7. DERIVATIVE LIABILITIES

The Company accounted for the Series F Warrants relating to the 2017 Financing, the Series G Warrants relating to the 2018 Financing and the Series H Warrants relating to the 2019 Financing in accordance with ASC 815-10, Derivatives and Hedging. Since the Company may be required to purchase its Series F, Series G and Series H Warrants for an amount of cash equal to $0.18, $0.11 and $0.0533, respectively for each share of Common Stock (“Minimum”) and the underlying Series F, Series G and Series H Warrants are not classified within stockholders’ deficit, they are recorded as liabilities at the greater of the minimum or fair value. They are marked to market each reporting period through the consolidated statement of operations.

On the respective closing dates, the Series F, Series G and Series H derivative liabilities were recorded at an aggregate fair value of $1,628,113. Given that the fair value of the derivative liabilities were less than the net proceeds, the remaining proceeds were allocated to Common Stock and additional-paid-in-capital. During the three months ended March 31, 2022 and 2021, $1,000,000 and $0 was recorded to decrease the fair value of derivative liability, respectively. During the six months ended March 31, 2022 and 2021, $1,000,000 and $108,944 was recorded to decrease the fair value of derivative liability, respectively During the three months ended March 31, 2022, the Series F Warrants expired.

The derivative liabilities were valued as of March 31, 2022 using the Black Scholes Model with the following assumptions:

The derivative liabilities were valued as of September 30, 2021 using the Black Scholes Model with the following assumptions: