,992 for the same periods in 2015, respectively. The lower G&A in 2016 resulted in lower losses in 2016 versus the same periods in 2015.

 Liquidity and Capital Resources

The Company has current assets of $26,543 and current liabilities of $605,882 resulting in negative working capital of $579,339.This compares to negative working capital of $366,699 for the period ended June 30, 2015. The increase in negative working capital to June 30, 2016 from December 31, 2015 was $212,640 or 37%.

Funds used in operating activities was $184,259 for the nine months ended June 30, 2016 compared to funds used of $454,407 for the same period in 2015. The smaller loss in 2016 was the major contributor to the decrease in funds used in 2016 over 2015.

Fund provided by financing activities for the nine months period ended June 30, 2016 was $170,001 compared to $294,500 for the same period in 2015. The Company issued convertible debt of $162,001for its financing activities in 2016 and issued $290,500 of convertible debt in the same period in 2015.

  Off-Balance Sheet Arrangements

The Company does not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet financial arrangements.

ITEM 3:  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 Market risk is the risk of loss from adverse changes in market prices and rates. The Company’s market risk arises primarily from the fact that the area in which we do business is highly competitive and constantly evolving. The market in which we do business is highly competitive and constantly evolving. We face competition from the larger and more established companies, from companies that have greater resources, including but not limited to, more money, and greater ability to expand their markets also cut into our potential customers. Many of our competitors have longer operating histories, significantly greater financial strength, nationwide advertising coverage and other resources that we do not have. 

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ITEM 4:  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the "Exchange Act"), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of a material weakness in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weakness relates to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise.  Our CEO /CFO do not possess accounting expertise and our company does not have an audit committee.  This weakness is due to the company’s lack of working capital to hire additional staff.  To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

Changes in Internal Control over Financial Reporting

Except as noted above, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1:  LEGAL PROCEEDINGS

None

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

During the nine months ended June 30, 2016 the Company issued 208,430 shares of commons stock with a value of $39,769 for the conversion of convertible debt

ITEM 3: DEFAULT UPON SENIOR SECURITIES

None

ITEM 4: MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5: OTHER INFORMATION

None

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 ITEM 6. EXHIBITS

EXHIBIT INDEX
		Incorporated by
		Reference
			Filing Date/
Exhibit			Period End
Number	Exhibit Description	Form	Date
31.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted Pursuant to Section 906 of the Sarbanes Oxley Act of 2002.
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
* Pursuant to Rule 406T of Regulation S-T, these interactive date files are deemed not filed or part of the registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933 or Section 18 of the Securities Act of 1934 and otherwise are not subject to liability.

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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.

Date: August 22, 2016 LIBERATED ENERGY, INC By:  /s/ Brian Conway          Brian Conway         President         Chief Executive Officer         Principal Financial and Accounting Officer

15

EX-31.1

EXHIBIT 31.1

FORM OF CERTIFICATION

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

CERTIFICATION

I, Brian Conway, certify that:

1.   I has reviewed this quarterly report on Form 10-Q of Liberated Energy, Inc, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements are made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.   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 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and has:

(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 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 The 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 has a significant role in the registrant’s internal control over financial reporting.

August 22, 2016

/s/ Brian Conway

Brian Conway Chief Executive Officer

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarter Report of Liberated Energy, Inc. on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission (the "Report") Brian Conway, Chief Executive Officer and Chief Financial Officer of the Company, does hereby certify, pursuant to §906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that to 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 operation of the Company.

/s/ Brian Conway

Brian Conway Chief Executive Officer

Chief Financial Officer

Dated: August 22, 2016

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 22, 2016
Document Information [Line Items]
Entity Registrant Name	LIBERATED ENERGY, INC.
Entity Central Index Key	0001503161
Trading Symbol	libe
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		2,759,155,725
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Amendment Flag	false

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Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Current assets
Cash	$ 2,663	$ 16,921
Inventory	23,880	23,880
Total current assets	26,543	40,801
Total assets	26,543	40,801
Current liabilities
Accounts payable and accrued expense	90,114	35,754
Note payable	50,000	50,000
Stock payable	50,000	50,000
Convertible notes payable	415,769	271,746
Total liabilities	605,882	407,500
Stockholders’ deficit
Preferred shares, par value $0.001. 100,000,000 authorized; 10,000,000 issued and outstanding	10,000	10,000
Common stock, par value $0.001, authorized 10,000,000,000, issued and outstanding 788,330 and 579,900 as of June 30, 2016 and September 30, 2015, respectively	788	597
Additional paid-in capital	745,515	126,633
Accumulated deficit	(1,335,644)	(1,083,232)
Total stockholders’ deficit	(579,340)	(366,698)
Total liabilities and stockholders’ equity(deficit)	$ 26,543	$ 40,801

