Convertible Notes Payable

9 Months Ended

Jun. 30, 2013

Convertible Notes Payable [Abstract]

8.	Convertible Notes Payable:

As of June 30, 2013, the Company has issued a series of secured convertible notes under multiple funding arrangements with various third-party investors totaling $1,378,663. These notes bear interest at 10% per annum and mature two years from the date of issue. The convertible notes were secured until the Company became public. The Company's first share trade was on January 11, 2013. On December 14, 2012 the Company went public and the notes become unsecured and convertible, at any time at the option of the holder, into shares of common stock of the Company at a conversion rate of the lower of CDN $1 per share, the initial listing price of $0.55 less 20% discount of the public shares, or any financing that is done by the Company by way of a registration statement. The convertible notes may be repaid at any time without penalty or bonus. The total amount of interest that has been expensed for the three and nine month periods ended June 30, 2013, is $34,453 and 89,288, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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