Annual report pursuant to Section 13 and 15(d)

20. Related Party Transactions Not Otherwise Disclosed

v3.6.0.2
20. Related Party Transactions Not Otherwise Disclosed
12 Months Ended
Sep. 30, 2016
Notes  
20. Related Party Transactions Not Otherwise Disclosed

20.                Related Party Transactions Not Otherwise Disclosed

During fiscal 2015, an entity controlled by the Company’s former Executive Chairman of the Board of Directors consulted with the Company to enter into an agreement with a customer.  The Company granted the entity 250,000 shares of common stock with a fair value of $53,500.  The Company also agreed to pay the entity 8.5% of revenue from this customer as long as the sales contract remains in full force.  

During September 2015, the Company entered into consulting agreements with an entity controlled by the former Executive Chairman of the Board of Directors.  The Company agreed to pay for the former Executive Chairman’s healthcare insurance cost plus $6,000 per month for consulting services.  The Company also agreed to pay as a bonus to the entity a fee equal to 15% of the funds raised less payments to third parties owed in regards to the funds raised.  The Company paid $180,000 in bonuses and fees related to this agreement to the entity during fiscal 2016.  In February 2016, the Company amended the consulting agreement, effective January 2016.  The amendment extended the agreement through December 2016, with monthly automatic renewals, adjusted the monthly compensation of $6,000 to an hourly rate of $250 per hour, and eliminated the previously included bonus structure.

During September 2015, the Company entered into a one-year consulting agreement with an entity controlled by the Chief Executive Officer, who had previously assumed a new role as Chief Financial Officer of the Company.  The Company agreed to pay the entity $20,000 per month and 2,000,000 shares of common stock with a fair value of $360,000.

In July 2016, the Company entered into a consulting agreement with a former Executive Chairman and Chief Executive Officer of the Company.  This consulting agreement is for an initial period of one year, and shall automatically renew for consecutive one month periods unless terminated by the Company or the former Executive Chairman and Chief Executive Officer. As consideration for the services previously described, the Company shall pay the former Executive Chairman and Chief Executive Officer at the rate of $250 per hour, but such compensation may not exceed $20,000 during any calendar month.