Quarterly report pursuant to Section 13 or 15(d)

COMMON STOCK/PAID IN CAPITAL

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COMMON STOCK/PAID IN CAPITAL
9 Months Ended
Jun. 30, 2017
Stockholders' Equity Note [Abstract]  
COMMON STOCK/PAID IN CAPITAL

NOTE 6 – COMMON STOCK/PAID IN CAPITAL

 

In March 2016, the Company issued 520,273 shares of common stock to one vendor as consideration for services rendered in the ordinary course of business.

 

As discussed in Note 5, between June and November 2016, the Company issued 27.9 million warrants in conjunction with $837,000 convertible notes payable. The warrants have an exercise price of $0.03 and a term of the earlier of 3 years or upon a change of control. Based upon the allocation of proceeds between the convertible notes payable and the warrants, approximately $452,422 was allocated to the warrants.

 

As discussed in Note 5, in June 2017, 3.2 million additional warrants were awarded to the holders of Bridge Notes that matured in June 2017.

 

The fair value of the warrants were determined using the Black Scholes valuation model with the following key assumptions:

 

    June 2016     July 2016     August 2016     November 2016     June 2017  
  Number of Warrants Issued   12.9 million     10.0 million     3.3 million     1.7 million     3.2 million  
Stock Price:   $ 0.054     $ 0.040     $ 0.032     $ 0.029     $ 0.025  
Exercise Price:   $ 0.03     $ 0.03     $ 0.03     $ 0.03     $ 0.03  
Term:     3 years       3 years       3 years       3 years       2 years  
Risk Free Rate:     .87 %     .80 %     .88 %     1.28 %     1.35 %
Volatility:     135 %     138 %     137 %     131 %     135 %

  

In December 2016, 500,000 shares of restricted stock were issued in conjunction with a financing transaction (see Note 5).

 

As discussed in Note 5, in December 2016, the Company issued 550,000 warrants in conjunction with a convertible note payable. The warrants have an exercise price of $0.10 and a term of the earlier of 5 years or upon a change of control. Based upon the allocation of proceeds between the convertible note payable and the warrants, approximately $7,969 was allocated to the warrants.

 

In March 2017, 1,000,000 shares of restricted stock were issued in conjunction with a financing transaction (see Note 5).

 

As discussed in Note 5, in March 2017, the Company issued 1,100,000 warrants in conjunction with a convertible note payable. The warrants have an exercise price of $0.10 and a term of the earlier of 5 years or upon a change of control. Based upon the allocation of proceeds between the convertible note payable and the warrants, approximately $14,051 was allocated to the warrants.

 

The fair value of the warrants were determined using the Black Scholes valuation model with the following key assumptions:

  

    December 2016     March 2017  
Number of Warrants Issued     550,000       1,100,000  
Stock Price:   $ 0.028     $ 0.0279  
Exercise Price:   $ 0.10     $ 0.10  
Term:     5 years       5 years  
Risk Free Rate:     2.02 %     2.13 %
Volatility:     155 %     127 %