RELATED PARTY TRANSACTIONS
|9 Months Ended|
Jun. 30, 2018
|Related Party Transactions [Abstract]|
|RELATED PARTY TRANSACTIONS||
NOTE 4 – RELATED PARTY TRANSACTIONS
During April 2013 through September 2017, the Company entered into convertible promissory notes whereby it borrowed a total of $8,675,500 from John Seitz, its current chief executive officer. The notes are due on demand, bear interest at the rate of 5% per annum, and $5,300,000 of the notes are convertible into shares of common stock at a conversion price equal to $0.12 per share of common stock (the then offering price of shares of common stock to unaffiliated investors). As of June 30, 2018 the total amount owed to John Seitz, our CEO, is $8,675,500. There was a total of $1,530,232 of unpaid interest associated with these loans included in accrued interest within our balance sheet as of June 30, 2018.
During March 2016, the Company entered into a promissory note for a total of $80,000 with the Morris Family Partnership, L.P., an affiliate of Mr. Paul Morris, a director of the Company. The $80,000 promissory note was converted into the Bridge Financing (see Note 5). The Bridge note and accrued interest was converted into 3.7 million shares of common stock in June 2018, under the same terms received by other investors. The note was paid in full in June 2018 (see Note 5).
On November 15, 2016, a family member of the CEO, a related party, entered into a $50,000 convertible promissory note with associated warrants (“Bridge Financing”) under the same terms received by other investors (see Note 5).
Domenica Seitz CPA, related to John Seitz, has provided accounting consulting services to the Company. During the three month period ended June 30, 2018, the services provided were valued at $5,915. The Company has accrued these amounts, and they have been reflected in the June 30, 2018 financial statements.
John Seitz has not received a salary since May 31, 2013, the date he commenced serving as our CEO and accordingly, no amount has been accrued on our financial statements.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef