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EQUITY
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6 Months Ended |
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Mar. 31, 2013
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| EQUITY [Abstract] | |
| EQUITY |
NOTE 6 - EQUITY Common Stock In October 2012, a noteholder converted $6,600 of a convertible promissory note into 18,334 shares of the Company's common stock. In October 2012, the Company issued 1,000,000 shares of restricted common stock to the Company's CEO under the terms of an employment agreement. In October 2012, the Company issued 25,000 shares of common stock to a consultant for professional services valued at $22,728 and 141,666 shares of common stock to five consultants for the conversion of $93,750 of accounts payable. The Company recognized a loss on the conversion of accounts payable of $35,037. In November 2012, a noteholder converted $1,100 of a convertible promissory note into 9,166 shares of the Company's common stock. In January 2013, the CEO of the Company exercised the conversion of 8,000 shares of Series C Preferred stock at the stated conversion rate of 250,000 shares of common stock for each share of Series C Preferred stock resulting in the issuance of 2,000,000,000 restricted shares of common stock. In February 2013, a shareholder converted 250,000 shares of Series A Preferred stock into 25,000,000 shares of common stock. In March 2013, five shareholders converted a total of 250,000 shares of Series A Preferred Stock into 25,000,000 shares of common stock. In March 2013, the Company issued 5,800,000 shares of common stock to nine consultants for services to be rendered valued at a total of $580,000. Preferred Stock In October 2012, the Company issued 14,000 shares of series C Preferred stock for cash proceeds of $35,000.
During the six months ended March 31, 2013, the Company entered into exchange agreements with 81 common stockholders to exchange 61,351 shares of common stock into 2,170,045 shares of Series C Convertible Preferred stock. The total fair value of the Series C Convertible Preferred Stock issued as consideration in the exchange was approximately $1,282,000. The total market value of the common stock exchanged was approximately $21,000. The Company recognized a loss for the difference between the consideration given and the market value of the stock of approximately $1,261,000. The Company will cancel all shares of common stock received in the exchange.
Between October and December 2012, three note-holders converted $143,703 in principal and accrued interest into 57,481 shares of Series C Convertible Preferred stock valued at $41,961. The Company recognized a gain on the conversions of $101,742. During the six months ended March 31, 2013, the Company issued 24,000 shares of Series C Convertible Preferred stock to 2 consultants for services valued at $17,520. The Company also converted $623,215 in accounts payable into 211,786 shares of Series C Convertible Preferred stock valued at $136,883. The Company recognized a gain of $357,543 on the conversion of accounts payable and accrued expenses. During the six months ended March 31, 2013, the Company issued 32,595 shares of Series C Convertible Preferred stock warrant and option holders for the cancellation of 5,162 warrants and 399 options. The Company recognized a loss on the exchange of $7,769. Dividends payable on Series A Convertible Preferred Stock of approximately $61,902 are included in Accrued Expenses at March 31, 2013. |