Quarterly report pursuant to Section 13 or 15(d)

8. Warrants

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8. Warrants
 3 Months Ended
Dec. 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 December 31, 2015:

 

    Number of Units    

Weighted Average

Exercise Price

     Weighted Average Remaining Contractual Term (in years)     Intrinsic Value  
  Outstanding at September 30, 2015     3,540,876     $ 0.69       2.73     $ 3,498,531  
  Granted     –                          
  Exercised     –                          
  Outstanding at December 31, 2015     3,540,876     $ 0.69       2.48     $ 2,719,539  
  Exercisable at December 31, 2015     3,540,876     $ 0.69       2.48     $ 2,719,539  

 

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.

 

The exercise price for warrants outstanding and exercisable at December 31, 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