CONVERTIBLE NOTES PAYABLE

6 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

CONVERTIBLE NOTES PAYABLE

Convertible Notes Payable at consists of the following:	March 31,			September 30,
	2018			2017
On March 23, 2017, we entered into a convertible promissory note pursuant to which we borrowed $200,000, less debit issuance costs of 15,750. The note carries an original issue discount of 10% ($20,000). Interest under the convertible promissory note is 12% per annum, and the principal and all accrued but unpaid interest is due on September 23, 2018. The note is convertible at any date after the issuance date at the noteholder’s option into shares of our common stock at a variable conversion price of 70% of the lowest closing market price of our common stock during the previous 20 days to the date of the notice of conversion. The Company recorded a debt discount in the amount of $184,250 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $251,388 and an initial loss of $67,138 based on the Black-Scholes pricing model.   The aggregate original issued issue discount, beneficial conversion feature and debt issuance costs have been accreted and charged to interest expenses as a financing expense in the amount of $9,778 and $0 during the six months ended March 31, 2018 and 2017, respectively.		200,000			—
Original issue discount		20,000			—
Unamortized debt issuance costs		(15,050	)
Unamortized Original issue discount		(19,111	)
Unamortized debt discount		(176,061	)		—
Total, net of unamortized discount	$	9,778		$	—

Derivative liability

The Company accounts for the fair value of the conversion features of its convertible debt in accordance with ASC Topic No. 815-15 “Derivatives and Hedging; Embedded Derivatives” (“Topic No. 815-15”). Topic No. 815-15 requires the Company to bifurcate and separately account for the conversion features as an embedded derivative contained in the Company’s convertible debt. The Company is required to carry the embedded derivative on its balance sheet at fair value and account for any unrealized change in fair value as a component of results of operations. The Company values the embedded derivatives using the Black-Scholes pricing model.

The following table presents a summary of the Company’s derivative liabilities associated with its convertible notes as of March 31, 2018, and September 30, 2017:

	Amount
Balance September 30, 2017	$	—
Debt discount originated from derivative liabilities		184,250
Initial loss recorded		67,138
Adjustment to derivative liability due to debt settlement		—
Change in fair market value of derivative liabilities		(2,438)
Balance March 30, 2018	$	248,950

The Black-Scholes model utilized the following inputs to value the derivative liabilities at the date of issuance of the convertible note and at March 31, 2018:

Fair value assumptions – derivative notes:	March 31, 2018
Risk free interest rate		1.92-1.93%
Expected term (years)		0.50-0.47
Expected volatility		168.14%
Expected dividends		0%