10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended December 31, 2014
[  ]	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from __________  to __________
	Commission File Number: 000-53498

Stratean Inc.

(Exact name of Registrant as specified in its charter)

Nevada	87-044945
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

2391 South 1560 West

Woods Cross, Utah 84087

(Address of principal executive offices)

(801) 224-4405

(Registrant’s telephone number)

 _______________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days

[X] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 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.

[  ] Large accelerated filer	[  ] Accelerated filer
[  ] Non-accelerated filer	[X] Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ] Yes [X] No

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 5,990,805 common shares as of January 26, 2015

	TABLE OF CONTENTS	Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	7
Item 4:	Controls and Procedures	7
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	8
Item 1A:	Risk Factors	8
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	8
Item 3:	Defaults Upon Senior Securities	8
Item 4:	Mine Safety Disclosure	8
Item 5:	Other Information	8
Item 6:	Exhibits	8

2

PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements

Our financial statements included in this Form 10-Q are as follows:

F-1   Balance Sheets as of December 31, 2014 and September 30, 2014 (unaudited);

F-2   Statements of Operations for the three months ended December 31, 2014 and 2013 (unaudited);

F-3   Statements of Cash Flow for the three months ended December 31, 2014 and 2013 (unaudited);

F-4   Notes to Financial Statements.

The accompanying condensed financial statements of Stratean Inc. ( the “Company”) are unaudited, but in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) necessary to fairly state the Company’s financial position, results of operations, and cash flows as of and for the dates and periods presented. The condensed financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information.

These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the twelve months ended September 30, 2014, filed with the Securities and Exchange Commission (the “Commission”).

The results of operations for the three months ended December 31, 2014 are not necessarily indicative of the results that may be expected for the entire year ending September 30, 2015 or for any future period.

3

STRATEAN INC.
BALANCE SHEETS
(UNAUDITED)

	December 31, 2014			September 30, 2014
ASSETS
Current assets
Cash	$	58,087		$	116,741
Prepaid expense		—			21,143
Total current assets		58,087			137,884
Deposits		1,350			—
Fixed Assets		582,427			580,973
Intangible assets		44,013			44,397
Total assets		685,877			763,254
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities	$	7,428		$	8,658
Due to related parties		1,521			1,473
Total current liabilities		8,949			10,131
Notes payable		—			44,857
Total liabilities		8,949			54,988
Stockholders' equity (deficit)
Common stock; $0.001 par value; 100,000,000 shares authorized; 5,970,805 and 5,803,305 shares issued and outstanding as of December 31, 2014 and  September 30, 2014, respectively		5,971			5,803
Additional paid-in capital		1,271,570			1,111,738
Accumulated earnings (deficit)		(600,613	)		(409,275	)
Total stockholders' equity (deficit)		676,928			708,266
Total liabilities and stockholders' equity (deficit)	$	685,877		$	763,254

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

F-1

STRATEAN INC.
STATEMENT OF OPERATIONS
(UNAUDITED)

	For the Three Months Ended
	December 31, 2014			December 31, 2013
Revenues	$	—		$	—
Cost of revenues		—			—
Gross profit		—			—
Operating expenses
Professional fees		117,772			—
Research and development		50,000			—
General and administrative expenses		17,782			8,287
Depreciation and amortization		640			—
Total operating expenses		186,194			8,287
Loss from operations		(186,194	)		(8,287	)
Other income (expense)
Interest expense		(5,144	)		(1,928	)
Total other income (expense)		(5,144	)		(1,928	)
Net income (loss)	$	(191,338	)	$	(10,215	)
Basic income (loss) per common share	$	(0.03	)	$	(0.01	)
Basic weighted average common shares outstanding		5,866,792			950,687

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

F-2

STRATEAN INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)

	Three Months Ended
	December 31, 2014			December 31, 2013
Cash Flows from Operating Activities
Net loss	$	(191,338	)	$	(10,215	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Imputed interest on related party debt		5,143			1,928
Stock based consulting		80,000			—
Depreciation and amortization of intangible assets		640			—
Changes in assets and liabilities
(Increase) decrease in prepaid expense		1,143			—
(Increase) decrease in deposits		(1,350	)		—
Increase (decrease) in accounts payable		(1,230	)		5,024
Increase (decrease) in accounts payable related party		48			3,500
Net cash from operating activities		(106,944	)		237
Cash Flows from investing
Purchase of fixed assets		(1,710	)		—
Net cash used in investing activities		(1,710	)		—
Cash Flows from Financing Activities
Proceeds from issuance of common stock		50,000			—
Net cash from financing activities		50,000			—
Net increase (decrease) in Cash		(58,654	)		237
Beginning cash balance		116,741			270
Ending cash balance	$	58,087		$	507
Supplemental disclosure of cash flow information
Cash paid for interest	$	—		$	—
Cash paid for tax	$	—		$	—
Non-Cash investing and financing transactions
Common stock issued for debt	$	50,000		$	—
Shares issued for services	$	60,000		$	—

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

F-3

STRATEAN INC.

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

1. BASIS OF PRESENTATION AND GOING CONCERN

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

Going concern – The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $(600,613) since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

2. SUMMARY OF SIGNIFICANT POLICIES

This summary of significant accounting policies of Stratean Inc. is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements.

Use of estimates – The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.

Cash and cash equivalents – For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. There was $58,087 and $116,741 in cash and cash equivalents as of December 31, 2014 and September 30, 2014, respectively.

Fair Value of Financial Instruments – The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale.

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

F-4

Revenue recognition – The Company recognizes revenue on arrangements in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” and No. 104, “Revenue Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonably assured. For the periods ended December 31, 2014 and 2013 the Company reported revenues of $0 and $0, respectively.

