Quarterly report pursuant to Section 13 or 15(d)

8. Warrants

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8. Warrants
 6 Months Ended
Mar. 31, 2015
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 March 31, 2015:

 

      Number of Units     Weighted Average
Exercise Price		     Weighted Average Remaining
Contractual 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 March 31, 2015       3,540,876       0.69       3.23     $ 8,703,619  
Exercisable at March 31, 2015       3,540,876       0.69       3.23     $ 8,703,619  
                                     

 

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.