Quarterly report pursuant to Section 13 or 15(d)

8. Warrants

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8. Warrants
 6 Months Ended
Mar. 31, 2016
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, 2016:

 

  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 March 31, 2016     3,540,876     $ 0.69       2.23     $ 2,471,677  
Exercisable at March 31, 2016     3,540,876     $ 0.69       2.23     $ 2,471,677  

 

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 March 31, 2016 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