Annual report pursuant to Section 13 and 15(d)

CONVERTIBLE DEBT AND EQUITY FINANCINGS (Tables)

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CONVERTIBLE DEBT AND EQUITY FINANCINGS (Tables)
12 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
Schedule of convertable debt

The below table sets forth details regarding the shares issued to certain related parties upon the Company’s exercise of the Mandatory Conversion:

 

Note Issuance and Conversion Table:

 

Note Holder         Principal Amount     2016 Discount     Carrying Value
September 30, 2016
    Accrued Interest
at Conversion
    Shares issued on
Conversion
 
Original Note Purchase Agreement                                                
Note Date Range Sept 22, 2014 to July 20, 2015                                                
RSJ Private Equity     (1)     $ 750,000     $ 21,300     $ 728,700     $ 76,200       165,246  
John Pappajohn     (2)       200,000       8,100       191,900       20,400       44,089  
John Pappajohn     (5)       200,000       3,000       197,000       14,200       42,820  
Tierney Family Trust     (3)       540,000       16,000       524,000       46,000       117,199  
Follman Family Trust     (4)       100,000       3,000       97,000       7,700       21,538  
Oman Ventures     (6)       200,000       8,100       191,900       20,400       44,089  
4 Accredited Investors             300,000       9,100       290,900       30,600       66,112  
Subtotal for First Round           $ 2,290,000     $ 68,600     $ 2,221,400                  
Omnibus Amendment Sept 14, 2015                                                
Note Date Range Sept 14, 2015 to September 24, 2015                                                
RSJ Private Equity     (1)     $ 350,000     $ 85,400     $ 264,600       17,300       73,462  
Robin Smith     (2)       60,000       7,100       52,900       3,100       12,611  
John Pappajohn     (2)       100,000       24,400       75,600       5,100       21,015  
Follman Family Trust     (4)       150,000       36,500       113,500       7,600       31,522  
2 Accredited Investors             50,000       12,200       37,800       2,500       10,508  
Subtotal for Second Round           $ 710,000     $ 165,600     $ 544,400                  
Balances at September 30, 2015           $ 3,000,000     $ 234,200     $ 2,765,800                  
Second Amended Note December 23 & 28, 2015                                                
RSJ Private Equity     (1)     $ 750,000                       27,300       155,465  
John Pappajohn     (2)       250,000                       9,300       51,856  
Subtotal for Third Round           $ 1,000,000                                  
Note Date Range Feb 23, 2016 to August 16, 2016                                                
RSJ Private Equity     (1)     $ 250,000                       1,400       50,281  
Robin Smith     (2)       40,000                       800       8,165  
John Pappajohn     (2)       850,000                       14,000       172,802  
Tierney Family Trust     (3)       100,000                       600       20,129  
Follman Family Trust     (4)       300,000                       5,100       61,014  
Carpenter, George & Jill     (7)       100,000                       1,300       20,254  
Harris, Geoffrey     (2)       10,000                       300       2,058  
2 Accredited Investors             300,000                       5,600       61,124  
Brandt Ventures     (8)       50,000                       200       10,047  
Subtotal for Final Round           $ 2,000,000                                  
Balances Converted September 19, 2016           $ 6,000,000                     $ 317,000       1,263,406  

 

  (1) RSJ PE is a greater than 5% shareholder. Michal Votruba, a Director for Life Sciences for the RSJ/Gradus Fund, subsequently joined our Board on July 30, 2015.

 

  (2) Member of the Board.

 

  (3) Thomas Tierney is a trustee of the Tierney Family Trust. Mr. Tierney originally joined the Board in February 25, 2013 and served as Chairman of the Board from March 26, 2013 till May 22, 2015 when he resigned from the Board. On September 29, 2016 Mr. Tierney rejoined the Board. The Tierney Family Trust is a greater than 5% shareholder of the Company. Mr. Tierney resigned from the board on July 14, 2017.

 

  (4) Robert Follman is a trustee of the Follman Family Trust and is a member of the Board. Mr. Follman resigned from the board on July 14, 2017.

 

  (5) John Pappajohn is a member of the Board. He purchased $200,000 of Notes, which on September 6, 2015, were assigned to four accredited investors. Approximately $10,400 of interest was attributable to such transferred Notes, resulting in an aggregate of 42,084 shares being issued upon the Mandatory Conversion of such transferred Notes.

 

  (6) Mark & Jill Oman are the beneficial owners of Oman Ventures and were greater than 5% shareholders of the Company.

 

  (7) George Carpenter is the CEO of the Company.

 

  (8) Brandt Ventures was issued this note as part of the Company’s settlement of its litigation with Leonard Brandt and Brandt Ventures (refer to Note 9. Commitments and Contingent Liabilities).