Annual report pursuant to Section 13 and 15(d)

9. Warrants

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9. Warrants
 12 Months Ended
Sep. 30, 2015
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, 2015:

 

          Number of Units     Weighted Average Exercise Price       Weighted Average Remaining Contractual Term (in years)     Intrinsic Value  
  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  
  Granted       674,370       0.95                  
  Exercised       –                          
  Outstanding at September 30, 2015       3,540,876     $ 0.69       2.73     $ 3,498,531  
  Exercisable at September 30, 2015       3,540,876     $ 0.69       2.73     $ 3,498,531  

  

Most of the above warrants were issued in connection with conversion of convertible notes from ICG (See Note 6). 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.

 

The exercise price for warrants outstanding and exercisable at September 30, 2015 is as follows:

 

  Outstanding       Exercisable
  Number of       Exercise       Number of       Exercise  
  Warrants       Price       Warrants       Price  
  1,631,886     $ 0.55       1,631,886     $ 0.55  
  535,716       0.56       535,716       0.56  
  371,487       0.81       371,487       0.81  
  1,001,787       0.95       1,001,787       0.95  
  3,540,876               3,540,876