ASSET PURCHASE AGREEMENT

6 Months Ended

Mar. 31, 2016

Asset Purchase Agreement [Abstract]

ASSET PURCHASE AGREEMENT

NOTE G - ASSET PURCHASE AGREEMENT

As disclosed in the Company's audited consolidated financial statements as of and for the fiscal year ended September 30, 2015 and footnotes thereto included in the Annual Report on Form 10-K, filed with the SEC, on September 11, 2015, the Company entered into an Asset Purchase Agreement, with Vandalia Research, Inc. a West Virginia corporation ("Vandalia"), and Derek A. Gregg, Vandalia’s Chief Executive Officer and a director of Vandalia, providing for the purchase of substantially all the assets (“Assets”) of Vandalia. The Company completed the acquisition of such Assets on the same date. The purchase price for the Assets was $1,500,000, which amount was determined through arms-length negotiation. Of this amount, $500,000 was placed in an escrow account for a period of nine months following the closing to satisfy Vandalia’s indemnification obligations, of which $350,000 was released after sixty days.

The audits of the historical financial statements of Vandalia are currently still in process. The following unaudited supplemental pro forma information presents the Company's financial results as if the acquisition of Vandalia had occurred October 1, 2014:
 

	Three month  period ended			Six month period ended
	March 31, 2015			March 31, 2015
Revenue	$	1,554,312		$	2,938,926
Net loss		(1,925,698	)		(9,707,441	)
Basic and diluted loss per share	$	(0.11	)	$	(0.59	)