STOCK WARRANTS

12 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

STOCK WARRANTS

12. STOCK WARRANTS

The following is a summary of stock warrants activity during the year ended September 30, 2016 and 2015. 

	Number of Shares		Weighted Average Exercise Price
Balance, September 30, 2014	60,000	$	0.36
Warrants granted and assumed	8,037,600	$	0.10
Warrants expired	—		—
Warrants canceled	—		—
Warrants exercised	—		—
Balance, September 30, 2015	8,097,600	$	0.10
Warrants granted and assumed	5,014,500	$	1.38
Warrants expired	—		—
Warrants canceled	—		—
Warrants exercised	—		—
Balance, September 30, 2016	13,112,100	$	0.59

As of September 30, 2016, 13,112,100 warrants are exercisable.

On January 22, 2016, the Company issued warrants to purchase 450,000 shares of common stock at an exercise price of $0.367 per share to a Mr. Greg Gohlinghorst for business advisory services. The warrants were valued at $1,342,350 using the Black Scholes option pricing model based upon the following assumptions: term of 5 years, risk free interest rate of 1.49%, a dividend yield of 0% and volatility rate of 212%. The warrants were fully earned and vested on January 31, 2016. 

On July 1, 2016, the Company, entered into the Purchase Agreement with Seller. Pursuant to the Purchase Agreement, the Company acquired all the assets related to Seller and its line of business and assumed approximately $200,000 in liabilities. As part of the consideration the Company issued to Seller five-year warrants to purchase four million five hundred thousand (4,500,000) shares of common stock at an exercise price of $1.50 per share. The warrants were valued at $13,675,500 using the Black Scholes option pricing model based upon the following assumptions: term of 5 years, risk free interest rate of 1.0%, a dividend yield of 0% and volatility rate of 218%. The warrants were fully earned and vested on July 1, 2016. (See Note 3. BUSINESS ACQUISITION for additional details).