10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT UNDER 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

Commission file number 000-55256

Kibush Capital Corp.

(Exact Name of Small Business Issuer as specified in its charter)

Nevada

(State or other Jurisdiction of Incorporation or Organization)

c/o McGee Law Firm, LLC

5635 N. Scottsdale Road, Ste 170

Scottsdale, Arizona 85250

(Address of principal executive offices)

+(61) 398464288

(Issuer’s telephone number, including area code)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 last 90 days. YES [X] 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 (SS 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 [X] 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 if the Exchange Act.

Large Accelerated Filer	[  ]	Accelerated Filer	[  ]
Non-accelerated Filer (Do not check if smaller reporting company)	[  ]	Smaller Reporting Company	[X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES [  ] NO [X]

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of August 12, 2016, there were 179,538,440 shares of the registrant’s common stock outstanding.

CAUTIONARY NOTE REGARDING EXPLORATION STAGE STATUS

We are considered an “exploration stage” company under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7, Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations (“Industry Guide 7”), because we do not have reserves as defined under Industry Guide 7. Reserves are defined in Guide 7 as that part of a mineral deposit which can be economically and legally extracted or produced at the time of the reserve determination. The establishment of reserves under Guide 7 requires, among other things, certain spacing of exploratory drill holes to establish the required continuity of mineralization and the completion of a detailed cost or feasibility study.

Because we have no reserves as defined in Industry Guide 7, we have not exited the exploration stage and continue to report our financial information as an exploration stage entity as required under Generally Accepted Accounting Principles (“GAAP”). Although for purposes of FASB Accounting Standards Codification Topic 915, Development Stage Entities, we have exited the development stage and no longer report inception to date results of operations, cash flows and other financial information, we will remain an exploration stage company under Industry Guide 7 until such time as we demonstrate reserves in accordance with the criteria in Industry Guide 7.

Because we have no reserves, we have and will continue to expense all mine construction costs, even though these expenditures are expected to have a future economic benefit in excess of one year. We also expense our reclamation and remediation costs at the time the obligation is incurred. Companies that have reserves and have exited the exploration stage typically capitalize these costs, and subsequently amortize them on a units-of-production basis as reserves are mined, with the resulting depletion charge allocated to inventory, and then to cost of sales as the inventory is sold. As a result of these and other differences, our financial statements will not be comparable to the financial statements of mining companies that have established reserves and have exited the exploration stage.

FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, Financial Statements and Notes to Financial Statements contains forward-looking statements that discuss, among other things, future expectations and projections regarding future developments, operations and financial conditions. All forward-looking statements are based on management’s existing beliefs about present and future events outside of management’s control and on assumptions that may prove to be incorrect. If any underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or intended

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

June 30, 2016

C O N T E N T S

Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Operations	4
Condensed Consolidated Statements of Cash Flows	5
Consolidated Statement Of Stockholders’ Deficit	6
Notes to Condensed Consolidated Financial Statements	7

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INTERIM CONSOLIDATED BALANCE SHEETS

	June 30, 2016			September 30, 2015
ASSETS
Current assets:
Cash	$	13,750		$	10,763
Prepaid expenses and other current assets		-			-
Total current assets		13,750			10,763
Property and equipment, net		102,635			48,544
Investment in unconsolidated Joint Venture/Mining Rights		-			-
Other assets		20,285			22,627
Deposits Paid		9,562			9,562
Goodwill on Consolidation		14,000			14,000
Total assets	$	160,233		$	105,496
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	5,013		$	11,147
Accrued expenses		580,066			326,187
Promissory notes payable		40,508			34,374
Convertible notes payable		280,826			182,166
Loan from related party		937,335			679,227
Derivative liabilities		904,713			498,417
Deposits		155,300			155,300
Shares to be Issued - Five Arrows		36,378			36,378
Bank Overdraft		-			-
Total current liabilities		2,939,063			1,923,196
Stockholders’ deficit:
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at June 30, 2016 and September 30, 2015		3,000			3,000
Common stock, $0.001 par value; 500,000,000 shares authorized at June 30, 2016 and September 30, 2015; 101,392,416 and 77,399,187 shares issued and outstanding at June 30, 2016 and September 30, 2015		101,392			77,399
Additional paid-in capital		9,181,922			9,151,960
Accumulated deficit		(11,986,773	)		(10,986,677	)
Accumulated other comprehensive income		-			-
Total stockholders’ deficit, including non-controlling interest		(2,700,458	)		(1,745,318	)
Non-Controlling interest		(78,371	)		(63,381	)
Total stockholders’ deficit		(2,778,829	)		(1,817,699	)
Total liabilities and stockholders’ deficit	$	160,233		$	105,496

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CONSOLIDATED STATEMENT OF OPERATIONS

	Quarter ended June 30, 2016		Quarter ended June 30, 2015		9 months ended June 30, 2016		9 months ended June 30, 2015
Net revenues	$	20,618	$	-	$	93,044	$	-
Cost of sales		-		-
Gross profit		20,618		-		93,044		-
Operating expenses:
Research and development		-		-
General and administrative
General and administrative		133,769		644,589		623,024		856,085
Total operating expenses		133,769		644,589		623,024		856,085
Loss from operations		-113,152		-644,589		-529,981		-856,085
Other income (expense):
Interest income		-		-		-		-
Interest expense		-155,617		-60,197		-469,330		-192,973
Other income		-		-		-		-
Change in fair value of derivative liabilities		-		-205,457		-15,225		-174,817
Total other expense, net		-155,617		-145,260		-484,555		-367,790
Loss before provision for income taxes		-268,769		-499,329		1,014,535		-1,223,875
Provision for income taxes		-		-		-		-
Net loss from operations		-268,769		-499,329		1,014,535		-1,223,875
Less: Loss attributable to non-controlling interest		4,035		16,772		14,439		43,913
Net loss attributable to Holding Company	$	-264,734	$	-482,557	$	1,000,096	$	-1,179,962
Basic and diluted loss per common share	$	-0.01	$	-0.01	$	-0.03	$	-0.03
Weighted average common shares outstanding basic and diluted		36,026,011		36,026,011		36,026,011		36,026,011

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CONSOLIDATED STATEMENT OF CASH FLOWS

	9 months ended June, 30 2016			9 months ended June, 30 2015
Operating Activities:
Net loss	$	(1,000,096	)	($	1,179,962	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		15,922			3,017
Amortization of debt discount		389,995			319,266
Interest expense related to fair value of derivative instruments granted		-			-
Change in fair value of derivative instruments		15,225			-
Stock based payments		-			-
Changes in operating assets and liabilities:
Prepaid expenses and other assets		-			6035
Others asset		4,008			499
Accounts payable		-			9,277
Accrued expenses		187,500			75,000
Accrued interest		79,335			-38,287
Deposits		-			75,300
Net cash used in operating activities		-308,111			-945,766
Investing Activities:
Goodwill on Consolidation		-			-
Investment in Angel Jade		-			-
Purchase of property and equipment		-69,691			41,455
Net cash used in investing activities		-69,691			41,455
Financing Activities:
Proceeds from issuance of convertible debt, net of debt discounts		-			-
Repayment of loan from related party		-			-
Proceeds from related party loans, net of debt discounts		397,708			-829,435
Effective of exchange rates on cash		-16,918			-
Net cash provided by financing activities		380,789			-893,572
Net change in cash		2,987			3,261
Cash, beginning of period		10,763			2,502
Cash, end of period	$	13,750		$	5,763

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KIBUSH CAPITAL CORPORATION

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

for the period SEPTEMBER 30, 2015 and DECEMBER 31, 2015 and MARCH 31, 2016 and JUNE 30, 2016

	Common Stock				Preferred Stock				Paid In			Non Controlling			Accumulated			Accumulated Other Comprehensive			Stockholders’
	Shares		Amount		Shares		Amount		Capital			Interest			Deficit			Income			Deficit
Balance at September 30, 2014		53,837,485		53,837		3,000,000		3,000		8,494,962			108,780			-10,225,051			55,022			-1,509,450
Discount on convertible promissory note
Repayment of convertible loans @ 0.001 per share of common stock		2,560,000		2,560																		2,560
Repayment of convertible loans @ 0.001 per share of common stock		2,000,000		2,000																		2,000
Repayment of convertible loans @ 0.001 per share of common stock		2,000,000		2,000																		2,000
Common Stock issued – Warren Sheppard		3,001,702		3,002						696,998												700,000
Common Stock issued – Five Arrows		14,000,000		14,000																		14,000
Prior Period adjustment – Investment in Aqua Mining										(40,000	)											(40,000	)
Prior Period adjustment													3			529,486			(55,022	)		474,467
Sold subsidiary consolidated reversals													(108,780	)								(108,780	)
Adjustment of sold subsidiary																(501	)					(501	)
Exchange rate variation													(928	)		2						(926	)
Net loss													(62,456	)		(1,290,613	)					(1,353,069	)
Balance at September 30, 2015		77,399,187		77,399		3,000,000		3,000		9,151,960			-63,381			-10,986,677			-			-1,817,699
Net loss													(4,546	)		(398,919	)					(403,465	)
Balance at December 31, 2015		77,399,187		77,399		3,000,000		3,000		9,151,960			-67,927			-11,385,596			-			-2,221,164
Net loss													(5,858	)		(336,433	)					(342,291	)
													47									47
Balance at March 31, 2016		77,399,187		77,399		3,000,000		3,000		9,151,960			-73,738			-11,722,029			-			-2,563,408
Common stock issued for repayment of convertible debt		555,556		556						653												1,209
Common stock issued for repayment of convertible debt		6,313,131		6,313				14,933														21,246
Common stock issued for repayment of convertible debt		7,936,508		7,937						2,063												10,000
Common stock issued for repayment of convertible debt		9,188,034		9,188						12,312												21,500
Net loss													(4,035	)		(264,734	)					(268,769	)
Exchange rate variation													(598	)								(598	)
Balance at June 30, 2016		101,392,416		101,392		3,000,000		3,000		9,181,922			-78,371			-11,986,773			-			-2,778,829

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NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2016, and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Form 10-K for the year ended September 30, 2015. The results of operations for the three-month period ended June 30, 2016 are not necessarily indicative of the operating results for the full year.

Basis of Presentation

The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

The consolidated financial statements of the Company include the accounts of the Company, and all entities in which a direct or indirect controlling interest exists through voting rights or qualifying variable interests. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As at September 30, 2015 and June 30, 2016, the Company had accumulated deficits of $10,986,677 and $11,986,773, respectively. The Company has not earned sufficient revenues to cover operating costs since inception and has a working capital deficit. The Company intends to fund its mining exploration through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year. 

The ability of the Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue mining exploration and execution of its business plan. While management intends to raise additional funds through public or private placement offerings, the Company might not be successful in its efforts to raise capital.

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern, as expressed by our auditor in its audit opinion for the year ended September 30, 2015. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Functional and Reporting Currency

The consolidated financial statements are presented in U.S. Dollars. The Company’s functional currency is the U.S. Dollar. The functional currency of Angel Jade is the Australian dollar. The functional currency of Aqua Mining is the Papua New Guinea Kina. Assets and liabilities are translated using the exchange rate on the respective balance sheet dates. Items in the income statement and cash flow statement are translated into U.S. Dollars using the average rates of exchange for the periods involved. The resulting translation adjustments are recorded as a separate component of other comprehensive income/(loss) within stockholders’ equity.

The functional currency of foreign entities is generally the local currency unless the primary economic environment requires the use of another currency. Gains or losses arising from the translation or settlement of foreign-currency-denominated monetary assets and liabilities into the functional currency are recognized in the income in the period in which they arise. However, currency differences on intercompany loans that have the nature of a permanent investment are accounted for as translation differences as a separate component of other comprehensive income/(loss) within stockholders’ equity.

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NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the principal accounting policies are set out below:

Cash

The Company maintains its cash balances in interest and non-interest bearing accounts which do not exceed Federal Deposit Insurance Corporation limits.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Kibush Capital, Angel Jade and Aqua Mining. All intercompany accounts and transactions have been eliminated.

Other Comprehensive Income and Foreign Currency Translation

FASB ASC 220-10-05, Comprehensive Income, establishes standards for the reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distribution to owners.

The accompanying consolidated financial statements are presented in United States dollars.

Reclassifications

Reclassifications have been made to prior year consolidated financial statements in order to conform the presentation to the statements as of and for the period ended September 30, 2015.

Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires management to make certain 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. Significant estimates made by management are, recoverability of long-lived assets, valuation and useful lives of intangible assets, valuation of derivative liabilities, and valuation of common stock, options, warrants and deferred tax assets. Actual results could differ from those estimates.

Non-Controlling Interests

Investments in associated companies over which the Company has the ability to exercise significant influence are accounted for under the consolidation method, after appropriate adjustments for intercompany profits and dividends.

In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations.” It requires an acquirer to recognize, at the acquisition date, the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their full fair values as of that date. In a business combination achieved in stages (step acquisitions), the acquirer will be required to re-measure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in earnings. The acquisition-related transaction and restructuring costs will no longer be included as part of the capitalized cost of the acquired entity but will be required to be accounted for separately in accordance with applicable generally accepted accounting principles. U.S. SFAS No. 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.

