Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2019

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The consolidated financial statements include the accounts of AmeriCann, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant estimates and assumptions made by management are valuation of equity instruments, deferred tax asset valuation and allowance and collectability of long-lived assets. Actual results could differ from those estimates as the current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. See Note

for a discussion of our provision for doubtful accounts for amount amounts owed from WGP.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand, demand deposit accounts and temporary cash investments with maturities of

ninety

days or less at the date of purchase.

Income Tax, Policy [Policy Text Block]

Income Taxes

In accordance with ASC Topic

740,

Income Taxes, the provision for income taxes is computed using the asset and liability method. The liability method measures deferred income taxes by applying enacted statutory rates in effect at the consolidated balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the consolidated financial statements. The resulting deferred tax assets or liabilities have been adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than

not

that a deferred tax asset will

not

be realized.

We expect to recognize the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a "more-likely-than-

not"

threshold, the amount to be recognized in the consolidated financial statements will be the benefit expected to be realized upon settlement with the tax authority. For tax positions

not

meeting the threshold,

financial statement benefit is recognized. As of

September 30, 2019

and

2018,

we had

uncertain tax positions. We recognize interest and penalties, if any, related to uncertain tax positions as general and administrative expenses. We currently have

federal or state tax examinations nor have we had any federal or state examinations since our inception. To date, we have

not

incurred any interest or tax penalties.

For federal tax purposes, our

2017

through

2019

tax years remain open for examination by the tax authorities under the normal

three

-year statute of limitations.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risks

and Significant Customers

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, notes receivable, deposits, accounts receivable and notes receivable. We place our cash with high credit quality financial institutions. As of

September 30, 2019,

we had outstanding notes receivable of

$148,763

with BASK, Inc. (formerly Coastal Compassion Inc.) ("BASK"), a related party and a note and a receivable in the amount of

$1,761,675

with WGP (exclusive of provision for doubtful accounts of

$1,761,675

). See Note

for a discussion of our provision for doubtful accounts for amounts owed from WGP.

For the year ended

September 30, 2019,

all of the Company’s revenue was earned from

one

customer, BASK. As of

September 30, 2019,

the BASK tenant receivable balance was

$11,564.

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

Financial Instruments and Fair Value of Financial Instruments

We adopted ASC Topic

820,

Fair Value Measurements and Disclosures, for assets and liabilities measured at fair value on a recurring basis. ASC Topic

820

establishes a common definition for fair value to be applied to existing US GAAP that requires the use of fair value measurements that establishes a framework for measuring fair value and expands disclosure about such fair value measurements.

ASC Topic

820

defines fair value as 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. Additionally, ASC Topic

820

requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:

	Level 1:	Observable inputs such as quoted market prices in active markets for identical assets or liabilities
	Level 2:	Observable market-based inputs or unobservable inputs that are corroborated by market data
	Level 3:	Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.

The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. We had

financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. We had

financial assets or liabilities carried and measured on a recurring basis during the reporting periods. The carrying value of short-term financial instruments, including cash and cash equivalents, tenant and notes receivable, accounts payable and accrued expenses, and short-term borrowings approximate fair value due to the relatively short period to maturity for these instruments. The long-term borrowings approximate fair value since the related rates of interest approximates current market rates.

Derivatives, Policy [Policy Text Block]

Derivative Liabilities

We evaluate stock options, stock warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under the relevant sections of ASC Topic

815

40,

Derivative Instruments and Hedging: Contracts in Entity’s Own Equity. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative instrument and is marked-to-market at each consolidated balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or other expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Financial instruments that are initially classified as equity that become subject to reclassification under ASC Topic

815

are reclassified to a liability account at the fair value of the instrument on the reclassification date. We determined that

none

of our financial instruments meet the criteria for derivative accounting as of

September 30, 2019

and

2018.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Long-Lived Assets

Our long-lived assets consisted of property, equipment and real estate and are reviewed for impairment in accordance with the guidance of the Topic ASC Topic

360,

Property, Plant, and Equipment, and ASC Topic

205,

Presentation of Consolidated Financial Statements. We test for impairment losses on long-lived assets used in operations whenever events or changes in circumstances indicate that the carrying amount of the asset

may

not

be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management's estimates on asset useful lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial positions. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and

third

-party independent appraisals, as considered necessary. There were

impairment losses recognized for the years ended

September 30, 2019

and

2018.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment are stated at cost. Depreciation of property and equipment begins in the month following the month when the asset is placed into service and is provided using the straight-line method for financial reporting purposes at rates based on the estimated useful lives of the assets. Estimated useful lives range from

three

twenty

years. Land is classified as held for sale when management has the ability and intent to sell, in accordance with ASC Topic

360

45.

