What changed in this filing

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Item 1. Business

2022-12-29 compared with 2021-12-29 · 106 added, 215 removed, 42 unchanged (88% of the section changed)

The Company was initially incorporated

on November 15, 1999, as Menu Sites, Inc., a Florida corporation.

On March 9, 2001, the Company's name was changed to CNE Communications,

The Company was initially incorporated on November 15, 1999, as Menu Sites, Inc., a Florida corporation.

On March 9, 2001, the Company's name was changed to CNE Communications, Inc.

On October 1, 2004, the name was changed to CNE Industries, Inc.

and on March 29, 2005, the name was changed to GlobalTel IP,

and on March 29, 2005, the name was changed to GlobalTel IP, Inc.

On May 9, 2008, the Company's name was changed to Cleartronic, Inc.

All current operations are conducted

through the Company's wholly owned subsidiary, ReadyOp Communications, Inc.

All current operations are conducted through the Company's wholly owned subsidiary, ReadyOp Communications, Inc.

("ReadyOp"), a Florida corporation incorporated on September 15, 2014.

ReadyOp facilitates the marketing and sales of subscriptions to the ReadyOp and ReadyMed platform

and the AudioMate IP gateways discussed below.

In March 2018, the Company approved

the spin-off VoiceInterop into a separate company under a Form S-1 registration to be filed with the United States Securities and Exchange

ReadyOp facilitates the marketing and sales of subscriptions to the ReadyOp™ and ReadyMed ™ platform and the AudioMate IP gateways discussed below.

In March 2018, the Company approved the spin-off VoiceInterop into a separate company under a Form S-1 registration to be filed with the United States Securities and Exchange Commission.

On May 13, 2019, VoiceInterop filed an S-1 registration with the United States Securities and Exchange Commission.

All VoiceInterop

transactions have been recorded as discontinued operations.

On February 14, 2020, the distribution of shares was approved by FINRA and

VoiceInterop was deconsolidated from Cleartronic, Inc.

All VoiceInterop transactions have been recorded as discontinued operations.

On February 14, 2020, the distribution of shares was approved by FINRA and VoiceInterop was deconsolidated from Cleartronic, Inc.

(See Note 6).

In October 2019, the Company acquired

the ReadyMed software platform from Collabria LLC.

ReadyMed is a web-based secure communications platform initially designed for the healthcare

This includes hospitals, clinics, doctor's offices, health insurance companies, workers compensation insurance companies and

many other segments of the healthcare industry.

The Company offers both the ReadyOp and ReadyMed capabilities to clients and usually refers

to the platform as ReadyOp to avoid confusion in the marketplace of two platforms.

In October 2019, the Company acquired the ReadyMed software platform from Collabria LLC.

ReadyMed is a web-based secure communications platform initially designed for the healthcare industry.

This includes hospitals, clinics, doctor's offices, health insurance companies, workers compensation insurance companies and many other segments of the healthcare industry.

The Company offers both the ReadyOp and ReadyMed capabilities to clients and usually refers to the platform as ReadyOp to avoid confusion in the marketplace of two platforms.

ReadyOp™ Software

ReadyOp is a proprietary, innovative

web-based planning and communications platform for efficiently and effectively planning, managing, communicating, and directing operations

and emergency response.

ReadyOp is used by local, state and federal government agencies, corporations, school districts, utilities,

hospitals and others to manage and report daily operations as well as the ability to handle incidents and emergency situations.

is offered as a software as a service (SAAS) program on an annual contract basis although an increasing number of clients have requested

multi-year agreements.

ReadyOp requires no new or on-site

hardware or programming by clients and provides multiple options for communications including radio interoperability using the Company's

AudioMate gateways.

ReadyOp is a proprietary, innovative web-based planning and communications platform for efficiently and effectively planning, managing, communicating, and directing operations and emergency response.

ReadyOp is used by local, state and federal government agencies, corporations, school districts, utilities, hospitals and others to manage and report daily operations as well as the ability to handle incidents and emergency situations.

ReadyOp is offered as a software as a service (SAAS) program on an annual contract basis although an increasing number of clients have requested multi-year agreements.

ReadyOp requires no new or on-site hardware or programming by clients and provides multiple options for communications including radio interoperability using the Company's AudioMate gateways.