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Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	10,000,000	10,000,000
Preferred stock, shares outstanding (in shares)	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	10,000,000,000	10,000,000,000
Common stock, shares issued (in shares)	788,330	579,900
Common stock, shares outstanding (in shares)	788,330	579,900

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Statement of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue	$ 0	$ 0	$ 0	$ 0
Cost of goods		16,981		16,981
Gross profit		45,151		45,151
Operating expenses:
Selling, general and administrative expenses	43,040	80,185	219,158	603,123
Loss from operations	(43,040)	(35,034)	(219,158)	(557,972)
Other Income(expense)
Interest expense		(4,867)	(33,253)	(54,020)
Total other expense	(43,040)	(4,867)	(33,253)	(54,020)
Net loss	$ (43,040)	$ (39,901)	$ (252,411)	$ (611,992)
Net loss per common share basic and diluted (in dollars per share)	$ 0	$ (0.38)	$ 0	$ (12.29)
Weighted average number of common shares outstanding (in shares)	788,330	105,580		49,816

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Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Net loss	$ (252,411)	$ (611,992)
Adjustments to reconcile net loss to net cash used in operating activities:
Write down of assets		11,701
Stock based compensation		158,650
Changes in operating assets and liabilities:
Inventory		16,981
Prepaid		5,000
Accounts payable and accrued expense	68,152	8,818
Deferred revenue		(43,565)
Net cash used in operating activities	(184,259)	(454,407)
Cash Flows From Financing Activities:
Loan from stockholder		4,000
Debt issued to pay accounts payable	8,000
Proceeds from issuance of convertible debt	162,001	290,500
Net cash provided by financing activities	170,001	294,500
Net change in cash	(14,258)	(159,907)
Cash at beginning of period	16,921	162,354
Cash at end of period	2,663	2,447
Non-Cash Transactions
Common stock issued for convertible debt conversion	$ 39,769	$ 412,380

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Note 1 - Basis of Presentation and Organization

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 - BASIS

OF PRESENTATION AND ORGANIZATION

Liberated Energy, Inc. (the “Company”), formerly known as Mega World Food Holdings Company is a Nevada corporation formed on September 14, 2010.

On January 19, 2013, pursuant to a Common Stock Purchase Agreement, dated January 7, 2013, Perpetual Wind Power Corporation, a privately held corporation formed under the laws of the State of Delaware on July 1, 2010, acquired 24,500,000 non-registered shares of the Company from its shareholders, thereby owning 24,500,000 out of a total of 25,000,000 issued and outstanding shares of the Company. Thereafter, the Company acquired from Perpetual Wind Power Corporation its patented wind and solar powered turbine technology for 2,500,000 newly issued shares of the Company which were distributed in a dividend to its shareholders and Perpetual Wind Power Corporation returned to treasury its 24,500,000 shares it acquired from the Company's shareholders. As a result of this transaction, the Company had on January 19, 2013, 3,000,000 shares issued and outstanding. On February 14, 2013, the Company changed its name from Mega World Food Holding Company to Liberated Energy, Inc. and underwent a 24 for 1 stock split, whereby the Company's outstanding shares increased from 3,000,000 to 72,000,000.

On January 19, 2013, the Company disposed of its wholly-owned subsidiary, Mega World Food Limited (HK).  Mega World Food Limited (HK) was incorporated on June 24, 2010 and was in the business of selling frozen vegetables in all areas of the world except China.  From inception, Mega World Food Limited (HK) only incurred setting up, formation or organization activities.  Upon disposal, the Company ceased these operations and accordingly, the Company’s financial statements have been prepared with the net assets, results of operations, and cash flows of this business displayed separately as “discontinued operations.”

Effective January 19, 2013, the Company’s business is the sale of alternative energy products and services.

On February 4, 2015 the Company increased their number of authorized preferred shares from 10,000,000 to 100,000,000 and authorized common shares from 250,000,000 to 900,000,000.

On July 6, 2016, the Company adopted a 1-for-3,500 reverse split of the Company’s common stock that as of June 30, 2016 was not yet effective.

