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Stockholders' Deficit

3 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Stockholders' Deficit

NOTE 11 – Stockholders' Deficit

Common Stock Offering

On October 23, 2019, the Company entered into Securities Purchase Agreements with certain accredited investors, pursuant to which the Company, in a private placement, has issued and sold 141,666 shares of the Company's common stock to the accredited investors at a price of $1.80 per share, for gross proceeds amounting to $255,000.

In connection with the private placement, the Company has agreed to issue and sell to accredited investors up to a maximum of 555,555 shares for total gross proceeds to the Company of up to $1,000,000. The Company intends to use the net proceeds from this private placement for funding operations or working capital and general corporate purposes. The Company has agreed to file a registration statement with the SEC covering the resale of the shares of common stock sold in the private placement within 60 days of the termination of the private placement.

2019 Private Placement

From December 28, 2018 through July 1, 2019, the Company entered into Subscription Agreements (each, a "2019 Purchase Agreement") with certain accredited investors (the "New Purchasers"), pursuant to which the Company, in a new private placement (the "2019 Private Placement"), agreed to issue and sell Units (the "2019 Units"), each consisting of (i) 1 share of common stock and (ii) a warrant to purchase 1 share of common stock at an initial exercise price of $3.00 per share (the "2019 Warrants"), to the New Purchasers. The 2019 Warrants are exercisable beginning on the date of issuance and will expire on December 28, 2023, five years from the date of the first closing of the 2019 Private Placement.

The initial closing of the 2019 Private Placement was consummated on December 28, 2018. The Company issued and sold an aggregate of 2,338,179 Units at $2.50 per Unit to the New Purchasers, for total gross proceeds to the Company of approximately $5,845,448 before deducting offering expenses (160,000 Units were sold during the three month period ended December 31, 2018 for total gross proceeds of $400,000). In connection with the 2019 Private Placement, the Company recorded issuance costs in the amount of $1,150,359 ($89,622 recorded during the three month period ended December 31, 2018). The 2019 Private Placement was terminated on July 1, 2019.

2018 Private Placement

From July 9, 2018 through November 30, 2018 (the final closing), the Company entered into subscription agreements (each, a "Purchase Agreement") with certain accredited investors (the "Purchasers"), pursuant to which the Company, in a private placement (the "2018 Private Placement"), agreed to issue and sell to the Purchasers units (each, a "Unit"), each consisting of (i) 1 share (each, a "Share") of common stock and (ii) a warrant to purchase 1 share of common stock at an initial exercise price of $3.00 per share (the "2018 Warrants"). The 2018 Warrants are exercisable beginning on the date of issuance and will expire on July 9, 2023, five years from the date of the first closing. The 2018 Warrants were accounted for as free standing equity instruments and classified as additional paid-in capital in the accompanying condensed balance sheets based on their relative fair value to the underlying common shares issued. The initial closing of the 2018 Private Placement was consummated on July 9, 2018 and was terminated on December 12, 2018.

As of the termination of the 2018 Private Placement on December 12, 2018, the Company had issued and sold an aggregate of 615,200 Units at a price of $2.50 per Unit to the Purchasers, for total gross proceeds to the Company of $1,538,000 before deducting offering expenses (170,000 Units were sold during the three month period ended December 31, 2018 for total gross proceeds of $425,000). In connection with the 2018 Private Placement, the Company recorded issuance costs in the amount of $173,067 ($59,694 recorded during the three month period ended December 31, 2018).

Warrant Activity and Summary

The following table summarizes warrant activity during the three month period ended December 31, 2019:

						Exercise Price				Weighted Average				Weighted Average
		Warrants				Per Warrant				Exercise Price				Term (years)
Outstanding and exercisable at September 30, 2019			7,265,598			$	1.80 - 3.00			$	2.55				3.60
Issued			1,124,389			$	1.87			$	1.87				4.51
Exercised			—			$	—			$	—				—
Forfeited			—			$	—			$	—				—
Outstanding and exercisable at December 31, 2019			8,389,987			$	1.80 - 3.00			$	2.45				3.50

As of December 31, 2019, 259,476 broker warrants were committed to be issued related to the Paulson Private Placement at an exercise price of $1.87 per share with a term of 10 years and are reflected in the above table.