A non-controlling interest in a subsidiary is an ownership interest in a consolidated entity that is reported as equity in the consolidated financial statements and separate from the Company’s equity. In addition, net income/(loss) attributable to non-controlling interests is reported separately from net income attributable to the Company in the consolidated financial statements. The Company’s consolidated statements present the full amount of assets, liabilities, income and expenses of all of our consolidated subsidiaries, with a partially offsetting amount shown in non-controlling interests for the portion of these assets and liabilities that are not controlled by us.

For our investments in affiliated entities that are included in the consolidation, the excess cost over underlying fair value of net assets is referred to as goodwill and reported separately as “Goodwill” in our accompanying consolidated balance sheets. Goodwill may only arise where consideration has been paid.

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Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over estimated useful lives as follows:

Plant equipment	2 to 15 years
Computer and software	1 to 2 years
Office equipment	3 to 10 years
Building improvements	20 years

Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected in the consolidated statement of operations.

Impairment of Long-Lived Assets

In accordance with FASB ASC 360-10-5, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company evaluates the carrying value of its long-lived assets for impairment whenever events or changes in circumstances indicate that such carrying values may not be recoverable. The Company uses its best judgment based on the current facts and circumstances relating to its business when determining whether any significant impairment factors exist. The Company considers the following factors or conditions, among others, that could indicate the need for an impairment review:

● Significant under performance relative to expected historical or projected future operating results;

● Significant changes in its strategic business objectives and utilization of the assets;

● Significant negative industry or economic trends, including legal factors;

If the Company determines that the carrying values of long-lived assets may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company’s management performs an undiscounted cash flow analysis to determine if impairment exists. If impairment exists, the Company measures the impairment based on the difference between the asset’s carrying amount and its fair value, and the impairment is charged to operations in the period in which the long-lived asset impairment is determined by management.

The carrying value of the Company’s investment in Joint Venture contract with leaseholders of certain Mining Leases in Papua New Guinea represents its ownership, accounted for under the equity method. The ownership interest is not adjusted to fair value on a recurring basis. Each reporting period the Company assesses the fair value of the Company’s ownership interest in Joint Venture in accordance with FASB ASC 325-20-35. Each year the Company conducts an impairment analysis in accordance with the provisions within FASB ASC 320-10-35 paragraphs 25 through 32.

Fair Value of Financial Instruments

The carrying amounts of the Company’s cash, accounts payable and accrued expenses approximate their estimated fair values due to the short-term maturities of those financial instruments. The Company believes the carrying amount of its notes payable approximates its fair value based on rates and other terms currently available to the Company for similar debt instruments

Beneficial Conversion Features of Debentures

In accordance with FASB ASC 470-20, Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios, we recognize the advantageous value of conversion rights attached to convertible debt. Such rights give the debt holder the ability to convert debt into common stock at a price per share that is less than the trading price to the public on the day the loan is made to us. The beneficial value is calculated as the intrinsic value (the market price of the stock at the commitment date in excess of the conversion rate) of the beneficial conversion feature of debentures and related accruing interest is recorded as a discount to the related debt and an addition to additional paid in capital. The discount is amortized over the remaining outstanding period of related debt using the interest method.

Derivative Financial Instruments

We apply the provisions of FASB ASC 815-10, Derivatives and Hedging (“ASC 815-10”). Derivatives within the scope of ASC 815-10 must be recorded on the balance sheet at fair value. During the year ended September 30, 2015, the Company issued convertible debt and recorded derivative liabilities related to a reset provision associated with the embedded conversion feature of the convertible debt. The Company computed the fair value of these derivative liabilities on the grant date and various measurement dates using the Black-Scholes pricing model. Due to the reset provisions within the embedded conversion feature, the Company determined that the Black-Scholes pricing model was the most appropriate for valuing these instruments.

In applying the Black-Scholes valuation model, the Company used the following assumptions during the year ended September 30, 2015 and quarter ended June 30, 2016:

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	For the year and quarter ended
	September 30, 2015 and June 30, 2016
Annual dividend yield		-
Expected life (years)		0.50 – 1.00
Risk-free interest rate		0.03% — 0.13	%
Expected volatility		210.12.% — 400.48	%

The inputs used to measure fair value fall in different levels of the fair value hierarchy, a financial security’s hierarchy level is based upon the lowest level of input that is significant to the fair value measurement.

The Company determines the fair value of its derivative instruments using a three-level hierarchy for fair value measurements which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market

data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair-value hierarchy:

Level 1 — Valuation based on unadjusted quoted market prices in active markets for identical securities. Currently, the Company does not have any items as Level 1.

Level 2 — Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. Currently, the Company does not have any items classified as Level 2.

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. The Company used the Black-Scholes option pricing models to determine the fair value of the instruments.

The following table presents the Company’s embedded conversion features of its convertible debt measured at fair value on a recurring basis as of September 30, 2015 and as of June 30, 2016:

	Carry Value at		Carry Value at
	June 30, 2016		September 30, 2015
Derivative liabilities: Embedded conversion features - notes	$	903,637	$	498,417
Total derivative liability	$	903,637	$	498,417

	For the 3 Months ended For the year ended
	June 30, 2016		September 30, 2015
Change in fair value included in other income (expense), net		0		131,044

The following table provides a reconciliation of the beginning and ending balances for the Company’s derivative liabilities measured at fair value using Level 3 inputs:

	For the 3 Months ended		For the year ended
	June 30, 2016		September 30, 2015
Embedded Conversion
Features - Notes:
Balance at beginning of year	$	775,370	$	752,997
Change in derivative liabilities	$	128,267	$	-385,624
Net change in fair value included in net loss	$	0	$	-131,044
Ending balance	$	903,637	$	498,417

The Company re-measures the fair values of all of its derivative liabilities as of each period end and records the net aggregate gain/loss due to the change in the fair value of the derivative liabilities as a component of other expense, net in the accompanying consolidated statement of operations. During the year ended September 30, 2015 and 3 months ended June 30, 2016, the Company recorded a net increase (decrease) to the fair value of derivative liabilities balance of $131,044 and $0, respectively.

Loss per Share

The Company applies FASB ASC 260, “Earnings per Share.” Basic earnings (loss) per share is computed by dividing earnings (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive.

Income Taxes

Income taxes are accounted for in accordance with ASC Topic 740, “Income Taxes.” Under the asset and liability method, deferred tax assets and liabilities are recognized for the future consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for deferred tax assets are established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Mineral Property, Mineral Rights (Claims) Payments and Exploration Costs

Pursuant to EITF 04-02, “Whether Mineral Rights are Tangible or Intangible Assets and Related Issues”, the Company has an accounting policy to capitalize the direct costs to acquire or lease mineral properties and mineral rights as tangible assets. The direct costs include the costs of signature (lease) bonuses, options to purchase or lease properties, and brokers’ and legal fees. If the acquired mineral rights relate to unproven properties, the Company does not amortize the capitalized mineral costs, but evaluates the capitalized mineral costs periodically for impairment. The Company expenses all costs related to the exploration of mineral claims in which it had secured exploration rights prior to establishment of proven and probable reserves.

Accounting Treatment of Mining Interests

At this time, the Company does not directly own or directly lease mining properties. However, the Company does have contractual rights and governmental permits which allow the Company to conduct mining exploration on such properties. These contractual relationships, coupled with the government permits issued to the Company (or a subsidiary), are substantially similar in nature to a mining lease. Therefore, we have treated these contracts as lease agreements for accounting purposes.

Research and Development

Research and development costs are recognized as an expense in the period in which they are incurred. The Company did not incur any research and development costs during the nine months ended June 30, 2016 or the year ended September 30, 2015.

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Recent Accounting Pronouncements

New accounting standards

Development State Entities. In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-10 – Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”). The amendments in this update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. For other entities, the amendments are effective for annual reporting periods beginning after December 15, 2014, and interim reporting periods beginning after December 15, 2015.

Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.

The Company has early adopted ASU 2014-10 commencing with its financial statements for the year ended September 30, 2014 and subsequent periods.

Accounting standards to be adopted in future periods

In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance for accounting for revenue from contracts with customers. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services.

To achieve that core principle, an entity would be required to apply the following five steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted.

Entities will have the option to apply the final standard retrospectively or use a modified retrospective method, recognizing the cumulative effect of the ASU in retained earnings at the date of initial application. An entity will not restate prior periods if it uses the modified retrospective method, but will be required to disclose the amount by which each financial statement line item is affected in the current reporting period by the application of the ASU as compared to the guidance in effect prior to the change, as well as reasons for significant changes. The Company will adopt the updated standard in the first quarter of 2017. The Company is currently evaluating the impact that implementing this ASU will have on its financial statements and disclosures, as well as whether it will use the retrospective or modified retrospective method of adoption.

Recognition of Revenue

Revenue is realized from product sales. Recognition occurs upon shipment to customers, and where the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Additional revenue from royalties is recognized when persuasive evidence of an arrangement exits; the amount due is fixed or determinable; and collectability is reasonably assured.

Company management do not believe that the adoption of recently issued accounting pronouncements will have a significant impact on the Company’s financial position, results of operations, or cash flows.

NOTE 3 – MINERAL RIGHTS

The Company owns interests in the following entities which was recorded at our direct cost measured at fair market value to acquire our interest in these properties. 

	Investment		Ownership %
Aqua Mining (PNG)		34		90	%
Angel Jade Pty Ltd		104,000		70	%

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NOTE 4 – PROPERTY AND EQUIPMENT

	June 30, 2016		September 30, 2015
Building and Improvements	$	-	$	-
Plant Equipment		11,527		3,724
Computer Equipment		-		-
Office Equipment		-		-
Motor Vehicle		96,368		50,424
		107,895		54,148
Less accumulated depreciation		-5,260		-5,604
	$	102,635	$	48,544

Depreciation expense was approximately $5,260 for the 3 months ended June 30, 2016 and $5,604 for the year ended September 30, 2015.

NOTE 5 – CONVERTIBLE NOTES PAYABLE

	June 30, 2016
	Note Face Amount		Debt Discount		Net Amount of Note
2011 Note	$	22,166	$	-	$	22,166
2012 Note		48,000		-		48,000
2013 Note		12,000		-		12,000
2014 Note		100,000		-		100,000
2015 Note		51,048		-		51,048
2016 Note		47,615				47,615
Total	$	280,826	$	-	$	280,826

	September 30, 2015
	Note Face Amount		Debt Discount		Net Amount of Note
2011 Note	$	22,166	$	-	$	22,166
2012 Note		48,000		-		48,000
2013 Note		12,000		-		12,000
2014 Note		100,000		-		100,000
Total	$	182,166	$	-	$	182,166

2011 Note

On May 1, 2011, the Company issued a 2.00% Convertible Note due April 30, 2012 with a principal amount of $32,000 (the “2011 Note”) for cash. Interest on the 2011 Note is accrued annually effective from May 1, 2011 forward. The 2011 Note is unsecured and repayable on demand. The 2011 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

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As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2016 is $22,166. As of June 30, 2016, the note has been discounted by $0.

2012 Note

On January 2, 2012, the Company issued a 2.00% Convertible Note due January 1, 2013 with a principal amount of $48,000 (the “2012 Note”) for cash. Interest on the 2012 Note is accrued annually effective from January 2, 2012 forward. The 2012 Note is unsecured and repayable on demand. The 2012 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2016 is $48,000. As of June 30, 2016, the note has been discounted by $0.

2013 Note

On January 3, 2013, the Company issued a 2.00% Convertible Note due January 2, 2014 with a principal amount of $12,000 (the “2013 Note”) for cash. Interest on the 2013 Note is accrued annually effective from January 3, 2013 forward. The 2013 Note is unsecured and repayable on demand. The 2013 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2016 is $12,000. As of June 30, 2016 the note has been discounted by $0.

2014 Note

On August 25, 2014, the Company issued two 12.00% Convertible Promissory Note due February 25, 2015 with a principal amount of $50,000 each (the “2014 Note”) for cash. Interest on the 2014 Note is accrued annually effective from August 25, 2014 forward. The 2014 Note is unsecured.

The notes are convertible at a conversion price the lesser of (a) $0.25 per share, or (b) the price per share as reported on the Over-the-Counter Bulletin Board on the conversion date. The Note Holders also received Warrants to purchase an aggregate of 800,000 shares of our common stock at an initial exercise price of $0.25 per share. Each of the Warrants has a term of five (5) years.

The embedded conversion feature of the 2014 Notes and Warrants were recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the 2014 Notes. The fair value on the grant date of the embedded conversion feature of the convertible debt was $145,362 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $100,000, representing the value of the embedded conversion feature inherent in the convertible debt and warrant, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2015, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $0 at September 30, 2015. For the 3 months ended June 30, 2016, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $0 at June 30, 2016.

2015 Note

On December 4, 2014, the Company issued a 8.00% Convertible Promissory Note due December 4, 2015 with a principal amount of $105,000 (the “2015 Note”) for cash. Interest on the 2015 Note is accrued annually effective from December 4, 2015 forward. The 2015 Note is unsecured.

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As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2016 is $51,0045. As of June 30, 2016 the balance of the debt discount was $41,144.

2016 Note

On January 5, 2016, the Company issued a $47,615 Convertible Promissory Note to the McGee Law Firm for services rendered. The Note is due on October 31, 2016 and accrues interest at 12.0% per annum. On or after May 1, 2016, at the option of the holder, the then outstanding amount of the Note may be converted into common stock of the Company at a conversion price equal to the lesser of $0.01 per share or 50% of the three lowest closing prices average for the 10 business days prior to the conversion date.

