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16. Related-party Transactions Not Otherwise Disclosed | 9 Months Ended
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Jun. 30, 2017
Notes |
16. Related-party Transactions Not Otherwise Disclosed | 16. Related-Party Transactions Not Otherwise Disclosed In February 2016, the Company amended a consulting agreement dated September 2015, with an entity controlled by a former Executive Chairman of the Board of Directors, effective January 2016. The amendment extended the agreement through December 2016, which automatically renews on a monthly basis until otherwise cancelled in accordance with the terms therein, changing the monthly compensation of $6,000 to an hourly rate of $250 per hour, and eliminated the previously included bonus structure. During May 2017, the Company granted 1,719 shares of common stock, with a value of $17,207 on the date of grant, to the consultant as a bonus for services performed. As of June 30, 2017, the shares have not been issued and the value has been included in accrued expenses. On September 5, 2017, the Company granted 1,500 shares of the Company’s Series H Preferred stock to an entity controlled by a former Executive Chairman of the Board of Directors for past services rendered in addition to amounts earned under an existing consulting agreement. The shares of Series H Preferred stock have not yet been issued. The terms of the Series H Preferred stock have been approved by the Board of Directors of the Company, but no Certificate of Designation has been filed with the appropriate authoritative body. On November 13, 2017, the former Executive Chairman of the Board of Directors terminated the consulting agreement. In July 2016, the Company entered into a Consulting Agreement with a former Executive Chairman and Chief Executive Officer of the Company. This Consulting Agreement is for an initial period of one year, and shall automatically renew for consecutive one month periods unless terminated by the Company or the former Executive Chairman and Chief Executive Officer. As consideration for the services to be performed thereunder, the Company shall pay the former Executive Chairman and Chief Executive Officer at the rate of $250 per hour, but such compensation may not exceed $20,000 during any calendar month. During May 2017, the Company granted 10,324 shares of common stock, with a value of $103,343 on the date of grant, to the consultant as a bonus for services performed. As of June 30, 2017, the shares have not been issued and the value has been included in accrued expenses. On September 5, 2017, the agreement was replaced with a new agreement for an initial period of one year, and shall automatically renew for consecutive one month periods unless terminated by the Company or the former Executive Chairman and Chief Executive Officer. As consideration for the services, the Company shall pay the former Executive Chairman and Chief Executive Officer at the rate of $250 per hour, but such compensation may not exceed $20,000 during any calendar month, plus 1,500 shares of the Company’s Series H Preferred stock. The shares of Series H Preferred stock have not yet been issued. The terms of the Series H Preferred stock have been approved by the Board of Directors of the Company, but no Certificate of Designation has been filed with the appropriate authoritative body. In August 2016, the Company received a cash advance for $135,000 from a former Executive Chairman and Chief Executive Officer of the Company. During the nine months ended June 30, 2017, the Company repaid the advance. During May 2017, the Company granted 96,275 shares of common stock, with a value of $963,713 on the date of grant, to a former Executive Chairman and Chief Executive Officer of the Company, who was in office at the time, as a bonus for services performed. As of June 30, 2017, the shares have not been issued and the value has been included in accrued expenses. On September 5, 2017, the Board of Directors of the Company granted 963 shares of Series H Preferred stock to the former Executive Chairman and Chief Executive Officer of the Company in lieu of the 96,275 shares of previously granted common stock. The terms of the Series H Preferred stock have been approved by the Board of Directors of the Company, but no Certificate of Designation has been filed with the appropriate authoritative body. The Series H Preferred shares have not yet been issued. In September 2017, the Company entered into an employment agreement with the former Executive Chairman and Chief Executive Officer of the Company, who was in office at the time, for a period of two years for services as the Executive Chairman and Chief Executive Officer of the Company. The initial term of the agreement is for two years and shall automatically renew on a year to year basis, unless terminated sooner. The base compensation is $360,000 per year plus 1,500 shares of the Company’s Series H Preferred stock. The shares of Series H Preferred stock have not yet been issued. The terms of the Series H Preferred stock have been approved by the Board of Directors of the Company, but no Certificate of Designation has been filed with the appropriate authoritative body. An additional cash or stock bonus may be awarded, subject to the attainment of such individual of certain objectives as the Board of Directors of the Company shall establish from time to time. Upon certain termination conditions contained in the agreement, the Company may be required to pay severance of twice the base compensation at its highest point during the five-year period prior to termination. Effective October 12, 2017, the former Executive Chairman and Chief Executive Officer has waived any constructive termination in relation to changes in title, working conditions or duties such that his powers are diminished, reduced or otherwise changed to include powers, duties, or working conditions which are note materially consistent with title, continuing after written notice and 10 days to cure.

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