Bases of Presentation

The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2016. The accompanying unaudited financial statements should be read in conjunction with the financial statements and related notes included in the Company’s 2015 Annual Report filed with the SEC for yearend September 30, 2015.

The Company has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements.  The adoption of this ASU allows the Company to remove the inception to date information and all references to exploration stage.

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Note 2 - Going Concern

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Substantial Doubt about Going Concern [Text Block]

NOTE 2 - GOING CONCERN

As shown in the accompanying financial statements, the Company has a negative working capital of $579,339 and an accumulated deficit of $1,335,644 as of June 30, 2016. The Company’s ability to generate net income and positive cash flows is dependent on the ability to grow its operating entity as well as the ability to raise additional capital. Management is following strategic plans to accomplish these objectives, but success is not guaranteed. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

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Note 3 - Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Significant Accounting Policies [Text Block]

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The Company maintains its books and records on the accrual basis of accounting.  The accompanying financial statements have been prepared on that basis, in which revenues and gains are recognized when earned and expenses and losses are recognized when incurred.

Use of Estimates

The presentation of financial statements in conformity with generally accepted accounting principles in the United States of America 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.

Cash and Cash Equivalents

For the purpose of the statement of cash flows, cash and cash equivalents include all cash balances, which are not subject to withdrawal restrictions or penalties, and highly liquid investments and debt instruments with a maturity of three months or less from the date of purchase.

Fair Value of Financial Instruments

Our short-term financial instruments, including cash, other assets and accounts payable and accrued expenses consist primarily of instruments without extended maturities, the fair value of which, based on management’s estimates, reasonably approximate their book value. The fair value of our notes and advances payable is based on management estimates and reasonably approximates their book value based on their current maturity.

Net Loss per Common Share

The Company computes per share amounts in accordance with Statement of Financial Accounting Standards (SFAS) ASC 260, Earnings per Share (EPS). ASC 260 requires presentation of basic and diluted EPS. Basic EPS is computed by dividing the income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock and common stock equivalents outstanding during the periods.

Stock-Based Compensation

The Company accounts for its stock based awards in accordance with Accounting Standards Codification subtopic 718-10, Compensation (“ASC 718-10”), which requires a fair value measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including restricted stock awards. We estimate the fair value of stock using the stock price on date of the approval of the award. The fair value is then expensed over the requisite service periods of the awards, which is generally the date at which the counterparty’s performance is complete and the related amount recognized in our statements of operations.

Revenue and Cost Recognition

The Company not generated revenue during the three and nine months period ended June 30, 2016 and 2015. It is the Company’s policy that revenue from product sales or services will be recognized in accordance with ASC 605 “Revenue Recognition”. Four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product was not delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

Income Taxes

The Company utilizes ASC 740 “Income Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes primarily relate to the recognition of debt costs and stock based compensation expense. The adoption of ASC 740-10 did not have a material impact on the Company's results of operations or financial condition.

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Note 4 - Fair Value Measurements

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Fair Value, Measurement Inputs, Disclosure [Text Block]

NOTE 3 – FAIR VALUE MEASUREMENTS

As defined in (Financial Accounting Standards Board ASC 820), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

The three levels of the fair value hierarchy are as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

Management has determined based on note conversion history that the fair value of the notes is equal to their face value.

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Note 5 - Related Party

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE

4

– RELATED PARTY

On February 4, 2015 the Company issued to an officer and director of the Company 10,000,000 shares with a value of $10,000 of series A preferred stock for service. Each share has 10 votes on all matters of the Company in which the shareholders can vote.

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Note 6 - Equity

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE

5

- EQUITY

During the nine months ended June 30

, 2016 the Company issued 208,430 shares of commons stock with a value of $39,769 for the conversion of convertible debt

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Note 7 - Convertible Debt

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

6

– CONVERTIBLE DEBT

On November 5, 2015, the Company issued a Convertible Note (the “Note”) to Carebourn Capital, LP for a principle amount of $28,000 with an interest rate of 12% per annum. The note matures on August 5, 2016. The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On December 21, 2015, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $21,000 with an interest rate of 12% per annum. The note matures on September 16, 2016. The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On March 11, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $18,000 with net proceeds of $15,000 and with an interest rate of 12% per annum. The note matures on December 11, 2016. The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On March 14, 2016 the Company issued a Convertible Note to LG Capital Funding, LP for a principle amount of $17,000 with an interest rate of 12% per annum. The note matures on March 14, 2017. The note is convertible by the holder at a discount of 45% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On May 17, 2016 the Company issued a Convertible Note Craig Savin for a principle amount of $15,000 with an interest rate of 12% per annum. The note matures on March 14, 2017. The note is convertible by the holder at a discount of 45% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

On May 26, 2016 the Company issued a Convertible Note to LG Capital Funding, LP for a principle amount of $17,000 with an interest rate of 12% per annum. The note matures on March 14, 2017. The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion. Net proceeds to the Company are $15,000 after deduction of legal fees of $2,000.

