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8. Warrants
 9 Months Ended
Jun. 30, 2015
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 June 30, 2015:

 

   Number of Units   Weighted Average Exercise Price   Weighted Average Remaining Contractual 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 June 30, 2015    3,540,876    0.69    2.98   $6,508,276 
Exercisable at June 30, 2015    3,540,876    0.69    2.98   $6,508,276 
                       

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.

 

The exercise price for warrants outstanding and exercisable at June 30, 2015 is as follows:

 

Outstanding   Exercisable
Number of   Exercise   Number of   Exercise
Warrants   Price   Warrants   Price
1,631,886 $0.55   1,631,886 $0.55
535,716   0.56   535,716   0.56
371,487   0.81   371,487   0.81
1,001,787   0.95   1,001,787   0.95
3,540,876       3,540,876