Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | ||
Jun. 30, 2014 | Oct. 08, 2014 | Dec. 31, 2013 | |
Document And Entity Information Abstract | ' | ' | ' |
Document Type | '10-KT | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Entity Registrant Name | 'ICEWEB INC | ' | ' |
Entity Central Index Key | '0001097718 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Units Outstanding | ' | 3,457,255,625 | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Public Float | ' | ' | $6,836,743 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Current Assets: | ' | ' | ' |
Cash | $56,827 | $9,652 | $269,594 |
Other receivable | ' | 28 | ' |
Accounts receivable, net | 84,091 | 58,140 | 563,320 |
Inventory | 19,069 | 163,168 | 282,231 |
Prepaid expenses | 136,927 | 36,925 | 19,702 |
Marketable securities | 3 | 820 | 72,000 |
Other current assets | 51,708 | 175,551 | 6,875 |
Total Current Assets | 348,625 | 444,284 | 1,213,722 |
Property and equipment, net of accumulated depreciation of $545,427, $1,422,488 and $1,207,253 respectively | 451,843 | 307,868 | 499,785 |
Deposits | 5,923 | 13,320 | 13,320 |
Marketable securities | ' | ' | 237,600 |
Deferred financing costs, net | ' | ' | 114,395 |
Other assets | 1,545 | 1,545 | 1,545 |
Total Assets | 807,936 | 767,017 | 2,080,367 |
Current Liabilities: | ' | ' | ' |
Accounts payable and accrued liabilities | 840,009 | 649,294 | 824,128 |
Notes payable | 947,475 | 186,000 | 2,059,582 |
Note payable, related party | 664,578 | ' | ' |
Deferred revenue | 74,824 | 2,996 | 24,896 |
Convertible notes payable, net of discount | 197,645 | 181,878 | 105,176 |
Derivative liability - warrants | 302,065 | 117,424 | 1,104,499 |
Derivative liability - convertible debt | 469,632 | ' | ' |
Total Current Liabilities | 3,496,228 | 1,137,592 | 4,118,281 |
LONG TERM LIABILITIES: | ' | ' | ' |
Note payable, long term portion | 1,143,501 | ' | ' |
Stockholders' Deficit: | ' | ' | ' |
Series B and Series AA convertible preferred stock ($.001 par value; 10,000,000 shares authorized; 1,026,667 and 626,667 shares issued and outstanding, respectively) | 1,026 | 626 | 626 |
Common stock ($.001 par value; 5,000,000,000 shares authorized; 695,941,098, 410,262,072 and 215,943,809 shares outstanding, respectively) | 695,941 | 410,262 | 215,945 |
Additional paid in capital | 48,381,461 | 47,233,663 | 38,343,043 |
Accumulated deficit | -52,816,224 | -47,921,946 | -40,813,128 |
Accumulated other comprehensive income (loss) | -80,997 | -80,180 | 228,600 |
Treasury stock, at cost, (162,500 shares) | -13,000 | -13,000 | -13,000 |
Total Stockholders' Deficit | -3,831,793 | -370,575 | -2,037,914 |
Total Liabilities and Stockholders' Deficit | $807,936 | $767,017 | $2,080,367 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Balance Sheets [Abstract] | ' | ' | ' |
Property and equipment, accumulated depreciation | $545,427 | $1,422,488 | $1,207,253 |
Series B and Series AA convertible preferred stock, par value | $0.00 | $0.00 | $0.00 |
Series B and Series AA convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Series B and Series AA convertible preferred stock, shares issued | 1,026,667 | 1,026,667 | 626,667 |
Series B and Series AA convertible preferred stock, shares outstanding | 626,667 | 626,667 | 626,667 |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 |
Common stock, shares outstanding | 695,941,098 | 410,262,072 | 215,943,809 |
Treasury stock, shares | 162,500 | 162,500 | 162,500 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Consolidated Statements of Operations [Abstract] | ' | ' | ' | ' |
Sales | $722,784 | $873,446 | $977,368 | $2,640,520 |
Cost of sales | 472,552 | 491,480 | 555,228 | 1,780,246 |
Gross profit | 250,232 | 381,966 | 422,140 | 860,274 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing | 114,271 | 733,713 | 841,625 | 1,116,340 |
Depreciation | 521,849 | 120,936 | 215,237 | 202,130 |
Research and development | 292,750 | 656,491 | 1,246,060 | 1,046,026 |
General and administrative | 987,979 | 3,978,651 | 5,283,363 | 2,722,049 |
Total Operating Expenses | 1,916,849 | 5,489,791 | 7,586,285 | 5,086,545 |
Loss from Operations | -1,666,617 | -5,107,825 | -7,164,145 | -4,226,271 |
Other income (expenses): | ' | ' | ' | ' |
Gain/(loss) on sale of assets | -1,895 | 987,624 | ' | ' |
Gain/(loss) in change of fair value of derivative liability | -61,221 | ' | 987,075 | 645,501 |
Loss on extinguishment of debt | -265,311 | ' | -481,588 | ' |
Impairment of goodwill | -2,084,710 | ' | ' | ' |
Interest income | ' | ' | ' | 22 |
Interest expense | -814,524 | -391,430 | -450,161 | -2,904,300 |
Total other income (expenses) | -3,227,661 | 596,194 | 55,326 | -2,258,777 |
Net loss | ($4,894,278) | ($4,511,631) | ($7,108,819) | ($6,485,048) |
Loss per common share basic and diluted | ($0.01) | ($0.02) | ($0.02) | ($0.04) |
Weighted average common shares outstanding - basic and diluted | 516,492,220 | 263,622,003 | 290,864,883 | 173,207,111 |
Statement_of_Consolidated_Comp
Statement of Consolidated Comprehensive Income (USD $) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Consolidated Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($4,894,278) | ($4,511,631) | ($7,108,819) | ($6,485,048) |
Other comprehensive income/(loss), net of tax: | ' | ' | ' | ' |
Unrealized gain (loss) on securities | -817 | -305,910 | -308,780 | 161,400 |
Other comprehensive income/(loss) | -817 | -305,910 | -308,780 | 161,400 |
Comprehensive loss | ($4,895,095) | ($4,817,541) | ($7,417,599) | ($6,323,648) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (Deficit) and Comprehensive Income (Loss) (USD $) | Total | Series B and Series AA Pref Stock | Common Stock | Accumulated Other Comprehensive Income/(Loss) | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock |
Balance at Sep. 30, 2011 | ($1,248,979) | $626 | $157,960 | $67,200 | $32,866,314 | ($34,328,079) | ($13,000) |
Balance, shares at Sep. 30, 2011 | ' | 626,667 | 157,959,066 | ' | ' | ' | 162,500 |
Common stock issued for exercise of options | 255,716 | ' | 1,532 | ' | 254,184 | ' | ' |
Common stock issued for exercise of options,shares | ' | ' | 1,532,326 | ' | ' | ' | ' |
Common stock issued for services | 533,628 | ' | 5,137 | ' | 528,491 | ' | ' |
Common stock issued for services, shares | ' | ' | 5,137,105 | ' | ' | ' | ' |
Common stock issued for cash | 2,249,860 | ' | 22,171 | ' | 2,227,689 | ' | ' |
Common stock issued for cash, shares | ' | ' | 22,171,111 | ' | ' | ' | ' |
Common stock issued to employees | 310,250 | ' | 3,635 | ' | 306,615 | ' | ' |
Common stock issued to employees, shares | ' | ' | 3,634,871 | ' | ' | ' | ' |
Net loss for the year | -6,485,048 | ' | ' | ' | ' | -6,485,048 | ' |
Amortization of deferred compensation | 62,228 | ' | ' | ' | 62,228 | ' | ' |
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' |
Shares issued for acquisition | ' | ' | ' | ' | ' | ' | ' |
Payment on convertible note | 1,848,031 | ' | 22,340 | ' | 1,825,691 | ' | ' |
Payment on convertible note,shares | ' | ' | 22,339,702 | ' | ' | ' | ' |
Exercise of common stock warrants | 275,001 | ' | 3,170 | ' | 271,831 | ' | ' |
Exercise of common stock warrants, shares | ' | ' | 3,169,628 | ' | ' | ' | ' |
Unrealized gain (loss) on securities, net | 161,400 | ' | ' | 161,400 | ' | ' | ' |
Balance at Sep. 30, 2012 | -2,037,914 | 626 | 215,945 | 228,600 | 38,343,043 | -40,813,128 | -13,000 |
Balance, shares at Sep. 30, 2012 | 215,943,809 | 626,667 | 215,943,809 | ' | ' | ' | 162,500 |
Common stock issued for exercise of options | 3,772,648 | ' | 91,224 | ' | 3,681,424 | ' | ' |
Common stock issued for exercise of options,shares | ' | ' | 91,224,000 | ' | ' | ' | ' |
Common stock issued for services | 486,485 | ' | 13,330 | ' | 473,155 | ' | ' |
Common stock issued for services, shares | ' | ' | 13,329,657 | ' | ' | ' | ' |
Sale of restricted stock | 245,000 | ' | 10,376 | ' | 234,624 | ' | ' |
Sale of restricted stock, shares | ' | ' | 10,375,676 | ' | ' | ' | ' |
Common stock issued to employees | 969,600 | ' | 30,296 | ' | 939,304 | ' | ' |
Common stock issued to employees, shares | ' | ' | 30,297,630 | ' | ' | ' | ' |
Net loss for the year | -7,108,819 | ' | ' | ' | ' | -7,108,819 | ' |
Amortization of deferred compensation | 762,677 | ' | ' | ' | 762,677 | ' | ' |
Loss on extinguishment of debt | 481,588 | ' | ' | ' | 481,588 | ' | ' |
Shares issued for acquisition | ' | ' | ' | ' | ' | ' | ' |
Payment on convertible note | 2,313,459 | ' | 47,181 | ' | 2,266,278 | ' | ' |
Payment on convertible note,shares | ' | ' | 47,181,300 | ' | ' | ' | ' |
Exercise of common stock warrants | 53,480 | ' | 1,910 | ' | 51,570 | ' | ' |
Exercise of common stock warrants, shares | ' | ' | 1,910,000 | ' | ' | ' | ' |
Unrealized gain (loss) on securities, net | -308,780 | ' | ' | -308,780 | ' | ' | ' |
Balance at Sep. 30, 2013 | -370,575 | 626 | 410,262 | -80,180 | 47,233,663 | -47,921,946 | -13,000 |
Balance, shares at Sep. 30, 2013 | 410,262,072 | 626,667 | 410,262,072 | ' | ' | ' | 162,500 |
Balance at Oct. 02, 2013 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for exercise of options | 271,168 | ' | 25,000 | ' | 246,168 | ' | ' |
Common stock issued for exercise of options,shares | ' | ' | 25,000,000 | ' | ' | ' | ' |
Common stock issued for services | 219,000 | ' | 17,000 | ' | 202,000 | ' | ' |