On June 14, 2016 the Company issued a Convertible Note Craig Savin for a principle amount of $5,000 with an interest rate of 12% per annum. The note matures on March 14, 2017. The note is convertible by the holder at a discount of 45% of the lowest trading price of the Company’s stock for the 20 days prior to the conversion.

As the market value of the Company’ stock is below it par value, Management has concluded that the benefit of the conversion feature is zero and has not allocate a value to the conversion.

As of June 30, 2016 the Company outstanding liability of convertible debt was $415,769. The liability was as follows:

Carebourn Capital LP	$	57,896
JMJ Capital		15,213
Craig Savin		20,000
JSJ Capital		2,179
LG Capital, LLC		240,480
Tonqquist Capital		80,000
Total	$	415,769

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Note 8 - Subsequent Events

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 7 – SUBSEQUENT EVENTS

On July 6, 2016, the Company adopted a 1-for-3,500 reverse split of the Company’s common stock. The company is proceeding with the necessary filings to affect the reverse split.

On July 25, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $23,000 with an interest rate of 12% per annum. The note matures on July 25, 2017. The note is convertible by the holder at a discount of 45% of the lowest three trading price of the Company’s stock for the 20 days prior to the conversion.

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Significant Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Accounting

The Company maintains its books and records on the accrual basis of accounting.  The accompanying financial statements have been prepared on that basis, in which revenues and gains are recognized when earned and expenses and losses are recognized when incurred.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The presentation of financial statements in conformity with generally accepted accounting principles in the United States of America 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.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

For the purpose of the statement of cash flows, cash and cash equivalents include all cash balances, which are not subject to withdrawal restrictions or penalties, and highly liquid investments and debt instruments with a maturity of three months or less from the date of purchase.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Our short-term financial instruments, including cash, other assets and accounts payable and accrued expenses consist primarily of instruments without extended maturities, the fair value of which, based on management’s estimates, reasonably approximate their book value. The fair value of our notes and advances payable is based on management estimates and reasonably approximates their book value based on their current maturity.

Earnings Per Share, Policy [Policy Text Block]

Net Loss per Common Share

The Company computes per share amounts in accordance with Statement of Financial Accounting Standards (SFAS) ASC 260, Earnings per Share (EPS). ASC 260 requires presentation of basic and diluted EPS. Basic EPS is computed by dividing the income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock and common stock equivalents outstanding during the periods.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

The Company accounts for its stock based awards in accordance with Accounting Standards Codification subtopic 718-10, Compensation (“ASC 718-10”), which requires a fair value measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including restricted stock awards. We estimate the fair value of stock using the stock price on date of the approval of the award. The fair value is then expensed over the requisite service periods of the awards, which is generally the date at which the counterparty’s performance is complete and the related amount recognized in our statements of operations.

Revenue Recognition, Policy [Policy Text Block]

Revenue and Cost Recognition

The Company not generated revenue during the three and nine months period ended June 30, 2016 and 2015. It is the Company’s policy that revenue from product sales or services will be recognized in accordance with ASC 605 “Revenue Recognition”. Four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product was not delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company utilizes ASC 740 “Income Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes primarily relate to the recognition of debt costs and stock based compensation expense. The adoption of ASC 740-10 did not have a material impact on the Company's results of operations or financial condition.

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Note 7 - Convertible Debt (Tables)

9 Months Ended

Jun. 30, 2016

Notes Tables

Convertible Debt [Table Text Block]

Carebourn Capital LP	$	57,896
JMJ Capital		15,213
Craig Savin		20,000
JSJ Capital		2,179
LG Capital, LLC		240,480
Tonqquist Capital		80,000
Total	$	415,769

