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PREPAID EXPENSES
6 Months Ended
Mar. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAID EXPENSES

On September 30, 2014 the Company entered into a consulting agreement for grant writing services. Pursuant to this agreement the Company issued 20,000 shares of the Company's $0.001 par value common stock valued at $1.00 per share or $20,000. The cost was capitalized as a prepaid expense as of September 30, 2014. During the quarter ended December 31, 2014 the prepaid expense was fully amortized and an expense of $20,000 was charged to professional fees.

 

The Board of Directors created a Board of Advisors to provide the Officers and Directors with advice and insight and appointed Brad Patee to serve as a member of the board of advisors for a period of one year.

 

As compensation for his appointment, Mr. Patee was granted 60,000 non-statutory options under the following terms: non-transferable, fully vest on March 31, 2015, expire five years from the date of grant, strike price of $0.25 and become immediately exercisable upon the occurrence of a significant liquidating, restructuring or change of control event.

 

The 60,000 stock options were valued at $54,411 using the Black-Scholes option pricing model based upon the following assumptions: term of 5 years, risk free interest rate of 2.11%, a dividend yield of 0% and volatility rates of 110%.   The amount was capitalized as a prepaid expense and will be amortized over twelve months, during the six months ended March 31, 2015 the Company recorded an expense of $2,973.

 

On March 30, 2014 the Company prepaid $7,500 due to an officer for consulting services to be performed during the month of April 2015. During the month ended April 30, 2015 the prepaid expense was fully amortized and an expense of $7,500 was charged to professional fees.