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GOING CONCERN
12 Months Ended
Sep. 30, 2014
Going Concern [Abstract]  
GOING CONCERN

The Company has not established sources of revenue sufficient to fund the development of the business, projected operating expenses and commitments for the next twelve months and may be unable to obtain sufficient debt or equity financing. The Company has incurred net losses since inception, had a net loss of $(7,695,607) and used approximately $1,800,000 in cash from operating activities during the twelve month period ended September 30, 2014. At September 30, 2014, current assets were $6,053, and current liabilities were $1,100,619. Further, at September 30, 2014, the accumulated deficit and total stockholders' deficit amounted to approximately $52,200,000 and $2,302,000, respectively. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made as a result of this uncertainty.

 

The Company has taken several steps to address its liquidity requirements.  In addition to reducing the amount of operating expenses that it incurs on a monthly basis, the Company has negotiated with its creditors to settle obligations at less than stated amounts. As of September 30, 2014 the Company recorded approximately $893,000 as gain on debt extinguishment related to settlements with creditors which were effective prior to September 30, 2014.

 

Subsequent to September 30,2014, the Company continued its efforts to settle certain existing obligations and as discussed in Note 13, the Company merged with Spiral Energy Tech, a development stage company, and sold 3,200,000 Series B Preferred Stock for gross proceeds of $1,600,000.

 

The Company will continue its evaluation of strategic alternatives that may be available to advance the direction of the Company.