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EQUITY
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6 Months Ended |
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Mar. 31, 2014
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| EQUITY [Abstract] | |
| EQUITY |
NOTE 6 - EQUITY
Common Stock
In November 2013, a private investor purchased 40,000,000 shares of the Company's common stock for $200,000 cash.
In December 2013, a stockholder purchased 10,000,000 shares of the Company's common stock for $100,000 cash.
In January 2014, a stockholder converted 100,000 shares of the Company's Series A Preferred stock into 10,000,000 of the Company's common stock.
In March 2014, three shareholders converted 75,358 shares of the Company's Series C Preferred stock into 376,790 shares of the Company's common stock. Preferred Stock
Preferred Share Designations
In December 2013, the Board of Directors voted to amend the Company's Articles of Incorporation to change the conversion rights of the Series C and Series D Convertible Preferred Stock. Each share of the Series C and Series D Preferred Stock is convertible into five shares of common stock.
In November 2013, the Company issued 35,000 shares of the Company's Series C Convertible Preferred stock to a consulting firm for services valued at $10,000.
During the six months ended March 31, 2013, the Company entered ito exchange agreements with 81 common stockholders to exchange 61,351 shares of common stock into 2,270,045 shares of Series C Convertible preferred stock. The total fair value of the Series C Convertible Preferred 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 $105,849 and $84,925 are included in Accrued Expenses at March 31, 2014 and September 30, 2013. |