RELATED PARTY TRANSACTIONS

12 Months Ended

Sep. 30, 2022

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

11. RELATED PARTY TRANSACTIONS

During the year ended September 30, 2022, no restricted shares of the Company’s common stock were purchased by related parties.  During the year ended September 30, 2021, the de Clara Trust, of which the Company’s CEO, Geert Kersten, is a trustee and beneficiary, and two directors purchased a total of 27,500 restricted shares of the Company’s common stock at an aggregate fair market value of approximately $220,000.  The shares are subject to the conditions of Rule 144 under the Securities Act of 1933.

On June 13, 2022, the expiration dates of the Series N, Series X, Series Y, Series UU, Series MM and Series NN warrants were extended two years (Note 4).  The incremental costs of the Series N, Series X and Series Y warrant extensions were recorded as a deemed dividend and totaled approximately $294,000 for the year ended September 30, 2022.  The Series N and Series X warrants are held by the de Clara Trust.  The incremental cost of the Series MM, Series NN and Series UU warrant extensions of approximately $635,000 was recorded as a deemed dividend because there are no longer any notes payable associated with these warrants at the time of modification.  The Series UU warrants and a portion of the Series MM and Series NN warrants are held by Geert Kersten, Patricia Prichep (current officers of the Company) and the de Clara Trust.

In June 2021, the expiration dates of the Series N, Series X, and Series UU warrants were extended one year. In December 2020, the expiration dates of the Series N, Series X, Series UU warrants were extended six months. The incremental costs of the warrant extensions were recorded consistent with the accounting for the initial warrant issuances. The incremental costs of the Series N and Series X warrant extensions were recorded as a deemed dividend and totaled approximately $351,000 for the year ended September 30, 2021. The Series N and Series X warrants are held by the de Clara Trust.  The incremental cost of the Series UU warrant extension was recorded as interest expense and totaled approximately $24,000 for the year ended September 30, 2021. The Series UU warrants are held by certain officers of the Company and were originally issued with convertible debt.