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LOANS

9 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

8. LOANS

Long term

		June 30, 2018				September 30, 2017
Long-term notes payable consists of the following:
Promissory notes			300,000				150,000

Total		$	300,000			$	150,000

On September 5, 2017, the Company executed a 9% secured promissory note with a face value of $150,000 with an investor. Under the terms of the promissory note the Company received $150,000 and agreed to make monthly interest payments and repay the note principal 24 months from the date of issuance. The note is secured by 150,000 shares which are held in escrow and would be issued to the note holder only in the case of an uncured default. As of June 30, 2018, the Company owed $150,000 in principal and $1,110 in accrued interested under the terms of the agreement and recorded interest expense of $10,097 for the nine months ended June 30, 2018.

On November 11, 2017, the Company executed a 10% secured promissory note with a face value of $100,000 with an investor. Under the terms of the promissory note the Company received $100,000 and agreed to make monthly interest payments and repay the note principal 24 months from the date of issuance. The note is secured by 100,000 shares which would be issued to the note holder only in the case of an uncured default. As of June 30, 2018, The Company owed $100,000 in principal and $822 in accrued interested under the terms of the agreement and recorded interest expense of $6,411 for the nine months ended June 30, 2018.

On December 5, 2017, the Company executed a 9% secured promissory note with a face value of $50,000 with an investor. Under the terms of the promissory note the Company received $50,000 and agreed to make monthly interest payments and repay the note principal 24 months from the date of issuance. The note is secured by 50,000 shares which would be issued to the note holder only in the case of an uncured default. As of June 30, 2018, The Company owed $50,000 in principal and $370 in accrued interested under the terms of the agreement and recorded interest expense of $2,552 for the nine months ended June 30, 2018.

Current

		June 30, 2018				September 30, 2017
Current notes payable consists of the following:
Promissory notes			373,212				—
Installment loans (insurance)			20,515				7,712
Unamortized Debt discount			(100,984	)			—
Unamortized Original issue discount			(7,529	)			—

Total, net of unamortized discount		$	285,214			$	7,712

Promissory Notes

On October 6, 2017, the Company executed an unsecured variable interest rate promissory note with a maximum interest rate of 58.3% and a face value of $45,000 with a financial institution. Under the terms of the promissory note the Company received $45,000 and agreed to repay the note evenly over 12 months. As of June 30, 2018, The Company owed $15,000 in principal and $0 in accrued interested under the terms of the agreement and recorded interest expense of $12,375 for the nine months ended June 30, 2018.

On November 20, 2017, the Company executed a 10% secured promissory note with a face value of $80,000 with an investor. Under the terms of the promissory note the Company received $80,000 and agreed to make monthly interest payments and repay the note principal 12 months from the date of issuance. As of June 30, 2018, The Company owed $80,000 in principal and $658 in accrued interested under the terms of the agreement and recorded interest expense of $4,866 for the nine months ended June 30, 2018.

On January 12, 2018, the Company executed an unsecured variable interest rate promissory note with a maximum interest rate of 58.5% and a face value of $18,400 with a financial institution. Under the terms of the promissory note the Company received $18,400 and agreed to repay the note and interest evenly over 12 months. As of June 30, 2018, The Company owed $10,733 in principal and $0 in accrued interested under the terms of the agreement and recorded interest expense of $3,680 for the nine months ended June 30, 2018.

On February 27, 2018, we entered into a promissory note pursuant to which we borrowed $125,000. The note carries an original issue discount of 5.6% ($7,000). Interest under the promissory note is 10% per annum. Under the terms of the promissory note the Company agreed to make interest and principal payments equal to $2,500 or greater on a monthly basis. Any unpaid balance is due in full on August 1, 2018. As of June 30, 2018, the Company owed $126,367 in principal and $1,051 in accrued interested under the terms of the agreement and recorded interest expense of $4,379 for the nine months ended June 30, 2018. The aggregate original issued issue discount has been accreted and charged to interest expenses as a financing expense in the amount of $5,530 and $0 during the nine months ended June 30, 2018 and 2017, respectively.

On May 22, 2018, the Company executed a variable interest rate promissory note with a maximum interest rate of 51.0% and a face value of $24,500 with a financial institution. Under the terms of the promissory note the Company received $24,500 and agreed to repay the note and interest evenly over 12 months. As of June 30, 2018, The Company owed $24,500 in principal and $0 in accrued interested under the terms of the agreement and recorded interest expense of $0 for the nine months ended June 30, 2018.

On June 15, 2018, we entered into a 10% promissory note with a face value of $116,600 pursuant to which we received $110,000, the note also included an original issue discount of 6% ($6,600). The Company also issued 116,600 5-year warrants exercisable at $0.80 in connection with purchase of the promissory note. Under the terms of the promissory note the Company agreed to make monthly interest payments and repay the note principal on December 15, 2018. As of June 30, 2018, The Company owed $116,600 in principal and $479 in accrued interested under the terms of the agreement and recorded interest expense of $479 for the nine months ending June 30, 2018. The Company has determined the value associated with the warrants issued in connection with the notes to be $110,000 which has been recorded as a debt discount. The aggregate original issued issue discount, and debt discount related to the warrants have been accreted and charged to interest expenses as a financing expense in the amount of $9,016 and $0 during the nine months ended June 30, 2018 and 2017, respectively.

Installment loans

On February 3, 2018, the Company executed a 6.1% installment loan with a face value of $25,781 with a financial institutional to finance an insurance policy. Under the terms of the installment note the Company received $25,781 and agreed to make equal payments and repay the note principal 10 months from the date of issuance. As of June 30, 2018, the Company owed $15,073 in principal and $0 in accrued interested under the terms of the agreement.

On February 27, 2018, the Company executed a 6.1% installment loan with a face value of $9,308 with a financial institutional to finance an insurance policy. Under the terms of the installment note the Company received $9,308 and agreed to make equal payments and repay the note principal 10 months from the date of issuance. As of June 30, 2018, the Company owed $5,442 in principal and $0 in accrued interested under the terms of the agreement.