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E. LOANS FROM OFFICER	3 Months Ended
Dec. 31, 2015
Notes to Financial Statements
E. LOANS FROM OFFICER	In 2009, the Company’s President and a director, Maximilian de Clara, loaned the Company $1,104,057 under a note payable. At Mr. de Clara’s option, the loan may be converted into shares of the Company’s common stock. In August 2014, the loan was transferred to the de Clara Trust, for which the Company’s CEO, Geert Kersten, is the trustee and a beneficiary. Mr. de Clara receives the interest payments. Effective July 7, 2015, the Company extended the maturity date of the note to July 6, 2017, lowered the interest rate from 15% to 9% and changed the conversion price from $4.00 to $0.59, the closing stock price on the previous trading day. The de Clara Trust may demand payment upon giving the Company 10 days of notice. The Company determined these modifications to be substantive and therefore accounted for the modification as an extinguishment of the pre-modification note and issuance of the post-modification note. The Company recorded an extinguishment loss and a premium on the note payable of $165,943. The premium was credited to additional paid-in capital. In October 2015, the expiration date of the note was extended to July 6, 2018. However, on January 13, 2016, the de Clara Trust demanded full repayment on the note, in accordance with the provisions of the note agreement. During the three months ended December 31, 2015 and 2014, the Company paid $33,123 and $41,402, respectively in interest expense to Mr. de Clara.

E. LOANS FROM OFFICER

3 Months Ended

Dec. 31, 2015

In 2009, the Company’s President and a director, Maximilian de Clara, loaned the Company $1,104,057 under a note payable. At Mr. de Clara’s option, the loan may be converted into shares of the Company’s common stock. In August 2014, the loan was transferred to the de Clara Trust, for which the Company’s CEO, Geert Kersten, is the trustee and a beneficiary. Mr. de Clara receives the interest payments. Effective July 7, 2015, the Company extended the maturity date of the note to July 6, 2017, lowered the interest rate from 15% to 9% and changed the conversion price from $4.00 to $0.59, the closing stock price on the previous trading day. The de Clara Trust may demand payment upon giving the Company 10 days of notice. The Company determined these modifications to be substantive and therefore accounted for the modification as an extinguishment of the pre-modification note and issuance of the post-modification note. The Company recorded an extinguishment loss and a premium on the note payable of $165,943. The premium was credited to additional paid-in capital. In October 2015, the expiration date of the note was extended to July 6, 2018. However, on January 13, 2016, the de Clara Trust demanded full repayment on the note, in accordance with the provisions of the note agreement.

During the three months ended December 31, 2015 and 2014, the Company paid $33,123 and $41,402, respectively in interest expense to Mr. de Clara.