F. NOTES PAYABLE	6 Months Ended
Mar. 31, 2018
F. Notes Payable
F. NOTES PAYABLE	On October 30, 2017, the Company extended the due dates of the Series MM and Series NN Notes (the “Notes”) from December 22, 2017 to September 21, 20l8, and issued the note holders 583,057 of Series RR Warrants. The Series RR warrants expire on October 30, 2022 and are exercisable at a price of $1.65 per share, which was the closing price of the Company’s common stock on October 27, 2017. These Series RR warrants are classified as equity warrants and are recorded at approximately $0.7 million, the fair value on the date of issuance. Because the Company is experiencing financial difficulties and the creditors granted the Company a concession they would not have otherwise considered in the form of a lower effective interest rate, this modification was accounted for under ASC 470-60, “Troubled Debt Restructuring.” The Company calculated the future cash flows of the restructured debt to be greater than the carrying value of the debt and accounted for the change in debt prospectively, using the effective interest rate that equated the carrying amount to the future cash flows. The carrying value of the debt on the date of restructuring was approximately $0.7 million, which was net of a discount of approximately $1.6 million. The discount is being amortized to interest expense over the life of the Notes using the effective interest method. During the six and three months ended March 31, 2018, the Company recorded approximately $1.0 and $0.4 million in interest expense, respectively, relating to the amortization of the debt discount. As of March 31, 2018, after conversions, the carrying value of the Notes is approximately $1.2 million, net of a discount of approximately $1.0 million. The Notes bear interest at 4% and can be converted into shares of the Company’s common stock at a fixed conversion rate of $1.69 for the Series MM Notes and $2.29 for the Series NN Notes. During the six months ended March 31, 2018, note holders converted notes in the principal amount of $184,300, into 88,124 shares of common stock. During the three months ended March 31, 2018, note holders converted notes in the principal amount of $109,300, into 55,373 shares of common stock. The unamortized debt discounts relating to the converted Notes were charged to interest expense. The Series MM and Series NN Notes are secured by a first lien on all of the Company’s assets.

F. NOTES PAYABLE

6 Months Ended

Mar. 31, 2018

On October 30, 2017, the Company extended the due dates of the Series MM and Series NN Notes (the “Notes”) from December 22, 2017 to September 21, 20l8, and issued the note holders 583,057 of Series RR Warrants. The Series RR warrants expire on October 30, 2022 and are exercisable at a price of $1.65 per share, which was the closing price of the Company’s common stock on October 27, 2017. These Series RR warrants are classified as equity warrants and are recorded at approximately $0.7 million, the fair value on the date of issuance.

Because the Company is experiencing financial difficulties and the creditors granted the Company a concession they would not have otherwise considered in the form of a lower effective interest rate, this modification was accounted for under ASC 470-60, “Troubled Debt Restructuring.” The Company calculated the future cash flows of the restructured debt to be greater than the carrying value of the debt and accounted for the change in debt prospectively, using the effective interest rate that equated the carrying amount to the future cash flows. The carrying value of the debt on the date of restructuring was approximately $0.7 million, which was net of a discount of approximately $1.6 million. The discount is being amortized to interest expense over the life of the Notes using the effective interest method. During the six and three months ended March 31, 2018, the Company recorded approximately $1.0 and $0.4 million in interest expense, respectively, relating to the amortization of the debt discount. As of March 31, 2018, after conversions, the carrying value of the Notes is approximately $1.2 million, net of a discount of approximately $1.0 million. The Notes bear interest at 4% and can be converted into shares of the Company’s common stock at a fixed conversion rate of $1.69 for the Series MM Notes and $2.29 for the Series NN Notes.

During the six months ended March 31, 2018, note holders converted notes in the principal amount of $184,300, into 88,124 shares of common stock. During the three months ended March 31, 2018, note holders converted notes in the principal amount of $109,300, into 55,373 shares of common stock. The unamortized debt discounts relating to the converted Notes were charged to interest expense.

The Series MM and Series NN Notes are secured by a first lien on all of the Company’s assets.