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Note 1 - Basis of Presentation and Organization (Details Textual)	Jul. 06, 2016	Feb. 14, 2013 shares	Jan. 19, 2013 shares	Jun. 30, 2016 shares	Sep. 30, 2015 shares	Feb. 04, 2015 shares	Feb. 03, 2015 shares	Feb. 13, 2013 shares	Jan. 18, 2013 shares
Perpetual Wind Power Corporation [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares			24,500,000
Stock Issued During Period, Shares, New Issues			2,500,000
Reverse Stock Split [Member] | Subsequent Event [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	3,500
Common Stock, Shares, Outstanding		72,000,000	3,000,000	788,330	579,900			3,000,000	25,000,000
Common Stock, Shares, Issued			3,000,000	788,330	579,900				25,000,000
Stockholders' Equity Note, Stock Split, Conversion Ratio		24
Preferred Stock, Shares Authorized				100,000,000	100,000,000	100,000,000	10,000,000
Common Stock, Shares Authorized				10,000,000,000	10,000,000,000	900,000,000	250,000,000

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Note 2 - Going Concern (Details Textual) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Working Capital	$ (579,339)
Retained Earnings (Accumulated Deficit)	$ (1,335,644)	$ (1,083,232)

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Note 3 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue, Net	$ 0	$ 0	$ 0	$ 0

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Note 5 - Related Party (Details Textual) - Series A Preferred Stock [Member]	Feb. 04, 2015 USD ($) shares
Stock Issued During Period, Shares, Issued for Services | shares	10,000,000
Stock Issued During Period, Value, Issued for Services | $	$ 10,000
Number of Voting Rights	10

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Note 6 - Equity (Details Textual)	9 Months Ended
	Jun. 30, 2016 USD ($) shares
Stock Issued During Period Shares Issued for Accrued Liabilities or Debt | shares	208,430
Stock Issued During Period Value Issued for Accured Liabilities or Debt | $	$ 39,769

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Note 7 - Convertible Debt (Details Textual) - USD ($)								9 Months Ended
	Jun. 14, 2016	May 26, 2016	May 17, 2016	Mar. 14, 2016	Mar. 11, 2016	Dec. 21, 2015	Nov. 05, 2015	Jun. 30, 2016	Jun. 30, 2015
Convertible Debt	$ 5,000	$ 17,000	$ 15,000	$ 17,000	$ 18,000	$ 21,000	$ 28,000
Debt Instrument, Interest Rate, Effective Percentage	12.00%	12.00%	12.00%	12.00%	12.00%	12.00%	12.00%
Debt Instrument, Convertible, Discount Percentage	45.00%	50.00%	45.00%	45.00%	50.00%	50.00%	50.00%
Proceeds from Convertible Debt		$ 15,000			$ 15,000			$ 162,001	$ 290,500
Professional Fees		$ 2,000
Convertible Notes Payable, Current								$ 415,769

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Note 7 - Outstanding Liability of Convertible Debt (Details)	Jun. 30, 2016 USD ($)
Carebourn Capital LP [Member]
Convertible Notes Payable, Current	$ 57,896
JMJ Capital [Member]
Convertible Notes Payable, Current	15,213
Craig Savin [Member]
Convertible Notes Payable, Current	20,000
JSJ Capital [Member]
Convertible Notes Payable, Current	2,179
LG Capital Funding, LLC [Member]
Convertible Notes Payable, Current	240,480
Tonqquist Capital [Member]
Convertible Notes Payable, Current	80,000
Convertible Notes Payable, Current	$ 415,769

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Note 8 - Subsequent Events (Details Textual)	Jul. 25, 2016 USD ($)	Jul. 06, 2016	Jun. 14, 2016 USD ($)	May 26, 2016 USD ($)	May 17, 2016 USD ($)	Mar. 14, 2016 USD ($)	Mar. 11, 2016 USD ($)	Dec. 21, 2015 USD ($)	Nov. 05, 2015 USD ($)	Feb. 14, 2013
Reverse Stock Split [Member] | Subsequent Event [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio		3,500
Subsequent Event [Member]
Convertible Debt	$ 23,000
Debt Instrument, Interest Rate, Effective Percentage	12.00%
Debt Instrument, Convertible, Discount Percentage	45.00%
Stockholders' Equity Note, Stock Split, Conversion Ratio										24
Convertible Debt			$ 5,000	$ 17,000	$ 15,000	$ 17,000	$ 18,000	$ 21,000	$ 28,000
Debt Instrument, Interest Rate, Effective Percentage			12.00%	12.00%	12.00%	12.00%	12.00%	12.00%	12.00%
Debt Instrument, Convertible, Discount Percentage			45.00%	50.00%	45.00%	45.00%	50.00%	50.00%	50.00%