Long-lived Assets – In accordance with the Financial Accounting Standards Board ("FASB") Accounts Standard Codification (ASC) ASC 360-10, "Property, Plant and Equipment," the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

Stock-based compensation – The Company follows the guidelines in FASB Codification Topic ASC 718-10 “Compensation-Stock Compensation”, which provides investors and other users of financial statements with more complete and neutral financial information, by requiring that the compensation cost relating to share-based payment transactions be recognized in the financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. ASC 718-10 covers a wide range of share-based compensation arrangements, including share options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As of December 31, 2014, the Company has not implemented an employee stock based compensation plan.

Non-Employee Stock Based Compensation – The Company accounts for stock based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50. The Company may issues compensatory shares for services including, but not limited to, executive, management, accounting, operations, corporate communication, financial and administrative consulting services.

Earnings (loss) per share – The Company reports earnings (loss) per share in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 260-10 “Earnings Per Share”, which provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive.

3. FIXED ASSETS

Fixed assets consist of the following as of December 31, 2014 and September 30, 2014

	December 31, 2014			September 30, 2014
Machinery and equipment	$	580,973		$	580,973
Furniture and fixtures		1,475			—
Total		582,448			580,973
Less: accumulated depreciation		(21	)		—
Fixed assets, net of accumulated depreciation	$	582,427		$	580,973

Depreciation expense for the three months ended December 31, 2014 and 2013 was $21 and $0, respectively.

4.    INTANGIBLE AND OTHER ASSETS

Intangible assets consist of the following as of December 31, 2014 and September 30, 2014

	December 31, 2014			September 30, 2014
Patents	$	49,237		$	49,002
Less: accumulated depreciation		(5,224	)		(4,605	)
Fixed assets, net of accumulated depreciation	$	44,013		$	44,397

Amortization expense for the three months ended December 31, 2014 and 2013 was $619 and $0, respectively.

F-5

5. RELATED PARTY TRANSACTIONS

On December 31, 2014, Stratean Inc. (the "Company") and two Promissory Note holders, Burkeley J. Priest ("Priest") and The Munson Family Limited Partnership ("Munson") entered into Debt Settlement Agreements ("Agreements"), to settle two Promissory Notes ("Notes") with a face value of $33,341 and $16,659, respectively. Priest and Munson agreed that, upon execution of their agreements and receipt of the stock, all claims of Priest and Munson against Stratean Inc., were deemed released.

Pursuant to the Agreements the Company issued Priest 38,342 shares of Stratean Inc. $0.001 par value common stock which had a fair value on December 31, 2014 of approximately $1.00 per share, or $38,342. On the date of the transaction Burkeley J. Priest owned approximately 6.2% of the Company's outstanding common stock and is considered a related party, therefore in accordance with ASC 470-50 approximately $5,001 will be recorded as a charge against additional paid in capital as a result of the Agreement.

Pursuant to the Agreements the Company issued Munson 19,158 shares of Stratean Inc. $0.001 par value common stock which had a fair value on December 31, 2014 of approximately $1.00 per share, or $19,158. On the date of the transaction The Munson Family Limited Partnership owned approximately 7.5% of the Company's outstanding common stock and is considered a related party, therefore in accordance with ASC 470-50 approximately $2,499 will be recorded as a charge against additional paid in capital as a result of the Agreement.

Pursuant to the Agreements Priest has been granted a 10 year royalty ("Royalty") of one-half of one percent (.5%) of "Gross Revenues" derived from the "Sale of Stratean Downdraft Gasifer units".

Pursuant to the Agreements Munson has been granted a 10 year royalty ("Royalty") of one-quarter of one percent (.25%) of "Gross Revenues" derived from the "Sale of Stratean Downdraft Gasifer units".

The Agreements define 'Gross Revenues' as; monies actually received by Stratean arising from the sale of its units. The Agreement further defines the 'Sale of Stratean Gasifier Units' as revenues received by Stratean as a direct result and occurrence of a sale of physical gasifier units to third parties. All other revenues generated by Stratean whether related to the Company's Gasifier or otherwise are explicitly excluded. Under this agreement Stratean is required to render statements and make payments to Priest and Munson within 60 days after the last day of each fiscal quarter.

Stratean remains free to exercise all the rights of ownership of its property and intellectual property including the right to sell its intellectual property and make licensing and sub-license agreements without consulting Priest or Munson and upon whatever terms it deems wise.

6. PREPAID EXPENSES

On September 30, 2014 the Company entered into a consulting agreement for grant writing services. Pursuant to this agreement the Company issued 20,000 shares of the Company's $0.001 par value common stock valued at $1.00 per share or $20,000. The cost was capitalized as a prepaid expense as of September 30, 2014. During the quarter ended December 31, 2014 the prepaid expense was fully amortized and an expense of $20,000 was charged to professional fees.

7. STOCKHOLDERS’ EQUITY (DEFICIT)

On November 4, 2014 the Company entered into a consulting agreement for grant writing services. Pursuant to this agreement the Company issued 60,000 shares of the Company's $0.001 par value common stock valued at $1.00 of $60,000.

On November 12, 2014 the Company received $40,000 pursuant to a private placement agreement with an investor to purchase 40,000 shares of Stratean $0.001 par value common stock and a warrant to purchase 4,000 shares of Stratean $0.001 par value common stock at a purchase price equal to $1.00 for each share of Common stock and 10% warrant coverage. The warrant allows the holder to purchase shares of the Company's $0.001 par value common stock at $1.10 per share.

On November 24, 2014 the Company received $10,000 pursuant to a private placement agreement with an investor to purchase 10,000 shares of Stratean $0.001 par value common stock and a warrant to purchase 1,000 shares of Stratean $0.001 par value common stock at a purchase price equal to $1.00 for each share of Common stock and 10% warrant coverage. The warrant allows the holder to purchase shares of the Company's $0.001 par value common stock at $1.10 per share.