Common stock issued for services, shares | ' | ' | 17,000,000 | ' | ' | ' | ' |
Common stock issued for cash, shares | ' | 400,000 | ' | ' | ' | ' | ' |
Common stock issued to employees | 170,000 | ' | 10,868 | ' | 159,132 | ' | ' |
Common stock issued to employees, shares | ' | ' | 10,867,652 | ' | ' | ' | ' |
Common stock returned by employees | -528,000 | ' | -16,000 | ' | -512,000 | ' | ' |
Common stock returned by employees, shares | ' | ' | -16,000,000 | ' | ' | ' | ' |
Net loss for the year | -4,894,278 | ' | ' | ' | ' | -4,894,278 | ' |
Shares issued as finance fee | 104,500 | ' | 7,405 | ' | 97,095 | ' | ' |
Shares issued as finance fee, shares | ' | ' | 7,405,164 | ' | ' | ' | ' |
Amortization of deferred compensation | 194,531 | ' | ' | ' | 194,531 | ' | ' |
Loss on extinguishment of debt | 265,311 | ' | ' | ' | ' | ' | ' |
Shares issued for acquisition | 564,725 | ' | 23,054 | ' | 541,671 | ' | ' |
Shares issued for acquisition, shares | ' | ' | 23,054,198 | ' | ' | ' | ' |
Payment on convertible note | 321,866 | ' | 211,066 | ' | 110,800 | ' | ' |
Payment on convertible note,shares | ' | ' | 211,066,408 | ' | ' | ' | ' |
Exercise of common stock warrants | ' | ' | 7,286 | ' | -7,286 | ' | ' |
Exercise of common stock warrants, shares | ' | ' | 7,285,604 | ' | ' | ' | ' |
Unrealized gain (loss) on securities, net | -817 | ' | ' | -817 | ' | ' | ' |
Preferred stock | 116,087 | 400 | ' | ' | 115,687 | ' | ' |
Balance at Jun. 30, 2014 | ($3,831,793) | $1,026 | $695,941 | ($80,997) | $48,381,461 | ($52,816,224) | ($13,000) |
Balance, shares at Jun. 30, 2014 | 695,941,098 | 1,026,667 | 695,941,098 | ' | ' | ' | 162,500 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Consolidated Statements of Cash Flows [Abstract] | ' | ' | ' | ' |
Net loss | ($4,894,278) | ($4,511,631) | ($7,108,819) | ($6,485,048) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation | 521,849 | 120,936 | 215,237 | 202,130 |
Gain/(loss) on sale of assets | 1,895 | -987,624 | ' | ' |
Share-based compensation | 170,000 | 678,000 | 969,600 | 310,250 |
Return of restricted shares | -528,000 | ' | ' | ' |
Amortization of deferred compensation | 194,531 | 566,682 | 762,677 | 62,228 |
Loss on extinguishment of debt | 265,311 | ' | 481,588 | ' |
Impairment of goodwill | 2,084,710 | ' | ' | ' |
Change in fair value of derivative liability | 61,221 | -987,624 | -987,075 | -645,501 |
Common stock and options issued for services rendered | 219,000 | 384,283 | 2,532,773 | 533,628 |
Interest on amortization of debt discount | ' | 63,555 | 73,172 | 2,315,337 |
Amortization of deferred finance costs | 56,292 | 114,395 | 153,033 | 525,016 |
Amortization of debt discount | 477,813 | ' | ' | ' |
Write off of subscription receivable | ' | ' | ' | 83,000 |
Bad debt expense | 18,852 | ' | ' | ' |
Changes in operating assets and liabilities: | ' | ' | ' | ' |
Accounts receivable | -44,775 | 509,280 | 505,152 | 618,740 |
Prepaid expense | -15,599 | -55,690 | -17,223 | 10,545 |
Other | 107,150 | -115,285 | -175,551 | -1,545 |
Inventory | 144,099 | 1,748 | 119,063 | -226,250 |
Accounts payable and accrued liabilities | -168,295 | -123,239 | -174,835 | -1,362,562 |
Deferred loan fees | ' | ' | -27,500 | -27,500 |
Deferred revenue | 12,432 | -21,902 | -21,901 | 19,993 |
NET CASH USED IN OPERATING ACTIVITIES | -1,286,842 | -3,376,493 | -2,700,609 | -4,067,539 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ' | ' | ' | ' |
Purchase of property and equipment | -18,226 | ' | -23,319 | -449,082 |
Investment in marketable securities | ' | ' | ' | -33,000 |
NET CASH USED IN INVESTING ACTIVITIES | -18,226 | ' | -23,319 | -482,082 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' | ' |
Proceeds from notes payable | ' | 502,486 | 297,940 | 395,233 |
Payments on notes payable | -127,410 | -247,207 | -212,794 | -406,225 |
Proceeds from issuance of preferred stock | 116,087 | ' | ' | ' |
Proceeds from conversion of warrants | ' | ' | 53,480 | 275,001 |
Proceeds from convertible note payable | 427,820 | ' | 168,000 | 1,750,000 |
Proceeds from notes payable, related party | 664,578 | 111,000 | 186,000 | ' |
Proceeds from sale of common stock | ' | 249,000 | 245,000 | 2,249,860 |
Proceeds from exercise of common stock options | 271,168 | 2,570,163 | 1,726,360 | 255,717 |
Proceeds from subscription receivable | ' | ' | ' | 1,171,520 |
Payment of deferred finance costs | ' | ' | ' | -876,011 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 1,352,243 | 3,185,442 | 2,463,986 | 4,815,095 |
NET INCREASE (DECREASE) IN CASH | 47,175 | -191,051 | -259,942 | 265,474 |
CASH - beginning of period | ' | 269,594 | 269,594 | 4,120 |
CASH - end of period | 56,827 | 78,543 | 9,652 | 269,594 |
Cash paid for: | ' | ' | ' | ' |
Interest | 169,457 | 177,961 | 15,075 | 395,233 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' | ' | ' |
Shares issued for acquisition of subsidiary | 564,725 | ' | ' | ' |
Payment on convertible note with common stock | $321,866 | ' | $2,313,458 | $1,848,031 |
NATURE_OF_BUSINESS
NATURE OF BUSINESS | 9 Months Ended |
Jun. 30, 2014 | |
NATURE OF BUSINESS [Abstract] | ' |
NATURE OF BUSINESS | ' |
NOTE 1 – NATURE OF BUSINESS | |
IceWEB, Inc. (the “Company”) began trading publicly in April 2002. During the nine months ended June 30, 2014 we had three wholly owned operating subsidiaries, Computers & Telecom, Inc. and KCNAP, LLC, (collectively “CTC) and IceWEB Storage Corporation (formerly known as Inline Corporation). In Fiscal 2013 we had one wholly owned operating subsidiary, IceWEB Storage Corporation. With our acquisition of CTC in October 2013, IceWEB provides wireless and fiber broadband service, co-location space and related services and operates a Network Access Point (“NAP”) where customers directly interconnect with a network ecosystem of partners and customers. This access to Internet routes provides CTC customers improved reliability and streamlined connectivity while significantly reducing costs by reaching a critical mass of networks within a centralized physical location. In addition, through our IceWEB Storage Corporation subsidiary we deliver on-line cloud computing application services, other managed services such as Disaster Recovery, Archive Storage, Redundant File Storage, Redundant Broadband Services and Business Continuity Services. | |
Change in Fiscal Year End | |
On January 27, 2014 our board of directors approved a change in our fiscal year end from September 30th to June 30th. We are filing this Form 10-KT under the SEC rules for transitional filers. |
BASIS_OF_PRESENTATION_AND_SUMM
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2014 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | |
The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Reclassifications | |
Certain reclassifications have been made to previously reported amounts to conform to 2014 amounts. The reclassifications had no impact on previously reported results of operations or stockholders' deficit. | |
Going Concern | |
Our auditors stated in their report on the consolidated financial statements of the Company for the nine months ended June 30, 2014 and the year ended September 30, 2013 that we have had losses since inception that raise doubt about our ability to continue as a going concern. For the nine months ended June 30, 2014 and the year ended September 30, 2013 we incurred a net loss of $4.9 million and $7.1 million, respectively. The consolidated financial statements do not include any adjustments related to the recovery and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event we cannot continue in existence. | |
Management has established plans intended to increase the sales of our products and services. Management intends to seek new capital from new equity securities offerings to provide funds needed to increase liquidity, fund growth, and implement its business plan. However, no assurances can be given that we will be able to raise any additional funds. | |
Marketable Securities | |
The Company accounts for the purchase of marketable equity securities in accordance with FASB Accounting Standards Codification (ASC) 320, “Investment – Debt and Equity Securities” with any unrealized gains and losses included as a net amount as a separate component of stockholders' equity. However, those securities may not have the trading volume to support the stock price if the Company were to sell all their shares in the open market at once, so the Company may have a loss on the sale of marketable securities even though they record marketable equity securities at the current market value. | |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, useful lives of intangible assets and property and equipment, valuation of stock-based compensation, derivative liabilities and litigation reserves. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | |
Cash and Cash Equivalents | |
We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. | |
Accounts Receivable | |
We record accounts receivable at the invoiced amount. We maintain an allowance for doubtful accounts to reserve for potentially uncollectible receivables. We recorded a bad debt allowance of $45,000 as of June 30, 2014 and $0 as of September 30, 2013. The Company performs ongoing evaluations of its accounts receivable to identify specific customers with known disputes or collectability issues. Bad debt expense amounted to $18,852 for the nine months ended June 30, 2014. | |