Property, Plant and Equipment, Construction in Progress, Policy [Policy Text Block]

Construction in progress (CIP)

CIP consists of initial costs associated with construction of manufacturing facilities, including material, equipment and interest expenses. When CIP is finished the assets are transferred to property and equipment.

provision for depreciation is made on CIP until such time that the relevant assets are available and ready to use. During the year ended

September 30, 2019,

Building

of the Company's flagship project, the Massachusetts Cannabis Center (“MCC”), was completed and CIP of

$7,571,176

was reclassified to buildings and improvements.

Interest Capitalization, Policy [Policy Text Block]

Capitalized Interest

The Company capitalizes interest to construction in progress made in connection with facility construction that are

not

subject to current depreciation. Interest is capitalized only for the period that activities are in progress to bring the projects to their intended use. Capitalized interest was

and

$129,528

for the years ended

September 30, 2019,

and

2018,

respectively.

Commissions Expense, Policy [Policy Text Block]

Equity Instruments Issued to Non-Employees for Acquiring Goods or Services

Issuances of our common stock or warrants for acquiring goods or services are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The measurement date for the fair value of the equity instruments issued to consultants or vendors is determined at the earlier of (i) the date at which a commitment for performance to earn the equity instruments is reached (a "performance commitment" which would include a penalty considered to be of a magnitude that is a sufficiently large disincentive for nonperformance) or (ii) the date at which performance is complete.

Although situations

may

arise in which counter performance

may

be required over a period of time, the equity award granted to the party performing the service is fully vested and non-forfeitable on the date of the agreement. As a result, in this situation in which vesting periods do

not

exist if the instruments is fully vested on the date of agreement, we determine such date to be the measurement date and will record the estimated fair market value of the instruments granted as a prepaid expense and amortize such amount to general and administrative expense in the accompanying consolidated statement of operations over the contract period. When it is appropriate for us to recognize the cost of a transaction during financial reporting periods prior to the measurement date, for purposes of recognition of costs during those periods, the equity instrument is measured at the then-current fair values at each of those interim financial reporting dates.

Business Combinations and Other Purchase of Business Transactions, Policy [Policy Text Block]

Non-Cash Equity Transactions

Shares of equity instruments issued for noncash consideration are recorded at the estimated fair market value of the consideration granted based on the estimated fair market value of the equity instrument, or at the estimated fair market value of the goods or services received, whichever is more readily determinable.

Stock-Based Compensation

We account for share-based awards to employees in accordance with ASC Topic

718,

Stock Compensation. Under this guidance, stock compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the estimated service period (generally the vesting period) on the straight-line attribute method. Share-based awards to non-employees are accounted for in accordance with ASC Topic

505

50,

Equity, wherein such awards are expensed over the period in which the related services are rendered.

Collaborative Arrangement, Accounting Policy [Policy Text Block]

Related Parties

A party is considered to be related to us if the party directly or indirectly or through

one

or more intermediaries, controls, is controlled by, or is under common control with us. Related parties also include our principal owners, our management, members of the immediate families of our principal owners and our management and other parties with which we

may

deal if

one

party controls or can significantly influence the management or operating policies of the other to an extent that

one

of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties, or if it has an ownership interest in

one

of the transacting parties and can significantly influence the other to an extent that

one

or more of the transacting parties might be prevented from fully pursuing its own separate interests, is also a related party.

Revenue [Policy Text Block]

Revenue Recognition

Effective

October 1, 2018,

we adopted ASU

2014

09,

Revenue from Contracts with Customers (Topic

606

). Under the new standard, we recognize revenues when the following criteria are met: (i) persuasive evidence of a contract with a customer exists, (ii) identifiable performance obligations under the contract exist, (iii) the transaction price is determinable for each performance obligation, (iv) the transaction price is allocated to each performance obligation, and (v) when the performance obligations are satisfied. Currently, we derive all of our revenues from property leases. Property leases are

not

within the scope of ASC

606.

Property lease revenue is earned through annual leases for facilities used in agricultural/manufacturing activities and the Company records revenues on a straight-line basis over the term of these leases. Property lease revenues from these sources are recurring on an annual basis. Unearned property lease revenues were

at both

September 30, 2019

and

2018.

Advertising Cost [Policy Text Block]

Advertising Expense

Advertising, promotional and selling expenses consisted of sales and marketing expenses, and promotional activity expenses. Expenses are recognized when incurred.

