Annual report pursuant to Section 13 and 15(d)

8% CONVERTIBLE NOTES (Tables)

v3.8.0.1
8% CONVERTIBLE NOTES (Tables)
12 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
Schedule of Derivative Liabilities at Fair Value
As a result of the conversion of notes, we recorded a gain on conversion of debt of $142,964 for the year ended September 30, 2016, and due to the change in the estimated fair value of the derivative liability we recorded a decrease to fair value of derivative of $192,128 for the year ended September 30, 2016.
 
Fair Value Measurements Using Significant Unobservable Inputs
 
 
 
(Level 3)
 
 
 
 
 
Convertible
 
 
 
Debt
 
 
 
Derivative Liability
 
Beginning balance at September 30, 2015
 
$
335,092
 
 
 
 
 
 
Gain on conversion of debt
 
 
(142,964)
 
 
 
 
 
 
Decrease to fair value of derivative
 
 
(192,128)
 
 
 
 
 
 
Ending balance at September 30, 2016
 
$
-
 
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,
 
 
 
2015
 
 
 
 
 
Stated interest rate
 
 
8.0
%
Exercise price per share
 
$
0.20
 
Expected volatility
 
 
80.0
%
Risk-free interest rate
 
 
0.07
%
Credit adjusted discount rate
 
 
22.0
%
Remaining expected term of underlying securities (years)
 
 
0.46