Quarterly report pursuant to Section 13 or 15(d)

Debt Financing (Tables)

Debt Financing (Tables)

6 Months Ended

Mar. 27, 2016

Schedule of fair value for the derivative liabilities related to the convertible notes

The recommended fair value for the derivative liabilities related to the convertible notes at issuance and as of March 29, 2015 is as follows:

			Valuation Dates (Thousands)
	11/17/2014		11/17/2014		12/28/2014			3/29/2015
	Investors		Brokers		Total Q1			Total Q2
Notes	$	1,550	$	10	$	1,560		$	-

Derivative Value		6,929		45		6,127			-

Change in Fair Value – Derivatives		-		-		(847	)		847
(Mark to Market)

Schedule of the total expenses related to the convertible notes

A summary of the total expenses reflected in the consolidated statement of operations related to the convertible notes for the three months ending March 29, 2015 is as follows:

	Qtr 1 12/28/14			Qtr 2 3/29/15			Six Months Ending 3/29/15
Interest Expense:

Fair market value of derivatives – Investors	$	6,929		$	(6,929	)	$	-
Fair market value of derivatives – Brokers		45			(45	)		-
Less: Debt discount on convertible notes – Investors		(1,550	)		1,550			-
Less: Debt discount on convertible notes – Brokers		(10	)		10			-
Fair value adjustment on convertible notes issued 11/17/14	$	5,414		$	(5,414	)	$	-

Debt discount amortization		33			(33	)		-
Note interest at 12% per annum		23			46			69
Debt issuance cost amortization		4			70			74

Total Interest Expense (Convertible Notes)	$	5,474		$	(5,474	)	$	143

Change in Fair Value – Derivatives (gain) /loss	$	(847	)	$	847		$	-