NOTE 6 – LOAN FROM RELATED PARTY

Convertible Notes Issued to the President and Director of Kibush Capital Corporation:

	September 30, 2014
	Note face amount		Debt Discount			Net amount of note
Loan from related party	$	366,816	$	(259,937	)	$	106,879
Total	$	366,816	$	(259,937	)	$	106,879

On March 31, 2014, the Company issued a 12.50% Convertible Promissory Note due March 31, 2015 with a principal amount of $157,500 (the “March 2014 Note”) for cash. Interest on the March 2014 Note is accrued annually effective from March 31, 2014 forward. The March 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

The embedded conversion feature of the March 2014 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the March 2014 Notes. The fair value on the grant date of the embedded conversion feature of the convertible debt was $305,039 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $157,500, representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2015, the Company recorded amortization of the debt discount of $69,490. The balance of the debt discount was $0 at September 30, 2015. As of June 30, 2016, the balance of the debt discount was $0.

On June 30, 2014, the Company issued a 12.50% Convertible Promissory Note due June 30, 2015 with a principal amount of $110,741 (the “June 2014 Note”) for cash. Interest on the June 2014 Note is accrued annually effective from June 30, 2014 forward. The June 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

The embedded conversion feature of the June 2014 Note was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the June 2014 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $213,207 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $110,741 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2015, the Company recorded amortization of the debt discount of $79,818. The balance of the debt discount was $0 at September 30, 2015. As of June 30, 2016, the balance of the debt discount was $0.

On September 30, 2014, the Company issued a 12.50% Convertible Promissory Note due September 30, 2015 with a principal amount of $98,575 (the “September 2014 Note”) for cash. Interest on the September 2014 Note is accrued annually effective from September 30, 2014 forward. The September 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

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The embedded conversion feature of the September 2014 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the September 2014 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $181,771 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $98,575 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2015, the Company recorded amortization of the debt discount of $134,765. The balance of the debt discount was $0 at September 30, 2015. As of June 30, 2016, the balance of the debt discount was $0.

On September 30, 2015, the Company issued a 12.50% Convertible Promissory Note due September 30, 2016 with a principal amount of $316,046 (the “September 2015 Note”) for cash. Interest on the September 2015 Note is accrued annually effective from September 30, 2015 forward. The September 2015 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

The embedded conversion feature of the September 2015 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the September 2015 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $330,496 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $226,826 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the 3 months ended June 30, 2016, the Company recorded amortization of the debt discount of $88,250. The balance of the debt discount was $330,496 at June 30, 2016.

As of June 30, 2016 and September 30, 2015, cumulative interest of $79,335 and $54,693 respectively, has been accrued on these notes.

NOTE 7 – STOCKHOLDER’S DEFICIT

Common Stock

Between April 1, 2016 and June 30, 2016, a total of 23,993,229 shares of our common stock were issued as a result of conversions made by holders of the Company’s convertible notes. 77,399,187 shares of our common stock were issued and outstanding as of September 30, 2015 and 101,392,416 shares were issued and outstanding as of June 30, 2016. As of August 12, 2016, there are 500,000,000 shares of common stock authorized at $0.001 par value and 179,538,440 shares issued and outstanding.

Preferred Stock

Preferred stock includes 50,000,000 shares authorized at $0.001 par value, of which 10,000,000 have been designated Series A. 3,000,000 Series A are issued and outstanding as of September 30, 2015 and June 30, 2016.

NOTE 8 – RELATED PARTY TRANSACTIONS

Details of transactions between the Corporation and related parties are disclosed below.

The following transactions were carried out with related parties:

	June 30, 2016		September 30, 2015
Loan from related party - unsecured loan (a)	$	937,335	$	679,227
Loan from related party	$	937,335	$	679,227

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(a) From time to time, the president and stockholder of the Company provides advances to the Company for its working capital purposes. These advances bear no interest and are due on demand.

(b) On April 29, 2015, the Company issued 3,001,702 shares of its common stock to Warren Sheppard (previously authorized by for issuance by the company on December 10, 2014) pursuant to his employment agreement.

(c) Between April 1, 2015 and June 24, 2015, the Company issued a total of 4,000,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $4,000 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

NOTE 9 – BUSINESS COMBINATIONS

Set out below are the controlled and non-controlled members of the group as of December 31, 2015, which, in the opinion of the directors, are material to the group. The subsidiaries as listed below have share capital consisting solely of ordinary shares, which are held directly by the Company; the country of incorporation is also their principal place of business.

Name of Entity	Country of Incorporation	Acquisition Date	Voting Equity Interests			Nature of Relationship
Aqua Mining (PNG) Ltd	Papua New Guinea	28-Feb-2014		90	%		Note 1
Angel Jade Pty Ltd	Australia	10-Dec 2014		70	%		Note 2

Note 1: On February 14, 2014, the Company entered into an Assignment and Bill of Sale with Five Arrows Limited (“Five Arrows”) pursuant to which Five Arrows agreed to assign to the Company all of its right, title and interest in two 50 ton per hour trammels, one 35 ton excavator, a warehouse/office, a concrete processing apron and four 35 ton per hour particle concentrators for use in our mining exploration. In consideration, the Company issued 40,000,000 shares of its common stock to Five Arrows. On February 28, 2014, the Company entered into a joint venture agreement with the holders of alluvial gold mining leases (“Leaseholders”) of Mining Leases covering approximately 26 hectares located at Koranga in Wau, Morobe Province, Papua, New Guinea for gold mining exploration (“Joint Venture Agreement”). The Joint Venture Agreement entitles the leaseholders to 30% and the Company to 70% of net profits from the joint venture. The Company will manage and carry out mining exploration at the site, including entering into contracts with third parties and subcontractors (giving priority to the Leaseholders and their relatives and the local community for employment opportunities and spin-off business) at its cost, and all assets, including equipment and structures built on the site, will be the property of the Company. The Leaseholders and the Company will each contribute 1% from their share of net profits to a trust account for landowner and government requirements.

Note 2: On December 10, 2014, the Company entered into an Assignment and Bill of Sale with Five Arrows Limited, a related party, pursuant to which Five Arrows agreed to assign to the Company all of its right, title and interest in 90,000,000 shares in Angel Jade Pty Ltd. In consideration, the Company issued 14,000,000 shares of its common stock to Five Arrows.

The Company owns 70% of the ordinary shares of Angel Jade Pty Ltd, an Australian company. The assets of Angel Jade are comprised of Exploration License 8104, the area covered is 35 km SE of Tamworth, 300 sq. km in size, 250 km from the port of Newcastle, NSW and accessible by sealed road. Nephrite jade occurs in the New England Fold Belt, which extends from northeast New South Wales into southeast Queensland. The target mineral in this tenement is jade, but we will also explore for rhodonite.

NOTE 10 – SUBSEQUENT EVENTS

On August 12, 2016, the Company entered into an agreement with Blackbridge Capital, LLC whereby the Company will receive $100,000 in exchange for the issuance of a $100,000 convertible promissory note. The promissory note accrues interest at 5% per annum, carries a prepayment penalty of 20% of the outstanding principal and interest, and, if not previously repaid, may be converted into common stock of the Company at a 50% discount to the lowest price of the Company’s common stock for the preceding 10 trading days.

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

Cautionary Notice Regarding Forward Looking Statements

The information contained in Item 2 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

This filing contains a number of forward-looking statements which reflect management’s current views and expectations with respect to our business, strategies, products, future results and events, and financial performance. All statements made in this filing other than statements of historical fact, including statements addressing operating performance, events, or developments which management expects or anticipates will or may occur in the future, including statements related to distributor channels, volume growth, revenues, profitability, new products, adequacy of funds from operations, statements expressing general optimism about future operating results, and non-historical information, are forward looking statements. In particular, the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “may,” variations of such words, and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements, and their absence does not mean that the statement is not forward-looking. These forward-looking statements are subject to certain risks and uncertainties, including those discussed below. Our actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated, or implied by these forward-looking statements. We do not undertake any obligation to revise these forward-looking statements to reflect any future events or circumstances.

Readers should not place undue reliance on these forward-looking statements, which are based on management’s current expectations and projections about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below), and apply only as of the date of this filing. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, the risks to be discussed in our Annual Report on Form 10-K and in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Overview

Kibush Capital Corp. (the “Company”, “We”, or “Us”) is an exploration stage company as defined by the Security and Exchange Commission’s (“SEC”) Industry Guide 7 as the Company has no established reserves as required under the Industry Guide 7. The Company is undertaking mineral exploration activities in Australia and Papua New Guinea. Our business is currently comprised two subsidiaries Aqua Mining and Angel Jade. Our Aqua Mining subsidiary is active in mineral exploration in Papua New Guinea were we are primarily targeting gold. Aqua Mining is also has timber logging and processing operations in Papua New Guinea, including management of Paradise Gardens (PNG) Ltd. Our Angel Jade subsidiary has mineral interests in New South Wales, Australia where we are primarily targeting jade exploration.

Plan of Operations

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Presently, the Company does not have sufficient funds, without additional equity or debt financing to support operations for the next fiscal year. While we do have a funding agreement in place with Blackbridge Capital, funding is subject to multiple contingencies. As such, there is presently no assurances that Blackbridge or any other party will provide any further funding to the Company. Given our current lack of liquidity and difficulty in obtaining debt from traditional banking sources, we will focus future fund raising on the sale of our equity securities. There can be no assurance that we will be successful at raising additional capital and without additional capital, we will not be able to expand operations and reach long term profitability.

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Results of Operations

Three Months Ended June 30, 2016 Compared to Three Months Ended June 30, 2015

During the three months ended June 30, 2016, we recognized $20,618 in revenue. We recognized no revenue during the three months ended June 30, 2015. The increase in revenue is attributable to management fees from Paradise Gardens (PNG) Ltd. We anticipate that Paradise Gardens will continue to generate revenue for the Company in 2016. Our ability to generate income in the future will greatly depend on the success of our management and mineral exploration activities.

We had a net loss for the three months ended June 30, 2016, of $264,734 and a net loss of $482,557 for the three months ended June 30, 2015.  The loss for the quarter ended June 30, 2016 was less than the loss which occurred during the same quarter in 2015, primarily due to increases in interest expense and decrease in expenses associated with our derivative liability. However, our general and administrative expenses did decrease by $510,820 for the quarter ended June 30, 2016.

We will need additional capital to expand operations and anticipate seeking both debt and equity capital in 2016. Additionally, as our exploration activities are in their infancy and since such activity may be speculative in nature, it is difficult to predict our ability to generate sufficient revenue to generate positive cash flows. Currently our biggest expenses are related to general and administrative costs are Wages for Personnel. We anticipate these expenses will remain constant during 2016; however, that could change based upon market conditions.

Liquidity and Capital Resources

As of June 30, 2016, the Company had only $13,750 cash or cash equivalents on hand. However, as of that date, we had total current assets of $160,233 and total current liabilities of $2,939,063 resulting in a working capital deficit of $2,778,829. As of June 30, 2015, the Company had total current assets of $101,507 and total current liabilities of $1,799,814 resulting in a working capital deficit of $1,698,307. The increase in working capital arose mainly due to our acquisition of 49% of Aqua Mining Ltd Pty on in May of 2014, our acquisition of 50% of Angel Jade Ltd Pty in October of 2014 and our subsequent increase in ownership of each entity to approximately 90% of Aqua Mining and 70% of Angel Jade. The Company intends to fund its exploration through the sale of its equity securities. However, there can be no assurance that the Company will be successful doing so. We do have an agreement with Blackbridge Capital to provide up to $3,000,000 equity facility with drawdowns not to exceed $250,000 at a time, however, we have experience setbacks in obtaining SEC approval of such funding arrangement. We plan to reapply for SEC approval when we are able to do so, but we have no current ability to access such funds. We do not currently have any other agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources. We currently believe that the Company will need approximately $2,000,000 over the next 12 months to cover our planned mining exploration.

Factors Affecting Future Mineral Exploration Results

We have generated no revenues from mining exploration, since inception. As a result, we have only a limited history upon which to evaluate our future potential performance. Our potential must be considered by evaluation of all risks and difficulties encountered by exploration companies which have not yet established business operations and anticipated results and situations of entering active exploration activities.

The price of gold and silver experienced a significant downward swing during 2013 and protracted downward movement through 2015. While the first half of 2016 has seen a modest increase in the price of gold and silver, a significant permanent drop in the price of gold, silver or other precious metals may have a materially adverse effect on the future results of potential exploration activities of the Company. The costs associated with the recovery of precious metals may also cause a material adverse effect on the financial success of the Company.

Off-Balance Sheet Arrangements

We had no Off-Balance Sheet arrangements during the quarter ended June 30, 2016.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

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ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Our Principal Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the period covered by this Report. Based on that evaluation, it was concluded that our disclosure controls and procedures are not effective to provide reasonable assurance that information we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

We do not have an Audit Committee; our board of directors currently acts as our Audit Committee. We do not have an independent director and our sole director is not considered a “Financial Expert,” within the meaning of Section 407 of the Sarbanes-Oxley Act.

Changes in internal controls over financial reporting

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

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 1A. RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

None.

