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STOCKHOLDERS EQUITY (DEFICIT)
 12 Months Ended
Sep. 30, 2015
Equity [Abstract]  
STOCKHOLDERS EQUITY (DEFICIT)

On November 4, 2014 the Company entered into a consulting agreement for grant writing services. Pursuant to this agreement the Company issued 180,000 shares of the Company's $0.001 par value common stock valued at $0.33 per share or $60,000.

 

During the period commencing November 12, 2014 through September 30, 2015 the Company received $242,000 from 14 investors pursuant to private placement agreements with the investors to purchase 726,000 shares of Stratean $0.001 par value common stock and warrants to purchase 72,600 shares of Stratean $0.001 par value common stock at a purchase price equal to $0.33 for each share of Common stock and 10% warrant coverage. The warrant allows the holder to purchase shares of the Company's $0.001 par value common stock at $0.363 per share.

 

On December 31, 2014 the Company issued 172,500 shares to related parties to settle debt. (see Note 6 for additional details)

 

On March 12, 2015, the Company issued shares and warrants to officers and members of the board of directors as compensation for services performed. 

 

The Board of Directors granted non-statutory stock warrants and shares of the Company's $0.001 par value common stock to parties which have provided significant consulting services to the Company and created significant value for the Company as a result of these services. The options and shares were granted as follows:

 

Name Title Number of Shares of $0.001 
par value Common Stock		 Number of Warrants
S. Matthew Schultz Chief Executive Officer and Director 300,000                            1,500,000
Zachary K Bradford Chief Financial Officer and Director 300,000                            1,500,000
Bruce Lybbert Director 300,000                            1,500,000
Michael Barrett Chief Operating Officer 300,000                            1,500,000
Larry McNeil Director 300,000                            1,500,000

 

The warrants were issued under the following terms; non-transferable, fully vested on March 31, 2015, expire ten years from the date of grant, strike price of $0.083 and become immediately exercisable upon the occurrence of a significant liquidating, restructuring or change of control event.

 

The 7,500,000 stock warrants were valued at $2,414,304 using the Black-Scholes option pricing model based upon the following assumptions: term of 10 years, risk free interest rate of 2.11%, a dividend yield of 0% and volatility rates of 110%.   The Company recorded an expense of $2,414,304 for the year ended September 30, 2015.

 

The 1,500,000 shares of the Company's $0.001 par value common stock were valued at $0.33.  The Company recorded an expense of $500,000 for the year ended September 30, 2015.

 

On March 12, 2015 the Company also approved the issuance of 390,000 shares of the company's $0.001 par value common stock to two consultants for consulting services provided. The shares of the Company's $0.001 par value common stock were valued at $0.33.  The Company recorded an expense of $130,000 for the six months ended March 31, 2015.

 

On March 18, 2015 the Company granted 285,000 non-statutory stock options to a consultant. The options were issued under the following terms; non-transferable, fully vest on March 31, 2015, expire ten years from the date of grant, strike price of $0.363 and become immediately exercisable upon the occurrence of a significant liquidating, restructuring or change of control event. The Company recorded an expense of $87,581 for the year ended September 30, 2015.

 

On April 15, 2015, the Company filed a Certificate of Amendment to the Company’s Articles of Incorporation (the “Certificate of Amendment”) with the Nevada Secretary of State. The Certificate of Amendment authorized ten million (10,000,000) shares of preferred stock. The Company’s Board of Directors and a majority of its shareholders approved the Certificate of Amendment.

 

On April 15, 2015, pursuant to Article IV of our Articles of Incorporation, the Company’s Board of Directors voted to designate a class of preferred stock entitled Series A Preferred Stock, consisting of up to one million (1,000,000) shares, par value $0.001. Under the Certificate of Designation, holders of Series A Preferred Stock will be entitled to quarterly dividends on 2% of our earnings before interest, taxes and amortization. The dividends are payable in cash or common stock. The holders will also have a liquidation preference on the state value of $0.02 per share plus any accumulated but unpaid dividends. The holders are further entitled to have the Company redeem their Series A Preferred Stock for three shares of common stock in the event of a change of control and they are entitled to vote together with the holders of the Company’s common stock on all matters submitted to shareholders at a rate of forty-five (45) votes for each share held.

 

On April 16, 2015, the Company issued a total of four hundred thousand (400,000) shares of its newly designated Series A Preferred Stock to members of the board of directors.

 

On April 28, 2015, our board of directors approved a forward split of 1 to 3 in which each shareholder will be issued 3 common shares in exchange for 1 common share of their currently issued common stock. A record date of May 8, 2015 was established and FINRA was provided ten days’ notice prior to the effective date pursuant to Rule 10b-17 of the Securities and Exchange Act of 1934, as amended. New stock certificates will be issued upon surrender of the shareholders’ old certificates. I accordance with ASC 505-20 all stock-related information presented in these financial statements and accompanying footnotes has been retroactively adjusted to reflect the number of shares resulting from this action.