Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY

v3.2.0.727
STOCKHOLDERS' EQUITY
 9 Months Ended
Jun. 30, 2015
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
7.
STOCKHOLDERS’ EQUITY
 
Preferred Stock
 
In the first quarter of fiscal 2015, the Company issued 195,918 shares of Series D preferred stock for expenses paid on the Company’s behalf of $233,765, plus a subscription receivable of $549,907.
 
On January 16, 2015, the Company granted 12,500 shares of its Series D preferred stock with a grant date value of $50,000, to an existing noteholder as incentive for forbearance on the note.
 
On May 1, 2015, the Company issued 12,500 shares of its Series D preferred stock with a grant date value of $50,000 in settlement for lease termination costs.
 
Common Stock
 
On April 17, 2015, the Company issued 5,115,562 shares of its common stock with a grant date value of $1,023,112 to eighty-two (82) Senior Secured Note holders as an incentive for executing amended forbearance agreements on their respective notes.
 
Dividends
 
Dividend charges recorded during the three months and nine months ended June 30, 2015 and 2014 are as follows:
 
 
For the Three Months Ended
 
For the Nine Months Ended
 
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
 
Series
 
 
 
 
 
 
 
 
 
 
 
 
A
$
12,510
 
 
12,510
 
 
37,531
 
 
37,531
 
A-1
 
7,379
 
 
7,379
 
 
22,139
 
 
22,139
 
B
 
-
 
 
-
 
 
-
 
 
-
 
C-1
 
-
 
 
-
 
 
-
 
 
-
 
C-2
 
-
 
 
-
 
 
-
 
 
-
 
C-3
 
-
 
 
-
 
 
-
 
 
-
 
Total
$
19,889
 
$
19,889
 
$
59,670
 
$
59,670
 
 
Accrued dividends payable at June 30, 2015 and September 30, 2014 are comprised of the following:
 
 
June 30,
 
September 30,
 
 
 
2015
 
2014
 
 
Series
 
 
 
 
 
 
 
A
$
234,628
 
$
197,098
 
 
A-1
 
176,723
 
 
154,583
 
 
B
 
187,197
 
 
187,197
[1]
 
C-1
 
56,743
 
 
56,743
 
 
C-2
 
13,962
 
 
13,962
 
 
C-3
 
15,834
 
 
15,834
 
 
Total
$
685,087
 
$
625,417
 
 
 
[1] – Prior to conversion to Series D.
 
Warrants
 
There were no warrants issued during the nine months ended June 30, 2015 and 2014.
 
A summary of the warrant activity during the nine months ended June 30, 2015 is presented below:
 
 
 
 
 
 
Weighted
 
Weighted
 
 
 
 
 
 
 
 
 
Average
 
Average
 
 
 
 
 
 
Number of
 
Exercise
 
Remaining
 
Intrinsic
 
 
 
Warrants
 
Price
 
Life in Years
 
Value
 
Outstanding, September 30, 2014
 
 
2,918,254
 
$
0.89
 
 
 
 
 
 
 
Issued
 
 
-
 
 
-
 
 
 
 
 
 
 
Exercised
 
 
-
 
 
-
 
 
 
 
 
 
 
Expired
 
 
(2,173,255)
 
 
1.00
 
 
 
 
 
 
 
Outstanding, June 30, 2015
 
 
744,999
 
$
0.58
 
 
0.60
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable, June 30, 2015
 
 
744,999
 
$
0.58
 
 
0.6
 
 
-
 
 
The following table presents information related to stock warrants at June 30, 2015:
 
Warrants Outstanding
 
Warrants Exercisable
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
 
Outstanding
 
Average
 
Exercisable
 
Exercise
 
Number of
 
Remaining
 
Number of
 
Price
 
Warrants
 
Life in Years
 
Warrants
 
 
 
 
 
 
 
 
 
 
 
 
 
$
0.40
 
 
449,999
 
 
0.5
 
 
449,999
 
$
0.75
 
 
175,000
 
 
0.7
 
 
175,000
 
$
1.00
 
 
120,000
 
 
0.6
 
 
120,000
 
 
 
 
 
744,999
 
 
0.6
 
 
744,999