General form of registration statement for all companies including face-amount certificate companies

8% CONVERTIBLE NOTES (Tables)

v3.5.0.1
8% CONVERTIBLE NOTES (Tables)
 6 Months Ended 12 Months Ended
Mar. 31, 2016
Sep. 30, 2015
Debt Disclosure [Abstract]    
Schedule of Derivative Liabilities at Fair Value
As of March 31, 2016, the remaining derivative liability balance was deemed to be immaterial to the accompanying unaudited interim consolidated financial statements.
 
Fair Value Measurements Using Significant Unobservable
 
 
 
 
Inputs
 
 
 
 
(Level 3)
 
 
 
 
 
 
 
 
 
 
 
Convertible
Debt Derivative Liability
 
Beginning balance at September 30, 2015
 
$
335,092
 
 
 
 
 
 
Conversion of notes
 
 
(142,964)
 
 
 
 
 
 
Adjustments to estimated fair value
 
 
(192,128)
 
 
 
 
 
 
Ending balance at March 31, 2016
 
$
-
 
 As a result of a change in the estimated fair value of the derivative liability we recorded other expense of $67,395 and a gain on the conversion of the notes of $87,291 for the year ended September 30, 2015.
 
Fair Value Measurements Using Significant Unobservable
Inputs
(Level 3)
 
 
 
 
 
 
Convertible
Debt Derivative
Liability
 
Beginning balance at September 30, 2014
 
$
-
 
 
 
 
 
 
Issuances
 
 
354,988
 
 
 
 
 
 
Conversion of Notes
 
 
(87,291)
 
 
 
 
 
 
Adjustments to estimated fair value
 
 
67,395
 
 
 
 
 
 
Ending balance at September 30, 2015
 
$
335,092
 
Schedule of Assumptions Used
The derivative liability was valued as of September 30, 2015, October 29, 2015 (weighted average conversion date) and December 31, 2015 using Monte Carlo Simulations with the following assumptions:
 
 
 
September 30,
 
 
October 29,
 
 
December 31,
 
 
 
2015
 
 
2015
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stated interest rate
 
 
8.0
%
 
 
8.0
%
 
 
8.0
%
Exercise price per share
 
$
0.20
 
 
$
0.20
 
 
$
0.20
 
Expected volatility
 
 
80.0
%
 
 
85.0
%
 
 
110.0
%
Risk-free interest rate
 
 
0.07
%
 
 
0.14
%
 
 
0.16
%
Credit adjusted discount rate
 
 
22.0
%
 
 
22.0
%
 
 
25.0
%
Remaining expected term of underlying securities (years)
 
 
0.46
 
 
 
0.38
 
 
 
0.21
 
The derivative liability was valued as of March 15, 2015, September 20, and September 30, 2015 using Monte Carlo Simulations with the following assumptions:
 
 
 
March 15,
2015
 
September 20,
2015
 
September 30,
2015
 
Stated interest rate
 
 
8.0
%
 
8.0
%
 
8.0
%
Exercise price per share
 
$
0.20
 
$
0.20
 
$
0.20
 
Expected volatility
 
 
90.0
%
 
80.0
%
 
80.0
%
Risk-free interest rate
 
 
0.24
%
 
0.09
%
 
0.07
%
Credit adjusted discount rate
 
 
20.0
%
 
22.0
%
 
22.0
%
Remaining expected term of underlying securities (years)
 
 
1.00
 
 
.48
 
 
.46