Annual report pursuant to Section 13 and 15(d)

9. Warrants

v2.4.1.9
9. Warrants
 12 Months Ended
Sep. 30, 2014
Warrants and Rights Note Disclosure [Abstract]  
Warrants

As discussed in Note 7, the Company issued several Notes in prior periods and converted them resulting in the issuance of warrants. The following table summarizes information about the Company’s warrants at September 30, 2014:

 

                  Weighted        
            Weighted     Average        
            Average     Remaining        
      Number of     Exercise     Contractual     Intrinsic  
      Units     Price     Term (in years)     Value  
Outstanding at September 30, 2012       327,417     $             0.95       4.95     $ 253,202  
Granted       2,539,089       0.59                  
Exercised       –                    
Outstanding at September 30, 2013       2,866,506       0.63       4.39       1,471,998  
Granted       –                    
Exercised       –                  
Outstanding at September 30, 2014       2,866,506       0.63       3.39       6,732,700  
Exercisable at September 30, 2014       2,866,506       0.63       3.39       6,732,700  
                                     

Most of the above warrants were issued in connection with conversion of convertible notes (See Note 7). When the debt is converted and warrants are issued, the Company determines the fair value of the warrants using the Black-Scholes model and takes a charge to interest expense at the date of issuance.