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8. Warrants
 3 Months Ended
Dec. 31, 2014
Warrants and Rights Note Disclosure [Abstract]  
Warrants

The Company issued several Notes in prior periods and converted them resulting in the issuance of warrants. The following table summarizes information about the Company’s warrants at December 31, 2014:

 

       Weighted Average   Weighted Average Remaining Contractual     
   Number of Units   Exercise Price   Term (in years)   Intrinsic Value 
Outstanding at September 30, 2014   2,866,506   $0.63    3.39      
Granted   674,370    0.95           
Exercised   –                
Outstanding at December 31, 2014   3,540,876    0.69    3.48   $8,668,210 
Exercisable at December 31, 2014   3,540,876    0.69    3.48   $8,668,210 

 

Most of the above warrants were issued in connection with conversion of convertible notes (See Note 5). When the debt is converted and warrants are issued, the Company determines the fair value of the warrants using the Black-Scholes model and takes a charge to interest expense at the date of issuance.