Quarterly report pursuant to Section 13 or 15(d)

10. Series B Convertible Preferred Stock Warrants

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10. Series B Convertible Preferred Stock Warrants
9 Months Ended
Jun. 30, 2017
Warrants and Rights Note Disclosure [Abstract]  
Series B Convertible Preferred Stock 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 outstanding at June 30, 2017:

 

      Number of units - Series B Convertible preferred warrants    

Weighted

Average

Exercise
Price

    Weighted Average Remaining Contractual Term (in years)     Intrinsic Value  
  Outstanding at September 30, 2016       118,029     $ 20.80       1.73     $ 4,307,493  
  Granted                                 
  Exercised                                
  Outstanding at June 30, 2017       118,029     $ 10.34       0.98     $ 3,646,530  
  Exercisable at June 30, 2017       118,029     $ 10.34       0.98     $ 3,646,530  

 

 Most of the above warrants were issued in connection with the conversion of convertible notes from ICG. When the debts were converted and warrants were issued; the Company determined the fair value of the warrants using the Black-Scholes-Merton model and took a charge to interest expense at the date of issuance.

 

On December 27, 2016, ICG and the Company agreed to amend and exchange the common stock warrants for warrants to purchase shares of Series B Convertible Preferred Stock, and the number of warrants held adjusted by an exchange ratio of 5:1 shares of common stock for shares of Series B Convertible Preferred Stock. ICG, the holder of the warrants outstanding, is not permitted to sell, transfer, assign, hypothecate, pledge, margin, hedge, trade or otherwise obtain or attempt to obtain any economic value from the shares of Series B Convertible Preferred Stock should the warrants be exercised prior to December 31, 2021. All warrant related information presented in these condensed consolidated financial statements and accompanying footnotes has been retroactively adjusted to reflect the conversion of all common stock warrants outstanding to warrants to purchase shares of Series B Convertible Preferred Stock resulting in this action.

The exercise price for the warrants outstanding and exercisable into shares of Series B Convertible Preferred Stock at June 30, 2017 is as follows:

 

Series B Convertible Preferred  
Outstanding     Exercisable  
Number of     Exercise     Number of     Exercise  
Warrants     Price     Warrants     Price  
  54,396     $ 16.60       54,396     $ 16.60  
  17,857       16.80       17,857       16.80  
  12,383       24.30       12,383       24.30  
  33,393       28.50       33,393       28.50  
  118,029               118,029