Plans and operations can be built and stored securely in ReadyOp on a by-location, region and systemwide basis.

Assets can be listed along with their location, person to contact and other information that may be needed.

Diagrams, charts,

maps, pictures, report forms and other documentation can be securely stored yet immediately available securely from any location.

also provides efficient planning and response for responding to disasters and for continuity of operations (COOP) and recovery.

is the COOP platform for multiple organizations including many federal agencies.

Diagrams, charts, maps, pictures, report forms and other documentation can be securely stored yet immediately available securely from any location.

ReadyOp also provides efficient planning and response for responding to disasters and for continuity of operations (COOP) and recovery.

ReadyOp is the COOP platform for multiple organizations including many federal agencies.

ReadyMed™ Software

In October 2019, the Company acquired

the ReadyMed software platform from Collabria LLC.

In exchange for this asset, the Company issued 12,000,000 shares of Common stock

of the Company.

In October 2019, the Company acquired the ReadyMed software platform from Collabria LLC.

In exchange for this asset, the Company issued 12,000,000 shares of Common stock of the Company.

ReadyMed is a web-based secure communications platform initially designed for the healthcare industry.

This includes hospitals,

clinics, doctor's offices, health insurance companies, workers compensation insurance companies and many other segments of the healthcare

The platform provides caregivers with patient tracking capability and allows physicians and other healthcare entities to track

patient progress after medical treatment and/or release from hospital care.

The software also enables monitoring and reporting of

patients in medium- and long-term care.

Additionally, the platform provides secure communications capabilities and recordkeeping

to track the healing process of patients, record their recovery and monitor their medications.

During the year 2020 this software has

proved beneficial for multiple clients in the healthcare industry due to the impact of the COVID-19 pandemic.

The Company offers

both the ReadyOp and ReadyMed capabilities to clients and usually refers to the platform as ReadyOp to avoid confusion in the marketplace

of two products.

This includes hospitals, clinics, doctor's offices, health insurance companies, workers compensation insurance companies and many other segments of the healthcare industry.

The platform provides caregivers with patient tracking capability and allows physicians and other healthcare entities to track patient progress after medical treatment and/or release from hospital care.

The software also enables monitoring and reporting of patients in medium- and long-term care.

Additionally, the platform provides secure communications capabilities and recordkeeping to track the healing process of patients, record their recovery and monitor their medications.

During the COVID-19 pandemic this software proved beneficial to multiple federal and state agencies and clients in the healthcare industry.

The Company offers both the ReadyOp and ReadyMed capabilities to clients and usually refers to the platform as ReadyOp to avoid confusion in the marketplace of two products.

AudioMate IP Gateways

The Company offers a proprietary line

of Internet Protocol Gateways branded as AudioMate 360 IP Gateway .

The AudioMate 360 IP Gateway was designed to provide

an Internet Protocol Gateway to users of unified group communications.

The AudioMate 360 IP Gateway is available in different configurations

to be used with various types of communications equipment.

The AudioMate units are currently being sold directly to end-users by the Company's

sales teams and by Value Added Resellers ("VARs").

More than 1,000 end-users in the United States and 18 foreign countries have purchased

the Company's AudioMate gateways.

Although other devices are available that perform the same or similar functions, we believe that our

price for the AudioMate 360 IP Gateway is competitive with prices other companies are charging for similar devices.

The Company offers a proprietary line of Internet Protocol Gateways branded as AudioMate 360 IP Gateway .

The AudioMate 360 IP Gateway was designed to provide an Internet Protocol Gateway to users of unified group communications.

The AudioMate units are currently being sold directly to end-users by the Company's sales teams and by Value Added Resellers ("VARs").

More than 1,000 end-users in the United States and 18 foreign countries have purchased the Company's AudioMate gateways.

Although other devices are available that perform the same or similar functions, we believe that our price for the AudioMate 360 IP Gateway is competitive with prices other companies are charging for similar devices.

Patents and Intellectual Property

Our business will be dependent in part

on our intellectual property.

For projects that are in development, we intend to rely on intellectual property rights afforded by trademark

and trade secret laws, as well as confidentiality procedures, licensing arrangements and potential patent filings.