Derivative Liability | |
The Company issued warrants to purchase the Company's common stock in connection with the issuance of convertible debt, which contain certain ratchet provisions that reduce the exercise price of the warrants or the conversion price in certain circumstances. In accordance with ASC 815 the Company determined that the warrants and/or the conversion features with provisions that reduce the exercise price of the warrants did not qualify for a scope exception under ASC 815 as they were determined not to be indexed to the Company's stock. | |
Derivatives are required to be recorded on the balance sheet at fair value (see Note 11). These derivatives, including embedded derivatives in the Company's structured borrowings, are separately valued and accounted for on the Company's balance sheet. Fair values for exchange traded securities and derivatives are based on quoted market prices. Where market prices are not readily available, fair values are determined using market based pricing models incorporating readily observable market data and requiring judgment and estimates. In addition, additional disclosures is required about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. | |
Fair Value Measurements | |
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. | |
Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort. | |
Fair Value of Financial Instruments | |
The Company's financial instruments, including cash and cash equivalents, receivables, accounts payable and accrued liabilities and notes payable are carried at cost, which approximates their fair value, due to the relatively short maturity of these instruments. | |
Our derivative financial instruments, consisting of embedded conversion features in our convertible debt and ratchet provisions in our warrants, which are required to be measured at fair value on a recurring basis under FASB ASC 815-15-25 or FASB ASC 815 as of June 30, 2014 and September 30, 2013 are measured at fair value, using a Black-Scholes valuation model which approximates a binomial lattice valuation methodology utilizing Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities (see Note 11). | |
Inventory | |
Inventory is valued at the lower of cost or market, on an average cost basis. | |
Property and Equipment | |
Property and equipment is stated at cost, net of accumulated depreciation. Depreciation expense is recorded by using the straight-line method over the estimated useful lives of the related assets. | |
Product Warranties | |
The Company's products typically carry a warranty for periods of up to three years. We have not had any significant warranty claims on our products. | |
Because our current process for developing software is essentially completed concurrently with the establishment of technological feasibility, which occurs upon the completion of a working model, no costs have been capitalized for any of the periods presented. | |
Long-lived Assets | |
In accordance with Accounting Standards Codification (ASC) Topic 360, “Property, Plant, and Equipment” (formerly SFAS 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”), we review the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair market value. | |
Revenue Recognition | |
We follow the guidance of ASC Topic 605, “Revenue Recognition” (formerly Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition”) for revenue recognition. In general, we record revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. | |
It is our practice to obtain a signed master sales agreement for recurring revenue sales, and/or a sales order for events and one-time services. Taxes collected from customers and remitted to government authorities are reported on a net basis and are excluded from revenue. | |
We derive the majority of our revenues from recurring revenue streams, consisting of: | |
1. Wireless and fiber broadband service; | |
2. Co-location, which includes the licensing of cabinet space and power; | |
3. Interconnection services, such as cross connects; | |
4. Managed infrastructure services. | |
Revenues from recurring revenue streams are generally billed monthly and recognized ratably over the term of the contract, generally one to three years for data center space customers. We generally recognize revenue beginning on the date the customer commences use of our services. | |
Implementation and set-up fees are recognized at the time those services are completed, unless prior agreement was made for interim billings for work completed. | |
For services that are billed according to customer usage, revenue is recognized in the month in which the usage is provided. | |
Professional services are recognized in the period services are provided. | |
Amounts that have been invoiced are recorded in accounts receivable and revenue. | |
Our customers generally have the right to cancel their contracts by providing prior written notice to us of their intent to cancel the remainder of the contract term. The customer would be required to pay any charge for early cancellation that their contract specifies. In the event that a customer cancels their contract, they are not entitled to a refund for services already rendered. A customer can continue service on a month-to-month basis after their contract expires. | |
Advertising | |
Advertising costs are expensed as incurred and amounted to $31,190 in the nine months ended June 30, 2014 and $20,813 in Fiscal 2013. | |
Barter Transactions | |
Barter activity is accounted for in accordance with ASC 845, “Nonmonetary Transactions”. Barter revenue relates to the exchange of wireless bandwidth and internet connectivity provided by CTC to business customers in exchange primarily for roof rights for antennae, advertising and other products and services that CTC would otherwise be required to buy for cash. Barter expenses reflect the expense offset to barter revenue. The amount of barter revenue and expense is recorded at the estimated fair value of the services received or the services provided, whichever is more objectively determinable, in the month the services are exchanged. For the nine months ended June 30, 2014, the Company recorded barter revenue of $22,500 and barter expense of $31,190. | |
Prepaid Expenses | |
Prepaid expenses are comprised primarily of prepaid costs related to the installation of new customers, prepaid advertising costs which are expensed when used and deferred financing costs which are amortized over the life of the related financing. | |
Deferred Financing Costs | |
Debt issuance costs incurred in connection with the issuance of debt are capitalized and amortized to interest expense based on the related debt agreements on a straight-line basis, which approximates the effective interest method. Unamortized amounts are included in prepaid expenses in the accompanying consolidated balance sheets. | |
Earnings per Share | |
We compute earnings per share in accordance with ASC Topic 260, “Earnings Per Share” Under the provisions of ASC Topic 260, basic earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of the common shares issuable upon the exercise of stock options and warrants (using the treasury stock method) and upon the conversion of convertible notes and preferred stock (using the if-converted method). Potentially dilutive common shares are excluded from the calculation if their effect is antidilutive. At June 30, 2014, there were options and warrants to purchase 2,390,561,334 shares of common stock and 626,667 shares issuable upon conversion of Series B preferred stock outstanding which could potentially dilute future earnings per share. Additionally, on or after May 15, 2014, to the extent sufficient shares of Common Stock are authorized, the shares of Series AA Preferred Stock shall be convertible into shares of the Company's fully diluted Common Stock to provide the holders ninety percent of all shares of Common Stock of the Company. | |
Stock-Based Compensation | |
As more fully described in Note 14, we have two stock option plans that provide for non-qualified options to be issued to directors, officers, employees and consultants (the 2012 Equity Compensation Plan and the 2013 Equity Plan (the “Plans”). | |
Recently Adopted and Recently Issued Accounting Standards | |
In the first quarter of Fiscal 2013, the Company adopted Accounting Standards Update No. 2011-05, “Comprehensive Income (Topic 200) – Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05”. The adoption of these amended standards impacted the presentation of other comprehensive income, as the Company elected to present two separate but consecutive statements, but did not impact our financial position or results of operation. | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard requires that an unrecognized tax benefits, or a portion of an unrecognized tax benefit be presented on a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions to this rule. If certain exception conditions exists, an entity should present an unrecognized tax benefit in the financial statements as a liability and should not net the unrecognized tax benefit with a deferred tax asset. This standard is effective for fiscal years and interim periods within those years beginning after December 15, 2013. The Company does not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. | |
