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16. SUBSEQUENT EVENTS
9 Months Ended
Jun. 30, 2020
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

The Company evaluated subsequent events, for the purpose of adjustment or disclosure, up through the date the financial statements were issued. Subsequent to June 30, 2020, there were the following material transactions that require disclosure:

 

On July 1, 2020, the Company entered into a Settlement Agreement and General Mutual Release with a shareholder of the Company. On July 6, 2020, the shareholder paid $125,000 to the Company and the Company issued 500,000 shares of common stock. The Company accrued for the loss on debt settlement of $825,000 as of June 30, 2020 which represents the difference between the fair market value of the stock and $125,000 paid by the shareholder.

 

During July 2020, Particle closed Simple Agreement for Future Equity (SAFE) funding with accredited investors of $785,000 and received gross proceeds of $733,585. In connection with the SAFE funding, the placement agent for the private placement received a cash fee of $47,100.

 

On May 21, 2020, Particle approved stock option grants for 3,900,000 shares at $0.10 per share. The stock option grants vest annually over four years, with no vesting in the first two quarters. On May 21, 2020, Particle approved stock option grants for 1,500,000 shares at $0.10 per share to both Phillip A. Bosua and Ronald P. Erickson. The stock option grants vest (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved. All stock option grants were finalized during July 2020.