Selling, General and Administrative Expenses, Policy [Policy Text Block]

General and Administrative Expense

General and administrative expenses consisted of professional service fees, rent and utility expenses, meals, travel and entertainment expenses, and other general and administrative overhead costs. Expenses are recognized when incurred.

Earnings Per Share, Policy [Policy Text Block]

Loss per

We compute net loss per share in accordance with the ASC Topic

260.

The ASC specifies the computation, presentation and disclosure requirements for loss per share for entities with publicly held common stock.

Basic loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Shares issuable upon the exercise of equity instruments such as warrants and options were

not

included in the loss per share calculations because the inclusion would have been anti-dilutive.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent

ly Adopted

Accounting Pronouncements

Between

May 2014

and

December 2016,

the FASB issued several ASU’s on Revenue from Contracts with Customers (Topic

606

). These updates will supersede nearly all existing revenue recognition guidance under current U.S. generally accepted accounting principles (GAAP). The core principle is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. A

five

-step process has been defined to achieve this core principle, and, in doing so, more judgment and estimates

may

be required within the revenue recognition process than are required under existing U.S. GAAP. The standards are effective for annual periods beginning after

December 15, 2017,

and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standards in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting the standards recognized at the date of adoption (which includes additional footnote disclosures). The Company adopted Topic

606,

effective

October 1, 2018

and the adoption did

not

have a material impact on its revenue recognition as it pertains to current revenue streams.

July 2017,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2017

11,

Earnings Per Share (Topic

260

); Distinguishing Liabilities from Equity (Topic

480

); Derivatives and Hedging (Topic

815

): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. The ASU was issued to address the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity. The ASU, among other things, eliminates the need to consider the effects of down round features when analyzing convertible debt, warrants and other financing instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option)

longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The amendments are effective for fiscal years beginning after

December 15, 2018,

and should be applied retrospectively. Early adoption is permitted, including adoption in an interim period. The Company adopted the changes effective

October 1, 2018

and the changes did

not

have a material impact on its financial statements.

May 2017,

the FASB issued ASU

No.

2017

09,

Compensation—Stock Compensation (Topic

718

): Scope of Modification Accounting, to provide clarity and reduce both (

) diversity in practice and (

) cost and complexity when applying the guidance in Topic

718,

Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC

718.

The amendments are effective for fiscal years beginning after

December 15, 2017,

and should be applied prospectively to an award modified on or after the adoption date. Early adoption is permitted, including adoption in an interim period. The Company adopted the changes effective

October 1, 2018

and the changes did

not

have a material impact on its financial statements.

February 2017,

the FASB issued ASU

No.

2017

05,

Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic

610

): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, to clarify the scope of Subtopic

610

20,

Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets, and to add guidance for partial sales of nonfinancial assets. Subtopic

610

20,

which was issued in

May 2014

as a part of ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

), provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. The amendments are effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years, which is the same time as the amendments in ASU

No.

2014

09,

and early adoption is permitted. The Company adopted the changes effective

October 1, 2018

and the changes did

not

have a material impact on its financial statements.

January 2017,

the FASB issued ASU

No.

2017

03,

Accounting Changes and Error Corrections (Topic

250

). The ASU adds SEC disclosure requirements for both the quantitative and qualitative impacts that certain recently issued accounting standards will have on the financial statements of a registrant when such standards are adopted in a future period. Specially, these disclosure requirements apply to the adoption of ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

); ASU

No.

2016

02,

Leases (Topic

842

); and ASU

No.

2016

13,

Financial Instruments—Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments. The Company adopted ASU

No.

2014

effective

October 1, 2018

and the adoption did

not

have a material impact on its revenue recognition as it pertains to current revenue streams.

Recently Issued Accounting Pronouncements

January 2018,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2018

01,

LEASES (TOPIC

842

): LAND EASEMENT PRACTICAL EXPEDIENT FOR TRANSITION TO TOPIC

842;

February 25, 2016,

the FASB issued Accounting Standards Update

No.

2016

02,

Leases (Topic

842

), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. The FASB has been assisting stakeholders with implementation questions and issues as organizations prepare to adopt Topic

842.

In connection with the FASB’s transition support efforts, a number of stakeholders inquired about the application of the new lease requirements in Topic

842

to land easements. Land easements (also commonly referred to as rights of way) represent the right to use, access, or cross another entity’s land for a specified purpose The amendments in this Update affect the amendments in Update

2016

02,

which are

not

yet effective but

may

be early adopted, and Example

of Subtopic

350

30.

The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update

2016

02.

An entity that early adopted Topic

842

should apply the amendments in this Update upon issuance. The Company is evaluating the impact of this standard on the financial statements.