ITEM 5. OTHER INFORMATION.

On March 5, 2016, Aqua Mining entered into a Sales and Purchase Agreement with the Usia Clan for the harvesting of trees from the Usia’s property containing approximately 25,000 hectares of primary forest, located in the Rigo region of Papua New Guinea. The agreement is for 3-year term and is subject to approval by the PNG Forest Authority. Under the agreement, Aqua Mining must pay the resource owners 40 Kina per cubic meter of trees harvested.

On April, 1, 2016, Aqua Mining entered into a Sales and Purchase Agreement with the Kofaga Clan for the harvesting of trees from the Kofaga’s property containing more than 40,000 hectares of primary forest, located in the Kubuna region of Papua New Guinea. The agreement is for 3-year term and is subject to approval the PNG Forest Authority. Under the agreement Aqua Mining must pay the resource owners 40 Kina per cubic meter of trees harvested.

The Company has submitted the Usia and Kofaga agreements for approval with the PNG Forest Authority in connection with Timber Authority applications, but such applications have not yet been approved.

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ITEM 6. EXHIBITS.

The following documents are included herein:

Exhibit		Incorporated by reference			Filed
Number	Document Description	Form	Date	Number	herewith
3.1	Articles of Incorporation	10/A	08/05/15	3.1
3.2	Certificate of Amendment dated 2/4/2005	10/A	08/05/15	3.2
3.3	Articles of Merger	10/A	08/05/15	3.3
3.4	Certificate of Amendment dated 8/22/2013	10/A	08/05/15	3.4
3.5	Amended and Restated Articles dated 7/7/2010	10/A	08/05/15	3.5
3.6	Certificate of Amendment dated 8/22/2013	10/A	08/05/15	3.6
3.7	By-laws	10/A	08/05/15	3.7
4.1	Certificate of Designation dated 4/19/2011	10/A	08/05/15	4.1
21	List of Subsidiaries	10/A	08/05/15	21
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
32.1	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the Chief Executive Officer				X
101.INS	XBRL Instance Document				X
101.DEF	XBRL Taxonomy Extension – Definitions				X
101.LAB	XBRL Taxonomy Extension – Labels				X
101.PRE	XBRL Taxonomy Extension – Presentation				X

-20-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities on this 17th day of August, 2016.

KIBUSH CAPITAL CORP.
BY:	/s/ WARREN SHEPPARD
	Warren Sheppard
	President, Chief Executive Officer, Chief Financial and Director

-21-

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Warren Sheppard, certify that:

1. I have reviewed this report on Form 10-Q of Kibush Capital Corp.

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

a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

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

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

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 17, 2016	/s/ Warren Sheppard
	Warren Sheppard
	Chief Executive Officers, Principal Accounting Officer, Director

EX-32.1

EXHIBIT 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Kibush Capital Corp. (the “Company”) on Form 10-Q for the period ending June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Warren Sheppard, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(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 result of operations of the Company.

IN WITNESS WHEREOF, the undersigned has executed this certification as of the 17^th day of August, 2016.

/s/ Warren Sheppard

Warren Sheppard

President, Chief Executive Officer & Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 12, 2016
Document And Entity Information
Entity Registrant Name	Kibush Capital Corp
Entity Central Index Key	0001614466
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		179,538,440
Trading Symbol	DLCR
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2016

XML

Interim Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash	$ 13,750	$ 10,763
Prepaid expenses and other current assets
Total current assets	13,750	10,763
Property and equipment, net	102,635	48,544
Investment in unconsolidated Joint Venture/Mining Rights
Other assets	20,285	22,627
Deposits Paid	9,562	9,562
Goodwill on Consolidation	14,000	14,000
Total assets	160,233	105,496
Current liabilities:
Accounts payable	5,013	11,147
Accrued expenses	580,066	326,187
Promissory notes payable	40,508	34,374
Convertible notes payable	280,826	182,166
Loan from related party	937,335	679,227
Derivative liabilities	904,713	498,417
Deposits	155,300	155,300
Shares to be Issued - Five Arrows	36,378	36,378
Bank Overdraft
Total current liabilities	2,939,063	1,923,196
Stockholders’ deficit:
Preferred stock, $0.001 par value; 50,000,000 shares authorized; Series A 3,000,000 shares issued and outstanding at June 30, 2016 and September 30, 2015	3,000	3,000
Common stock, $0.001 par value; 500,000,000 shares authorized at June 30, 2016 and September 30, 2015; 101,392,416 and 77,399,187 shares issued and outstanding at June 30, 2016 and September 30, 2015	101,392	77,399
Additional paid-in capital	9,181,922	9,151,960
Accumulated deficit	(11,986,773)	(10,986,677)
Accumulated other comprehensive income
Total stockholders’ deficit, including non-controlling interest	(2,700,458)	(1,745,318)
Non-Controlling interest	(78,371)	(63,381)
Total stockholders’ deficit	(2,778,829)	(1,817,699)
Total liabilities and stockholders’ deficit	$ 160,233	$ 105,496

XML

Interim Consolidated Balance Sheets (Parenthetical) - $ / shares	Aug. 12, 2016	Jun. 30, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Preferred Stock, Par Value		$ 0.001	$ 0.001
Preferred Stock, Shares Authorized		50,000,000	50,000,000
Series A Preferred Stock, Shares Issued		3,000,000	3,000,000
Series A Preferred Stock, Shares Outstanding		3,000,000	3,000,000
Common Stock, Par Value	$ 0.001	$ 0.001	$ 0.001
Common Stock, Shares Authorized	500,000,000	500,000,000	500,000,000
Common Stock, Shares Issued	179,538,440	101,392,416	77,399,187
Common Stock, Shares Outstanding	179,538,440	101,392,416	77,399,187

XML

Consolidated Statement of Operations - USD ($)	6 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net revenues	$ 20,618		$ 93,044
Cost of sales
Gross profit	20,618		93,044
Operating expenses:
Research and development
General and administrative
General and administrative	133,769	644,589	623,024	856,085
Total operating expenses	133,769	644,589	623,024	856,085
Loss from operations	(113,152)	(644,589)	(529,981)	(856,085)
Other income (expense):
Interest income
Interest expense	(155,617)	(60,197)	(469,330)	(192,973)
Other income
Change in fair value of derivative liabilities		(205,457)	(15,225)	(174,817)
Total other expense, net	(155,617)	(145,260)	(484,555)	(367,790)
Loss before provision for income taxes	(268,769)	(499,329)	1,014,535	(1,223,875)
Provision for income taxes
Net loss from operations	(268,769)	(499,329)	1,014,535	(1,223,875)
Less: Loss attributable to non-controlling interest	4,035	16,772	14,439	43,913
Net loss attributable to Holding Company	$ (264,734)	$ (482,557)	$ 1,000,096	$ (1,179,962)
Basic and diluted loss per common share	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.03)
Weighted average common shares outstanding basic and diluted	36,026,011	36,026,011	36,026,011	36,026,011

XML

Consolidated Statement of Cash Flows - USD ($)	3 Months Ended	6 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Operating Activities:
Net loss		$ (264,734)	$ (482,557)	$ 1,000,096	$ (1,179,962)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization				15,922	3,017
Amortization of debt discount				389,995	319,266
Interest expense related to fair value of derivative instruments granted
Change in fair value of derivative instruments				15,225
Stock based payments
Changes in operating assets and liabilities:
Prepaid expenses and other assets					6,035
Others asset				4,008	499
Accounts payable					9,277
Accrued expenses				187,500	75,000
Accrued interest				79,335	(38,287)
Deposits					75,300
Net cash used in operating activities				(308,111)	(945,766)
Investing Activities:
Goodwill on Consolidation
Investment in Angel Jade
Purchase of property and equipment				(69,691)	41,455
Net cash used in investing activities				(69,691)	41,455
Financing Activities:
Proceeds from issuance of convertible debt, net of debt discounts
Repayment of loan from related party
Proceeds from related party loans, net of debt discounts				397,708	(829,435)
Effective of exchange rates on cash	$ (598)			(16,918)		$ (926)
Net cash provided by financing activities				380,789	(893,572)
Net change in cash				2,987	3,261
Cash, beginning of period				10,763	2,502	2,502
Cash, end of period	$ 13,750	$ 13,750	$ 5,763	$ 13,750	$ 5,763	$ 10,763

XML

Consolidated Statement of Stockholders' Deficit - USD ($)	Common Stock [Member]	Preferred Stock [Member]	Paid-In Capital [Member]	Non Controlling Interest [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balance at Sep. 30, 2014	$ 53,837	$ 3,000	$ 8,494,962	$ 108,780	$ (10,225,051)	$ 55,022	$ (1,509,450)
Balance, Shares at Sep. 30, 2014	53,837,485	3,000,000
Repayment of convertible loans @ 0.001 per share of common stock	$ 2,560						2,560
Repayment of convertible loans @ 0.001 per share of common stock, Shares	2,560,000
Repayment of convertible loans @ 0.001 per share of common stock	$ 2,000						2,000
Repayment of convertible loans @ 0.001 per share of common stock, Shares	2,000,000
Repayment of convertible loans @ 0.001 per share of common stock	$ 2,000						2,000
Repayment of convertible loans @ 0.001 per share of common stock, Shares	2,000,000
Common Stock issued - Warren Sheppard	$ 3,002		696,998				700,000
Common Stock issued - Warren Sheppard, Shares	3,001,702
Common Stock issued - Five Arrows	$ 14,000						14,000
Common Stock issued - Five Arrows, Shares	14,000,000
Prior Period adjustment - Investment in Aqua Mining			(40,000)				(40,000)
Prior Period adjustment				3	529,486	(55,022)	474,467
Sold subsidiary consolidated reversals				(108,780)			(108,780)
Adjustment of sold subsidiary					(501)		(501)
Exchange rate variation				(928)	2		(926)
Net loss				(62,456)	(1,290,613)		(1,353,069)
Balance at Sep. 30, 2015	$ 77,399	$ 3,000	9,151,960	(63,381)	(10,986,677)		(1,817,699)
Balance, Shares at Sep. 30, 2015	77,399,187	3,000,000
Net loss				(4,546)	(398,919)		(403,465)
Balance at Dec. 31, 2015	$ 77,399	$ 3,000	9,151,960	(67,927)	(11,385,596)		(2,221,164)
Balance, Shares at Dec. 31, 2015	77,399,187	3,000,000
Balance at Sep. 30, 2015	$ 77,399	$ 3,000	9,151,960	(63,381)	(10,986,677)		(1,817,699)
Balance, Shares at Sep. 30, 2015	77,399,187	3,000,000
Exchange rate variation							(16,918)
Net loss							1,014,535
Balance at Jun. 30, 2016	$ 101,392	$ 3,000	9,181,922	(78,371)	(11,986,773)		(2,778,829)
Balance, Shares at Jun. 30, 2016	101,392,416	3,000,000
Balance at Dec. 31, 2015	$ 77,399	$ 3,000	9,151,960	(67,927)	(11,385,596)		(2,221,164)
Balance, Shares at Dec. 31, 2015	77,399,187	3,000,000
Exchange rate variation				47			47
Net loss				(5,858)	(336,433)		(342,291)
Balance at Mar. 31, 2016	$ 77,399	$ 3,000	9,151,960	(73,738)	(11,722,029)		(2,563,408)
Balance, Shares at Mar. 31, 2016	77,399,187	3,000,000
Balance at Dec. 31, 2015	$ 77,399	$ 3,000	9,151,960	(67,927)	(11,385,596)		(2,221,164)
Balance, Shares at Dec. 31, 2015	77,399,187	3,000,000
Net loss							(268,769)
Balance at Jun. 30, 2016	$ 101,392	$ 3,000	9,181,922	(78,371)	(11,986,773)		(2,778,829)
Balance, Shares at Jun. 30, 2016	101,392,416	3,000,000
Balance at Mar. 31, 2016	$ 77,399	$ 3,000	9,151,960	(73,738)	(11,722,029)		(2,563,408)
Balance, Shares at Mar. 31, 2016	77,399,187	3,000,000
Repayment of convertible loans @ 0.001 per share of common stock	$ 9,188						$ 9,188
Repayment of convertible loans @ 0.001 per share of common stock, Shares	9,188,034						23,993,229
Repayment of convertible loans @ 0.001 per share of common stock	$ 8,305						$ 8,305
Repayment of convertible loans @ 0.001 per share of common stock, Shares	8,305,195
Repayment of convertible loans @ 0.001 per share of common stock	$ 6,500						6,500
Repayment of convertible loans @ 0.001 per share of common stock, Shares	6,500,000
Exchange rate variation				(598)			(598)
Net loss				(4,035)	(264,734)		(268,769)
Common stock issued for repayment of convertible debt	$ 556			653			1,209
Common stock issued for repayment of convertible debt, shares	555,556
Common stock issued for repayment of convertible debt	$ 6,313			14,933			21,246
Common stock issued for repayment of convertible debt, shares	6,313,131
Common stock issued for repayment of convertible debt	$ 7,937			2,063			10,000
Common stock issued for repayment of convertible debt, shares	7,936,508
Common stock issued for repayment of convertible debt	$ 9,188			12,312			21,500
Common stock issued for repayment of convertible debt, shares	9,188,034
Balance at Jun. 30, 2016	$ 101,392	$ 3,000	$ 9,181,922	$ (78,371)	$ (11,986,773)		$ (2,778,829)
Balance, Shares at Jun. 30, 2016	101,392,416	3,000,000

XML

Consolidated Statement of Stockholders' Deficit (Parenthetical) - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Convertible Loans One [Member]
Conversion price per share	$ 0.001	$ 0.001
Convertible Loans Two [Member]
Conversion price per share	0.001	0.001
Convertible Loans Three [Member]
Conversion price per share	$ 0.001	$ 0.001

XML

Condensed Consolidated Financial Statements

9 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Financial Statements

NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2016, and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Form 10-K for the year ended September 30, 2015. The results of operations for the three-month period ended June 30, 2016 are not necessarily indicative of the operating results for the full year.

