7. EQUITY

3 Months Ended

Dec. 31, 2015

Equity [Abstract]

7. EQUITY

NOTE 7- EQUITY

As of December 31, 2015, the Company was authorized to issue 650,000,000 common shares and 10,000,000 preferred shares at a par value of $0.01. 

Preferred Stock

On February 5, 2015, the Company issued 6,000,000 shares of its Series A Preferred Stock to its CEO. As of September 30, 2015, the Series A Preferred Stock is convertible into the Company’s common stock at a rate of 1 to 1.5 common shares. The Company recorded $9,900,000 as stock compensation based on the market value of the Company’s common stock on the date of grant. As of February 17, 2015, there are a total of 10,000,000 shares of the Series A Preferred Stock authorized and outstanding which are convertible into a total of 15,000,000 shares of common stock. Each share of the Preferred Stock has 150 votes on all matters presented to be voted by the holders of common stock. The holders of the Preferred A shares can only convert the shares if agreed upon by 50.1% vote of all preferred shareholders. During November 2015, the conversion rate for the Series A preferred stock was modified to a 1 to 30 common shares. The certificate of amendment to the Articles of Incorporation was not filed and on February 12, 2016 the Board reversed its position and reinstated the 1 to 1.5 conversion rate. Accordingly, we determined that no modification accounting was required. (See note 9)

Common Stock Issued for Cash

The Company issued 132,500 shares of restricted common shares through a Private Placement Memorandum for proceeds of $265,001 during the three months ended December 31, 2015.

Common Stock Issued for Services

On October 1, 2015 the Company issued 2,084 restricted common shares to Dr. Albert Carlson per his employment agreement for the Company. The shares had a value of $10,733 on the date of issue. On October 22, 2015 the Company issued 5,000 restricted common shares to Isaiah Eichen per an asset purchase agreement. The shares had a value of $27,500 on the date of issue.