On December 31, 2014 the Company issued 57,500 shares to a related party to settle debt. (see Note 5 for additional information)

F-6

8. DEFINITIVE AGREEMENTS

On December 5, 2014, Stratean Inc. (the "Company") and Combustion Resources, Inc. ("Combustion Resources") executed a Service Agreement ("Agreement") to independently test the Company’s Gasifier to further establish its capability of producing large volumes of clean, renewable energy from any carbon compound (Municipal Solid Waste (MSW), Coal, Sewage Sludge) into clean Synthesis Gas.

The testing will be comprised of seven stages or tasks and is estimated to be completed over a 14 week period. Each of the seven stages are briefly outlined below.

1. Characterize Feedstock: The feedstock selected for use in the Gasifier will be fully characterized to assist in understanding how the Gasifier performs for that feedstock.

2. Review Design Data: A full understanding of the installation and operation of the Gasifier will be outlined, including configuration, construction, thermochemical calculations and theoretical operating conditions and performance.

3. Prepare Gasifier for Test Runs: The Gasifer will be installed for testing at Utah State University’s Carbon Energy Innovation Center.

4. Preliminary Test Runs of Gasifier: Baseline testing will be completed to ensure all systems and support equipment are operating properly.

5. Perform Baseline Run of Gasifier: Baseline test will be performed during which samples of gas, liquid, and solid effluent streams will be collected and analyzed. During the testing process conditions will be monitored and upon completion the data will be inspected and analyzed to determine how the Gasifier operated during the baseline testing. After completion of the test run Petersen Inc. will inspect and verify mechanical operations and integrity of the gasifier.

6. Perform Extended Run of Gasifier: An extended run of the Gasifier will be performed following a successful baseline test run. The test run will be used to demonstrate extended operation of the Gasifier, and if there are any effects of extended operation of the Gasifier or associated support equipment. During the extended test run samples of gas, liquid, and solid effluent streams will be collected and analyzed. During the testing process conditions will be monitored and upon completion the data will be inspected and analyzed to determine how the Gasifier operated during the extended testing. After completion of the test run Petersen Inc. will inspect and verify mechanical operations and integrity of the Gasifier.

7. Project Report: A report will be prepared at the conclusion of the study describing the results of the evaluation of the Gasifier. The report will provide a detailed discussion of the results of the tests, and will make recommendations of possible process revisions and additional work that can provide insights and direction for optimizing the Gasifier performance. The report will also provide recommendations for addition testing and items to be considered regarding feasibility of commercial operation of the Gasifier.

Pursuant to the Agreement, the Company will make payments totaling $147,144. On December, 9, 2014, the Company made an initial payment of $50,000 to begin the project. Another $50,000 will be due upon completion of task 5 and the balance of $47,144 is due upon delivery of the Final Project report.

9. COMMITMENTS AND CONTINGENCIES

Lease obligations – The Company has operating leases for its offices. Future minimum lease payments under the operating leases for the facilities as of December 31, 2014, are as follows:

2015 $12,150

10.    SUBSEQUENT EVENTS

On January 6, 2015 the Company received $20,000 pursuant to a private placement agreement with an investor to purchase 20,000 shares of Stratean $0.001 par value common stock and a warrant to purchase 2,000 shares of Stratean $0.001 par value common stock at a purchase price equal to $1.00 for each share of Common stock and 10% warrant coverage. The warrant allows the holder to purchase shares of the Company's $0.001 par value common stock at $1.10 per share.

F-7

Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.   These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions.  We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions.  Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.  Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.  Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Company Overview

Stratean Inc. is in the business of acquiring, licensing and marketing patents and technology to create renewable energy from solid waste. The Company plans to turn today’s landfill dilemma into tomorrow’s energy solution.

Stratean Inc's technology converts any organic material into SynGas. SynGas can be used as clean, renewable, environmentally friendly, warming fuel for power plants, motor vehicles, and as feedstock for the generation of DME (Di-Methyl Ether). DME is the premier energy carrier and offers a range of important benefits:

ŸSimple and low cost of production

ŸAn environmentally-benign propellant and coolant

ŸClean-burning and high energy efficiency

ŸLower transportation and distribution costs

ŸEasily converted into other fuels and chemicals

The Stratean Gasifier converts the following materials into clean, reusable, renewable, and affordable energy:

ŸMunicipal Solid Waste (MSW)

ŸMunicipal sewage sludge

ŸFood and cooking waste

ŸPetroleum sludge and oily wastes

ŸAnimal manures

ŸCellulosic and non-cellulosic biomass

ŸEnergy crops

ŸScrap tires

ŸCoal

4

The process involves the grinding, drying, separating, mixing, and then pelletizing of solid waste. These pellets constitute the feedstock for the Gasifier. Gasifying the pellets produces SynGas. SynGas can be converted into multiple forms of energy including motor vehicle and jet fuels. The SynGas produced is so clean that it generally does not require hot-gas cleanup. SynGas is mostly hydrogen and carbon monoxide. Hydrogen and carbon monoxide are primary building blocks for fuels and chemicals. SynGas is a clean burning fuel suitable for use in duel-fuel diesel engines, gas turbines, and steam boilers.

The Company believes that the Stratean process will turn the world’s waste problem into an abundant, renewable resource of energy. The Stratean production can be adapted to the specific energy requirements of a given area. Communities are expected to benefit from the countless options created including inexpensive green electric power for homes, clean-burning fuel for garbage trucks, street maintenance equipment, or for resale to other municipalities. Because of the modular nature of the components intrinsic to the process, the plant could provide one energy source, then be converted to provide a different energy product. A Stratean facility could produce additional electric power during the peak demand part of the day and produce fuels during the rest of the day.

