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DERIVATIVE LIABILITIES
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6 Months Ended | ||||||||||||||||||||||||
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Mar. 31, 2015
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
| Derivatives and Fair Value [Text Block] |
Starting September 22, 2014, through March 18, 2015, the Company raised $2.07 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 $85,800 as at September 30, 2014 and March 31, 2015 with a resultant $139,200 gain from derivative liabilities being booked to other income for the three months ended March 31, 2015, and a gain of $99,300 being booked to other income for the six months ended March 31, 2015. For the six months ended March 31, 2014, we had no change in valuation as there were no derivative liabilities at that time. The Black-Scholes option-pricing model with the following assumption inputs:
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