Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE NOTES PAYABLE (Tables)

v3.10.0.1
CONVERTIBLE NOTES PAYABLE (Tables)
3 Months Ended
Dec. 31, 2018
CONVERTIBLE NOTES PAYABLE [Abstract]  
Convertible Notes Payable
Convertible notes payable are as follows at December 31 and September 30, 2018, respectively:

   
Dec. 31,
2018
   
Sept. 30,
2018
 
             
Convertible note payable, including interest at 10%, due December 31, 2016, convertible at $1.47 per share.  This note is in default as of December 31, 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 $14,428 and $16,576 as of December 31 and September 30, 2018, respectively.  A total of $200,000 of these notes were assumed in the Merger, with $40,000 received in cash subsequent the Merger.
   
225,572
     
223,424
 
                 
Three convertible denture notes payable dated in August and September 2018, including interest at 0% (12% after an event of default) due in August and September of 2021, convertible at any time into shares of the Company’s common stock at $0.075 per share.
   
175,000
     
175,000
 
                 
Convertible note payable dated December 14, 2018, with interest at 8%, due December 14, 2019, convertible after 180 days into shares of the Company’s common stock at $0.25 per share, with an original issue debt discount of $7,000, with an unamortized balance of $6,708 as of December 31, 2018. The terms of the note include a reduced conversion price at a 25% discount the price of the issuance of subsequent common stock equivalents, resulting in a conversion price of $0.11 per share as of December 31, 2018., due to the issuance of the note below.  This note is currently not in default, but due to the potential default, this creates a derivative liability, however the Company determined this liability was immaterial as of December 31, 2018.
   
50,292
     
-
 
                 
Convertible note payable dated December 17, 2018, with interest at 18%, due December 17, 2019, convertible at any time into shares of the Company’s common stock at a price equal to 65% of the lowest one day trading price during the prior 20 day trading period , with an original issue debt discount of $15,000,  and a $24,344 debt discount related to the relative fair value of the warrants issued with the note, and a $70,656 debt discount related to the beneficial conversion feature.  The total debt discount was expensed in full as this note is in default as of December 31, 2018.  Additionally, the Company recorded a derivative liability of $55,000 due to the default provision terms. The note includes anti-dilution provisions which may impact the conversion price in the future.
   
110,000
     
-
 
                 
     
670,864
     
508,424
 
                 
Accrued interest
   
40,735
     
36,816
 
     
711,599
     
545,240
 
Less current portion
   
(296,027
)
   
(146,816
)
Long-term convertible notes payable, net
 
$
415,572
   
$
398,424