Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE LIABILITIES (Tables)

v3.3.1.900
DERIVATIVE LIABILITIES (Tables)
 3 Months Ended
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of black-scholes option-pricing model assumption inputs

The Black-Scholes option-pricing model assumption inputs for all the valuation dates are in the table below:

 

    September
30, 2015		     December
22, 2015		     December
23, 2015		     December 
28, 2015		     December 
31, 2015		  
Annual dividend yield     —       —       —       —       —  
Expected life (years)     0.2       0.25       2.0       2.0       2.0  
Risk-free interest rate     0.08 %     0.21 %     1.01 %     1.05 %     1.06 %
Expected volatility     47.83 %     140.31 %     220.46 %     222.35 %     221.58 %
Schedule of changes in the derivative valuation

The net changes in the derivative valuation are summarized in the table below:

 

Fair Value of Embedded Derivative Liabilities of:   Valuation Date   Valuation     Net Adjustments  
$3M of convertible debt (balance at the beginning of the period)   September 30, 2015   $ 833,000     $ 833,000  
$3M of convertible debt prior to amendment   December 22, 2015     60,200       (772,800 )
$3M of convertible debt as amended   December 23, 2015     1,022,400       962,300  
$250,000 convertible note issued   December 23, 2015     81,900       81,900  
$750,000 convertible note issued   December 28, 2015     247,000       247,000  
$4M of convertible debt (balance at the end of the period)   December 31, 2015   $ 2,112,900       761,500  
Fair Value of Embedded Derivative Liabilities               $ 2,112,900  
Schedule of gain and (loss) on the accounting for derivative liabilities

The gain and (loss) on the accounting for derivative liabilities for the three months ended December 31, 2015 is summarized in the table below:

 

•    Gain on embedded derivative liabilities of $3M of convertible debt valued on December 22, 2015   $ 772,800  
•    The loss on embedded derivative liabilities on $4M of convertible debt valued on December 31, 2015     (761,500 )
Net gain on derivative liabilities for the three months ended December 31 2015   $ 11,300  
Schedule of gain and (loss) on the accounting for Extinguishment of Debt

The gain and (loss) on the accounting for Extinguishment of Debt for the three months ended December 31, 2015 is summarized in the table below:

 

·    The extinguishment of the conversion discount on $3M of convertible debt on December 22, 2015   $ (179,100 )
·    Changes in fair value of embedded derivative liabilities on the amended $3M of convertible debt at December 23. 2015     (962,300 )
·    Valuation of Extension Warrants issued to Noteholders on December 23, 2015 (1)     (1,196,000 )
Net loss on Extinguishment of Debt for the three months ended December 31 2015   $ (2,337,400 )

 

(1) For Details Refer to the Warrant Section of Note 6. Stockholders’ Deficit