8. Warrants

3 Months Ended

Dec. 31, 2015

Warrants and Rights Note Disclosure [Abstract]

Warrants

The Company issued several Notes in prior periods and converted them resulting in the issuance of warrants. The following table summarizes information about the Company’s warrants at December 31, 2015:

	Number of Units		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Intrinsic Value
Outstanding at September 30, 2015		3,540,876	$	0.69		2.73	$	3,498,531
Granted		–
Exercised		–
Outstanding at December 31, 2015		3,540,876	$	0.69		2.48	$	2,719,539
Exercisable at December 31, 2015		3,540,876	$	0.69		2.48	$	2,719,539

Most of the above warrants were issued in connection with conversion of convertible notes (See Note 5). When the debt is converted and warrants are issued, the Company determines the fair value of the warrants using the Black-Scholes model and takes a charge to interest expense at the date of issuance.

The exercise price for warrants outstanding and exercisable at December 31, 2015 is as follows:

Outstanding			Exercisable
Number of		Exercise	Number of		Exercise
Warrants		Price	Warrants		Price
1,631,886	$	0.55	1,631,886	$	0.55
535,716		0.56	535,716		0.56
371,487		0.81	371,487		0.81
1,001,787		0.95	1,001,787		0.95
3,540,876			3,540,876