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SUBSEQUENT EVENTS
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12 Months Ended | ||
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Sep. 30, 2011
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| Subsequent Events [Abstract] | |||
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On October 6, 2011, the Company initiated a private placement (the “Placement”) of up to $4,500 of 12 month Senior Secured Notes (“Notes”). The Notes bear interest at 13% APR. The Placement will be made on a "best efforts" basis with a Minimum of $500 and a Maximum of $4,500 . Net proceeds will be used to repay and replace existing Senior Secured Bank Notes totaling approximately $3,000 and for additional working capital. The Placement will expire on the sooner of (a) March 1, 2012 if the Minimum has not been met or (b) the date that the Maximum has been raised. As of December 12, 2011, a total of $3,892 has been raised.
On October 12, 2011, the Company issued 20,500 shares in a severance agreement with a former employee.
On October 14, the Company has offered in a private placement 107 units (the "Series C-3 Units) at a purchase price of $1,500 per Series C-3 Unit. A Series C-3 Unit consists of (i) one (1) share of $1,500 Stated Value Series C-3 Convertible Preferred Stock with each share having 125% nonparticipating liquidation preference, bearing dividends at a rate of 6% per annum payable quarterly in cash or additional Preferred Stock at the Company’s option and convertible at the holder’s discretion into 2,000 shares of the Company’s Common Stock, and (ii) a five (5) year warrant to purchase 1,000 shares of its Common Stock (each, an "Investor Warrant") at a purchase price of $0.45 per share (collectively the "Series C-3 Offering"). As of December 12, 2011, a total of $160 has been raised.
Management has evaluated all subsequent events or transactions occurring through December 12, 2011, the date of the financial statements are available to be issued.
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