Shareholder's Equity

12 Months Ended

Sep. 30, 2015

Shareholder's Equity [Abstract]

Shareholder's Equity

Note 8 – Shareholders’ Equity

Common Stock

During the years ended September 30, 2015 and 2014, the Company issued 2,100 and 3,448 shares common stocks and recognized compensation expense of $8,400 and $20,001, respectively, related to service granted to the Board of Directors.

During the years ended September 30, 2015 and 2014, the Company issued an aggregate of 20,633,744 and 0 shares of common stock for conversion of convertible debts of $1,728,370 and $0 and decrease in derivative value due to conversion of $2,474,418 and $0, respectively.

During the years ended September 30, 2015 and 2014, the Company issued of 928,254 and 0 shares of common stock to its related party for conversion of convertible debts of $250,000 and $0 and decrease in derivative value due to conversion of $432,646 and $0 respectively.

Stock Options

On January 6, 2012, the Board of Directors granted a total of 47,500 stock options to officers and board of directors members of the Company under the Company’s 2004 Stock Option Plan. The options vest over two years, are exercisable for a period of 2 years and have a $20 strike price. However, the options are only exercisable if the Company’s share price reaches $75 per share and remains consistently at or above that level for a period of one month.  They have a grant-date fair value of $63,711 or $13 per share based on and independent valuation of the options using a lattice model and the following weighted average assumptions:

Risk free interest rate	0.25	%
Dividend yield	0.00	%
Annual volatility	105.97	%
Exit/Attrition rates	2.00	%
Target exercise multiple	2.14	%

During the years ended September 30, 2015 and 2014, the Company recognized compensation expense of $0 and $6,957, respectively, related to the options grant as described above.  As of September 30, 2015, there are 41,500 fully-vested options outstanding; none of which are exercisable.

Stock Warrants

On October 6, 2010, an equivalent of 68,182 warrants with a term of 5 years and an exercise price of $28 were issued to the investors along with the common shares sold.  ERHC also issued to the placement agent a total of 4,596 warrants which have an exercise price of $27.5 and a term of approximately 5 years.  At September 30, 2015, 68,182 warrants remain outstanding with an average exercise price of $28 per share and an average remaining life of 0.02 years.  During the years ended September 30, 2015 and 2014, 4,596 and 65,000 warrants expired unexercised, respectively.

Stock Warrants Summary

Information regarding warrant, their respective changes and their weighted average exercise prices as of and for the fiscal years ended September 30, 2015 and 2014 are as follows:

Description	Warrants		Weighted Average Exercise Price		Market Price Intrinsic Value
Balance at September 30, 2013		137,778	$	32		-
Granted		-
Exercised		-
Expired or cancelled		65,000
Balance at September 30, 2014		72,778	$	28		-
Granted		-
Exercised		-
Expired or cancelled		4,596	$	28
Balance at September 30, 2015		68,182				-

There was no unrecognized compensation cost for the above warrants as of September 30, 2015 and 2014.