Quarterly report pursuant to Section 13 or 15(d)

7. Equity

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7. Equity
 6 Months Ended
Mar. 31, 2016
Equity [Abstract]  
Equity

Common Stock

 

During the six months ended March 31, 2016, the Company issued:

 

· 9,693 shares of common stock for services rendered valued at $15,000. The value was based on the market value of the Company’s common stock on the date of issuance.

 

During the six months ended March 31, 2015, the Company issued:

 

· 29,927 shares of common stock for services rendered valued at $89,627. The value was based on the market value of the Company’s common stock on the date of issuance;
· 155,000 shares of common stock for net cash proceeds of $538,441;
· 801,378 share of common stock for the conversion of convertible notes and accrued interest of $635,756;
· 630,252 shares of common stock as payment for the original issue discount fees associated with the Kingston agreement. The value of the shares of $2,004,202 was based on the market value of the Company’s common stock at the date of issuance.

 

Treasury Stock

 

During the six months ended March 31, 2016, the Company purchased 53,510 shares of its common stock on the open market (treasury shares) for $80,292.  The Company accounted for the purchase of these treasury shares using the cost method.

 

2014 Omnibus Equity Incentive Plan

 

On January 7, 2014, our Board of Directors adopted the 2014 Omnibus Equity Incentive Plan (the “2014 Plan”), which authorizes the issuance of distribution equivalent rights, incentive stock options, non-qualified stock options, performance stock, performance units, restricted ordinary shares, restricted stock units, stock appreciation rights, tandem stock appreciation rights and unrestricted ordinary shares to our officers, employees, directors, consultants and advisors. The Company has reserved up to 1,800,000 shares of common stock for issuance under the 2014 Plan. As required under Nasdaq Listing Rule 5635(c), the Company included a proposal at its 2014 Annual Meeting of Stockholders, which was held on July 11, 2014, to obtain approval of the 2014 Plan. The 2014 Plan was approved.

 

Series E Convertible Preferred Stock

 

Pursuant to a tender offer in 2002, holders of 13,184 shares of the Company’s common stock exchanged said shares for 127,840 shares of Series E Convertible Preferred Stock, at the then $0.85 market value of the common stock. The shares carry a $0.30 per share liquidation preference and accrue dividends at the rate of 5% per annum on the liquidation preference per share, payable quarterly from legally available funds. If such funds are not available, dividends shall continue to accumulate until they can be paid from legally available funds. Holders of the preferred shares are entitled, after two years from issuance, to convert them into common shares on a one-to-one basis together with payment of $0.45 per converted share.

 

Dividends

 

During the six months ended March 31, 2016 and 2015, the Company accrued dividends of $959 and $960, respectively, payable to holders of Series E preferred stock. At March 31, 2016 unpaid dividends were $959.