The Company’s market segmentation is vast as the Company expects to apply its technology to anything that is carbon based. The markets for which the Company has focused its efforts include: the electric utility market, municipal waste, processing plants, the refining sector, stranded natural gas fields, and Canadian oil sands.

The Company has begun pursuing opportunities to utilize the assets and intellectual properties purchased.  The Company aims to further develop these technologies in order to pursue licensing, manufacturing and direct sales agreements for its Gasifier technology.

The technologies and prototype will begin undergoing clinical lab testing to further establish its capability of producing large volumes of clean, renewable energy from any carbon compound (Municipal Solid Waste (MSW), Coal, Sewage Sludge) into clean Synthesis Gas.  The Company’s Gasifier is still under development and a commercially viable Gasifier is not expected to be sellable until the first or second quarter of 2015. In December of 2014 the Company executed an agreement with Combustion Resources, LLC to independently test the Company’s production model prototype. Combustion was engaged to independently test the Gasifer's performance and certify the results of its performance. The Company believes the results of these independent tests will provide the results needed to prove its commercial viability, at which time the Company would begin to actively market its Gasifer units.

The Company has not engaged in any significant negotiations to sell its Gasifier products to any major customers. Once completed, the Company intends to distribute its products through advertisements and sales calls on potential customers with demonstrations of how the products work. The failure to acquire customers to generate revenues will negatively affect the Company’s financial performance.

Results of Operations for the Three Months Ended December 31, 2014 and 2013

Operating Expenses

The Company had operating expenses of $186,194 for the three months ended December 31, 2014, as compared with $8,287 for the three months ended December 31, 2013.

Professional fees increased to $117,772 for the three months ended December 31, 2014 from $0 for the same period ended December 31, 2013. Our professional fees expenses for the three months ended December 31, 2014 consisted mainly of legal expenses and consulting fees.

Research and development fees increased to $50,000 for the three months ended December 31, 2014 from $0 for the same period ended December 31, 2013. Our research and development expenses for the three months ended December 31, 2014 consisted mainly of consulting fees to independently test our Gasifier.

General and administrative fees increased to $17,782 for the three months ended December 31, 2014 from $8,287 for the same period ended December 31, 2013. Our general and administrative expenses for the three months ended December 31, 2014 consisted mainly of office expenses and expenses incurred as a result of fundraising efforts. In comparison, our general and administrative expenses for the three months ended December 31, 2013 consisted mainly of expenses related to SEC compliance.

Depreciation and amortization expense increased to $640 for the three months ended December 31, 2014 from $0 for the same period ended December 31, 2013.

Other Expenses

We had other expenses of $(5,144) for the three months ended December 31, 2014, compared with other expenses of $(1,928) for the three months ended December 31, 2013. Our other expenses for the three months ended December 31, 2014 and 2013 consisted mainly of amortization of imputed interest on officer loans.

5

Net Loss

We recorded a net loss of $(191,338) for the three months ended December 31, 2014, as compared with a net loss of $(10,215) for the three months ended December 31, 2013.

Liquidity and Capital Resources

As of December 31, 2014, we had total current assets of $58,087, consisting entirely of cash, and total assets in the amount of $685,877. Our total current liabilities as of December 31, 2014 were $8,949. We had working capital of $49,138 as of December 31, 2014.

Operating activities used $(106,944) in cash for the three months ended December 31, 2014. Our net loss of $(191,338) was the main component of our negative operating cash flow, offset mainly by imputed interest of $5,143 and stock based consulting of $80,000.

Cash flows used by investing activities during the three months ended December 31, 2014 was $(1,710) as a result of the purchase of fixed assets.

Cash flows provided by financing activities during the three months ended December 31, 2014 amounted to $50,000 and consisted of $50,000 in proceeds from our private offering of common stock and warrants.

In addition to $50,000 we were able to raise in the sale of our common stock, we were able to settle two promissory notes with a face values of $33,341 and $16,659. Pursuant to the Debt Settlement Agreements, we issued 38,342 shares of common stock and 19,158 shares of common stock, respectively, along with royalties, as provided in the Agreements, to settle the notes.

Despite the efforts we have made to raise money and to settle debt, based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.

Off Balance Sheet Arrangements

As of December 31, 2014, there were no off balance sheet arrangements.

Critical Accounting Policies

In December 2001, the SEC requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis. The SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

Going concern – The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $(600,613) since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

Use of estimates – The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.

Revenue recognition – The Company recognizes revenue on arrangements in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” and No. 104, “Revenue Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonably assured. For the periods ended December 31, 2014 and 2013 the Company reported revenues of $0 and $0, respectively.

Long-lived Assets – In accordance with the Financial Accounting Standards Board ("FASB") Accounts Standard Codification (ASC) ASC 360-10, "Property, Plant and Equipment," the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

6

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item.

Item 4.     Controls and Procedures

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2014. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2014, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of December 31, 2014, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

Remediation Plan to Address the Material Weaknesses in Internal Control over Financial Reporting

Our company plans to take steps to enhance and improve the design of our internal controls over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending September 30, 2015: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended December 31, 2014 that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.

7

PART II – OTHER INFORMATION

Item 1.     Legal Proceedings

We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A:  Risk Factors

A smaller reporting company is not required to provide the information required by this Item.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

The information set forth below relates to our issuances of securities without registration under the Securities Act of 1933 during the reporting period which were not previously included in a Quarterly Report on Form 10-Q or Current Report on Form 8-K.

On November 4, 2014 the Company entered into a consulting agreement for grant writing services. Pursuant to this agreement the Company issued 60,000 shares of the Company's $0.001 par value common stock valued at $1.00 of $60,000.