These measures are

to establish and protect our rights to the technology and other intellectual property.

We cannot foretell if these procedures and arrangements

will be adequate in protecting our intellectual property.

On March 13, 2012, the United States

Patent Office notified the Company that U.S.

Patent Number 8,135,001 B1 had been granted for the 34 claims of our patent application for

Multi Ad Hoc Interoperable Communicating Networks.

Our business will be dependent in part on our intellectual property.

For projects that are in development, we intend to rely on intellectual property rights afforded by trademark and trade secret laws, as well as confidentiality procedures, licensing arrangements and potential patent filings.

These measures are to establish and protect our rights to the technology and other intellectual property.

We cannot foretell if these procedures and arrangements will be adequate in protecting our intellectual property.

On March 13, 2012, the United States Patent Office notified the Company that U.S.

Patent Number 8,135,001 B1 had been granted for the 34 claims of our patent application for Multi Ad Hoc Interoperable Communicating Networks.

We may file similar patent applications in additional countries.

The claims in the

patent application relate to various aspects of the AudioMate 360 IP Gateway.

It may be that one or more of the claims are not

The claims in the patent application relate to various aspects of the AudioMate 360 IP Gateway.

It may be that one or more of the claims are not meaningful.

Furthermore, the validity of issued patents is frequently challenged by others.

One or more patent applications may

have been filed by others previous to our filing, which encompass the same or similar claims.

A patent application does not in and of

itself grant exclusive rights.

A patent application must be reviewed by the Patent Office of each relevant country prior to issuing as

a patent and granting exclusive rights.

Because of limited resources, the Company

may be unable to protect a patent, either owned or licensed, or to challenge others who may infringe upon a patent.

holders of patents have substantially greater resources and patent litigation is very expensive, we may not have the resources necessary

to successfully challenge the validity of patents held by others or withstand claims of infringement or challenges to any patent the Company

may possess or obtain.

Even if we prevail, the cost and management distraction of litigation could have a material adverse effect on the

Internet Protocol Gateways and their

related manufacturing processes are covered by a large number of patents and patent applications.

Infringement actions may be instituted

against the Company if we use or are suspected of using technology, processes or other subject matter that is claimed under patents of

An adverse outcome in any future patent dispute could subject us to significant liabilities to third parties, require disputed

rights to be licensed or require us to cease using the infringed technology.

If trade secrets and other means of

protection upon which the Company relies may not adequately protect us, the Companys intellectual property could become available to others.

Although we may rely on trade secrets, copyright law, employee and third-party nondisclosure agreements and other protective measures

to protect some of our intellectual property, these measures may not provide meaningful protection to the Company.

The laws of many foreign countries

do not protect intellectual property rights to the same extent as do the laws of the United States, if at all.

One or more patent applications may have been filed by others previous to our filing, which encompass the same or similar claims.

A patent application does not in and of itself grant exclusive rights.

A patent application must be reviewed by the Patent Office of each relevant country prior to issuing as a patent and granting exclusive rights.

The laws of many foreign countries do not protect intellectual property rights to the same extent as do the laws of the United States, if at all.

Because of limited resources, the Company may be unable to protect a patent, either owned or licensed, or to challenge others who may infringe upon a patent.

Because many holders of patents have substantially greater resources and patent litigation is very expensive, we may not have the resources necessary to successfully challenge the validity of patents held by others or withstand claims of infringement or challenges to any patent the Company may possess or obtain.

Even if we prevail, the cost and management distraction of litigation could have a material adverse effect on the Company.

Internet Protocol Gateways and their related manufacturing processes are covered by a large number of patents and patent applications.

Infringement actions may be instituted against the Company if we use or are suspected of using technology, processes or other subject matter that is claimed under patents of others.

An adverse outcome in any future patent dispute could subject us to significant liabilities to third parties, require disputed rights to be licensed or require us to cease using the infringed technology.

If trade secrets and other means of protection upon which the Company relies may not adequately protect us, the Company’s intellectual property could become available to others.

Although we may rely on trade secrets, copyright law, employee and third-party nondisclosure agreements and other protective measures to protect some of our intellectual property, these measures may not provide meaningful protection to the Company.

