Quarterly report pursuant to Section 13 or 15(d)

8. Warrants

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8. Warrants
 9 Months Ended
Jun. 30, 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 warrant activity for the nine months ended June 30, 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 June 30, 2016       3,540,876     $ 0.69       1.98     $ 2,861,174  
Exercisable at June 30, 2016       3,540,876     $ 0.69       1.98     $ 2,861,174  
                                     

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 June 30, 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