Basis of Presentation

The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

The consolidated financial statements of the Company include the accounts of the Company, and all entities in which a direct or indirect controlling interest exists through voting rights or qualifying variable interests. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As at September 30, 2015 and June 30, 2016, the Company had accumulated deficits of $10,986,677 and $11,986,773, respectively. The Company has not earned sufficient revenues to cover operating costs since inception and has a working capital deficit. The Company intends to fund its mining exploration through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year. 

The ability of the Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue mining exploration and execution of its business plan. While management intends to raise additional funds through public or private placement offerings, the Company might not be successful in its efforts to raise capital.

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern, as expressed by our auditor in its audit opinion for the year ended September 30, 2015. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Functional and Reporting Currency

The consolidated financial statements are presented in U.S. Dollars. The Company’s functional currency is the U.S. Dollar. The functional currency of Angel Jade is the Australian dollar. The functional currency of Aqua Mining is the Papua New Guinea Kina. Assets and liabilities are translated using the exchange rate on the respective balance sheet dates. Items in the income statement and cash flow statement are translated into U.S. Dollars using the average rates of exchange for the periods involved. The resulting translation adjustments are recorded as a separate component of other comprehensive income/(loss) within stockholders’ equity.

The functional currency of foreign entities is generally the local currency unless the primary economic environment requires the use of another currency. Gains or losses arising from the translation or settlement of foreign-currency-denominated monetary assets and liabilities into the functional currency are recognized in the income in the period in which they arise. However, currency differences on intercompany loans that have the nature of a permanent investment are accounted for as translation differences as a separate component of other comprehensive income/(loss) within stockholders’ equity.

XML

Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the principal accounting policies are set out below:

Cash

The Company maintains its cash balances in interest and non-interest bearing accounts which do not exceed Federal Deposit Insurance Corporation limits.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Kibush Capital, Angel Jade and Aqua Mining. All intercompany accounts and transactions have been eliminated.

Other Comprehensive Income and Foreign Currency Translation

FASB ASC 220-10-05, Comprehensive Income, establishes standards for the reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distribution to owners.

The accompanying consolidated financial statements are presented in United States dollars.

Reclassifications

Reclassifications have been made to prior year consolidated financial statements in order to conform the presentation to the statements as of and for the period ended September 30, 2015.

Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires management to make certain 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. Significant estimates made by management are, recoverability of long-lived assets, valuation and useful lives of intangible assets, valuation of derivative liabilities, and valuation of common stock, options, warrants and deferred tax assets. Actual results could differ from those estimates.

Non-Controlling Interests

Investments in associated companies over which the Company has the ability to exercise significant influence are accounted for under the consolidation method, after appropriate adjustments for intercompany profits and dividends.

In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations.” It requires an acquirer to recognize, at the acquisition date, the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their full fair values as of that date. In a business combination achieved in stages (step acquisitions), the acquirer will be required to re-measure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in earnings. The acquisition-related transaction and restructuring costs will no longer be included as part of the capitalized cost of the acquired entity but will be required to be accounted for separately in accordance with applicable generally accepted accounting principles. U.S. SFAS No. 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.

A non-controlling interest in a subsidiary is an ownership interest in a consolidated entity that is reported as equity in the consolidated financial statements and separate from the Company’s equity. In addition, net income/(loss) attributable to non-controlling interests is reported separately from net income attributable to the Company in the consolidated financial statements. The Company’s consolidated statements present the full amount of assets, liabilities, income and expenses of all of our consolidated subsidiaries, with a partially offsetting amount shown in non-controlling interests for the portion of these assets and liabilities that are not controlled by us.

For our investments in affiliated entities that are included in the consolidation, the excess cost over underlying fair value of net assets is referred to as goodwill and reported separately as “Goodwill” in our accompanying consolidated balance sheets. Goodwill may only arise where consideration has been paid.

Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over estimated useful lives as follows:

Plant equipment	2 to 15 years
Computer and software	1 to 2 years
Office equipment	3 to 10 years
Building improvements	20 years

Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected in the consolidated statement of operations.

Impairment of Long-Lived Assets

In accordance with FASB ASC 360-10-5, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company evaluates the carrying value of its long-lived assets for impairment whenever events or changes in circumstances indicate that such carrying values may not be recoverable. The Company uses its best judgment based on the current facts and circumstances relating to its business when determining whether any significant impairment factors exist. The Company considers the following factors or conditions, among others, that could indicate the need for an impairment review:

● Significant under performance relative to expected historical or projected future operating results;

● Significant changes in its strategic business objectives and utilization of the assets;

● Significant negative industry or economic trends, including legal factors;

If the Company determines that the carrying values of long-lived assets may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company’s management performs an undiscounted cash flow analysis to determine if impairment exists. If impairment exists, the Company measures the impairment based on the difference between the asset’s carrying amount and its fair value, and the impairment is charged to operations in the period in which the long-lived asset impairment is determined by management.

The carrying value of the Company’s investment in Joint Venture contract with leaseholders of certain Mining Leases in Papua New Guinea represents its ownership, accounted for under the equity method. The ownership interest is not adjusted to fair value on a recurring basis. Each reporting period the Company assesses the fair value of the Company’s ownership interest in Joint Venture in accordance with FASB ASC 325-20-35. Each year the Company conducts an impairment analysis in accordance with the provisions within FASB ASC 320-10-35 paragraphs 25 through 32.

Fair Value of Financial Instruments

The carrying amounts of the Company’s cash, accounts payable and accrued expenses approximate their estimated fair values due to the short-term maturities of those financial instruments. The Company believes the carrying amount of its notes payable approximates its fair value based on rates and other terms currently available to the Company for similar debt instruments

Beneficial Conversion Features of Debentures

In accordance with FASB ASC 470-20, Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios, we recognize the advantageous value of conversion rights attached to convertible debt. Such rights give the debt holder the ability to convert debt into common stock at a price per share that is less than the trading price to the public on the day the loan is made to us. The beneficial value is calculated as the intrinsic value (the market price of the stock at the commitment date in excess of the conversion rate) of the beneficial conversion feature of debentures and related accruing interest is recorded as a discount to the related debt and an addition to additional paid in capital. The discount is amortized over the remaining outstanding period of related debt using the interest method.

Derivative Financial Instruments

We apply the provisions of FASB ASC 815-10, Derivatives and Hedging (“ASC 815-10”). Derivatives within the scope of ASC 815-10 must be recorded on the balance sheet at fair value. During the year ended September 30, 2015, the Company issued convertible debt and recorded derivative liabilities related to a reset provision associated with the embedded conversion feature of the convertible debt. The Company computed the fair value of these derivative liabilities on the grant date and various measurement dates using the Black-Scholes pricing model. Due to the reset provisions within the embedded conversion feature, the Company determined that the Black-Scholes pricing model was the most appropriate for valuing these instruments.

In applying the Black-Scholes valuation model, the Company used the following assumptions during the year ended September 30, 2015 and quarter ended June 30, 2016:

For the year and quarter ended
	September 30, 2015 and June 30, 2016
Annual dividend yield		-
Expected life (years)		0.50 – 1.00
Risk-free interest rate		0.03% — 0.13	%
Expected volatility		210.12.% — 400.48	%

The inputs used to measure fair value fall in different levels of the fair value hierarchy, a financial security’s hierarchy level is based upon the lowest level of input that is significant to the fair value measurement.

The Company determines the fair value of its derivative instruments using a three-level hierarchy for fair value measurements which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market

data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair-value hierarchy:

Level 1 — Valuation based on unadjusted quoted market prices in active markets for identical securities. Currently, the Company does not have any items as Level 1.

Level 2 — Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. Currently, the Company does not have any items classified as Level 2.

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. The Company used the Black-Scholes option pricing models to determine the fair value of the instruments.

The following table presents the Company’s embedded conversion features of its convertible debt measured at fair value on a recurring basis as of September 30, 2015 and as of June 30, 2016:

	Carry Value at		Carry Value at
	June 30, 2016		September 30, 2015
Derivative liabilities: Embedded conversion features - notes	$	903,637	$	498,417
Total derivative liability	$	903,637	$	498,417

	For the 3 Months ended For the year ended
	June 30, 2016		September 30, 2015
Change in fair value included in other income (expense), net		0		131,044

The following table provides a reconciliation of the beginning and ending balances for the Company’s derivative liabilities measured at fair value using Level 3 inputs:

	For the 3 Months ended		For the year ended
	June 30, 2016		September 30, 2015
Embedded Conversion
Features - Notes:
Balance at beginning of year	$	775,370	$	752,997
Change in derivative liabilities	$	128,267	$	-385,624
Net change in fair value included in net loss	$	0	$	-131,044
Ending balance	$	903,637	$	498,417

The Company re-measures the fair values of all of its derivative liabilities as of each period end and records the net aggregate gain/loss due to the change in the fair value of the derivative liabilities as a component of other expense, net in the accompanying consolidated statement of operations. During the year ended September 30, 2015 and 3 months ended June 30, 2016, the Company recorded a net increase (decrease) to the fair value of derivative liabilities balance of $131,044 and $0, respectively.

Loss per Share

The Company applies FASB ASC 260, “Earnings per Share.” Basic earnings (loss) per share is computed by dividing earnings (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive.

Income Taxes

Income taxes are accounted for in accordance with ASC Topic 740, “Income Taxes.” Under the asset and liability method, deferred tax assets and liabilities are recognized for the future consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for deferred tax assets are established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Mineral Property, Mineral Rights (Claims) Payments and Exploration Costs

Pursuant to EITF 04-02, “Whether Mineral Rights are Tangible or Intangible Assets and Related Issues”, the Company has an accounting policy to capitalize the direct costs to acquire or lease mineral properties and mineral rights as tangible assets. The direct costs include the costs of signature (lease) bonuses, options to purchase or lease properties, and brokers’ and legal fees. If the acquired mineral rights relate to unproven properties, the Company does not amortize the capitalized mineral costs, but evaluates the capitalized mineral costs periodically for impairment. The Company expenses all costs related to the exploration of mineral claims in which it had secured exploration rights prior to establishment of proven and probable reserves.

Accounting Treatment of Mining Interests

At this time, the Company does not directly own or directly lease mining properties. However, the Company does have contractual rights and governmental permits which allow the Company to conduct mining exploration on such properties. These contractual relationships, coupled with the government permits issued to the Company (or a subsidiary), are substantially similar in nature to a mining lease. Therefore, we have treated these contracts as lease agreements for accounting purposes.

Research and Development

Research and development costs are recognized as an expense in the period in which they are incurred. The Company did not incur any research and development costs during the nine months ended June 30, 2016 or the year ended September 30, 2015.

Recent Accounting Pronouncements

New accounting standards

Development State Entities. In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-10 – Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”). The amendments in this update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. For other entities, the amendments are effective for annual reporting periods beginning after December 15, 2014, and interim reporting periods beginning after December 15, 2015.

Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.

The Company has early adopted ASU 2014-10 commencing with its financial statements for the year ended September 30, 2014 and subsequent periods.

Accounting standards to be adopted in future periods

In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance for accounting for revenue from contracts with customers. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services.

To achieve that core principle, an entity would be required to apply the following five steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted.

Entities will have the option to apply the final standard retrospectively or use a modified retrospective method, recognizing the cumulative effect of the ASU in retained earnings at the date of initial application. An entity will not restate prior periods if it uses the modified retrospective method, but will be required to disclose the amount by which each financial statement line item is affected in the current reporting period by the application of the ASU as compared to the guidance in effect prior to the change, as well as reasons for significant changes. The Company will adopt the updated standard in the first quarter of 2017. The Company is currently evaluating the impact that implementing this ASU will have on its financial statements and disclosures, as well as whether it will use the retrospective or modified retrospective method of adoption.

Recognition of Revenue

Revenue is realized from product sales. Recognition occurs upon shipment to customers, and where the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Additional revenue from royalties is recognized when persuasive evidence of an arrangement exits; the amount due is fixed or determinable; and collectability is reasonably assured.

Company management do not believe that the adoption of recently issued accounting pronouncements will have a significant impact on the Company’s financial position, results of operations, or cash flows.

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Mineral Rights

9 Months Ended

Jun. 30, 2016

Mineral Industries Disclosures [Abstract]

Mineral Rights

NOTE 3 – MINERAL RIGHTS

The Company owns interests in the following entities which was recorded at our direct cost measured at fair market value to acquire our interest in these properties. 

