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PREPAID EXPENSES

3 Months Ended

Dec. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

10. PREPAID EXPENSES

Prepaid expenses consist of the following as of December 31, 2016 and September 30, 2016:

	December 31, 2016		September 30, 2016
Prepaid stock compensation	$	8,612	$	50,130
Prepaid rents		3,400		850
Prepaid dues and subscriptions		10,000
Prepaid materials		15,526
Prepaid insurance		674		6,742
Total prepaid expenses	$	38,212	$	57,722

On January 22, 2016, the Company appointed Mr. Greg Gohlinghorst as a member of the Company’s board of advisors. He was issued 35,000 shares of common stock for his appointment. The shares were valued at $105,000 or $3.00 per share. The amount was capitalized as a prepaid expense and is being amortized over a twelve-month term; during the three months ended December 31, 2016, the Company recorded an expense of $26,394.

On January 15, 2016, the Company entered into an Investor Relations Consulting Agreement with Hayden IR (“HIR”) to serve as our investor relations firm for a period of twelve months. Under the Agreement, HIR’s responsibilities include: implementing and maintaining an ongoing market support system to expand awareness of the Company in the investment community; arranging conference calls and interviews; providing feedback on expectations of results and company value; assisting with the presentation of periodic results of operations; monitoring newswires and industry publications; drafting and coordinating press releases, among other services.

As compensation for the services under the Agreement, the Company agreed to pay HIR a cash monthly fee of $3,500 for the first six months of the agreement. The monthly fee increased to $6,500 starting in the seventh month. The Company also agreed to issue to HIR 20,000 shares of restricted common stock within 30 days of execution. The shares were valued at $60,000 or $3.00 per share. The Stock compensation has been recorded as a prepaid expense and is being amortized evenly over the twelve-month service period. During the three months ending December 31, 2016, the Company recorded $15,124 in stock based compensation associated with this agreement.

On October 1, 2016, the Company executed a six-month lease agreement for warehouse space that calls for the Company to make payments of $850 per month. The Company prepaid the entire lease term. The prepaid lease is being amortized over the six-month term; during the three months ended December 31, 2016, the Company recorded an expense of $2,550.