Exclusive Licensing Agreement

On May 5, 2017, the Company entered

into an Exclusive Licensing Agreement with Sublicensing Terms (the "Agreement") with the University of South Florida Research Foundation,

On May 5, 2017, the Company entered into an Exclusive Licensing Agreement with Sublicensing Terms (the "Agreement") with the University of South Florida Research Foundation, Inc.

("USFRF") relating to an exclusive license of certain patent rights in connection with one of USFRF's U.S.

Patent Applications.

parties recognize that the research and development work provided by the Company was sufficient for USFRF to enter into the Agreement

with the Company.

The Agreement is effective April 25,

2017 and continues until the later of the date that no Licensed Patent remains a pending application or an enforceable patent or the date

on which the Licensee's obligation to pay royalties expires.

The Company paid USFRF a License Issue

Fee of $6,000 and $953 as reimbursement of expenses associated with the filing of the Licensed Patent for the year ended September 30,

The company agreed to pay USFRF a royalty of 3% for sales of all Licensed Products and Licensed Processes and agreed to pay USFRF

minimum royalty payments as follows:

every year thereafter on the same date, for the life of the agreement.

In the event the Company proposes to

sell any Equity Securities, then USFRF will have the right to purchase 5% of the securities issued in such offering on the same terms

and conditions as are offered to other purchasers in such financing.

Rapid Technological Change Could

Render the Company's Products Obsolete

The Company's markets are characterized

by rapid technological changes, frequent new product introductions and enhancements, uncertain product life cycles, changes in customer

requirements, and evolving industry standards.

The introduction of new products embodying new technologies and the emergence of

new industry standards could render our existing products obsolete.

The Company's future success will depend upon our ability to

continue to develop and introduce new products and services to address the increasingly sophisticated needs of customers.

may experience delays in releasing new products, product enhancements and services in the future which may cause customers and prospective

to forego purchase and use of our products and purchase those of competitors.

Both parties recognize that the research and development work provided by the Company was sufficient for USFRF to enter into the Agreement with the Company.

The Agreement is effective April 25, 2017 and continues until the later of the date that no Licensed Patent remains a pending application or an enforceable patent or the date on which the Licensee's obligation to pay royalties expires.

The Company paid USFRF a License Issue Fee of $8,000 and $953 as reimbursement of expenses associated with the filing of the Licensed Patent for the year ended September 30, 2022.

The company agreed to pay USFRF a royalty of 3% for sales of all Licensed Products and Licensed Processes and agreed to pay USFRF minimum royalty payments as follows:

-and every year thereafter on the same date, for the life of the agreement.

In the event the Company proposes to sell any Equity Securities, then USFRF will have the right to purchase 5% of the securities issued in such offering on the same terms and conditions as are offered to other purchasers in such financing.

Rapid Technological Change Could Render the Company's Products Obsolete

The Company's markets are characterized by rapid technological changes, frequent new product introductions and enhancements, uncertain product life cycles, changes in customer requirements, and evolving industry standards.

The introduction of new products embodying new technologies and the emergence of new industry standards could render our existing products obsolete.

The Company's future success will depend upon our ability to continue to develop and introduce new products and services to address the increasingly sophisticated needs of customers.

The Company may experience delays in releasing new products, product enhancements and services in the future which may cause customers and prospective to forego purchase and use of our products and purchase those of competitors.

Seasonality of Our Business

We do not anticipate that our business

will be affected by seasonal factors.

We do not anticipate that our business will be affected by seasonal factors.

Impact of Inflation

We are affected by inflation along

with the rest of the economy.

Specifically, our costs to complete our products could rise if specific components needed incur an

increase in cost.

We are affected by inflation along with the rest of the economy.

Specifically, our costs to complete our products could rise if specific components needed incur an increase in cost.

Manufacturing and Suppliers

We have outsourced the manufacturing

of our AudioMate 360 IP Gateway .

We have outsourced the manufacturing of our AudioMate 360 IP Gateway .

This outsourcing has allowed us to:

2 unchanged sentences

Leverage the scale, expertise and purchasing power of specialized contract manufacturers.

Currently, Company has arrangements

for the production of the AudioMate gateways with a contract manufacturer.