The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
PROPERTY AND EQUIPMENT [Abstract] | ' | |||||||||||||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||||||||||||
NOTE 3 - PROPERTY AND EQUIPMENT | ||||||||||||||||||||
Property and equipment consisted of the following: | ||||||||||||||||||||
Estimated | June 30, | September 30, | September 30, | |||||||||||||||||
Life | 2014 | 2013 | 2012 | |||||||||||||||||
Equipment | 3 years | $ | 934,654 | $ | 644,020 | $ | 644,020 | |||||||||||||
Furniture and Fixtures | 3 years | 12,984 | - | - | ||||||||||||||||
Computer Software | 3 years | 59,612 | 52,841 | 29,523 | ||||||||||||||||
Vehicle | 3 years | 502 | - | - | ||||||||||||||||
Leasehold Improvements | 3 years | 2,502 | 1,033,495 | 1,033,495 | ||||||||||||||||
997,270 | 1,730,356 | 1,707,038 | ||||||||||||||||||
Less: Accumulated Depreciation | -545,427 | -1,422,488 | -1,207,253 | |||||||||||||||||
Net, Property and Equipment | $ | 451,843 | $ | 307,868 | $ | 499,785 | ||||||||||||||
Capitalized equipment under lease agreements totaled $1,983,854 at cost on June 30, 2014 and $0 as of September 30, 2013 and 2012. The lease term of each capital equipment lease is 36 months. | ||||||||||||||||||||
Depreciation expense for the nine months ended June 30, 2014 and for the years ended September 30, 2013 and 2012 was $550,799, $215,237 and 202,130, respectively, of which $28,950 was included in cost of sales for the nine months ended June 30, 2014. |
OTHER_CURRENT_ASSETS
OTHER CURRENT ASSETS | 9 Months Ended |
Jun. 30, 2014 | |
OTHER CURRENT ASSETS [Abstract] | ' |
OTHER CURRENT ASSETS | ' |
NOTE 4 – OTHER CURRENT ASSETS | |
Other current assets totaled $51,708 and $175,551 at June 30, 2014 and September 30, 2013, respectively. The balance at June 30, 2014 consisted primarily of deferred loan fees related to the capitalized lease obligation to Agility Ventures, LLC. The balance at September 30, 2013 consisted of advances made to CTC. This amount was reimbursable to IceWEB in the event that the acquisition of CTC did not occur. IceWEB, Inc. successfully closed on the acquisition of CTC in October, 2013. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2014 | |
RELATED PARTY TRANSACTIONS [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 5 - RELATED PARTY TRANSACTIONS | |
On April 23, 2014, we entered into a Subscription Agreement with UnifiedOnline! LLC (the “Subscriber”), a Delaware limited liability company, pursuant to which the Subscriber purchased 400,000 shares of Series AA Preferred Stock. In consideration for the Shares, Subscriber paid $116,087 to various vendors and obtained the agreement of a certain related party lessor to temporarily forbear exercising non-payment default remedies. Since entering into the Subscription Agreement, the Subscriber has advanced $664,578 bearing interest at 10% per annum to fund general working capital. |
NOTES_PAYABLE
NOTES PAYABLE | 9 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
NOTES PAYABLE [Abstract] | ' | ||||||||||||||
NOTES PAYABLE | ' | ||||||||||||||
NOTE 6 - NOTES PAYABLE | |||||||||||||||
Sand Hill Finance, LLC | |||||||||||||||
On December 19, 2005, the Company entered into a Financing Agreement with Sand Hill Finance, LLC (“SHF”) pursuant to which, together with related amendments, the Company may borrow up to 80% on the Company's accounts receivable balances up to a maximum of $1,800,000. In conjunction with the acquisition of Inline Corporation in December, 2008, the lending limit on the credit facility was increased to $2,750,000. In addition, the Company and SHF entered into a 36 month term note agreement in the amount of $1,000,000. Amounts borrowed under the Financing Agreement are secured by a first security interest in substantially all of the Company's assets. | |||||||||||||||
On April 12, 2013 the Company entered into an agreement with SHF to amend the existing Financing Agreement by issuing a convertible debenture to replace IceWEB's existing note payable, in the amount of $2,139,235. The debenture was convertible into common stock at a fixed price of $0.075 per share, bore interest at 12% annually and had a two year term. In addition, the terms of the note call for monthly payments of $15,000, which increases to $25,000 in the event that IceWEB raises $3,000,000 or more in an equity financing. In April, 2013 Sand Hill Finance, LLC converted $506,250 of the debenture balance into 6,750,000 shares of IceWEB, Inc. $0.001 par value common stock. | |||||||||||||||
On August 20, 2013 IceWEB, Inc. entered into an Agreement for the Cancellation of Secured Convertible Debenture with SHF pursuant to which SHF converted $1,642,739 of principal and accrued but unpaid interest due it under the Secured Convertible Debenture dated April 15, 2013 into 37,000,000 shares of our common stock. The conversion price per share was $0.0444 when the market price per share was $0.0319 per share and the contractual conversion price per the convertible debenture was $0.075 per share. The Company recognized a loss on the extinguishment of debt of $481,588 in Fiscal 2013 as a result of this transaction. | |||||||||||||||
As part of the agreement, within five days SHF was required to file UCC-3 financing statements to release its security interest in our assets which were pledged as collateral under the debenture. The agreement also contains mutual general releases. As a result of this transaction, at September 30, 2013, the principal amount due under the Financing Agreement amounted to $0. | |||||||||||||||
IWEB Growth Fund, LLC | |||||||||||||||
On November 2, 2012 IceWEB, Inc. entered into a Loan Agreement with IWEB Growth Fund, LLC, a Virginia limited liability company (“IWEB Growth Fund”) established by Messrs. Compton, Bush, Carosi, Pirtle and Stavish and General Soyster, our former independent directors. Ms. My Le Phuong, an employee of our company, serves as manager of the IWEB Growth Fund. Under the terms of the Loan Agreement, IWEB Growth Fund agreed to make one or more loans to us up to the total principal amount of $1.5 million. The lending of any amounts under the Loan Agreement is conditioned upon the negotiation of notes and related loan documents which contain terms and conditions that are acceptable to the lender to be determined at the time of the loans. We agreed to grant IWEB Growth Fund a security interest in our assets as collateral for these loans. In the event we should default under the terms of the Loan Agreement, IWEB Growth Fund is entitled to declare all amounts advanced under the various notes immediately due and payable. An event of default includes a breach by us of any covenant, representation or warranty in the Loan Agreement or a default under any note entered into with the lender. | |||||||||||||||
Between November 9, 2012 and July 11, 2013, IWEB Growth Fund lent us an aggregate of $186,000 under the terms of 9 separate Confession of Judgment Promissory Notes. These notes, which are identical in their terms other than the dates and principal amounts, are for a one year term and bear interest at 12% per annum payable at maturity. Embodied in each of the notes is a confession of judgment which means that should we default upon the payment of the note, we have agreed to permit IWEB Growth Fund to enter a judgment against us in the appropriate court in Virginia before filing suit against us for collection of the amounts. Pursuant to the terms of the Loan Agreement, we paid IWEB Growth Fund's expenses of $1,500 for the preparation of the Loan Agreement and related documents. We used the net proceeds from these initial loans for general working capital. | |||||||||||||||
Agility Ventures, LLC and UO! IP of NC, LLC | |||||||||||||||
On October 1, 2013, in conjunction with the acquisition of CTC, we entered into an equipment lease agreement with Agility Ventures, LLC in the principal amount of $1,678,531 which is secured by all of the assets of IceWEB, Inc. The lease agreement has a term of 36 months and bears interest at 15% per annum. We also issued Agility Ventures 1,000,000 shares of IceWEB, Inc. restricted common stock, and a Series T common stock warrant covering a total of 3,675,000 shares with a term of two years and a conversion price of $0.055 per share. | |||||||||||||||
On February 27, 2014, Agility Ventures LLC sold and assigned the Master Lease and Equipment Schedule to a third party, UO! IP of NC, LLC. UO! IP of NC, LLC is a related party to the holder of the Series AA Preferred Stock, Unified Online! LLC. The agreement changed the interest rate to 3.75% on the outstanding principal balance of the note at February 27, 2014. | |||||||||||||||
The Company applied the 10% cash flow test pursuant to Topic ASC 470-50-40-10 "Debt Modification and Extinguishment" to calculate the difference between the present value of the new loan's cash flows and the present value of the old loan's remaining cash flow and concluded that the results exceeded the 10% factor, the debt modification is considered substantially different and applied extinguishment accounting. Accordingly, the gain or loss on extinguishment should be measured by the difference between the carrying amount of the old debt and the fair value of the new debt. Additionally, Topic ASC 470-50-40-17 states if the exchange or modification is to be accounted for in the same manner as a debt extinguishment and the new debt instrument is initially recorded at fair value, then the fees paid or received shall be associated with the extinguishment of the old debt instrument and included in determining the debt extinguishment gain or loss to be recognized. The fair value of the new debt was determined to be $1,983,164 and the carrying amount of the old debt of principal and accrued interest totaling $1,717,853 resulted in a total loss on the extinguishment of debt of $265,311. | |||||||||||||||
