Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE NOTES PAYABLE

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CONVERTIBLE NOTES PAYABLE
9 Months Ended
Jun. 30, 2018
CONVERTIBLE NOTES PAYABLE [Abstract]  
CONVERTIBLE NOTES PAYABLE
NOTE 8 – CONVERTIBLE NOTES PAYABLE

Convertible notes payable are as follows at June 30, 2018 and September 30, 2017, respectively:

   
June 30,
2018
   
September 30,
2017
 
             
Convertible note payable, including interest at 10%, due December 31, 2016, convertible at $1.47 per share.  This note is in default as of June 30, 2018 and continues to accrue interest at 10%.
 
$
100,000
   
$
100,000
 
                 
Convertible notes payable dated May 5, 2017, including interest at 10%, due May 5, 2018, convertible into shares of the Company’s common stock at $0.0681 per share.  This note is currently in default.
   
10,000
     
10,000
 
                 
Four convertible denture notes payable dated in August and September 2017, including interest at 0% (12% after an event of default) due in August and September of 2020, convertible at any time into shares of the Company’s common stock at $0.0615 per share.  The Company recorded a debt discount of $25,756 for the beneficial conversion feature upon issuance, with an unamortized balance of $18,721 and $25,160 as of June 30, 2018 and September 30, 2017.  A total of $200,000 of these notes were assumed in the Merger, with $40,000 received in cash subsequent the Merger.
   
219,132
     
214,840
 
                 
     
329,132
     
324,840
 
                 
Accrued interest
   
36,190
     
27,646
 
     
365,322
     
352,486
 
Less current portion
   
(144,044
)
   
(137,646
)
Long-term convertible notes payable, net
 
$
221,278
   
$
214,840
 

Interest expense related to these notes for the nine months ended June 30, 2018 and 2017 was $8,544 and $5,000, respectively.   Amortization of the debt discount was $6,438 and $0 for the nine months ended June 30, 2018 and 2017, respectively, and included in interest expense for each period on the accompanying unaudited condensed consolidated statement of operations.