Notes Payable

3 Months Ended

Dec. 31, 2013

Notes Payable Disclosure [Abstract]

Notes Payable Disclosure [Text Block]

Note 5.  Notes Payable

Notes payable and accrued interest consisted of the following at December 31, 2013 and September 30, 2013:

	December 31, 2013			September 30, 2013
Convertible debenture, interest rate at 6% to 8% and maturing in 2014	$	20,000	$	70,774
Notes Payable, interest rate at 8% and maturing in 2014		100,000		100,000
Accrued interest		4,313		2,978
Debt discount		(11,222)		(37,908)
Total	$	113,091	$	135,844

Settlement of Notes Payable

During the period ended December 31, 2013, one of our convertible note holders converted the remaining balance of $38,274 plus interest into 14,068,600 share of common stock. The Company amortized the remaining beneficial conversion feature in the amount of $23,427 to interest expense in our condensed consolidated statement of operations for the period ended December 31, 2013.

In October 2013 we received $100,000 under two security purchase agreements together with two 18% senior debentures. The debentures were to be paid back if the Company raises in excess of $265,000 in debt or equity financing with an interest of a minimum of 90 days. In December 2013 the Company paid $52,250 to each of the holders in full payment of the notes and also issued 1,978,143 shares of common stock each per the agreement. We recorded $37,980 to finance charges for this stock issuance in our condensed consolidated statement of operations for the period ended December 31, 2013.

In December 2013 we exercised the Company’s right to prepay a convertible note of $32,500. The note bore interest at a rate of 8% per annum and included a prepayment penalty of 50%. The Company recorded $16,250 in prepayment penalties to finance charges in our condensed consolidated statement of operations for the period ended December 31, 2013, and amortized the remaining beneficial conversion feature of $14,481 to interest expense in our condensed consolidated statement of operations for the period ended December 31, 2013. The note has been returned “paid-in-full”.

Issuance of Convertible Promissory Note

In October 2013, we issued a convertible promissory note to an investor in the amount of $20,000 for net proceeds of $19,000. The note is interest bearing at a rate of 6% per annum and has a maturity date of September 30, 2014. The Company recorded beneficial conversion feature in the amount of $14,965 for this note, of which $3,742 have been amortized to interest expense in our condensed consolidated statement of operations during the period ended December 31, 2013.