On November 12, 2014 the Company received $40,000 pursuant to a private placement agreement with an investor to purchase 40,000 shares of Stratean $0.001 par value common stock and a warrant to purchase 4,000 shares of Stratean $0.001 par value common stock at a purchase price equal to $1.00 for each share of Common stock and 10% warrant coverage. The warrant allows the holder to purchase shares of the Company's $0.001 par value common stock at $1.10 per share.

On November 24, 2014 the Company received $10,000 pursuant to a private placement agreement with an investor to purchase 10,000 shares of Stratean $0.001 par value common stock and a warrant to purchase 1,000 shares of Stratean $0.001 par value common stock at a purchase price equal to $1.00 for each share of Common stock and 10% warrant coverage. The warrant allows the holder to purchase shares of the Company's $0.001 par value common stock at $1.10 per share.

These securities were issued pursuant to Section 4(2) of the Securities Act and/or Rule 506 promulgated thereunder. The holders represented their intention to acquire the securities for investment only and not with a view towards distribution. The investors were given adequate information about us to make an informed investment decision. We did not engage in any general solicitation or advertising. We directed our transfer agent to issue the stock certificates with the appropriate restrictive legend affixed to the restricted stock.

Item 3.     Defaults upon Senior Securities

None

Item 4.     Mine Safety Disclosures

Not applicable.

Item 5.     Other Information

None

Item 6.      Exhibits

Exhibit Number	Description of Exhibit
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2014 formatted in Extensible Business Reporting Language (XBRL).
**Provided herewith

8

SIGNATURES

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

	Stratean, Inc.
Date:	February 3, 2014
	By: /s/ S. Matthew Schultz S. Matthew Schultz Title:    Chief Executive Officer
Date:	February 3, 2014
	By: /s/Zachary K. Bradford Zachary K Bradford Title:    Chief Financial Officer

9

EX-31.1

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

I, S. Matthew Schultz, certify that;

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended December 31, 2014 of Stratean Inc. (the “registrant”);

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

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

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

Date: February 3, 2014

/s/ S. Matthew Schultz

By: S. Matthew Schultz

Title: Chief Executive Officer

EX-31.2

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

I, Zachary Bradford, certify that;

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended December 31, 2014 of December 31, 2014 of Stratean Inc. (the “registrant”);

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

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

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

Date: February 3, 2014

/s/ Zachary Bradford

By: Zachary Bradford

Title: Chief Financial Officer

EX-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 Stratean Inc. (the “Company”) on Form 10-Q for the quarter ended December 31, 2014 filed with the Securities and Exchange Commission (the “Report”), I, S. Matthew Schultz, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition of the Company as of the dates presented and the results of operations of the Company for the periods presented.

By:	/s/ S. Matthew Schultz
Name:	S. Matthew Schultz
Title:	Chief Executive Officer
Date:	February 3, 2014

This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

CERTIFICATION OF CHIEF FINANCIAL 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 Stratean Inc. (the “Company”) on Form 10-Q for the quarter ended December 31, 2014 filed with the Securities and Exchange Commission (the “Report”), I, Zachary Bradford, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition of the Company as of the dates presented and the results of operations of the Company for the periods presented.

By:	/s/ Zachary K. Bradford
Name:	Zachary Bradford
Title:	Chief Financial Officer
Date:	February 3, 2014

This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

2

XML

INTANGIBLE AND OTHER ASSETS (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization Expense	$ 619	$ 0

XML

INTANGIBLE AND OTHER ASSETS

3 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE AND OTHER ASSETS

Intangible assets consist of the following as of December 31, 2014 and September 30, 2014

	December 31, 2014			September 30, 2014
Patents	$	49,237		$	49,002
Less: accumulated depreciation		(5,224	)		(4,605	)
Fixed assets, net of accumulated depreciation	$	44,013		$	44,397

Amortization expense for the three months ended December 31, 2014 and 2013 was $619 and $0, respectively.

XML

DEFINITIVE AGREEMENTS (Details Narrative) (Service Agreement #2, USD $)	3 Months Ended
	Dec. 31, 2014
Service Agreement #2
Date of Agreement	2014-12-05
Payment for Operating Activities	$ 147,144
Initial Payment, Due	50,000
Second Payment, Due	50,000
Final Payment, Due	$ 47,144

XML

STOCKHOLDERS EQUITY (DEFICIT) (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Common Stock, Issued	5,970,805	5,803,305
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Fair Value	$ 5,971	$ 5,803
Consulting Agreement
Date of Agreement	Nov. 04, 2014
Common Stock, Issued	60,000
Common Stock, Par Value	$ 0.001
Common Stock, Fair Value	$ 60,000
Private Placement Agreement
Date of Agreement	Nov. 12, 2014
Common Stock, Issued	40,000
Common Stock, Par Value	$ 0.001
Warrants Issued	4,000
Warrants, Purchase Price	$ 1.00
Private Placement Agreement 2
Date of Agreement	Nov. 24, 2014
Common Stock, Issued	10,000
Common Stock, Par Value	$ 0.001
Warrants Issued	1,000
Warrants, Purchase Price	$ 1.00
Related Party
Common Stock, Issued	57,500

XML

COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Payments for Rent	$ 12,150

XML

SUBSEQUENT EVENTS (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Common Stock, Issued	5,970,805	5,803,305
Common Stock, Par Value	$ 0.001	$ 0.001
Private Placement Agreement 3
Date of Agreement	Jan. 06, 2015
Common Stock, Issued	20,000
Common Stock, Par Value	$ 0.001
Warrants to Purchase	2,000
Warrants, Purchase Price	$ 1.00

XML

FIXED ASSETS

3 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

FIXED ASSETS

Fixed assets consist of the following as of December 31, 2014 and September 30, 2014

	December 31, 2014			September 30, 2014
Machinery and equipment	$	580,973		$	580,973
Furniture and fixtures		1,475			—
Total		582,448			580,973
Less: accumulated depreciation		(21	)		—
Fixed assets, net of accumulated depreciation	$	582,427		$	580,973

Depreciation expense for the three months ended December 31, 2014 and 2013 was $21 and $0, respectively.

