Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE NOTES PAYABLE (Tables)

v3.19.1
CONVERTIBLE NOTES PAYABLE (Tables)
6 Months Ended
Mar. 31, 2019
CONVERTIBLE NOTES PAYABLE [Abstract]  
Convertible Notes Payable
Convertible notes payable are as follows at March 31, 2019 and September 30, 2018, respectively:

   
March 31,
2019
   
September 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 March 31, 2019 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 $12,282 and $16,576 as of March 31, 2019 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.
   
227,718
     
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 principal of $57,000, interest at 8%, due December 14, 2019, convertible after 180 days into shares of the Company’s common stock at $0.25 per share, an original issue debt discount of $7,000 and a beneficial conversion feature of $50,000, with an unamortized balance of $6,417 and $42,715, respectively, as of March 31, 2019.   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 $0.023 per share as of March 31, 2019, due to the issuance of the note below.  This note is currently in default which created a derivative liability with a balance of $11,667 as of March 31, 2019.
   
7,868
     
-
 
                 
Convertible note payable dated December 17, 2018, with principal of $165,000, 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 March 31, 2019.  Additionally, the Company recorded a derivative liability with a balance of $55,000, which was transferred to the balance of the note during the three months ended March 31, 2019, with no derivative liability remaining related to this note as of March 31, 2019.  The note includes anti-dilution provisions which may impact the conversion price in the future.
   
165,000
     
-
 
                 
On January 3, 2019, the Company entered into convertible note payable for $53,000, including an original issue discount of $8,300, resulting in net proceeds of $44,700, with interest at 8%, due January 3, 2020, convertible after 180 days at a price of 65% of the average of the lowest two trading prices of the Company’s common stock during the 15 trading days prior to conversion, with a $27,006 debt discount and derivative liability related to the beneficial conversion feature.  The unamortized balance of the original issue discount and beneficial conversion features was $6,322 and $20,569, respectively, as of March 31, 2019.  This note is currently in default.
   
26,109
     
-
 
                 
On February 15, 2019, the Company entered into convertible note payable for $75,000, including original issue debt discount of $15,000, resulting in net proceeds of $60,000, with interest at 10%, due October 15, 2020, convertible at any time at a price of 60% of the lowest trading price of the Company’s common stock during the 20 trading days prior to conversion, with a $57,356 debt discount related to the beneficial conversion feature and a $2,644 debt discount related to the value of the 37,500 warrants issued with the note (see Note 13).  Additionally, the Company recorded a derivative liability with a balance of $65,526 as of March 31, 2019.  The unamortized balance of the original issue discount, beneficial conversion feature and warrants was $13,192, $44,320 and $2,043, respectively as of March 31, 2019.  This note is currently in default.
   
15,445
     
-
 
                 
On February 19, 2019, the Company entered into convertible note payable for $43,000, including original issue debt discount of $7,300, resulting in net proceeds of $35,700, with interest at 8%, due February 19, 2020, convertible after 180 days at a price of 60% of the lowest trading price of the Company’s common stock during the 20 trading days prior to conversion, with a $21,689 debt discount related to the beneficial conversion feature. Additionally, the Company recorded a derivative liability with a balance of $21,689 as of March 31, 2019 The unamortized balance of the original issue debt discount and beneficial conversion feature was $6,500 and $19,312, respectively, as of March 31, 2019. This note is currently in default.
   
17,188
     
-
 
                 
On February 26, 2019, the Company entered into convertible note payable for $62,500, including original issue debt discount of $13,200, resulting in net proceeds of $49,300, with interest at 10%, due November 21, 2019, convertible at any time at a price of 60% of the lowest trading price of the Company’s common stock during the 20 trading days prior to conversion, with a $46,681 debt discount related to the beneficial conversion feature and a $2,619 debt discount related to the value of the 37,500 warrants issued with the note (see Note 13).  Additionally, the Company recorded a derivative liability with a balance of $54,823 as of March 31, 2019.  The unamortized balance of the original issue debt discount, beneficial conversion feature and warrants was $12,007, $39,394, and $2,209 as of March 31, 2019. This note is currently in default.
   
8,890
     
-
 
                 
     
753,218
     
508,424
 
                 
Accrued interest
   
52,153
     
36,816
 
     
805,371
     
545,240
 
Less current portion
   
(402,653
)
   
(146,816
)
Long-term convertible notes payable, net
 
$
402,718
   
$
398,424