A summary of our Notes Payable is as follows: | |||||||||||||||
June 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
IWEB Growth Fund | $ | 186,000 | $ | 186,000 | $ | - | |||||||||
UO! IP of NC, LLC | 660,458 | - | - | ||||||||||||
Sand Hill Finance, LLC | - | - | 2,059,582 | ||||||||||||
Other Notes Payable | 101,017 | - | - | ||||||||||||
$ | 947,475 | $ | 186,000 | $ | 2,059,582 |
INVENTORY
INVENTORY | 9 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
INVENTORY [Abstract] | ' | ||||||||||||||
INVENTORY | ' | ||||||||||||||
NOTE 7 - INVENTORY | |||||||||||||||
Inventory consisted of the following: | |||||||||||||||
June 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Raw Materials | $ | 19,069 | $ | 130,534 | $ | 175,258 | |||||||||
Work in Progress | - | 24,476 | 42,335 | ||||||||||||
Finished Goods | - | 8,158 | 64,638 | ||||||||||||
$ | 19,069 | $ | 163,168 | $ | 282,231 |
COMMITMENTS
COMMITMENTS | 9 Months Ended | ||||
Jun. 30, 2014 | |||||
COMMITMENTS [Abstract] | ' | ||||
COMMITMENTS | ' | ||||
NOTE 8 - COMMITMENTS | |||||
We leased office space in Sterling, Virginia under a two-year operating lease that expired on March 31, 2011. We occupied the office space on a month-to-month basis until October 31, 2013, when we relocated our operations to Kansas City, Missouri in conjunction with our acquisition of CTC. In Kansas City we currently have real estate leases at two locations, totaling 6,875 square feet. These operating leases are standard commercial leases. | |||||
As of June 30, 2014, future minimum lease payments under these operating leases are as follows: | |||||
For the Year Ending, | |||||
June 30, | Amount | ||||
2015 | $ | 76,375 | |||
2016 | 63,275 | ||||
2017 | 15,385 | ||||
2018 | - | ||||
$ | 155,035 | ||||
Rent expense was $73,682 and $73,894 for the nine months ended June 30, 2014 and the year ended September 30, 2013. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
INCOME TAXES | ' | |||||||||||||||
NOTE 9 - INCOME TAXES | ||||||||||||||||
We account for income taxes under the provisions of ASC 740-10-25. ASC 740-10-25 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all the relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. ASC 740-10-25 also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest, and penalties. ASC 740-10-25 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. ASC 740-10-25 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. | ||||||||||||||||
A summary of our deferred tax is as follows: | ||||||||||||||||
June 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Tax benefit of net operating loss carry forward | $ | 9,249,000 | $ | 7,089,500 | $ | 5,637,000 | ||||||||||
Unpaid accrued salaries | - | 48,500 | 13,000 | |||||||||||||
Allowance for doubtful accounts | - | - | 154,000 | |||||||||||||
Amortiztion of leasehold improvements | - | - | 339,000 | |||||||||||||
9,249,000 | 7,138,000 | 6,143,000 | ||||||||||||||
Less: valuation allowance | (9,249,000 | ) | (7,138,000 | ) | (6,143,000 | ) | ||||||||||
Net deferred tax assets | $ | 0 | $ | 0 | $ | 0 | ||||||||||
The Company's tax year is the twelve month period ending September 30th. As of September 30, 2013, the Company had unused net operating loss carry forwards of approximately $22.4 million available to reduce future federal taxable income. As of June 30, 2014, the estimated tax loss had increased to approximately $24.3 million. Net operating loss carryforwards expire through fiscal years ending 2034. Internal Revenue Code Section 382 places a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally a greater than 50% change in ownership). In April 2014, there was an ownership change of more than 50%, which resulted in an IRC Section 382 limitation on the utilization of the Company's tax loss carry forwards. | ||||||||||||||||
The valuation allowance at June 30, 2014 was $9,249,000. The increase during the nine months ended June 30, 2014 was approximately $2,111,000. | ||||||||||||||||
The table below summarizes the differences between our effective tax rate and the statutory federal rate as follows for fiscal 2014, 2013 and 2012. The effective tax rate is 34% Federal and 3.6% State after Federal tax benefit: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Computed "expected" tax benefit | (34.0 | %) | (34.0 | %) | (34.0 | %) | ||||||||||
State income taxes, net of federal tax benefit | (3.6 | %) | (3.6 | %) | (3.6 | %) | ||||||||||
Goodwill | 16 | % | 0 | % | 0 | % | ||||||||||
Other permanent differences | 4.6 | % | 15 | % | 13.6 | % | ||||||||||
Change in valuation allowance | 17 | % | 22.6 | % | 24 | % | ||||||||||
Effective tax rate | 0 | % | 0 | % | 0 | % | ||||||||||
CONVERTIBLE_NOTES
CONVERTIBLE NOTES | 9 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
CONVERTIBLE NOTES [Abstract] | ' | ||||||||||||||||||
CONVERTIBLE NOTES | ' | ||||||||||||||||||
NOTE 10 – CONVERTIBLE NOTES | |||||||||||||||||||
As of June 30, 2014 and September 30, 2013 and 2012 the Company had the following convertible notes outstanding: | |||||||||||||||||||
June 30, | 30-Sep-13 | 30-Sep-12 | |||||||||||||||||
2014 | |||||||||||||||||||
April 2013 $124,444 Convertible Note, 12% interest, due June 2014, with a 10% original issue discount, net of debt discount of $0, $2,328 and $0, respectively | $ | - | $ | 122,116 | $ | - | (1 | ) | |||||||||||
June 2013 $62,222 Convertible Note, 12% interest, due June 2014, with a 10% original issue discount, net of debt discount of $0, $2,460 and $0 respectively | - | 59,762 | - | (2 | ) | ||||||||||||||
November 2013 $83,500 Convertible Note, 8% interest, due August 2014, net of debt discount of $0 | - | - | - | (3 | ) | ||||||||||||||
December, 2013 $62,222 Convertible Note, 12% interest, due July 2014, with a 10% original issue discount, net of debt discount of $0 | 43,862 | - | - | (4 | ) | ||||||||||||||
November 2013 $132,000 Convertible Note, 10% interest, due November 2014, with a 10% original issue discount, net of debt discount of $51,500 | 50,500 | - | - | (5 | ) | ||||||||||||||
December 2013 $43,821 Convertible Note, 10% interest, due December 2014, net of debt discount of $18,259 | 25,562 | - | - | (6 | ) | ||||||||||||||
December 2013 $60,000 Convertible Note, 10% interest, due December 2014, net of debt discount of $25,000 | 35,000 | - | - | (7 | ) | ||||||||||||||
January 2014 $53,000 Convertible Note, 8% interest, due October 2014, net of debt discount of $24,724 | 28,276 | - | - | (8 | ) | ||||||||||||||
February 2014 $32,500 Convertible Note, due November 2014, net of debt discount of $18,055 | 14,445 | - | - | (9 | ) | ||||||||||||||
November 2011 $2,012,500 Convertible Note, with a 13% original issue discount, net of debt discount of $0, $0 and $59,293, respectively | - | - | 105,176 | (10 | ) | ||||||||||||||
$ | 197,645 | $ | 181,878 | $ | 105,176 | ||||||||||||||
(1) The Company borrowed $124,444 in April 2013, originally due November 2013, but extended to June, 2014 with a one-time interest charge of 12%. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 60% (representing a discount rate of 40%) of the lowest trade price of the Company's common stock in the twenty-five days prior to the date of Conversion Notice, with a floor of $0.001 per share. The Company recorded a debt discount of $11,111 related to the conversion feature of the note, along with a derivative liability in November, 2013 when the note was amended to extend the term of the note. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the seven month life of the original note term. During 2013 total amortization was recorded in the amount of $7,196 resulting in a debt discount of $2,328 at September 30, 2013. During Fiscal 2013, interest expense of $8,635 was recorded for the note. During the nine months ending June 30, 2014 total amortization was recorded in the amount of $2,328 resulting in a debt discount of $0 at June 30, 2014. Also during the nine months ending June 30, 2014, interest expense of $2,794 was recorded for the note. See Note 11. | |||||||||||||||||||
From November 2013 through March 2014, the holder of the Convertible Note exercised their conversion rights and converted $124,444 of the outstanding principal and accrued interest balance. | |||||||||||||||||||
