COMMITMENTS AND CONTINGENCIES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Text Block] |
Property Lease Obligations On October 1, 2015, the Company entered into a three year lease for 4,500 square feet of warehouse space in Naples, FL, at a monthly rent of $4,500. On October 13, 2015, the Company entered into a seven year lease, commencing December 1, 2015, for 5,377 square feet of office space in Naples, FL, at a monthly rent of $27,158. On November 1, 2015, the Company entered into a one year lease for 4,000 square feet of office and warehouse space in Marysville, WA, at a monthly rent of $3,000. On November 15, 2015, the Company entered into a one year lease for 1,000 square feet of apartment space in Bonita Springs, FL, at a monthly rent of $1,650. Rental expense, resulting from property lease agreements was $80,274 and $34,656 for the three months ending December 31, 2015, and December 31, 2014, respectively
Following is a schedule by years of future minimum payments required under leases obligations with initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2015:
Accrued Litigation Expense Legal Matters - The Company is involved in litigation claims arising in the ordinary course of business. Legal fees and other costs associated with such actions are expensed as incurred. In addition, the Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and contingencies. The Company reserves for costs relating to these matters when a loss is probable and the amount can be reasonably estimated. There have been no material developments in any legal proceedings since the disclosures contained in the Company’s Form 10-K for the year ended September 30, 2015, at which time the Company provided for an accrual of $1,840,891 to settle these claims. On November 20, 2015, the Company settled the Martin and Arey lawsuit for $150,000 cash, a promissory note for $250,000, and 512,820 share of common stock, having a value of $5,120. On November 24, 2015, the Company settled the Daniel Fournier lawsuit for $100,000 in cash. Related Party Advances
Through December 31, 2015, the Chief Executive Officer (CEO) provided cash advances witnessed by a note, from time to time, aggregating $245,764. Additionally, advances in the amount of approximately $66,236 were advanced on the Company’s behalf on credit cards the CEO is personally liable for the entire amount of the credit obligation. Additionally, the Company entered into several secured equipment financing arrangements with total obligations of approximately $380,000 as of December 31, 2015 that required the guaranty of a Company officer, which was provided by the CEO. |