Annual report pursuant to Section 13 and 15(d)

9. Warrants

v3.6.0.2
9. Warrants
 12 Months Ended
Sep. 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 warrants at September 30, 2016:

 

  Number of
Units		     Weighted
Average
Exercise
Price		     Weighted
Average
Remaining
Contractual
Term (in years)		     Intrinsic
Value		  
Outstanding at September 30, 2015     590,146     $ 4.14       2.73     $ 3,493,092  
Granted     –                          
Exercised     –                        
Outstanding at September 30, 2016     590,146     $ 4.14       1.73     $ 4,307,493  
Exercisable at September 30, 2016     590,146     $ 4.14       1.73     $ 4,307,493  

 

Most of the above warrants were issued in connection with the conversion of convertible notes from Isaac Capital Group. When the debts is converted and warrants are issued, the Company determines the fair value of the warrants using the Black-Scholes-Merton model and takes a charge to interest expense at the date of issuance.

 

The exercise price for the warrants outstanding and exercisable at September 30, 2016 is as follows:

 

Outstanding     Exercisable  
Number of
Warrants		     Exercise
Price		     Number of
Warrants		     Exercise
Price		  
  271,981     $ 3.30       271,981     $ 3.30  
  89,286       3.36       89,286       3.36  
  61,914       4.86       61,914       4.86  
  166,965       5.70       166,965       5.70  
  590,146               590,146