(2) The Company borrowed $62,222 in June 2013, originally due January 2014, but extended to June, 2014 with a one-time interest charge of 12%. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 60% (representing a discount rate of 40%) of the lowest trade price of the Company's common stock in the twenty-five days prior to the date of Conversion Notice, with a floor of $0.001 per share. The Company recorded a debt discount of $5,556 related to the conversion feature of the note, along with a derivative liability in November, 2013 when the note was amended to extend the term of the note. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the seven month life of the original note term. During Fiscal 2013 total amortization was recorded in the amount of $3,095 resulting in a debt discount of $2,460 at September 30, 2013. Also during 2013, interest expense of $3,714 was recorded for the note. During the nine months ending June 30, 2014 total amortization was recorded in the amount of $13,561 resulting in a debt discount of $0 at June 30, 2014. Interest expense of $1,492 was recorded during the nine months ended June 30, 2014. Also, see Note 11. | |||||||||||||||||||
From November 2013 through March 2014, the holder of the Convertible Note exercised their conversion rights and converted $62,222 of the outstanding principal and accrued interest balance. | |||||||||||||||||||
(3) The Company borrowed $83,500 in November 2013, due August 2014. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 60% of the average of the lowest three trading prices during the 10 trading days previous to the conversion, with a floor of $0.001 per share. The Company recorded a derivative liability at inception of the note of $81,463. During the nine months ending June 30, 2014 total amortization was recorded in the amount of $81,463 resulting in a debt discount of $0 at June 30, 2014 and interest expense of $3,340 was also recorded. Also, see Note 11. | |||||||||||||||||||
During June 2014, the holder of the Convertible Note exercised their conversion rights and converted $86,840 of the outstanding principal and accrued interest balance. | |||||||||||||||||||
(4) The Company borrowed $62,222 in December 2013, due July 2014, with a one-time interest charge of 12%. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 60% (representing a discount rate of 40%) of the lowest trade price of the Company's common stock in the twenty-five days prior to the date of Conversion Notice, with a floor of $0.001 per share. The Company recorded a debt discount of $5,556 related to the conversion feature of the note, along with a derivative liability of $50,000 in December, 2013. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the seven month term of the note. During the nine months ending June 30, 2014 total amortization was recorded in the amount of $55,556 resulting in a debt discount of $0 at June 30, 2014 and interest expense of $3,000 was also recorded. Also, see Note 11. | |||||||||||||||||||
During June 2014, the holder of the Convertible Note exercised their conversion rights and converted $18,360 of the outstanding principal and accrued interest balance. | |||||||||||||||||||
(5) The Company borrowed $132,000 in November 2013, due November 2014, with interest at 10%. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 15 trading days previous to the conversion, with a floor of $0.001 per share. The note has an original issue discount of $12,000 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a derivative liability at inception of $114,000. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the nine months ending June 30, 2014 total amortization was recorded in the amount of $88,121 resulting in a debt discount of $51,500 at June 30, 2014. Interest expense of $7,700 was recorded at June 30, 2014. Also, see Note 11. | |||||||||||||||||||
During June 2014, the holder of the Convertible Note exercised their conversion rights and converted $30,000 of the outstanding principal and accrued interest balance. | |||||||||||||||||||
(6) The Company borrowed $43,821 in December 2013, due December 2014, with interest at 10%. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 60% (representing a discount rate of 40%) of the lowest trading price for the Common Stock during the fifteen trading day period ending one trading day prior to the date of Conversion Notice, with a floor of $0.001 per share. The Company recorded a derivative liability at inception of the note of $43,821. During the nine months ending June 30, 2014 total amortization was recorded in the amount of $25,562 resulting in a debt discount of $18,259 at June 30, 2014. Interest expense of $2,556 was recorded at June 30, 2014. Also, see Note 11. | |||||||||||||||||||
(7) The Company borrowed $60,000 in December 2013, due December 2014, with interest at 10%. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 60% (representing a discount rate of 40%) of the lowest trading price for the Common Stock during the fifteen trading day period ending one trading day prior to the date of Conversion Notice, with a floor of $0.001 per share. The Company recorded a derivative liability at inception of the note of $60,000. During the nine months ending June 30, 2014 total amortization was recorded in the amount of $35,000 resulting in a debt discount of $25,000 at June 30, 2014. Interest expense of $3,500 was recorded at June 30, 2014. Also, see Note 11. | |||||||||||||||||||
(8) The Company borrowed $53,000 in January 2014 due October 2014. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 60% of the average of the lowest three trading prices during the 10 trading days previous to the conversion, with a floor of $0.001 per share. The Company recorded a derivative liability at inception of the note of $44,040, and during the nine months ended June 30, 2014 recorded amortization of debt discount of $19,316 resulting in a debt discount of $24,724 at June 30, 2014. Interest expense of $1,767 was recorded at June 30, 2014. Also, see Note 11. | |||||||||||||||||||
(9) The Company borrowed $32,500 in February 2014 due November 2014. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 60% of the average of the lowest three trading prices during the 10 trading days previous to the conversion, with a floor of $0.001 per share. The Company recorded a derivative liability at inception of the note of $32,500, and during the nine months ended June 30, 2014 recorded amortization of debt discount of $14,444 resulting in a debt discount of $18,055 at June 30, 2014. Interest expense of $867 was recorded at June 30, 2014. Also, see Note 11. | |||||||||||||||||||
(10) The Company entered into a Securities Purchase Agreement with three accredited investors in November 2011 pursuant to which the Company sold $2,012,500 in principal amount of senior convertible notes and issued the investors Series O, Series P and Series M Warrants. The convertible notes were fully converted in March 2013. |
DERIVATIVE_LIABILITIES
DERIVATIVE LIABILITIES | 9 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
DERIVATIVE LIABILITIES [Abstract] | ' | |||||||||
DERIVATIVE LIABILITIES | ' | |||||||||
NOTE 11 - DERIVATIVE LIABILITIES | ||||||||||
Derivative liability - warrants | ||||||||||
The Company has warrants issued in connection with our convertible notes payable outstanding with price protection provisions that allow for the reduction in the exercise price of the warrants in the event the Company subsequently issues stock or securities convertible into stock at a price lower than the exercise price of the warrants. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased or decreased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. The Company accounted for its warrants with price protection in accordance with FASB ASC Topic 815. | ||||||||||
Accounting for Derivative Warrant Liability | ||||||||||
The Company's derivative warrant instruments have been measured at fair value at June 30, 2014 using the Black-Scholes model, which approximates a binomial or lattice model. The Company recognizes all of its warrants with price protection in its consolidated balance sheet as liabilities. The liability is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of operations. The initial recognition and subsequent changes in fair value of the derivative warrant liability have no effect on the Company's cash flows. | ||||||||||
The derivative warrants outstanding at June 30, 2014 are all currently exercisable with a weighted-average remaining life of 2.25 years. | ||||||||||
Derivative liability – convertible notes | ||||||||||
From November, 2013 through June 30, 2014 the company issued convertible notes in the total principal amount of $467,043 and amended conversion terms of the previously existing convertible notes in the amount of $186,667. Upon the issuance of these convertible notes and as a consequence of its convertible features, the convertible notes give rise to derivative liabilities. The Company's derivative liabilities related to its convertible notes payable have been measured at fair value at June 30, 2014 and September 30, 2013 using the Black-Scholes model. | ||||||||||
The revaluation of the warrants and convertible notes at each reporting period, as well as the charges associated with issuing additional warrants due to the price protection features, resulted in the recognition of a loss of $61,221 for the nine months ended June 30, 2014 and income of $987,075 for the year ended September 30, 2013 within the Company's consolidated statements of operations, under the caption “Gain (loss) on Change of Fair Value of Derivative Liability. The fair value of the warrants at June 30, 2014 is $302,065 which is reported on the consolidated balance sheet under the caption “Derivative Liability - Warrants”. The fair value of the convertible debt at June 30, 2014 is $469,632 which is reported on the consolidated balance sheet under the caption “Derivative Liability – Convertible Debt”. | ||||||||||
