Quarterly report pursuant to Section 13 or 15(d)

8. Warrants

v2.4.1.9
8. Warrants
 3 Months Ended
Dec. 31, 2014
Warrants and Rights Note Disclosure [Abstract]  
Warrants

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 December 31, 2014:

 

          Weighted Average     Weighted Average Remaining Contractual        
    Number of Units     Exercise Price     Term (in years)     Intrinsic Value  
Outstanding at September 30, 2014     2,866,506     $ 0.63       3.39          
Granted     674,370       0.95                  
Exercised     –                          
Outstanding at December 31, 2014     3,540,876       0.69       3.48     $ 8,668,210  
Exercisable at December 31, 2014     3,540,876       0.69       3.48     $ 8,668,210  

 

Most of the above warrants were issued in connection with conversion of convertible notes (See Note 5). 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.