Annual report pursuant to Section 13 and 15(d)

11. Loss On Induced Conversion of Debt and Sale of Common Stock

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11. Loss On Induced Conversion of Debt and Sale of Common Stock
12 Months Ended
Sep. 30, 2016
Notes  
11. Loss On Induced Conversion of Debt and Sale of Common Stock

11.                Loss on Induced Conversion of Debt and Sale of Common Stock

During February 2016, the Company converted notes payable with outstanding principal balances totaling $233,333 into 5,800,000 shares of common stock, at $0.04 per common share, which was below the fair value of the Company’s stock on the date of conversion, which resulted in a loss on induced conversion of debt of $230,667.

 

During February 2016, the Company converted notes payable with outstanding principal balances totaling $350,000 plus accrued interest of $16,000 into 9,287,985 shares of common stock, at $0.04 per common share, which was below the fair value of the stock on the date of conversion.  The conversion resulted in a loss on induced conversion of debt of $148,465 and a gain on extinguishment of debt of $64,099.