Derivative Liabilities

9 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Liabilities

Note 8 – Derivative Liabilities

Certain features and instruments issued as part of the Company’s debt financing arrangements qualified for derivative accounting under ASC 815, Derivatives and Hedging, as the number of common shares that are to be issued under the arrangements are indeterminate, therefore the Company’s equity environment is tainted.

ASC 815 requires that we record the fair market value of the derivative liabilities at inception and at the end of each reporting period and recognize any change in the fair market value as other income or expense item.

The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair values at inception and as of June 30, 2024. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The following assumptions were used in the Black-Scholes model during the six months ended June 30, 2024, and year ended September 30, 2023:

	Nine months ended			Year Ended
	June 30,			September 30,
	2024			2023
Expected term		0.01 - 3.67 years	*		0.68 -  5.01 years
Expected average volatility		188% - 408	%		111% - 372	%
Expected dividend yield		—			—
Risk-free interest rate		3.60% - 4.33%			3.93% - 5.03	%

* 20,000,000 warrants issued during the nine months ended June 30, 2024 do not have an expiration date.

The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities during the nine months ended June 30, 2024:

Derivative liability balance - September 30, 2023	$	1,317
Addition of new derivatives recognized as debt discounts		1,114,947
Loss on change in fair value of the derivative		271,039
Derivative liability balance - June 30, 2024	$	1,387,303