RELATED PARTY TRANSACTIONS
|9 Months Ended|
Jun. 30, 2020
|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, the chief executive officer (“CEO“). 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, 2020, the total amount owed to John Seitz is $8,675,500. This amount is included in loans from related parties within the condensed balance sheets. There was approximately $2.4 million of unpaid interest associated with these loans included in accrued interest payable within the balance sheet as of June 30, 2020.
On November 15, 2016, a family member of the CEO 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 months ended June 30, 2020 and 2019, the services provided were valued at approximately $15,000, respectively. During the nine months ended June 30, 2020 and 2019, the services provided were valued at approximately $45,000, respectively. The amount owed to this related party totals approximately $339,000 and $294,000 as of June 30, 2020 and September 30, 2019, respectively. The Company has accrued these amounts, and they have been reflected in related party payable in the June 30, 2020 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/disclosureRef