	Investment		Ownership %
Aqua Mining (PNG)		34		90	%
Angel Jade Pty Ltd		104,000		70	%

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Property and Equipment

9 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

NOTE 4 – PROPERTY AND EQUIPMENT

	June 30, 2016		September 30, 2015
Building and Improvements	$	-	$	-
Plant Equipment		11,527		3,724
Computer Equipment		-		-
Office Equipment		-		-
Motor Vehicle		96,368		50,424
		107,895		54,148
Less accumulated depreciation		-5,260		-5,604
	$	102,635	$	48,544

Depreciation expense was approximately $5,260 for the 3 months ended June 30, 2016 and $5,604 for the year ended September 30, 2015.

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Convertible Notes Payable

9 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Convertible Notes Payable

NOTE 5 – CONVERTIBLE NOTES PAYABLE

	June 30, 2016
	Note Face Amount		Debt Discount		Net Amount of Note
2011 Note	$	22,166	$	-	$	22,166
2012 Note		48,000		-		48,000
2013 Note		12,000		-		12,000
2014 Note		100,000		-		100,000
2015 Note		51,048		-		51,048
2016 Note		47,615				47,615
Total	$	280,826	$	-	$	280,826

	September 30, 2015
	Note Face Amount		Debt Discount		Net Amount of Note
2011 Note	$	22,166	$	-	$	22,166
2012 Note		48,000		-		48,000
2013 Note		12,000		-		12,000
2014 Note		100,000		-		100,000
Total	$	182,166	$	-	$	182,166

2011 Note

On May 1, 2011, the Company issued a 2.00% Convertible Note due April 30, 2012 with a principal amount of $32,000 (the “2011 Note”) for cash. Interest on the 2011 Note is accrued annually effective from May 1, 2011 forward. The 2011 Note is unsecured and repayable on demand. The 2011 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2016 is $22,166. As of June 30, 2016, the note has been discounted by $0.

2012 Note

On January 2, 2012, the Company issued a 2.00% Convertible Note due January 1, 2013 with a principal amount of $48,000 (the “2012 Note”) for cash. Interest on the 2012 Note is accrued annually effective from January 2, 2012 forward. The 2012 Note is unsecured and repayable on demand. The 2012 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2016 is $48,000. As of June 30, 2016, the note has been discounted by $0.

2013 Note

On January 3, 2013, the Company issued a 2.00% Convertible Note due January 2, 2014 with a principal amount of $12,000 (the “2013 Note”) for cash. Interest on the 2013 Note is accrued annually effective from January 3, 2013 forward. The 2013 Note is unsecured and repayable on demand. The 2013 Note is senior in right to all existing and future indebtedness which is subordinated by its terms and at the option of the Lender, the principal along with any accrued interest may be converted in whole or part into Common Stock at a price of $0.001.

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2016 is $12,000. As of June 30, 2016 the note has been discounted by $0.

2014 Note

On August 25, 2014, the Company issued two 12.00% Convertible Promissory Note due February 25, 2015 with a principal amount of $50,000 each (the “2014 Note”) for cash. Interest on the 2014 Note is accrued annually effective from August 25, 2014 forward. The 2014 Note is unsecured.

The notes are convertible at a conversion price the lesser of (a) $0.25 per share, or (b) the price per share as reported on the Over-the-Counter Bulletin Board on the conversion date. The Note Holders also received Warrants to purchase an aggregate of 800,000 shares of our common stock at an initial exercise price of $0.25 per share. Each of the Warrants has a term of five (5) years.

The embedded conversion feature of the 2014 Notes and Warrants were recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the 2014 Notes. The fair value on the grant date of the embedded conversion feature of the convertible debt was $145,362 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $100,000, representing the value of the embedded conversion feature inherent in the convertible debt and warrant, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2015, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $0 at September 30, 2015. For the 3 months ended June 30, 2016, the Company recorded amortization of the debt discount of $0. The balance of the debt discount was $0 at June 30, 2016.

2015 Note

On December 4, 2014, the Company issued a 8.00% Convertible Promissory Note due December 4, 2015 with a principal amount of $105,000 (the “2015 Note”) for cash. Interest on the 2015 Note is accrued annually effective from December 4, 2015 forward. The 2015 Note is unsecured.

As this note carries a conversion rate that is less than market rate, the rules of beneficial conversion apply. The difference between the conversion rate and the market rate is classified as a discount on the note and accreted over the term of the note, which with respect to this note is 12 months. The face amount of the outstanding note as of June 30, 2016 is $51,0045. As of June 30, 2016 the balance of the debt discount was $41,144.

2016 Note

On January 5, 2016, the Company issued a $47,615 Convertible Promissory Note to the McGee Law Firm for services rendered. The Note is due on October 31, 2016 and accrues interest at 12.0% per annum. On or after May 1, 2016, at the option of the holder, the then outstanding amount of the Note may be converted into common stock of the Company at a conversion price equal to the lesser of $0.01 per share or 50% of the three lowest closing prices average for the 10 business days prior to the conversion date.

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Loan from Related Party

9 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Loan from Related Party

NOTE 6 – LOAN FROM RELATED PARTY

Convertible Notes Issued to the President and Director of Kibush Capital Corporation:

	September 30, 2014
	Note face amount		Debt Discount			Net amount of note
Loan from related party	$	366,816	$	(259,937	)	$	106,879
Total	$	366,816	$	(259,937	)	$	106,879

On March 31, 2014, the Company issued a 12.50% Convertible Promissory Note due March 31, 2015 with a principal amount of $157,500 (the “March 2014 Note”) for cash. Interest on the March 2014 Note is accrued annually effective from March 31, 2014 forward. The March 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

The embedded conversion feature of the March 2014 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the March 2014 Notes. The fair value on the grant date of the embedded conversion feature of the convertible debt was $305,039 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $157,500, representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2015, the Company recorded amortization of the debt discount of $69,490. The balance of the debt discount was $0 at September 30, 2015. As of June 30, 2016, the balance of the debt discount was $0.

On June 30, 2014, the Company issued a 12.50% Convertible Promissory Note due June 30, 2015 with a principal amount of $110,741 (the “June 2014 Note”) for cash. Interest on the June 2014 Note is accrued annually effective from June 30, 2014 forward. The June 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

The embedded conversion feature of the June 2014 Note was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the June 2014 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $213,207 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $110,741 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2015, the Company recorded amortization of the debt discount of $79,818. The balance of the debt discount was $0 at September 30, 2015. As of June 30, 2016, the balance of the debt discount was $0.

On September 30, 2014, the Company issued a 12.50% Convertible Promissory Note due September 30, 2015 with a principal amount of $98,575 (the “September 2014 Note”) for cash. Interest on the September 2014 Note is accrued annually effective from September 30, 2014 forward. The September 2014 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

The embedded conversion feature of the September 2014 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the September 2014 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $181,771 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $98,575 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the year ended September 30, 2015, the Company recorded amortization of the debt discount of $134,765. The balance of the debt discount was $0 at September 30, 2015. As of June 30, 2016, the balance of the debt discount was $0.

On September 30, 2015, the Company issued a 12.50% Convertible Promissory Note due September 30, 2016 with a principal amount of $316,046 (the “September 2015 Note”) for cash. Interest on the September 2015 Note is accrued annually effective from September 30, 2015 forward. The September 2015 Note is unsecured. The note is convertible into common stock at a price of 50 percent of the average closing bid price, determined on the then current trading market for the ten business days prior to the conversion date.

The embedded conversion feature of the September 2015 Notes was recorded as derivative liabilities in accordance with relevant accounting guidance due to the variable conversion price of the September 2015 Note. The fair value on the grant date of the embedded conversion feature of the convertible debt was $330,496 as computed using the Black-Scholes option pricing model.

The Company established a debt discount of $226,826 representing the value of the embedded conversion feature inherent in the convertible debt, as limited to the face amount of the debt. The debt discount is being amortized over the life of the debt using the straight-line method over the terms of the debt, which approximates the effective-interest method. For the 3 months ended June 30, 2016, the Company recorded amortization of the debt discount of $88,250. The balance of the debt discount was $330,496 at June 30, 2016.

As of June 30, 2016 and September 30, 2015, cumulative interest of $79,335 and $54,693 respectively, has been accrued on these notes.

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Stockholder's Deficit

9 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stockholder's Deficit

NOTE 7 – STOCKHOLDER’S DEFICIT

Common Stock

Between April 1, 2016 and June 30, 2016, a total of 23,993,229 shares of our common stock were issued as a result of conversions made by holders of the Company’s convertible notes. 77,399,187 shares of our common stock were issued and outstanding as of September 30, 2015 and 101,392,416 shares were issued and outstanding as of June 30, 2016. As of August 12, 2016, there are 500,000,000 shares of common stock authorized at $0.001 par value and 179,538,440 shares issued and outstanding.

Preferred Stock

Preferred stock includes 50,000,000 shares authorized at $0.001 par value, of which 10,000,000 have been designated Series A. 3,000,000 Series A are issued and outstanding as of September 30, 2015 and June 30, 2016.

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Related Party Transactions

9 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 8 – RELATED PARTY TRANSACTIONS

Details of transactions between the Corporation and related parties are disclosed below.

The following transactions were carried out with related parties:

	June 30, 2016		September 30, 2015
Loan from related party - unsecured loan (a)	$	937,335	$	679,227
Loan from related party	$	937,335	$	679,227

(a) From time to time, the president and stockholder of the Company provides advances to the Company for its working capital purposes. These advances bear no interest and are due on demand.

(b) On April 29, 2015, the Company issued 3,001,702 shares of its common stock to Warren Sheppard (previously authorized by for issuance by the company on December 10, 2014) pursuant to his employment agreement.

(c) Between April 1, 2015 and June 24, 2015, the Company issued a total of 4,000,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $4,000 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

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Business Combinations

9 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Business Combinations

NOTE 9 – BUSINESS COMBINATIONS

Set out below are the controlled and non-controlled members of the group as of December 31, 2015, which, in the opinion of the directors, are material to the group. The subsidiaries as listed below have share capital consisting solely of ordinary shares, which are held directly by the Company; the country of incorporation is also their principal place of business.

Name of Entity	Country of Incorporation	Acquisition Date	Voting Equity Interests			Nature of Relationship
Aqua Mining (PNG) Ltd	Papua New Guinea	28-Feb-2014		90	%		Note 1
Angel Jade Pty Ltd	Australia	10-Dec 2014		70	%		Note 2

Note 1: On February 14, 2014, the Company entered into an Assignment and Bill of Sale with Five Arrows Limited (“Five Arrows”) pursuant to which Five Arrows agreed to assign to the Company all of its right, title and interest in two 50 ton per hour trammels, one 35 ton excavator, a warehouse/office, a concrete processing apron and four 35 ton per hour particle concentrators for use in our mining exploration. In consideration, the Company issued 40,000,000 shares of its common stock to Five Arrows. On February 28, 2014, the Company entered into a joint venture agreement with the holders of alluvial gold mining leases (“Leaseholders”) of Mining Leases covering approximately 26 hectares located at Koranga in Wau, Morobe Province, Papua, New Guinea for gold mining exploration (“Joint Venture Agreement”). The Joint Venture Agreement entitles the leaseholders to 30% and the Company to 70% of net profits from the joint venture. The Company will manage and carry out mining exploration at the site, including entering into contracts with third parties and subcontractors (giving priority to the Leaseholders and their relatives and the local community for employment opportunities and spin-off business) at its cost, and all assets, including equipment and structures built on the site, will be the property of the Company. The Leaseholders and the Company will each contribute 1% from their share of net profits to a trust account for landowner and government requirements.

Note 2: On December 10, 2014, the Company entered into an Assignment and Bill of Sale with Five Arrows Limited, a related party, pursuant to which Five Arrows agreed to assign to the Company all of its right, title and interest in 90,000,000 shares in Angel Jade Pty Ltd. In consideration, the Company issued 14,000,000 shares of its common stock to Five Arrows.

The Company owns 70% of the ordinary shares of Angel Jade Pty Ltd, an Australian company. The assets of Angel Jade are comprised of Exploration License 8104, the area covered is 35 km SE of Tamworth, 300 sq. km in size, 250 km from the port of Newcastle, NSW and accessible by sealed road. Nephrite jade occurs in the New England Fold Belt, which extends from northeast New South Wales into southeast Queensland. The target mineral in this tenement is jade, but we will also explore for rhodonite.

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Subsequent Events

9 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

NOTE 10 – SUBSEQUENT EVENTS

On August 12, 2016, the Company entered into an agreement with Blackbridge Capital, LLC whereby the Company will receive $100,000 in exchange for the issuance of a $100,000 convertible promissory note. The promissory note accrues interest at 5% per annum, carries a prepayment penalty of 20% of the outstanding principal and interest, and, if not previously repaid, may be converted into common stock of the Company at a 50% discount to the lowest price of the Company’s common stock for the preceding 10 trading days.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Cash

Cash

The Company maintains its cash balances in interest and non-interest bearing accounts which do not exceed Federal Deposit Insurance Corporation limits.

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Kibush Capital, Angel Jade and Aqua Mining. All intercompany accounts and transactions have been eliminated.

Other Comprehensive Income and Foreign Currency Translation

Other Comprehensive Income and Foreign Currency Translation

FASB ASC 220-10-05, Comprehensive Income, establishes standards for the reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distribution to owners.

The accompanying consolidated financial statements are presented in United States dollars.

