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Registration Rights Penalty
12 Months Ended
Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Registration Rights Penalty

NOTE 10 – REGISTRATION RIGHTS PENALTY

 

In connection with the private placement and sale of 2,025 units of Series A 6% Convertible Preferred Stock and related warrants at the price of $1,000 per unit, the Company was required to register certain shares of common stock as part of a Registration Rights Agreement.

 

The Company granted the investors’ registration rights on the underlying shares related to the Series A 6% Convertible Preferred Stock and warrants.  The registration rights agreement provided for a liquidated damages provision imposed upon the Company of 1.5% of the gross proceeds per month for each month that the shares are not registered.  The liquidated damages are not to exceed 9% which was met in 2015.  The Company filed a registration statement that was effective on September 12, 2014 that did not register all of the underlying shares of the Series A 6% Convertible Preferred Stock the warrants and the dividend payments required to be registered in the Registration Rights Agreement.  As of September 30, 2016 and 2015, the Company incurred registration rights penalty of $0 and $133,658, respectively.

 

The Company has also accrued interest in the amount of $19,312 and $986 as of September 30, 2016 and 2015, respectively, at the rate of 18% per annum simple interest in accordance with the terms of the Registration Rights Agreement.