XML

Balance Sheets (USD $)	Dec. 31, 2014	Sep. 30, 2014
Current assets
Cash	$ 58,087	$ 116,741
Prepaid expense		21,143
Total current assets	58,087	137,884
Deposits	1,350
Fixed Assets	582,427	580,973
Intangible assets	44,013	44,397
Total assets	685,877	763,254
Current liabilities
Accounts payable and accrued liabilities	7,428	8,658
Due to related parties	1,521	1,473
Total current liabilities	8,949	10,131
Notes payable		44,857
Total liabilities	8,949	54,988
Stockholders' equity (deficit)
Common stock; $0.001 par value; 100,000,000 shares authorized; 5,803,305 and 950,687 shares issued and outstanding as of September 30, 2014 and September 30, 2013, respectively	5,971	5,803
Additional paid-in capital	1,271,570	1,111,738
Accumulated earnings (deficit)	(600,613)	(409,275)
Total stockholders' equity (deficit)	676,928	708,266
Total liabilities and stockholders' equity (deficit)	$ 685,877	$ 763,254

XML

BASIS OF PRESENTATION AND GOING CONCERN

3 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION AND GOING CONCERN

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

Going concern – The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $(600,613) since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

XML

FIXED ASSETS - Schedule of Property Pant and Equipment (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Property, Plant and Equipment [Abstract]
Machinery and equipment	$ 580,973	$ 580,973
Furniture and fixtures	1,475
Total	582,448	580,973
Less: accumulated depreciation	(21)
Fixed assets, net of accumulated depreciation	$ 582,427	$ 580,973

XML

INTANGIBLE AND OTHER ASSETS - Schedule of Intangible Assets (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Patents	$ 49,237	$ 49,002
Less: accumulated depreciation	(5,224)	(4,605)
Fixed assets, net of accumulated depreciation	$ 44,013	$ 44,397

XML

SUMMARY OF SIGNIFICANT POLICIES

3 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT POLICIES

This summary of significant accounting policies of Stratean Inc. is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements.

Use of estimates – The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.

Cash and cash equivalents – For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. There was $58,087 and $116,741 in cash and cash equivalents as of December 31, 2014 and September 30, 2014, respectively.

Fair Value of Financial Instruments – The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale.

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Revenue recognition – The Company recognizes revenue on arrangements in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” and No. 104, “Revenue Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonably assured. For the periods ended December 31, 2014 and 2013 the Company reported revenues of $0 and $0, respectively.

Long-lived Assets – In accordance with the Financial Accounting Standards Board ("FASB") Accounts Standard Codification (ASC) ASC 360-10, "Property, Plant and Equipment," the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

Stock-based compensation – The Company follows the guidelines in FASB Codification Topic ASC 718-10 “Compensation-Stock Compensation”, which provides investors and other users of financial statements with more complete and neutral financial information, by requiring that the compensation cost relating to share-based payment transactions be recognized in the financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. ASC 718-10 covers a wide range of share-based compensation arrangements, including share options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As of December 31, 2014, the Company has not implemented an employee stock based compensation plan.

Non-Employee Stock Based Compensation – The Company accounts for stock based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50. The Company may issues compensatory shares for services including, but not limited to, executive, management, accounting, operations, corporate communication, financial and administrative consulting services.

Earnings (loss) per share – The Company reports earnings (loss) per share in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 260-10 “Earnings Per Share”, which provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive.

XML

Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Statement of Financial Position [Abstract]
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, Shares authorized	100,000,000	100,000,000
Common Stock, shares issued	5,970,805	5,803,305

XML

SUMMARY OF SIGNIFICANT POLICIES (Policies)

3 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Use of Estimates

The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.

Cash and cash equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. There was $58,087 and $116,741 in cash and cash equivalents as of December 31, 2014 and September 30, 2014, respectively.

Fair Value of Financial Instruments

The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale.

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Revenue recognition

The Company recognizes revenue on arrangements in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” and No. 104, “Revenue Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonably assured. For the periods ended December 31, 2014 and 2013 the Company reported revenues of $0 and $0, respectively.

Long-lived Assets

In accordance with the Financial Accounting Standards Board ("FASB") Accounts Standard Codification (ASC) ASC 360-10, "Property, Plant and Equipment," the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

Stock-based compensation

The Company follows the guidelines in FASB Codification Topic ASC 718-10 “Compensation-Stock Compensation”, which provides investors and other users of financial statements with more complete and neutral financial information, by requiring that the compensation cost relating to share-based payment transactions be recognized in the financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. ASC 718-10 covers a wide range of share-based compensation arrangements, including share options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As of December 31, 2014, the Company has not implemented an employee stock based compensation plan.

Non-Employee Stock Based Compensation

The Company accounts for stock based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50. The Company may issues compensatory shares for services including, but not limited to, executive, management, accounting, operations, corporate communication, financial and administrative consulting services.

Earnings (loss) per share

The Company reports earnings (loss) per share in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 260-10 “Earnings Per Share”, which provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive.