The following summarizes the changes in the value of the derivative warrant liability and the derivative current debt liability from September 30, 2013 until June 30, 2014: | ||||||||||
Value | No. of Warrants | |||||||||
Balance at September 30, 2013 - Derivative liability - warrants | $ | 117,424 | 88,018,721 | |||||||
Increase in fair value of derivative warrant liability | 184,641 | - | ||||||||
Balance at June 30, 2014 - Derivative liability - warrants | $ | 302,065 | 2,338,703,090 | |||||||
Value | ||||||||||
Balance at September 30, 2013 - Derivative liability - convertible debt | $ | - | ||||||||
Increase in derivative liability related to issuance of convertible debt | 592,503 | |||||||||
Decrease in fair value of derivative liability | (122,871 | ) | ||||||||
Balance at June 30, 2014 - Derivative liability - convertible debt | $ | 469,632 | ||||||||
Fair Value Assumptions Used in Accounting for Derivative Warrant Liability | ||||||||||
The Company has determined its derivative warrant liability to be a Level 3 fair value measurement and has used the Black-Scholes pricing model to calculate the fair value as of June 30, 2014. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. The key inputs used in the June 30, 2014 fair value calculations were as follows: | ||||||||||
30-Jun-14 | ||||||||||
Current exercise price | $0.0006 - $0.00066 | |||||||||
Time to expiration | 1 month to 2.25 years | |||||||||
Risk-free interest rate | 0.88 | % | ||||||||
Estimated volatility | 209.21 | % | ||||||||
Dividend | $ | 0 | ||||||||
Stock price on June 30, 2014 | $ | 0.0014 | ||||||||
Expected forfeiture rate | 0% to 90% |
CONCENTRATION_OF_CREDIT_RISK
CONCENTRATION OF CREDIT RISK | 9 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
CONCENTRATION OF CREDIT RISK [Abstract] | ' | ||||||||||||||
CONCENTRATION OF CREDIT RISK | ' | ||||||||||||||
NOTE 12 - CONCENTRATION OF CREDIT RISK | |||||||||||||||
Bank Balances | |||||||||||||||
The Company maintains cash in financial institutions insured by the Federal Deposit Insurance Corporation (“FDIC”), including non-interest bearing transaction account deposits protected in full in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). At June 30, 2014 all of the Company's cash balances were fully insured. The Company has not experienced any losses in such accounts. | |||||||||||||||
Major Customers | |||||||||||||||
Sales to 1 customer for the nine months ended June 30, 2014 represented 13% of total sales and sales to 2 major customers represented 39% and 60% of total sales for the years ended September 30, 2013 and 2012, respectively. | |||||||||||||||
Nine Months Ended | Years Ended September 30, | ||||||||||||||
30-Jun-14 | 2013 | 2012 | |||||||||||||
Customer A | 13 | % | 26 | % | 41 | % | |||||||||
Customer B | 0 | % | 13 | % | 19 | % | |||||||||
All others | 87 | % | 61 | % | 40 | % | |||||||||
100 | % | 100 | % | 100 | % | ||||||||||
As of June 30, 2014 and September 30, 2013 and 2012, respectively, approximately 95%, 70% and 80% of our accounts receivable was due from two customers. | |||||||||||||||
June 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Customer A | 68 | % | 47 | % | 54 | % | |||||||||
Customer B | 27 | % | 23 | % | 26 | % | |||||||||
All others | 5 | % | 30 | % | 20 | % | |||||||||
100 | % | 100 | % | 100 | % |
STOCKHOLDERS_DEFICIT
STOCKHOLDERS' DEFICIT | 9 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
STOCKHOLDERS' DEFICIT [Abstract] | ' | ||||||||||||||||||||||||||||
STOCKHOLDERS' DEFICIT | ' | ||||||||||||||||||||||||||||
NOTE 13 - STOCKHOLDERS' DEFICIT | |||||||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||||||
Our authorized capital includes 10,000,000 shares of blank check preferred stock, par value $0.001 per share. Our Board of Directors, without further stockholder approval, may issue our preferred stock in one or more series from time to time and fix or alter the designations, relative rights, priorities, preferences, qualifications, limitations and restrictions of the shares of each series. In March 2005, our Board of Directors authorized a series of 1,666,667 shares of blank check preferred stock be designated as Series A Convertible Preferred Stock and on April 1, 2005 we filed a Certificate of Designations of Preferences, Rights and Limitations of Series A Convertible Preferred Stock with the Secretary of State of Delaware. In September 2005, our Board of Directors authorized a series of 833,334 shares of blank check preferred stock be designated as Series B Convertible Preferred Stock and on September 28, 2005, we filed a Certificate of Designations of Preferences, Rights and Limitations of Series B Preferred with the Secretary of State of Delaware. On December 29, 2005, we filed an Amended and Restated Certificate of Designations of Preferences, Rights and Limitations of Series B Convertible Preferred Stock increasing the number of shares authorized under this series to 1,833,334 shares. | |||||||||||||||||||||||||||||
A) Series B Convertible Preferred Stock | |||||||||||||||||||||||||||||
The designations, rights and preferences of the Series B Convertible Preferred Stock provide: | |||||||||||||||||||||||||||||
No dividends are payable on the Series B Convertible Preferred Stock. So long as these shares are outstanding, we cannot pay dividends on our common stock nor can it redeem any shares of its common stock, the shares of Series B Convertible Preferred Stock do not have any voting rights, except as may be provided under Delaware law, | |||||||||||||||||||||||||||||
So long as the shares are outstanding, we cannot change the designations of the Series B Convertible Preferred Stock, create a class of securities that in the instance of payment of dividends or distribution of assets upon our liquidation ranks senior to or pari passu with the Series B Convertible Preferred Stock or increase the number of authorized shares of Series B Convertible Preferred Stock, | |||||||||||||||||||||||||||||
Each share of Series B Convertible Preferred Stock is convertible at the option of the holder into one share of our common stock based upon an initial conversion value of $0.2727 per share. The conversion ratio is subject to adjustment in the event of stock dividends, stock splits or reclassification of our common stock. No conversion of the Series B Convertible Preferred Stock may occur if a conversion would result in the holder, and any of its affiliates beneficially owning more than 4.9% of our outstanding common shares following such conversion. This provision may be waived or amended only with the consent of the holders of all of the Series B Convertible Preferred Stock and the consent of the holders of a majority of our outstanding shares of common stock who are not affiliates, and | |||||||||||||||||||||||||||||
the shares of Series B Convertible Preferred Stock automatically convert into shares of our common stock in the event of change of control of the Company. | |||||||||||||||||||||||||||||
B) Series AA Preferred Stock | |||||||||||||||||||||||||||||
On April 23, 2014, the Company authorized the creation of the Corporation's Series AA Preferred Stock pursuant to the terms and conditions of that certain Certificate of Designations, Preferences and Rights and Limitations of Series AA Preferred Stock (the “Certificate of Designations”). The Corporation is authorized to issue 10,000,000 shares of preferred stock, of which 626,667 shares of Series B Convertible Preferred Stock have been previously issued and remain outstanding. Out of the remaining 9,373,333 authorized but unissued shares of preferred stock, the Certificate of Designations creates four hundred thousand (400,000) shares of Series AA Preferred Stock, $0.001 par value per share (the “Series AA Preferred Stock”), with the following powers and rights: | |||||||||||||||||||||||||||||
the holders of the Series AA Preferred Stock have five thousand (5,000) times that number of votes on all matters submitted to the shareholders of the Corporation that is equal to the number of shares of Common Stock of the Corporation, | |||||||||||||||||||||||||||||
the holders of the Series AA Preferred Stock shall vote together with the holders of Common Stock as a single class upon all matters submitted to the holders of Common Stock of the Corporation, | |||||||||||||||||||||||||||||
the holders of the Series AA Preferred Stock are not entitled to receive dividends paid on the Common Stock of the Corporation, | |||||||||||||||||||||||||||||
the holders of the Series AA Preferred Stock are not entitled to receive any preference over the holders of Common Stock of the Corporation following a liquidation, dissolution and winding up of the Corporation, and | |||||||||||||||||||||||||||||
on or after May 15, 2014, to the extent sufficient shares of Common Stock are authorized, the Series AA Preferred Stock is convertible into the shares of the Corporation's fully diluted Common Stock, taking into account the exercise of all warrants, options or any other rights of issuance, of such number sufficient to provide the holders thereof, in the aggregate, ninety percent (90%) of all shares of Common Stock of the Corporation on a fully diluted basis. | |||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||