Reclassifications

Reclassifications

Reclassifications have been made to prior year consolidated financial statements in order to conform the presentation to the statements as of and for the period ended September 30, 2015.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires management to make certain 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. Significant estimates made by management are, recoverability of long-lived assets, valuation and useful lives of intangible assets, valuation of derivative liabilities, and valuation of common stock, options, warrants and deferred tax assets. Actual results could differ from those estimates.

Non-Controlling Interests

Non-Controlling Interests

Investments in associated companies over which the Company has the ability to exercise significant influence are accounted for under the consolidation method, after appropriate adjustments for intercompany profits and dividends.

In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations.” It requires an acquirer to recognize, at the acquisition date, the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their full fair values as of that date. In a business combination achieved in stages (step acquisitions), the acquirer will be required to re-measure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in earnings. The acquisition-related transaction and restructuring costs will no longer be included as part of the capitalized cost of the acquired entity but will be required to be accounted for separately in accordance with applicable generally accepted accounting principles. U.S. SFAS No. 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.

A non-controlling interest in a subsidiary is an ownership interest in a consolidated entity that is reported as equity in the consolidated financial statements and separate from the Company’s equity. In addition, net income/(loss) attributable to non-controlling interests is reported separately from net income attributable to the Company in the consolidated financial statements. The Company’s consolidated statements present the full amount of assets, liabilities, income and expenses of all of our consolidated subsidiaries, with a partially offsetting amount shown in non-controlling interests for the portion of these assets and liabilities that are not controlled by us.

For our investments in affiliated entities that are included in the consolidation, the excess cost over underlying fair value of net assets is referred to as goodwill and reported separately as “Goodwill” in our accompanying consolidated balance sheets. Goodwill may only arise where consideration has been paid.

Property and Equipment

Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over estimated useful lives as follows:

Plant equipment	2 to 15 years
Computer and software	1 to 2 years
Office equipment	3 to 10 years
Building improvements	20 years

Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected in the consolidated statement of operations.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

In accordance with FASB ASC 360-10-5, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company evaluates the carrying value of its long-lived assets for impairment whenever events or changes in circumstances indicate that such carrying values may not be recoverable. The Company uses its best judgment based on the current facts and circumstances relating to its business when determining whether any significant impairment factors exist. The Company considers the following factors or conditions, among others, that could indicate the need for an impairment review:

● Significant under performance relative to expected historical or projected future operating results;

● Significant changes in its strategic business objectives and utilization of the assets;

● Significant negative industry or economic trends, including legal factors;

If the Company determines that the carrying values of long-lived assets may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company’s management performs an undiscounted cash flow analysis to determine if impairment exists. If impairment exists, the Company measures the impairment based on the difference between the asset’s carrying amount and its fair value, and the impairment is charged to operations in the period in which the long-lived asset impairment is determined by management.

The carrying value of the Company’s investment in Joint Venture contract with leaseholders of certain Mining Leases in Papua New Guinea represents its ownership, accounted for under the equity method. The ownership interest is not adjusted to fair value on a recurring basis. Each reporting period the Company assesses the fair value of the Company’s ownership interest in Joint Venture in accordance with FASB ASC 325-20-35. Each year the Company conducts an impairment analysis in accordance with the provisions within FASB ASC 320-10-35 paragraphs 25 through 32.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts of the Company’s cash, accounts payable and accrued expenses approximate their estimated fair values due to the short-term maturities of those financial instruments. The Company believes the carrying amount of its notes payable approximates its fair value based on rates and other terms currently available to the Company for similar debt instruments

Beneficial Conversion Features of Debentures

Beneficial Conversion Features of Debentures

In accordance with FASB ASC 470-20, Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios, we recognize the advantageous value of conversion rights attached to convertible debt. Such rights give the debt holder the ability to convert debt into common stock at a price per share that is less than the trading price to the public on the day the loan is made to us. The beneficial value is calculated as the intrinsic value (the market price of the stock at the commitment date in excess of the conversion rate) of the beneficial conversion feature of debentures and related accruing interest is recorded as a discount to the related debt and an addition to additional paid in capital. The discount is amortized over the remaining outstanding period of related debt using the interest method.

Derivative Financial Instruments

Derivative Financial Instruments

We apply the provisions of FASB ASC 815-10, Derivatives and Hedging (“ASC 815-10”). Derivatives within the scope of ASC 815-10 must be recorded on the balance sheet at fair value. During the year ended September 30, 2015, the Company issued convertible debt and recorded derivative liabilities related to a reset provision associated with the embedded conversion feature of the convertible debt. The Company computed the fair value of these derivative liabilities on the grant date and various measurement dates using the Black-Scholes pricing model. Due to the reset provisions within the embedded conversion feature, the Company determined that the Black-Scholes pricing model was the most appropriate for valuing these instruments.

In applying the Black-Scholes valuation model, the Company used the following assumptions during the year ended September 30, 2015 and quarter ended June 30, 2016:

For the year and quarter ended
	September 30, 2015 and June 30, 2016
Annual dividend yield		-
Expected life (years)		0.50 – 1.00
Risk-free interest rate		0.03% — 0.13	%
Expected volatility		210.12.% — 400.48	%

The inputs used to measure fair value fall in different levels of the fair value hierarchy, a financial security’s hierarchy level is based upon the lowest level of input that is significant to the fair value measurement.

The Company determines the fair value of its derivative instruments using a three-level hierarchy for fair value measurements which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market

data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair-value hierarchy:

Level 1 — Valuation based on unadjusted quoted market prices in active markets for identical securities. Currently, the Company does not have any items as Level 1.

Level 2 — Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. Currently, the Company does not have any items classified as Level 2.

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. The Company used the Black-Scholes option pricing models to determine the fair value of the instruments.

The following table presents the Company’s embedded conversion features of its convertible debt measured at fair value on a recurring basis as of September 30, 2015 and as of June 30, 2016:

	Carry Value at		Carry Value at
	June 30, 2016		September 30, 2015
Derivative liabilities: Embedded conversion features - notes	$	903,637	$	498,417
Total derivative liability	$	903,637	$	498,417

	For the 3 Months ended For the year ended
	June 30, 2016		September 30, 2015
Change in fair value included in other income (expense), net		0		131,044

The following table provides a reconciliation of the beginning and ending balances for the Company’s derivative liabilities measured at fair value using Level 3 inputs:

	For the 3 Months ended		For the year ended
	June 30, 2016		September 30, 2015
Embedded Conversion
Features - Notes:
Balance at beginning of year	$	775,370	$	752,997
Change in derivative liabilities	$	128,267	$	-385,624
Net change in fair value included in net loss	$	0	$	-131,044
Ending balance	$	903,637	$	498,417

The Company re-measures the fair values of all of its derivative liabilities as of each period end and records the net aggregate gain/loss due to the change in the fair value of the derivative liabilities as a component of other expense, net in the accompanying consolidated statement of operations. During the year ended September 30, 2015 and 3 months ended June 30, 2016, the Company recorded a net increase (decrease) to the fair value of derivative liabilities balance of $131,044 and $0, respectively.

Loss per Share

Loss per Share

The Company applies FASB ASC 260, “Earnings per Share.” Basic earnings (loss) per share is computed by dividing earnings (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive.

Income Taxes

Income Taxes

Income taxes are accounted for in accordance with ASC Topic 740, “Income Taxes.” Under the asset and liability method, deferred tax assets and liabilities are recognized for the future consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for deferred tax assets are established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Mineral Property, Mineral Rights (Claims) Payments and Exploration Costs

Mineral Property, Mineral Rights (Claims) Payments and Exploration Costs

Pursuant to EITF 04-02, “Whether Mineral Rights are Tangible or Intangible Assets and Related Issues”, the Company has an accounting policy to capitalize the direct costs to acquire or lease mineral properties and mineral rights as tangible assets. The direct costs include the costs of signature (lease) bonuses, options to purchase or lease properties, and brokers’ and legal fees. If the acquired mineral rights relate to unproven properties, the Company does not amortize the capitalized mineral costs, but evaluates the capitalized mineral costs periodically for impairment. The Company expenses all costs related to the exploration of mineral claims in which it had secured exploration rights prior to establishment of proven and probable reserves.

Accounting Treatment of Mining Interests

Accounting Treatment of Mining Interests

At this time, the Company does not directly own or directly lease mining properties. However, the Company does have contractual rights and governmental permits which allow the Company to conduct mining exploration on such properties. These contractual relationships, coupled with the government permits issued to the Company (or a subsidiary), are substantially similar in nature to a mining lease. Therefore, we have treated these contracts as lease agreements for accounting purposes.

Research and Development

Research and Development

Research and development costs are recognized as an expense in the period in which they are incurred. The Company did not incur any research and development costs during the nine months ended June 30, 2016 or the year ended September 30, 2015.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

New accounting standards

Development State Entities. In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-10 – Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”). The amendments in this update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. For other entities, the amendments are effective for annual reporting periods beginning after December 15, 2014, and interim reporting periods beginning after December 15, 2015.

Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.

The Company has early adopted ASU 2014-10 commencing with its financial statements for the year ended September 30, 2014 and subsequent periods.

Accounting standards to be adopted in future periods

In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance for accounting for revenue from contracts with customers. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services.

To achieve that core principle, an entity would be required to apply the following five steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted.

Entities will have the option to apply the final standard retrospectively or use a modified retrospective method, recognizing the cumulative effect of the ASU in retained earnings at the date of initial application. An entity will not restate prior periods if it uses the modified retrospective method, but will be required to disclose the amount by which each financial statement line item is affected in the current reporting period by the application of the ASU as compared to the guidance in effect prior to the change, as well as reasons for significant changes. The Company will adopt the updated standard in the first quarter of 2017. The Company is currently evaluating the impact that implementing this ASU will have on its financial statements and disclosures, as well as whether it will use the retrospective or modified retrospective method of adoption.

Recognition of Revenue

Recognition of Revenue

Revenue is realized from product sales. Recognition occurs upon shipment to customers, and where the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Additional revenue from royalties is recognized when persuasive evidence of an arrangement exits; the amount due is fixed or determinable; and collectability is reasonably assured.

Company management do not believe that the adoption of recently issued accounting pronouncements will have a significant impact on the Company’s financial position, results of operations, or cash flows.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Schedule of Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over estimated useful lives as follows:

Plant equipment	2 to 15 years
Computer and software	1 to 2 years
Office equipment	3 to 10 years
Building improvements	20 years

Schedule of Derivative Financial Instruments

In applying the Black-Scholes valuation model, the Company used the following assumptions during the year ended September 30, 2015 and quarter ended June 30, 2016:

For the year and quarter ended
	September 30, 2015 and June 30, 2016
Annual dividend yield		-
Expected life (years)		0.50 – 1.00
Risk-free interest rate		0.03% — 0.13	%
Expected volatility		210.12.% — 400.48	%

Schedule of Convertible Debt Measured at Fair Value

The following table presents the Company’s embedded conversion features of its convertible debt measured at fair value on a recurring basis as of September 30, 2015 and as of June 30, 2016:

	Carry Value at		Carry Value at
	June 30, 2016		September 30, 2015
Derivative liabilities: Embedded conversion features - notes	$	904,713	$	498,417
Total derivative liability	$	904,713	$	498,417

	For the 3 Months ended For the year ended
	June 30, 2016		September 30, 2015
Change in fair value included in other income (expense), net		0		131,044

Derivative Liabilities Measured at Fair Value

The following table provides a reconciliation of the beginning and ending balances for the Company’s derivative liabilities measured at fair value using Level 3 inputs:

	For the 3 Months ended		For the year ended
	June 30, 2016		September 30, 2015
Embedded Conversion
Features - Notes:
Balance at beginning of year	$	775,370	$	752,997
Change in derivative liabilities	$	129,343	$	-385,624
Net change in fair value included in net loss	$	0	$	-131,044
Ending balance	$	904,713	$	498,417

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Mineral Rights (Tables)

9 Months Ended

Jun. 30, 2016

Mineral Industries Disclosures [Abstract]

Schedule of Direct Cost Measured at Fair Market Value

The Company owns interests in the following entities which was recorded at our direct cost measured at fair market value to acquire our interest in these properties. 

	Investment		Ownership %
Aqua Mining (PNG)		34		90	%
Angel Jade Pty Ltd		104,000		70	%

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Property And Equipment (Tables)

9 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

	June 30, 2016		September 30, 2015
Building and Improvements	$	-	$	-
Plant Equipment		11,527		3,724
Computer Equipment		-		-
Office Equipment		-		-
Motor Vehicle		96,368		50,424
		107,895		54,148
Less accumulated depreciation		-5,260		-5,604
	$	102,635	$	48,544

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Convertible Notes Payable (Tables)

9 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Schedule of Convertible Notes Payable

	June 30, 2016
	Note Face Amount		Debt Discount		Net Amount of Note
2011 Note	$	22,166	$	-	$	22,166
2012 Note		48,000		-		48,000
2013 Note		12,000		-		12,000
2014 Note		100,000		-		100,000
2015 Note		51,048		-		51,048
2016 Note		47,615				47,615
Total	$	280,826	$	-	$	280,826

	September 30, 2015
	Note Face Amount		Debt Discount		Net Amount of Note
2011 Note	$	22,166	$	-	$	22,166
2012 Note		48,000		-		48,000
2013 Note		12,000		-		12,000
2014 Note		100,000		-		100,000
Total	$	182,166	$	-	$	182,166

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Loan from Related Party (Tables)

9 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Schedule of Loan From Related Party

Convertible Notes Issued to the President and Director of Kibush Capital Corporation:

	September 30, 2014
	Note face amount		Debt Discount			Net amount of note
Loan from related party	$	366,816	$	(259,937	)	$	106,879
Total	$	366,816	$	(259,937	)	$	106,879

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Related Party Transactions (Tables)

9 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

The following transactions were carried out with related parties:

	June 30, 2016		September 30, 2015
Loan from related party - unsecured loan (a)	$	937,335	$	679,227
Loan from related party	$	937,335	$	679,227

(a) From time to time, the president and stockholder of the Company provides advances to the Company for its working capital purposes. These advances bear no interest and are due on demand.

