Annual report pursuant to Section 13 and 15(d)

8% CONVERTIBLE NOTES (Tables)

v3.3.1.900
8% CONVERTIBLE NOTES (Tables)
12 Months Ended
Sep. 30, 2015
Debt Disclosure [Abstract]  
Schedule of Derivative Liabilities at Fair Value
 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 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