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Senior Convertible Debentures

9 Months Ended

Jun. 30, 2016

Note 5

Senior Convertible Debentures

	June 30,			September 30,
Senior Convertible Debentures	2016			2015

Senior Convertible Debentures, non-interest bearing, unsecured, due March 18, 2044	$	4,982		$	6,144
Less: Debt Discount		(4,637	)		(5,812	)
Total carrying value		345			332
Less: current portion		-			-
Long term liability	$	345		$	332

On March 13, 2014, the Company entered into a Securities Purchase Agreement with certain purchasers, pursuant to which the Company issued senior convertible debentures in the aggregate principal amount of $10,000,000 (the “Debentures”). At June 30, 2016, aggregate principal amounts of $4,982 (September 30, 2015: $6,144) of these Debentures remained outstanding.

The Debentures are unsecured, non-interest bearing and are due on March 18, 2044. The Debentures were originally convertible, in whole or in part, at the option of the holder into common shares of the Company at $1.20 per share (“the Conversion Price”). The Conversion Price of the debenture will be adjusted in the event of common stock dividend, split or consolidation. The Conversion Price was later amended to $1.00 per share.

The Company has recorded a debt discount in connection with the issuance and amendment of the Debentures during the year ended September 30, 2014, which is being amortized using the effective interest method over the term of the Debentures. During the three and nine months ended June 30, 2016, the Company recorded $8 and $1,175, respectively (2015: $2,615,737 and $3,109,188, respectively) in respect of the amortization of this discount.

During the nine months ended June 30, 2016, the Company issued an aggregate of 1,161 shares of common stock based on a conversion price of $1.00 per share pursuant to the conversion of $1,161 in outstanding principal amounts due under the Debentures.