Annual report pursuant to Section 13 and 15(d)

STOCK OPTIONS AND WARRANTS

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STOCK OPTIONS AND WARRANTS
12 Months Ended
Sep. 30, 2018
STOCK OPTIONS AND WARRANTS [Abstract]  
STOCK OPTIONS AND WARRANTS
NOTE 13 - STOCK OPTIONS AND WARRANTS

As of September 30, 2018, the Company had no outstanding stock options and warrants outstanding to purchase approximately 1.3 million common shares (post-reverse split).  The warrants have terms of 5 to 10 years and have an exercise price of $0.21.  These warrants were issued in April and May of 2016 while XSport Global was a private company as follows:

On April 21, 2016, the Company issued a warrant for 1,895,983 shares of common stock (631,994 shares post-reverse split) to NUWA Consulting Group pursuant to their agreement to purchase common stock (see Note 10).  The warrants have a 5-year term and exercise price of $0.21.  The Company valued the warrant using the Black-Scholes option pricing model with the following assumptions: dividend yield of zero, expected term of 5 years, risk free rate 1.93 percent, and annualized volatility of 274%. These warrants were not converted in the Merger and remain outstanding.

On May 18, 2016, the Company issued a warrant for 1,895,983 shares of common stock (631,994 shares post-reverse split) under a Debt Restructure and Conversion Agreement with a consultant.  The warrants have a 10-year term and an exercise price of $0.21.  The Company valued the warrant using the Black-Scholes option pricing model with the following assumptions: dividend yield of zero, contractual term of 10 years, risk free rate of 2.45 percent, and annualized volatility of 277%. These warrants were not converted in the Merger and remain outstanding.