The reliance on contract manufacturing involves a number of

potential risks, including the absence of adequate capacity, ownership of certain elements of electronic designs, and reduced control

over delivery schedules.

The Company's contract manufacturer can provide a range of operational and manufacturing services, including

component procurement and performing final testing and assembly of our products.

The Company intends to continue use of contract

manufacturers to procure components and to maintain adequate manufacturing capacity.

The unified group communications industry

where the Company's gateways are offered is extremely competitive.

The number of companies entering the industry has increased and competitive

pricing pressures can negatively impact profit margins.

The Company will continue to offer the AudioMate gateways, but primarily in conjunction

with the ReadyOp platform in order to provide radio interoperability.

Competition for an integrated radio and operations platform is limited

and the Company will continue to market the ReadyOp/ReadyMed platform, both with the gateways and without.

We are not aware of any direct competitors

for ReadyOp and ReadyMed that offer the same combinations of capabilities and function.

However, there are similar programs being marketed

that appear similar and are sometimes confused with ReadyOp such as WebEOC and Everbridge.

ReadyOp provides different capabilities and

is priced lower than both of these and in fact, has several clients that use one or even both of these programs in addition to ReadyOp.

Currently, Company has arrangements for the production of the AudioMate gateways with two contract manufacturers.

The reliance on contract manufacturing involves a number of potential risks, including the absence of adequate capacity, ownership of certain elements of electronic designs, and reduced control over delivery schedules.

The Company's contract manufacturers can provide a range of operational and manufacturing services, including component procurement and performing final testing and assembly of our products.

The Company intends to continue use of contract manufacturers to procure components and to maintain adequate manufacturing capacity.

We are not aware of any direct competitors for ReadyOp and ReadyMed that offer the same combinations of capabilities and function.

However, there are similar programs being marketed that appear similar and are sometimes confused with ReadyOp such as WebEOC and Everbridge.

ReadyOp provides different capabilities and is priced lower than both of these and in fact, has several clients that use one or even both of these programs in addition to ReadyOp.

We may have increased competition in the future.

We continue to develop and enhance the ReadyOp/ReadyMed platform to improve the value

and increase the potential market size and growth of our client clientele.

We continue to develop and enhance the ReadyOp/ReadyMed platform to improve the value and increase the potential market size and growth of our client clientele.

The unified communications industry where the Company's gateways are offered is competitive.

The Company will continue to offer the AudioMate gateways, but primarily in conjunction with the ReadyOp platform to provide radio interoperability.

Competition for an integrated radio and operations platform is limited and the Company will continue to market the ReadyOp platform, both with the gateways and without.

Sales and Marketing

The ReadyOp/ReadyMed platform is currently

marketed through a combination of inside salespersons and outside sales groups.

We intend to expand the use of commissioned inside and

outside salespersons and outside groups when travel and other COVID-related restrictions are eased.

The Company markets the unified group

communication solutions and AudioMate 360 IP Gateways through VARs and commissioned salespersons.

We intend to expand the use of

commissioned sales groups and individual sales representatives to market and sell our programs and gateways.

The ReadyOp/ReadyMed platform is currently marketed through a combination of inside salespersons and outside sales groups.

We intend to expand the use of commissioned sales groups and individual sales representatives to market and sell our programs and gateways.

Key Personnel of Cleartronic

Our future financial success depends

to a large degree upon the personal efforts of our key personnel, Michael M.

Moore, our Chief Executive Officer (CEO) and Director, and

Our future financial success depends to a large degree upon the personal efforts of our key personnel, Michael M.

Moore, our Chief Executive Officer (CEO) and Director, and Larry M.

Reid, our Chief Financial Officer (CFO), Secretary and Director.

They and their designees play the major role in securing persons

capable of developing and executing the Company's business strategy.

While the Company intends to employ additional executive, development

and technical personnel in order to minimize dependency upon any one person, we may not be successful in attracting and retaining the

persons needed.

At present, Cleartronic has two executive

officers, Michael M.

They and their designees play the major role in securing persons capable of developing and executing the Company's business strategy.

While the Company intends to employ additional executive, development and technical personnel in order to minimize dependency upon any one person, we may not be successful in attracting and retaining the persons needed.