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Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Jan. 26, 2015
Document And Entity Information
Entity Registrant Name	STRATEAN INC.
Entity Central Index Key	0000827876
Document Type	10-Q
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,990,805
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

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FIXED ASSETS (Tables)

3 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Schedule of Property Pant and Equipment

	December 31, 2014			September 30, 2014
Machinery and equipment	$	580,973		$	580,973
Furniture and fixtures		1,475			—
Total		582,448			580,973
Less: accumulated depreciation		(21	)		—
Fixed assets, net of accumulated depreciation	$	582,427		$	580,973

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Statements of Operations (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Revenues
Cost of revenues
Gross profit
Operating expenses
Professional fees	117,772
Research and development	50,000
General and administrative expenses	17,782	8,287
Depreciation and amortization	640
Total operating expenses	186,194	8,287
Loss from operations	(186,194)	(8,287)
Other income (expense)
Interest expense	(5,144)	(1,928)
Total other income (expense)	(5,144)	(1,928)
Net income (loss)	$ (191,338)	$ (10,215)
Basic and diluted loss per common share	$ (0.03)	$ (0.01)
Basic and diluted weighted average common shares outstanding	5,866,792	950,687

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STOCKHOLDERS EQUITY (DEFICIT)

3 Months Ended

Dec. 31, 2014

Equity [Abstract]

STOCKHOLDERS EQUITY (DEFICIT)

On November 4, 2014 the Company entered into a consulting agreement for grant writing services. Pursuant to this agreement the Company issued 60,000 shares of the Company's $0.001 par value common stock valued at $1.00 of $60,000.

On November 12, 2014 the Company received $40,000 pursuant to a private placement agreement with an investor to purchase 40,000 shares of Stratean $0.001 par value common stock and a warrant to purchase 4,000 shares of Stratean $0.001 par value common stock at a purchase price equal to $1.00 for each share of Common stock and 10% warrant coverage. The warrant allows the holder to purchase shares of the Company's $0.001 par value common stock at $1.10 per share.

On November 24, 2014 the Company received $10,000 pursuant to a private placement agreement with an investor to purchase 10,000 shares of Stratean $0.001 par value common stock and a warrant to purchase 1,000 shares of Stratean $0.001 par value common stock at a purchase price equal to $1.00 for each share of Common stock and 10% warrant coverage. The warrant allows the holder to purchase shares of the Company's $0.001 par value common stock at $1.10 per share.

On December 31, 2014 the Company issued 57,500 shares to a related party to settle debt. (see Note 5 for additional information)

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PREPAID EXPENSES

3 Months Ended

Dec. 31, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES

On September 30, 2014 the Company entered into a consulting agreement for grant writing services. Pursuant to this agreement the Company issued 20,000 shares of the Company's $0.001 par value common stock valued at $1.00 per share or $20,000. The cost was capitalized as a prepaid expense as of September 30, 2014. During the quarter ended December 31, 2014 the prepaid expense was fully amortized and an expense of $20,000 was charged to professional fees.

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FIXED ASSETS (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation Expense	$ 21	$ 0

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INTANGIBLE AND OTHER ASSETS (Tables)

3 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

	December 31, 2014			September 30, 2014
Patents	$	49,237		$	49,002
Less: accumulated depreciation		(5,224	)		(4,605	)
Fixed assets, net of accumulated depreciation	$	44,013		$	44,397

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SUBSEQUENT EVENTS

3 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

On January 6, 2015 the Company received $20,000 pursuant to a private placement agreement with an investor to purchase 20,000 shares of Stratean $0.001 par value common stock and a warrant to purchase 2,000 shares of Stratean $0.001 par value common stock at a purchase price equal to $1.00 for each share of Common stock and 10% warrant coverage. The warrant allows the holder to purchase shares of the Company's $0.001 par value common stock at $1.10 per share.

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DEFINITIVE AGREEMENTS

3 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

DEFINITIVE AGREEMENTS

On December 5, 2014, Stratean Inc. (the "Company") and Combustion Resources, Inc. ("Combustion Resources") executed a Service Agreement ("Agreement") to independently test the Company’s Gasifier to further establish its capability of producing large volumes of clean, renewable energy from any carbon compound (Municipal Solid Waste (MSW), Coal, Sewage Sludge) into clean Synthesis Gas.

The testing will be comprised of seven stages or tasks and is estimated to be completed over a 14 week period. Each of the seven stages are briefly outlined below.

1. Characterize Feedstock: The feedstock selected for use in the Gasifier will be fully characterized to assist in understanding how the Gasifier performs for that feedstock.

2. Review Design Data: A full understanding of the installation and operation of the Gasifier will be outlined, including configuration, construction, thermochemical calculations and theoretical operating conditions and performance.

3. Prepare Gasifier for Test Runs: The Gasifer will be installed for testing at Utah State University’s Carbon Energy Innovation Center.

4. Preliminary Test Runs of Gasifier: Baseline testing will be completed to ensure all systems and support equipment are operating properly.

5. Perform Baseline Run of Gasifier: Baseline test will be performed during which samples of gas, liquid, and solid effluent streams will be collected and analyzed. During the testing process conditions will be monitored and upon completion the data will be inspected and analyzed to determine how the Gasifier operated during the baseline testing. After completion of the test run Petersen Inc. will inspect and verify mechanical operations and integrity of the gasifier.

6. Perform Extended Run of Gasifier: An extended run of the Gasifier will be performed following a successful baseline test run. The test run will be used to demonstrate extended operation of the Gasifier, and if there are any effects of extended operation of the Gasifier or associated support equipment. During the extended test run samples of gas, liquid, and solid effluent streams will be collected and analyzed. During the testing process conditions will be monitored and upon completion the data will be inspected and analyzed to determine how the Gasifier operated during the extended testing. After completion of the test run Petersen Inc. will inspect and verify mechanical operations and integrity of the Gasifier.

7. Project Report: A report will be prepared at the conclusion of the study describing the results of the evaluation of the Gasifier. The report will provide a detailed discussion of the results of the tests, and will make recommendations of possible process revisions and additional work that can provide insights and direction for optimizing the Gasifier performance. The report will also provide recommendations for addition testing and items to be considered regarding feasibility of commercial operation of the Gasifier.

