Convertible Notes Payable

9 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Convertible Notes Payable

Note 5. Convertible Notes Payable

Convertible notes payable consisted of the following at June 30, 2017 and September 30, 2016:  

	June 30, 2017			September 30, 2016
Convertible note dated September 30, 2013 in the original principal amount of $528,434, matured September 30, 2015, bearing interest at 10% per year, convertible into common stock at a rate of $0.04 per share, in default	$	2,324		$	2,324
Convertible note dated June 30, 2014 payable in the original principal amount of $276,825, matured June 30, 2016, bearing interest at 10% per year, convertible into common stock at a rate of $0.03 per share, in default		276,285			276,285
Convertible note dated December 31, 2014 in the original principal amount of $118,620, maturing December 31, 2016, bearing interest at 10% per year, convertible into common stock at a rate of $0.01 per share, in default		64,141			104,310
Convertible note dated March 31, 2015 in the original principal amount of $49,190, maturing March 31, 2017, bearing interest at 10% per year, convertible into common stock at a rate of $0.005 per share, in default		49,190			49,190
Convertible note dated June 30, 2015 in the original principal amount of $66,074, maturing June 30, 2017, bearing interest at 10% per year, convertible into common stock at a rate of $0.53 per share, in default		66,074			66,074
Convertible note dated September 30, 2015 in the original principal amount of $235,313, maturing September 30, 2018, bearing interest at 10% per year, convertible into common stock a rate of $0.75 per share		235,313			235,313
Convertible note dated December 31, 2015 in the original principal amount of $90,040, maturing December 31, 2018, bearing interest at 10% per year, convertible into common stock at a rate of $0.08 per share		90,040			90,040
Convertible note dated March 24, 2016 in the original principal amount of $40,000, maturing March 24, 2017, bearing interest at 5% per year, convertible into common stock at the lower of a 48% discount to the lowest trading price of the last 20 days before conversion and $0.00005 per share, in default		—			40,000
Convertible note dated March 31, 2016 in the original principal amount of $71,861, maturing March 31, 2019, bearing interest at 10% per year, convertible into common stock at a rate of a 60% discount to the market price on the date of conversion		71,861			71,861
Convertible note dated April 13, 2017 in the original principal amount of $20,000, no stated maturity date, bearing interest at 3% per year, convertible into common stock at a rate of $0.01 per share		20,000			—
Convertible note dated May 19, 2017 in the original principal amount of $5,000, no stated maturity date, bearing interest at 3% per year, convertible into common stock at a rate of $0.01 per share		5,000			—
Convertible note dated June 8, 2017 in the original principal amount of $2,000, no stated maturity date, bearing interest at 3% per year, convertible into common stock at a rate of $0.01 per share		2,000			—
Total convertible notes payable	$	882,228		$	935,397
Less: current portion of convertible notes payable		(485,015	)		(538,183	)
Less: discount on noncurrent convertible notes payable		(348,553	)		(371,687	)
Long-term convertible notes payable, net of discount	$	48,660		$	25,527
Current portion of convertible notes payable		485,015			538,183
Discount on current convertible notes payable		—			(109,760	)
Short-term convertible notes payable, net of discount	$	485,015		$	428,423

All principal along with accrued interest is payable on the maturity date. The notes are convertible into common stock at the option of the holder. The holder of the notes cannot convert the notes into shares of common stock if that conversion would result in the holder owning more than 4.9% of the outstanding stock of the Company.

Conversions to Common Stock 

During nine months ended June 30, 2017, the holders of the Convertible Note Payable dated December 31, 2014 elected to convert principal and accrued interest of $45,000 into 4,500,000 shares of common stock. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion. 

During nine months ended June 30, 2017, the holders of the Convertible Note Payable dated March 24, 2016 elected to fully convert principal and accrued interest of $41,118 into 1,263,400 shares of common stock. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion.