Share Capital

12 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Note 9 - Share Capital

The Company is authorized to issue 1,500,000,000 shares of common stock with a par value of $.001 and no preferred stock. The Company had 109,393,022 of $.001 par value common stock outstanding at September 30, 2017. Additionally, at September 30, 2017 there were 88,050,000 contingently issuable shares related to the 2017 Notes and 148,861,000 contingently issuable shares related to the 2016 Notes.

Common Stock Purchase Warrants

For warrants granted to non-employees in exchange for services, we recorded the fair value of the equity instrument using the Black-Scholes pricing model unless the value of the services is more reliably measurable.

On July 11, 2017 we issued a common stock purchase warrant to a lender as additional compensation for its services provided to date. The warrant provides for the issuance of 167,667 shares of our $.001 par value common stock at a variable exercise price based on the market price of our stock but with a “floor price” of $.01 per share. The warrants are exercisable for a period of 5 years from the date of issue.

The aggregate intrinsic value of the 167,667 outstanding and exercisable warrants at September 30, 2017 was approximately $8,500. The intrinsic value is the difference between the closing stock price on September 30, 2017 and the exercise price, multiplied by the number of in-the-money warrants had all warrant holders exercised their warrants on September 30, 2017.

The lender will be entitled to similar warrants issuances under a master lending agreement as additional funding to the Company is received.