Pursuant to the Agreement, the Company will make payments totaling $147,144. On December, 9, 2014, the Company made an initial payment of $50,000 to begin the project. Another $50,000 will be due upon completion of task 5 and the balance of $47,144 is due upon delivery of the Final Project report.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Lease obligations – The Company has operating leases for its offices. Future minimum lease payments under the operating leases for the facilities as of December 31, 2014, are as follows:

2015 $12,150

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BASIS OF PRESENTATION AND GOING CONCERN (Policies)

3 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $(600,613) since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

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SUMMARY OF SIGNIFICANT POLICIES (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Accounting Policies [Abstract]
Cash	$ 58,087		$ 116,741
Revenues

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RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Common Stock, Issued	5,970,805	5,803,305
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Fair Value	$ 5,971	$ 5,803
Debt Agmt - Priest
Date of Agreement	Dec. 31, 2014
Debt Instrument	33,341
Common Stock, Issued	38,342
Common Stock, Par Value	$ 0.001
Common Stock, Fair Value	38,342
Additional Paid in Capital	5,001
Royalty	0.50%
Royalty Term	10 years
Debt Agmt - Munson Family LP
Date of Agreement		Dec. 31, 2014
Debt Instrument		16,659
Common Stock, Issued		19,158
Common Stock, Par Value		$ 0.001
Common Stock, Fair Value		19,158
Additional Paid in Capital		$ 2,499
Royalty		0.25%
Royalty Term		10 years

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Statements of Cash Flows (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash Flows from Operating Activities
Net loss	$ (191,338)	$ (10,215)
Adjustments to reconcile net loss to net cash provided by operating activities:
Imputed interest on related party debt	5,143	1,928
Stock based consulting	80,000
Depreciation and amortization of intangible assets	640
Changes in assets and liabilities
(Increase) decrease in prepaid expense	1,143
(Increase) decrease in deposits	(1,350)
Increase (decrease) in accounts payable	(1,230)	5,024
Increase (decrease) in accounts payable related party	48	3,500
Net cash from operating activities	(106,944)	237
Cash Flows from investing
Purchase of fixed assets	(1,710)
Net cash used in investing activities	(1,710)
Cash Flows from Financing Activities
Proceeds from issuance of common stock	50,000
Net cash from financing activities	50,000
Net increase (decrease) in Cash	(58,654)	237
Beginning cash balance	116,741	270
Ending cash balance	58,087	507
Supplemental disclosure of cash flow information
Cash paid for interest
Cash paid for tax
Non-Cash investing and financing transactions
Common stock issued for debt	$ 50,000
Shares issued for services	60,000

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RELATED PARTY TRANSACTIONS

3 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

On December 31, 2014, Stratean Inc. (the "Company") and two Promissory Note holders, Burkeley J. Priest ("Priest") and The Munson Family Limited Partnership ("Munson") entered into Debt Settlement Agreements ("Agreements"), to settle two Promissory Notes ("Notes") with a face value of $33,341 and $16,659, respectively. Priest and Munson agreed that, upon execution of their agreements and receipt of the stock, all claims of Priest and Munson against Stratean Inc., were deemed released.

Pursuant to the Agreements the Company issued Priest 38,342 shares of Stratean Inc. $0.001 par value common stock which had a fair value on December 31, 2014 of approximately $1.00 per share, or $38,342. On the date of the transaction Burkeley J. Priest owned approximately 6.2% of the Company's outstanding common stock and is considered a related party, therefore in accordance with ASC 470-50 approximately $5,001 will be recorded as a charge against additional paid in capital as a result of the Agreement.

Pursuant to the Agreements the Company issued Munson 19,158 shares of Stratean Inc. $0.001 par value common stock which had a fair value on December 31, 2014 of approximately $1.00 per share, or $19,158. On the date of the transaction The Munson Family Limited Partnership owned approximately 7.5% of the Company's outstanding common stock and is considered a related party, therefore in accordance with ASC 470-50 approximately $2,499 will be recorded as a charge against additional paid in capital as a result of the Agreement.

Pursuant to the Agreements Priest has been granted a 10 year royalty ("Royalty") of one-half of one percent (.5%) of "Gross Revenues" derived from the "Sale of Stratean Downdraft Gasifer units".

Pursuant to the Agreements Munson has been granted a 10 year royalty ("Royalty") of one-quarter of one percent (.25%) of "Gross Revenues" derived from the "Sale of Stratean Downdraft Gasifer units".

The Agreements define 'Gross Revenues' as; monies actually received by Stratean arising from the sale of its units. The Agreement further defines the 'Sale of Stratean Gasifier Units' as revenues received by Stratean as a direct result and occurrence of a sale of physical gasifier units to third parties. All other revenues generated by Stratean whether related to the Company's Gasifier or otherwise are explicitly excluded. Under this agreement Stratean is required to render statements and make payments to Priest and Munson within 60 days after the last day of each fiscal quarter.

Stratean remains free to exercise all the rights of ownership of its property and intellectual property including the right to sell its intellectual property and make licensing and sub-license agreements without consulting Priest or Munson and upon whatever terms it deems wise.

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PREPAID EXPENSES (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Common Stock, Issued	5,970,805		5,803,305
Common Stock, Par Value	$ 0.001		$ 0.001
Common Stock, Fair Value	$ 5,971		$ 5,803
Professional Fees	117,772
Consulting Agreement
Common Stock, Issued			20,000
Common Stock, Par Value			$ 0.001
Common Stock, Fair Value			20,000
Professional Fees	$ 20,000

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BASIS OF PRESENTATION AND GOING CONCERN (Details Narrative) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated earnings (deficit)	$ (600,613)	$ (409,275)