At present, Cleartronic has two executive officers, Michael M.

Moore and Larry M.

A copy of the employment agreement with Mr.

Moore has been previously filed on January 13,

2016 as an exhibit to a Form 10-K.

Moore has been previously filed on January 13, 2016 as an exhibit to a Form 10-K.

Moore is paid a base salary of $16,667 per month.

"Certain Relationships and Related

Transactions and Director Independence."

In March 2015, the Company entered

into a new employment agreement with the Company's CFO, Larry M.

Effective April 20, 2022, the annual compensation increased to $220,000.

"Certain Relationships and Related Transactions and Director Independence."

In March 2015, the Company entered into a new employment agreement with the Company's CFO, Larry M.

Reid (the "Agreement").

Under the Agreement, Mr.

Reid agreed to remit

2.0 billion shares of common stock back to the Company in exchange for 200,000 shares of Series C Convertible Preferred stock with a fair

value of $252,000.

Reid agreed to remit 2.0 billion shares of common stock back to the Company in exchange for 200,000 shares of Series C Convertible Preferred stock with a fair value of $252,000.

Reid is paid a base salary of $8,000 per month.

A copy of the employment agreement with Mr.

Reid has been previously

filed on March 18, 2015 with the SEC as an exhibit to a Form 8-K.

Unless the Company shall have given

Reid written notice at least 30 days prior to the Termination Date, the employment agreements automatically renew and

continue in effect for additional one-year periods.

The Company has the election at any time after the expiration of the initial

term of the Mr.

Reid has been previously filed on March 18, 2015 with the SEC as an exhibit to a Form 8-K.

Effective October 1, 2021, the annual compensation increased to $104,000.

Unless the Company shall have given Mr.

Reid written notice at least 30 days prior to the Termination Date, the employment agreements automatically renew and continue in effect for additional one-year periods.

The Company has the election at any time after the expiration of the initial term of the Mr.

Reid's Agreement to give Mr.

Reid notice of Termination.

The Financial Results for Cleartronic

May Be Affected by Factors Outside of Our Control

Our future operating results may vary

significantly from quarter to quarter due to a variety of factors, many of which are outside our control.

Our anticipated expense levels

are based, in part, on our estimates of future revenues and may vary from projections.

We may be unable to adjust spending rapidly enough

to compensate for any unexpected revenues shortfall.

Accordingly, any significant shortfall in revenue in relation to our planned expenditures

could materially and adversely affect our business, operating results, and financial condition.

Further, we believe that period-to-period

comparisons of our operating results are not necessarily a meaningful indication of future performance.

The Financial Results for Cleartronic May Be Affected by Factors Outside of Our Control

Our future operating results may vary from quarter to quarter due to a variety of factors, many of which are outside our control.

Our anticipated expense levels are based, in part, on our estimates of future revenues and may vary from projections.

We may be unable to adjust spending rapidly enough to compensate for any unexpected revenue shortfall.

Accordingly, any significant shortfall in revenue in relation to our planned expenditures could materially and adversely affect our business, operating results, and financial condition.

Further, we believe that period-to-period comparisons of our operating results are not necessarily a meaningful indication of future performance.

Transfer Agent

Our transfer agent is ClearTrust, LLC,

whose address is 16540 Pointe Village Drive, Suite 206, Lutz, Florida 33558, and telephone number is (813) 235-4490.

Our transfer agent is ClearTrust, LLC, whose address is 16540 Pointe Village Drive, Suite 206, Lutz, Florida 33558, and telephone number is (813) 235-4490.

Company Contact Information

Our principal executive offices are

located at 8000 North Federal Highway, Suite 100, Boca Raton, Florida 33487, telephone (561) 939-3300.

Our principal executive offices are located at 8000 North Federal Highway, Suite 100, Boca Raton, Florida 33487, telephone (561) 939-3300.

Our email address is info@cleartronic.com.

The Cleartronic Internet website is located at www.cleartronic.com.

The information contained in our website shall not constitute part

of this report.

The Cleartronic Internet website is www.cleartronic.com and the ReadyOp website is www.readyop.com.

The information contained in our website does not constitute part of this report.

Risk Factors.

1 unchanged sentence

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What changed 10-K

Item 1. Business