XML 52 R10.htm IDEA: XBRL DOCUMENT

Derivative Liabilities

9 Months Ended

Jun. 30, 2014

Derivative Liabilities [Text Block]

Note 4	Derivative Financial Instruments

	During the year ended September 30, 2013, the Company issued an aggregate of 6,448,966 common stock purchase warrants that were required to be accounted for as liabilities pursuant to ASC 815.

	At September 30, 2013, these common stock purchase warrants were still outstanding and were being accounted for pursuant to the guidance of ASC 815, whereby these derivative instruments are required to be recorded as liabilities on the balance sheet measured at fair value and were marked-to-market at each balance sheet date with the change in fair value being recorded in the consolidated statements of operations as other income or expense.

	Effective in the nine months ended June 30, 2014, the common stock purchase warrants were amended. As of the modification date, these warrants are no longer required to be accounted for as liabilities.

	Pursuant to the guidance of ASC 815, the Company reclassified the fair value of these instruments on the date of modification into equity, with the change in fair value up to the date of modification being recorded on the consolidated statements of operations as other income.


	A summary of the Company’s derivative liabilities for the nine months ended June 30, 2014 and for the year ended September 30, 2013 is as follows:

			June 30			September 30,
			2014			2013

	Balance, beginning of the period	$	904,000		$	-
	Fair value at issuance of derivative liability		-			919,000
	Change in fair value of derivative liability		(683,000	)		(15,000	)
	Transfer to equity upon modification of warrant terms		(221,000	)		-
	Balance, end of the period	$	-		$	904,000