Quarterly report pursuant to Section 13 or 15(d)

IMMATERIAL CORRECTION OF THE JUNE 30, 2015 INTERIM CONSOLIDATED FINANCIAL STATEMENTS

IMMATERIAL CORRECTION OF THE JUNE 30, 2015 INTERIM CONSOLIDATED FINANCIAL STATEMENTS

9 Months Ended

Jun. 30, 2016

Accounting Changes and Error Corrections [Abstract]

IMMATERIAL CORRECTIONS TO PRIOR PERIOD FINANCIAL STATEMENTS

Immaterial Correction of the June 30, 2015 Interim Consolidated Financial Statements

The Company has determined that there had been an immaterial error in its accounting for the Series A Warrants, Series C Warrants, and Series D Warrants contained in its unaudited interim consolidated financial statements for the three and nine months ended June 30, 2015 filed with the Securities Exchange Commission on August 7, 2015. The Company determined that as of June 22, 2015 the Series A Warrants and Series C Warrants should have been presented in stockholders’ equity instead of as a liability. In addition, the Company determined that as of June 30, 2015, the Series D Warrants should have been presented in stockholders’ equity instead of as a liability. The Company assessed the materiality of this error in accordance with Staff Accounting Bulletin No. 99, Materiality, and the Company determined that, qualitatively, the amounts would have no bearing on the decision making process of a reasonable investor. A restatement adjustment has been made as of and for the three and nine months ended June 30, 2015, to correct the error.

The following table sets forth the effects of the restatement adjustments discussed above on the consolidated balance sheet as at June 30, 2015.

	Previously Reported		Increase (Decrease)		Restated
	$		$		$
Liabilities
Derivative liabilities, net of current portion		6,344,817		(6,344,817)		-
Total long-term liabilities		7,491,377		(6,344,817)		1,146,560
Total liabilities		9,383,266		(6,344,817)		3,038,449

Stockholders’ (deficit) equity
Additional paid-in capital		8,566,193		5,721,957		14,288,150
Accumulated deficit		(14,624,760)		(622,860)		(14,001,900)
Total stockholders’ (deficit) equity		(6,065,411)		6,344,817		279,406

The following table sets forth the effects of the restatement adjustments discussed above on the consolidated statement of operations for the three and nine months ended June 30, 2015.

			Three months ended						Nine Months Ended
	Previously Reported		Increase (Decrease)		Restated		Previously Reported		Increase (Decrease)		Restated
	$		$		$		$		$		$
(Increase)/decrease to fair value of derivative		(925,384)		(622,860)		(302,524)		2,924,064		(622,860)		3,546,924
Total other income (expense)		(57,016)		(622,860)		565,844		2,013,925		(622,860)		2,636,785
Net loss		(1,395,245)		(622,860)		(772,385)		(1,850,066)		(622,860)		(1,227,206)

The following table sets forth the effects of the restatement adjustments discussed above on the consolidated statement of cash flow for the nine months ended June 30, 2015.

	Previously Reported		Increase (Decrease)		Restated
	$		$		$
Net loss		(1,850,066)		(622,860)		(1,227,206)
Decrease to fair value of derivative		(2,924,064)		622,860		(3,546,924)

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

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