(b) On April 29, 2015, the Company issued 3,001,702 shares of its common stock to Warren Sheppard (previously authorized by for issuance by the company on December 10, 2014) pursuant to his employment agreement.

(c) Between April 1, 2015 and June 24, 2015, the Company issued a total of 4,000,000 shares of common stock upon the requests from convertible note holders to convert principal totaling $4,000 into the Company’s common stock based on the terms set forth in the loans. The conversion rate was $0.001.

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Business Combinations (Tables)

9 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Schedule of Business Combinations

The subsidiaries as listed below have share capital consisting solely of ordinary shares, which are held directly by the Company; the country of incorporation is also their principal place of business.

Name of Entity	Country of Incorporation	Acquisition Date	Voting Equity Interests			Nature of Relationship
Aqua Mining (PNG) Ltd	Papua New Guinea	28-Feb-2014		90	%		Note 1
Angel Jade Pty Ltd	Australia	10-Dec 2014		70	%		Note 2

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Condensed Consolidated Financial Statements (Details Narrative) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 11,986,773	$ 10,986,677

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Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Accounting Policies [Abstract]
Net increase (decrease) to the fair value of derivative liabilities	$ 0					$ 131,044
Research and development costs

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Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details)	9 Months Ended
	Jun. 30, 2016
Building and Improvements [Member]
Estimated useful lives	20 years
Minimum [Member] | Plant Equipment [Member]
Estimated useful lives	2 years
Minimum [Member] | Computer and software [Member]
Estimated useful lives	1 year
Minimum [Member] | Office Equipment [Member]
Estimated useful lives	3 years
Maximum [Member] | Plant Equipment [Member]
Estimated useful lives	15 years
Maximum [Member] | Computer and software [Member]
Estimated useful lives	2 years
Maximum [Member] | Office Equipment [Member]
Estimated useful lives	10 years

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Summary of Significant Accounting Policies - Schedule of Derivative Financial Instruments (Details)	9 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Annual dividend yield	0.00%	0.00%
Minimum [Member]
Expected life (years)	6 months	6 months
Risk-free interest rate	0.03%	0.03%
Expected volatility	210.12%	210.12%
Maximum [Member]
Expected life (years)	1 year	1 year
Risk-free interest rate	0.13%	0.13%
Expected volatility	400.48%	400.48%

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Summary of Significant Accounting Policies - Schedule of Convertible Debt Measured at Fair Value (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Change in fair value included in other income (expense), net	$ 0	$ 131,044
Carry Value [Member]
Derivative liabilities: Embedded conversion features - notes	903,637	498,417
Total derivative liability	$ 903,637	$ 498,417

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Summary of Significant Accounting Policies - Derivative Liabilities Measured at Fair Value Level 3 Inputs (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Accounting Policies [Abstract]
Balance at beginning of year	$ 775,370	$ 752,997
Change in derivative liabilities	128,267	(385,624)
Net change in fair value included in net loss	0	(131,044)
Ending balance	$ 903,637	$ 498,417

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Mineral Rights - Schedule of Direct Cost Measured at Fair Market Value (Details)	9 Months Ended
	Jun. 30, 2016 USD ($)
Aqua Mining (PNG) [Member]
Investment	$ 34
Ownership	90.00%
Angel Jade Pty Ltd [Member]
Investment	$ 104,000
Ownership	70.00%

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Property And Equipment (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 5,260	$ 5,604

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Property And Equipment - Schedule of Property and Equipment (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Property and equipment, gross	$ 107,895	$ 54,148
Less accumulated depreciation	(5,260)	(5,604)
Property and equipment	102,635	48,544
Building and Improvements [Member]
Property and equipment, gross
Plant Equipment [Member]
Property and equipment, gross	11,527	3,724
Computer Equipment [Member]
Property and equipment, gross
Office Equipment [Member]
Property and equipment, gross
Motor Vehicle [Member]
Property and equipment, gross	$ 96,368	$ 50,424

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Convertible Notes Payable (Details Narrative) - USD ($)			3 Months Ended	9 Months Ended		12 Months Ended
	Jan. 05, 2016	Aug. 25, 2014	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015	Mar. 31, 2016	Dec. 04, 2014	Jan. 03, 2013	Jan. 02, 2012	May 01, 2011
Note Face Amount			$ 280,826	$ 280,826		$ 182,166
Amortization of debt discount				389,995	$ 319,266
2011 Note [Member]
Debt interest rate percentage											2.00%
Note Face Amount			22,166	22,166		22,166					$ 32,000
Debt Discount			0	0
Conversion price per share											$ 0.001
2012 Note [Member]
Debt interest rate percentage										2.00%
Note Face Amount			48,000	48,000		48,000				$ 48,000
Debt Discount			0	0
Conversion price per share										$ 0.001
2013 Note [Member]
Debt interest rate percentage									2.00%
Note Face Amount			12,000	12,000		12,000			$ 12,000
Debt Discount			0	0
Conversion price per share									$ 0.001
2014 Note [Member]
Debt interest rate percentage		12.00%
Note Face Amount		$ 50,000	100,000	100,000		100,000
Debt Discount		$ 100,000	0	0		0
Conversion price per share		$ 0.25
Warrants to purchase common stock		800,000
Warrants term		5 years
Convertible debt		$ 145,362
Amortization of debt discount			0			$ 0
2015 Note [Member]
Debt interest rate percentage								8.00%
Note Face Amount			51,048	51,048				$ 510,045
Debt Discount							$ 41,444
2016 Note [Member]
Debt interest rate percentage	12.00%
Note Face Amount			$ 47,615	$ 47,615
Conversion price per share	$ 0.01
Convertible debt	$ 47,615
Debt instruments maturity date	Oct. 31, 2016
Percentage of closing price	50.00%

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Convertible Notes Payable - Schedule of Convertible Notes Payable (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015	Dec. 04, 2014	Aug. 25, 2014	Jan. 03, 2013	Jan. 02, 2012	May 01, 2011
Note Face Amount	$ 280,826	$ 182,166
Debt Discount
Net Amount of Note	280,826	182,166
2011 Note [Member]
Note Face Amount	22,166	22,166					$ 32,000
Debt Discount
Net Amount of Note	22,166	22,166
2012 Note [Member]
Note Face Amount	48,000	48,000				$ 48,000
Debt Discount
Net Amount of Note	48,000	48,000
2013 Note [Member]
Note Face Amount	12,000	12,000			$ 12,000
Debt Discount
Net Amount of Note	12,000	12,000
2014 Note [Member]
Note Face Amount	100,000	100,000		$ 50,000
Debt Discount
Net Amount of Note	100,000	$ 100,000
2015 Note [Member]
Note Face Amount	51,048		$ 510,045
Debt Discount
Net Amount of Note	51,048
2016 Note [Member]
Note Face Amount	47,615
Debt Discount
Net Amount of Note	$ 47,615

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Loan from Related Party (Details Narrative) - USD ($)		1 Months Ended			3 Months Ended	9 Months Ended		12 Months Ended
	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2014	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Principal amount		$ 182,166			$ 280,826	$ 280,826		$ 182,166
Amortization of debt discount						389,995	$ 319,266
Cumulative interest		$ 54,693			79,335	79,335		54,693
March 2014 Note [Member]
Percentage of convertible debt	12.50%
Debt maturity date	Mar. 31, 2015
Principal amount	$ 157,500			$ 157,500
Percentage of common stock conversion price	50.00%
Embedded conversion feature of the convertible debt	$ 305,039
Established debt discount	157,500			$ 157,500
Amortization of debt discount								69,490
Remaining amortization of debt discount						0		0
June 2014 Note [Member]
Percentage of convertible debt				12.50%
Debt maturity date				Jun. 30, 2015
Principal amount	110,741			$ 110,741
Percentage of common stock conversion price				50.00%
Embedded conversion feature of the convertible debt				$ 213,207
Established debt discount	$ 110,741			$ 110,741
Amortization of debt discount								79,818
Remaining amortization of debt discount						0		0
September 2014 Note [Member]
Percentage of convertible debt			12.50%
Debt maturity date			Sep. 30, 2015
Principal amount			$ 98,575
Percentage of common stock conversion price			50.00%
Embedded conversion feature of the convertible debt			$ 181,771
Established debt discount			$ 98,575
Amortization of debt discount								134,765
Remaining amortization of debt discount						0		0
September 2015 Note [Member]
Percentage of convertible debt		12.50%
Debt maturity date		Sep. 30, 2016
Principal amount		$ 316,046						316,046
Percentage of common stock conversion price		50.00%
Embedded conversion feature of the convertible debt		$ 330,496
Established debt discount		$ 226,826						$ 226,826
Amortization of debt discount					$ 88,250
Remaining amortization of debt discount						$ 330,496

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Loan from Related Party - Schedule of Convertible Debt (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Note face amount	$ 280,826	$ 182,166
President And Director [Member]
Note face amount			$ 366,816
Debt Discount			(259,937)
Net amount of note			106,879
Loan From Related Party [Member] | President And Director [Member]
Note face amount			366,816
Debt Discount			(259,937)
Net amount of note			$ 106,879

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Stockholder's Deficit (Details Narrative) - $ / shares	3 Months Ended
	Jun. 30, 2016	Aug. 12, 2016	Sep. 30, 2015
Convertible notes	23,993,229
Common Stock, Par Value	$ 0.001	$ 0.001	$ 0.001
Common Stock, Shares Authorized	500,000,000	500,000,000	500,000,000
Common Stock, Shares Issued	101,392,416	179,538,440	77,399,187
Common Stock, Shares Outstanding	101,392,416	179,538,440	77,399,187
Preferred stock, shares authorized	50,000,000		50,000,000
Preferred stock, Par Value	$ 0.001		$ 0.001
Series A preferred stock, shares issued	3,000,000		3,000,000
Series A preferred stock, shares outstanding	3,000,000		3,000,000
Series A Preferred Stock [Member]
Preferred stock, shares authorized	10,000,000		10,000,000

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Related Party Transactions - Related Party Transactions (Details) - USD ($)		Jun. 30, 2016	Sep. 30, 2015
Related Party Transactions [Abstract]
Loan from related party - unsecured loan	[1]	$ 937,335	$ 679,227
Loan from related party		$ 937,335	$ 679,227

[1] From time to time, the president and stockholder of the Company provides advances to the Company for its working capital purposes. These advances bear no interest and are due on demand.

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Related Party Transactions - Related Party Transactions (Details) (Parenthetical) - USD ($)		3 Months Ended	12 Months Ended
	Apr. 29, 2015	Jun. 24, 2015	Sep. 30, 2015	Jun. 30, 2016
Note Face Amount			$ 182,166	$ 280,826
Common Stock [Member]
Common Stock issued - Warren Sheppard, Shares	3,001,702		3,001,702
Debt conversion into shares		4,000,000
Note Face Amount		$ 4,000
Conversion price per share		$ 0.001

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Business Combinations (Details Narrative) - shares				12 Months Ended
	Dec. 10, 2014	Feb. 28, 2014	Feb. 14, 2014	Sep. 30, 2015
Angel Jade Pty Ltd [Member]
Ownership percentage in minority interest	70.00%
Joint Venture Agreement [Member]
Net profit sharing percentage		70.00%
Percentage of contribution to trust account by leaseholders and company		1.00%
Joint Venture Agreement [Member] | Leaseholders [Member]
Net profit sharing percentage		30.00%
Common Stock [Member]
Common Stock issued - Five Arrows, Shares	14,000,000		40,000,000	14,000,000
Common Stock issued - Angel Jade Pty Ltd	90,000,000

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Business Combinations - Schedule of Business Combinations (Details)	9 Months Ended
	Jun. 30, 2016
Note 1 [Member]
Name of Entity	Aqua Mining (PNG) Ltd
Country of Incorporation	Papua New Guinea
Acquisition Date	Feb. 28, 2014
Voting Equity Interests	90.00%
Nature of Relationship	Note 1
Note 2 [Member]
Name of Entity	Angel Jade Pty Ltd
Country of Incorporation	Australia
Acquisition Date	Dec. 10, 2014
Voting Equity Interests	70.00%
Nature of Relationship	Note 2

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Subsequent Events (Details Narrative) - USD ($)		9 Months Ended
	Aug. 12, 2016	Jun. 30, 2016	Jun. 30, 2015
Proceeds from convertible debt
Subsequent Event [Member] | Blackbridge Capital, LLC [Member]
Proceeds from convertible debt	$ 100,000
Debt instrument, interest rate	5.00%
Promissory note, prepayment penalty percentage	20.00%
Debt instrument, common stock percentage	50.00%