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DERIVATIVE LIABILITIES
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3 Months Ended | |||||||||||||||||||||||||||||
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Dec. 31, 2014
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||
| Derivatives and Fair Value [Text Block] |
During September 2014, the Company raised $1.65 million in a private placement of secured convertible debt at $0.25 per share of Common Stock. This debt instrument also has a ratchet whereby the conversion price of $0.25 per share can be reduced to a minimum of $0.10 per share (see Note 4). The inclusion of this ratchet requires the determination of the fair market carrying value. At issuance, the note discount and derivative liability using the Black-Scholes model was $179,200. Upon subsequent revaluations the derivative liability value was $153,100 and $193,000 as at September 30, 2014 and December 31, 2014 with a resultant $26,100 gain from derivative liabilities being booked to other income for the year ended September 30, 2014, and a loss of $39,900 being booked to other income for the three months ended December 31, 2014. As there were no derivative liabilities, we had no change in valuation for the three months ended December 31, 2013. The Black-Scholes option-pricing model with the following assumption inputs:
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