DERIVATIVE LIABILITIES (Tables)

3 Months Ended

Dec. 31, 2014

Derivative Liability [Abstract]

Key inputs used in fair value calculations

	December 31, 2014			September 30, 2014
Stock Price	$	0.01		$	0.80
Volatility		130%-145	%		130%-145	%
Strike Price	$	0.0007		$	0.30
Risk-free Rate		0.25	%		0.13	%
Dividend Rate		0	%		0	%
Expected Life	12 months – 16 months			12 months – 16 months

Estimated fair values of the liabilities measured on a recurring basis

At December 31, 2014, the estimated fair values of the liabilities measured on a recurring basis are as follows:

	Fair Value Measurements at December 31, 2014
	Balance at December 31, 2014		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Warrant derivative liabilities	$	6,095	$	-	$	-	$	6,095
Series A convertible preferred stock		624,330		-		624,330		-
Series B convertible preferred stock		19,200		-		-		19,200
	$	649,625	$	-	$	624,330	$	25,295

Activity for liabilities measured at estimated fair value using unobservable inputs

The following tables present the activity for liabilities measured at estimated fair value using unobservable inputs for the year ended December 31, 2014:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Derivative Liabilities
Beginning balance at September  30, 2014	$	241,336
Issuance of Series B derivative liabilities		160,000
Changes in estimated fair value		(376,041)
Ending balance at December 31, 2014	$	25,295

	Fair Value Measurements Using Significant Unobservable Inputs (Level 2)
	Derivative Liabilities
Beginning balance at September  30, 2014	$	972,000
Changes in estimated fair value		(347,670)
Ending balance at December 31, 2014	$	624,330