Convertible Debt (Tables)

12 Months Ended

Sep. 30, 2015

The Company had the following convertible debt outstanding at September 30, 2015:

Lender	Date of Agreement	Term (Months)		Annual Interest Rate				Face Value		Accrued Interest		Discount		Net Convertible Note Payable		Note Derivative Liability
Redwood Fund III	5/15/2014		6		12.00	%		$	40,000	$	5,918	$	15,867	$	30,051	$	114,005
Tonaquint, Inc	10/7/2014		12		22.00	%	(a)		98,177		46,416		16,700		127,893		128,566
JMJ Financial #3	10/22/2014		24		5.83	%			8,900		5,556		11,582		2,874		27,375
LG Capital #2	10/23/2014		12		8.00	%			23,533		2,500		9,398		16,635		52,628
Cardinal Capital Group	11/6/2014		24		22.00	%	(a)		43,998		30,133		41,984		32,147		94,158
Rock Capital	2/6/2015		12		10.00	%			23,005		-		20,351		2,654		67,377
Union Capital #3	2/17/2015		12		8.00	%			34,500		-		-		34,500		93,039
Adar Bay #2	2/19/2015		12		8.00	%			12,000		-		11,742		258		39,280
LG Capital #3	3/10/2015		12		8.00	%			52,500		-		43,388		9,112		109,470
								$	336,613	$	90,523	$	171,012	$	256,124	$	725,898

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.

(a)

During the year ended September 30, 2015, the note was defaulted due to insufficient authorized common share to fulfill conversion request, additional interest accrual recorded due to interest rate increased to 22% from 12% related to the default.

The Company issued convertible notes payable that provide for the issuance of convertible notes with variable conversion provisions. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion option and warrants and shares to be issued were recorded as derivative liabilities once the note becomes convertible on the 180 days after the effective date.

The Company had the following convertible debt outstanding at September 30, 2014:

Lender	Date of Agreement	Term (Months)		Annual Interest Rate				Face Value		Accrued Interest		Discount		Deferred Debt Origination Costs Due at Maturity(c)		Net Convertible Note Payable		Note Derivative Liability
JMJ Financial	4/15/2014		24		5.83	%	(a)	$	100,000	$	1,342	$	95,379	$	11,111	$	17,074	$	117,809
KBM Worldwide	4/24/2014		9		8.00	%			103,500		4,809		-		-		108,309		-
KBM Worldwide	6/26/2014		9		8.00	%			53,000		1,487		-		-		54,487		-
JSJ Investments	4/29/2014		6		12.00	%			100,000		10,126		-		-		109,792		-
Adar Bays	5/20/2014		12		8.00	%			52,500		1,530		48,234		-		5,796		81,401
LG Capital	5/20/2014		12		8.00	%			52,500		1,530		48,234		-		5,796		68,626
Redwood Fund III	5/15/2014		6		7.85	%	(b)		100,000		5,934		-		-		105,934		-
Vista Capital Investments	6/16/2014		24		5.83	%	(b)		50,000		423		43,441		5,556		12,538		60,785
Tonaquint, Inc	7/10/2014		12		12.00	%			115,000		3,100		104,979		-		13,121		152,002
Union Capital	7/16/2014		12		8.00	%			30,000		533		-		-		30,533		-
Iconic Holding, LLC	7/16/2014		12		10.00	%			75,000		1,562		69,626		-		6,936		67,480
Auctus Private	7/29/2014		9		8.00	%			58,750		1,082		-		-		59,832		-
KBM Worldwide	8/11/2014		9		8.00	%			53,000		712		-		-		53,712		-
Vista Capital Investments	8/26/2014		24		5.83	%	(b)		25,000		70		24,766		2,777		3,081		28,000
KBM Worldwide	9/2/2014		9		8.00	%			47,500		389		-		-		47,889		-
JMJ Financial	9/3/20114		24		5.83	%	(a)		50,000		108		47,948		5,556		7,716		58,046
JSJ Investments	9/8/2014		6		12.00	%			100,000		1,447		87,602		-		13,845		217,078
Macallan Partners, LLC	9/9/2014		12		10.00	%			120,000		690		113,806		-		7,218		164,817
								$	1,285,750	$	36,874	$	684,015	$	25,000	$	663,609	$	1,016,044

(a)	Implied interest rate. The note is subject to a one time 12% interest charge unless repaid within 90 days

(b)	Implied interest rate. The note is subject to a one time 12% interest charge regardless of how long it has been outstanding

(c)	Original Issue Discount due at maturity of the note

Summary of Conversion Terms of the Notes Outstanding

The following table summarizes conversion terms of the notes outstanding at September 30, 2015:

Lender	Date of Agreement	Term Of Conversion	Eligible for Conversion

Redwood Fund III	May 15, 2014	Conversion Price shall be 55% of the lowest traded price, determined on the then current trading market for the Company’s common stock, for 20 trading days prior to conversion.	180 after the effective dates
JMJ Financial	October 22, 2014	Conversion Price shall be lesser of $0.06 or 60% of lowest trade price in the 25 trading days previous to conversion.	180 after the effective dates
Tonaquint, Inc	October 7, 2014	Conversion price shall be 65% (the “Conversion Factor”) of the lowest intra-day trade price of Borrower’s common stock (“Common Stock”) in the twenty-five (25) Trading Days immediately preceding the Conversion .	180 after the effective date
LG Capital #2	October 23, 2014	Conversion price shall be 50% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company.	180 after the effective date
Cardinal Capital Group	November 6, 2014	Conversion price shall equal the lesser of (a) $0.05 or (b) 60% of the lowest trade occurring during the twenty five (25) consecutive Trading Days immediately preceding the applicable Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment as provided in this Note.	180 after the effective date
Rock Capital	February 6, 2015	Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price).	180 after the effective date
Union Capital	February 17, 2015	Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price).	180 after the effective dates
Adar Bay	February 19, 2015	Conversion price shall equal be 50% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company.	180 after the effective date
LG Capital #3	March 10, 2015	Conversion price shall equal be 60% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company.	180 after the effective date

