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9. Warrants
 12 Months Ended
Sep. 30, 2015
Warrants and Rights Note Disclosure [Abstract]  
Warrants

As discussed in Note 7, 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 September 30, 2015:

 

      Number of Units   Weighted Average Exercise Price    Weighted Average Remaining Contractual Term (in years)   Intrinsic Value 
 Outstanding at September 30, 2013    2,866,506   $0.63    4.39   $1,471,998 
 Granted    –                
 Exercised    –                
 Outstanding at September 30, 2014    2,866,506    0.63    3.39    6,732,700 
 Granted    674,370    0.95           
 Exercised    –                
 Outstanding at September 30, 2015    3,540,876   $0.69    2.73   $3,498,531 
 Exercisable at September 30, 2015    3,540,876   $0.69    2.73   $3,498,531 

  

Most of the above warrants were issued in connection with conversion of convertible notes from ICG (See Note 6). 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 September 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