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18. SUBSEQUENT EVENTS
12 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

On October 16, 2019, the Company completed a secondary public offering of 500,000 shares of its 8.0% Series A Cumulative Convertible Preferred Stock for aggregate gross proceeds of $5,000,000. The Company received approximately $4.5 million in net proceeds after deducting underwriting discounts and commissions and other estimated offering expenses payable by us. The Company reviewed ASC 480 – Distinguishing Liabilities from Equity in order to determine the appropriate accounting treatment for the preferred stock and determined that the preferred stock should be treated as equity. Therefore, during the quarter ended December 31, 2019 the issuance of the shares will be recorded as equity.

 

On November 8, 2019, the Company and the minority holders of EE1 and IM1, two discontinued subsidiaries, agreed to a settlement and release related to the two non-operating entities. Effective September 30, 2019, the parties agreed to transfer the accounts receivable of EE1 and the minority interest of both EE1 and IM1 to the Company and the Company agreed to have all rights to certain past contracts or customers assigned to the minority holders. See Note 15 for more information.

 

On November 19, 2019, the Company entered into a stock sale and purchase agreement (“Agreement”) with a third party regarding our ownership of equity in a private entity, which we received in 2017 as compensation for services performed. The Agreement provides for the sale to be completed by June 30, 2020 at a price of $600,000 and required a non-refundable deposit of $30,000 by the purchaser for the purchase option, which would be applied to the sale if executed.

 

On December 11, 2019, the board of directors authorized and we issued an aggregate of 280,000 common stock options to our co-Chief Executive Officers. The options vest 1/3 January 1, 2020, 1/3 January 1, 2021 and 1/3 January 1, 2022 and have an exercise price of $3.15 per share and a term of five years.