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Stockholders' Equity
 3 Months Ended
Dec. 31, 2020
Equity [Abstract]  
Stockholders' Equity

NOTE 15 – STOCKHOLDERS’ EQUITY

 

Preferred Stock

 

The Company is authorized to issue 10,000,000 shares of Preferred Stock, $0.001 par value. As of September 30, 2020, and September 30, 2019, there were 3,364,953and 3,156,974 shares issued and outstanding, respectively.

 

Series 1 Preferred Stock

 

On March 30, 2020, the Company amended the Certificate of Designation (the “Amended Certificate of Designation”) for our Series 1 Preferred Stock (the “Series 1 Stock”). The Amended Certificate of Designation increased the number of authorized preferred shares under the designation for our Series 1 Preferred Stock from 3,000,000 shares to 4,000,000 shares.

 

For the three months ended December 31, 2020, 108,169 shares of Series 1 Preferred Stock were issued to pay $1,080,690 worth of dividends to holders of Series 1 Preferred Stock.

 

As of December 31, 2020, and September 30, 2020, there were 2,264,953 and 2,156,784 shares of Series 1 Preferred Stock issued and outstanding, respectively.

 

Series A Preferred stock

 

During the three-month period ended December 31, 2020, the Company did not issue any Series A Preferred Stock.

 

As of December 31, 2020, and September 30, 2020, there were 1,000,000 shares of Series A Preferred Stock issued and outstanding.

 

Series C Preferred Stock

 

On October 3, 2019, pursuant to Article IV of our Articles of Incorporation, our Board of Directors voted to designate a class of preferred stock entitled Series C Preferred Stock, consisting of up to one hundred thousand (100,000) shares, par value $0.001. Under the Certificate of Designation, holders of Series C Preferred Stock are entitled to the number of votes equal to the result of (i) the total number of shares of Common Stock outstanding at the time of such vote multiplied by 10.01, and divided by (ii) the total number of shares of Series C Preferred Stock outstanding at the time of such vote, at each meeting of our shareholders with respect to any and all matters presented to our shareholders for their action or consideration, including the election of directors.

 

As of December 31, 2020, there were 100,000 shares of Series C Preferred Stock issued and outstanding.

 

Common Stock

 

The Company is authorized to issue 50,000,000 shares of common stock, $0.001 par value. As of December 31, 2020, there were 17,968,177 shares issued and outstanding and at September 30, 2019, there were 3,962,790 shares issued and outstanding.

 

During the three months ended December 31, 345,638 shares of the Company’s common stock have been issued to satisfy $225,000 of notes payable, $98,517 in accrued interest, and $84,335 of excess value of shares issued recorded as interest expense.

 

Shares Surrendered in Settlement

 

On February 26, 2021, the Company entered into a Settlement Agreement and Release with Aron Govil regarding these transactions.

 

In the settlement, Mr. Govil is required to pay the Company consideration with a total value of $7,100,000 (the “Settlement Amount”) within 10 business days of entering the Agreement. Part of the Settlement Amount was paid in securities: Mr. Govil has transferred to the Company securities that he or his entities owned in our company, including 1,000,000 shares of Series A Preferred Stock, 50,000 Shares of Series C Preferred Stock, Series 469,949 shares of Series 1 Preferred Stock, and forfeited all outstanding options to purchase shares of commons stock (collectively, the “Securities”). The Securities surrendered by Govil to the Company were collectively valued at the amount of $5,566,720 for the purposes of the agreement, the Company is currently evaluating the fair market value of the Securities.