Deferred Origination Costs Related to the Convertible Notes

As of September 30, 2015, Company recorded the following deferred origination costs related to the convertible notes:

Lender	Date of Agreement	Finder's Fees		Deferred Debt Origination Costs Due at Maturity		Legal and Other Debt Origination Costs		Deferred Debt Origination Costs at September 30, 2014		Additions		Amortization		Deferred Debt Origination Costs at September 30, 2015

JMJ Financial #1	04/15/14	$	10,000	$	11,111	$	-	$	18,896	$	-	$	18,896	$	-
KBM Worldwide #1	04/24/14		10,000		-		3,500		7,692		-		7,692		-
KBM Worldwide #2	06/26/14		5,000		-		3,000		6,247		-		6,247		-
JSJ Investments #1	04/29/14		10,000		-		-		1,562		-		1,562		-
Adar Bay	05/20/14		5,000		-		2,500		4,900		-		4,900		-
LG Capital	05/20/14		5,000		-		2,500		4,900		-		4,900		-
Redwood Fund III	05/15/14		10,000		-		-		2,438		-		2,438		-
Vista Capital Investments #1	06/16/14		5,000		5,556		-		9,860		-		9,860		-
Various	Various		-		-		52,500		25,596		18,700		29,956		14,340
Tonaquint, Inc #1	07/10/14		10,000		10,000		5,000		23,898		-		23,898		-
Union Capital	07/16/14		-		-		4,500		4,500		-		4,500		-
Iconic Holding, LLC	07/16/14		6,750		7,500		-		14,250		-		14,250		-
Acutus Private	07/29/14		5,250		-		6,250		10,292		-		10,292		-
KBM Worldwide #3	08/11/14		5,000		-		3,000		7,160		-		7,160		-
Vista Capital Investments #2	08/26/14		2,500		2,777		-		5,277		-		5,277		-
KBM Worldwide #4	09/02/14		4,500		-		2,500		6,540		-		6,540		-
JMJ Financial #2	09/03/14		5,000		5,556		-		10,556		-		10,556		-
JSJ Investments #2	09/08/14		10,000		-		2,000		11,759		-		11,759		-
Macallan Partners, LLC	09/09/14		-		12,000		-		12,000		-		12,000		-
Tonaquint, Inc #2	10/07/14		10,000		5,000		15,000		-		30,000		14,902		15,098
JMJ Financial # 3	10/22/14		5,000		-		5,556		-		10,556		5,556		5,000
LG Capital #2	10/23/14		5,000		2,500		2,500		-		10,000		9,494		506
Cardinal Group	11/06/14		-		8,500		6,500		-		15,000		5,667		9,333
KBM Worldwide #7	01/12/15		-		4,500		-		-		4,500		-		4,500
Rock Capital	02/06/15		-		1,000		4,500		-		5,500		189		5,311
Union Capital #3	02/17/15		-		1,500		4,500		-		6,000		4,500		1,500
Adar Bay #2	02/19/15		-		3,500		-		-		3,500		-		3,500
LG Capital #3	03/10/15		-		4,000		7,500		-		11,500		8,878		2,622
Vista #3	03/02/15		-		-		5,800		-		5,800		5,800		-
															-
		$	129,000	$	85,000	$	139,106	$	188,323	$	121,056	$	247,669	$	61,710

As of September 30, 2014, Company recorded the following deferred origination costs related to the convertible notes:

Lender	Date of Agreement	Transaction Costs		Deferred Debt Origination Costs Due at Maturity		Legal and Other Debt Origination Costs		Initial Deferred Origination Costs		Amortization		Net Deferred Debt Origination Costs
JMJ Financial	4/15/2014	$	10,000	$	11,111	$	-	$	21,111	$	2,215	$	18,896
KBM Worldwide	4/24/2014		10,000		-		3,500		13,500		5,808		7,692
KBM Worldwide	6/26/2014		5,000		-		3,000		8,000		1,753		6,247
JSJ Investments	4/29/2014		10,000		-		-		10,000		8,438		1,562
Adar Bays	5/20/2014		5,000		-		2,500		7,500		2,600		4,900
LG Capital	5/20/2014		5,000		-		2,500		7,500		2,600		4,900
Redwood Fund III	5/15/2014		10,000		-		-		10,000		7,562		2,438
Vista Capital Investments	6/16/2014		5,000		5,556		-		10,556		696		9,860
Various	Various		-		-		33,800		33,800		5,693		28,107
Tonaquint, Inc	7/10/2014		10,000		-		15,000		25,000		1,102		23,898
Union Capital	7/16/2014		-		-		4,500		4,500		-		4,500
Iconic Holding, LLC	7/16/2014		6,750		-		7,500		14,250		-		14,250
Auctus Private	7/29/2014		5,250		-		6,250		11,500		1,208		10,292
KBM Worldwide	8/11/2014		5,000		-		3,000		8,000		840		7,160
Vista Capital Investments	8/26/2014		2,500		2,777		-		5,277		-		5,277
KBM Worldwide	9/2/2014		4,500		-		2,500		7,000		460		6,540
JMJ Financial	9/3/2014		5,000		5,556		-		10,556		-		10,556
JSJ Investments	9/8/2014		10,000		-		2,000		12,000		241		11,759
Macallan Partners, LLC	9/9/2014		-		-		12,000		12,000		-		12,000

		$	109,000	$	25,000	$	98,050	$	232,050	$	41,216	$	190.834