On July 1, 2014, the Company filed a Certificate of Amendment of Certificate of Incorporation with the State of Delaware Secretary of State Division of Corporations to reflect an increase in authorized shares of Common Stock (the “Increase in Authorized”) from One Billion (1,000,000,000) shares of Common Stock, par value $0.001 per share, to Five Billion (5,000,000,000) authorized shares of Common Stock, par value $0.001 per share. The Increase in Authorized has an effective date with the State of Delaware Secretary of State Division of Corporations of July 1, 2014, the date the Certificate of Amendment of Certificate of Incorporation was filed. | |||||||||||||||||||||||||||||
Nine months ended June 30, 2014 Transactions | |||||||||||||||||||||||||||||
In conjunction with our acquisition of Computers & Telecom, Inc. and Subsidiary in October, 2013, the Company issued one million shares of IceWEB, Inc. common stock to Agility Ventures, LLC at the closing price of $0.0245 on October 1, 2013, valued at $24,500. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
Additionally, in conjunction with the Company's acquisition of Computers & Telecom, Inc. and Subsidiary in October, 2013, the Company issued 23,054,198 shares of common stock to employees and other individuals involved in the acquisition at the closing price of $0.0245 on October 1, 2013, valued at $564,827.85. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In November, 2013, the Company issued 2,000,000 shares of common stock at the closing price of $0.01550 on November 13, 2014, valued at $31,000 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In November, 2013, the Company issued 5,000,000 shares of common stock at the closing price of $0.0130 on November 26, 2013, valued at $65,000 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In November, 2013, the Company issued 4,750,000 shares of common stock at the closing price of $0.016 on November 12, 2013, valued at $76,000 to four employees as compensation. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In November, 2013, the Company issued 4,117,652 shares of common stock at the closing price of $0.017 on November 11, 2013, valued at $70,000 to the directors of IceWEB as board compensation. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In November, 2013, the Company issued 3,000,000 shares of common stock, at the original conversion terms, at a per share price of $0.00606 valued at $18,180 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In December, 2013 and June, 2013, the Company issued 6,405,164 shares of common stock, at the original conversion terms, at a per share price ranging from $0.0152 to $0.01060 to an accredited investor as a commitment fee for a convertible note. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In December, 2013, the Company issued 4,500,000 shares of common stock, at the original conversion terms, at a per share price of $0.00594 valued at $26,730 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In January, 2014, the Company issued 2,000,000 shares of common stock at the closing price of $0.012 on January 15, 2014, valued at $24,000 to an executive officer as compensation. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In January, 2014 the Company issued 7,285,604 shares of common stock upon the exercise of common stock warrants. | |||||||||||||||||||||||||||||
In January, 2014 and February, 2014, 16 million shares of common stock were returned by two executive officers at the contractual price of $0.033, valued at $528,000. | |||||||||||||||||||||||||||||
In February, 2014, the Company issued 8,000,000 shares of common stock the closing price of $0.0124 on February 3, 2014, valued at $91,200 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. In February, 2014, the Company issued 2,000,000 shares of common stock at the closing price of $0.01160 on February 5, 2014, valued at $23,200 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In February, 2014 the Company issued 7,000,000 shares of common stock, at the original conversion terms, at a per share price of $0.00600 valued at $42,000 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In March, 2014, the Company issued 5,000,000 shares of common stock, at the original conversion terms, at a per share price of $0.00420 valued at $21,000 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In March, 2014, the Company issued 8,000,000 shares of common stock, at the original conversion terms, at a per share price of $0.00246 valued at $19,680 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In April, 2014, the Company issued 7,000,000 shares of common stock, at the original conversion terms, at a per share price of $0.00246 valued at $17,220 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In May, 2014, the Company issued 29,880,550 shares of common stock, at the original conversion terms, at a per share price ranging from $0.00120 to $0.00180 valued at $41,856.66 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In June, 2014, the Company issued 83,231,313 shares of common stock, at the original conversion terms, at a per share price ranging from $0.00190 to $0.0012, in full satisfaction of $86,840 of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In June, 2014, the Company issued 45,454,545 shares of common stock, at the original conversion terms, at a per share price of $0.00066 valued at $30,000 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In June, 2014, the Company issued 18,000,000 shares of common stock, at the original conversion terms, at a per share price of $0.00102 valued at $18,360 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
The Company issued 25,000,000 shares of common stock upon the exercise of stock options at various contractual exercise prices ranging from $0.01615 to $0.006175 valued at $271,168. | |||||||||||||||||||||||||||||
All stock based transactions listed above were valued at fair market value (quoted market prices) or the contractual rate which approximates fair market value, as applicable. | |||||||||||||||||||||||||||||
Year ended September 30, 2013 Transactions | |||||||||||||||||||||||||||||
Issuances of Restricted Stock | |||||||||||||||||||||||||||||
In November, 2012, the Company issued 918,919 shares at a per share price of $0.074 to our executive officers and recognized stock based compensation expense of $68,000. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In December, 2012, the Company issued 112,000 shares of common stock at a per share price of $0.074, valued at $8,228 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In December, 2012, the Company sold 500,000 shares of common stock at a per share price of $0.074, valued at $37,000 to an accredited investor. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In January, 2013, the Company issued 216,216 shares at a per share price of $0.074 to our executive officers and recognized stock based compensation expense of $16,000. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In January, 2013, the Company sold 500,000 shares of common stock at a per share price of $0.074, valued at $37,000 to an accredited investor. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In January, 2013, the Company issued 112,000 shares of common stock at a per share price of $0.074, valued at $8,228 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In February, 2013, the Company issued 175,000 shares of common stock at a per share price of $0.074, valued at $12,950 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In February, 2013, the Company issued 1,950,000 shares of common stock at a per share price of $0.0396, valued at $77,300 to two accredited investors for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In February, 2013, the Company issued 112,000 shares of common stock at a per share price of $0.039, valued at $4,368 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In March, 2013, the Company issued 5,000,000 shares of common stock at a per share price of $0.04, valued at $200,000 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In March, 2013, the Company sold 1,200,000 shares of common stock at a per share price of $0.021, valued at $25,000 to an accredited investor. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In March, 2013, the Company issued 362,000 shares of common stock at a per share price of $0.0309 valued at $11,196 to two accredited investors for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In April, 2013, the Company issued 18,000,000 shares of common stock at a per share price of $0.033 to our executive officers and employees and recognized stock based compensation expense of $594,000. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In April, 2013, the Company issued 2,250,000 shares of common stock at a per share price of $0.0305 valued at $68,675 to two accredited investors for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In April, 2013, the Company sold 2,500,000 shares of common stock at a per share price of $0.02, valued at $50,000 to an accredited investor. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In May, 2013, the Company issued 224,000 shares of common shares t a per share price of $0.028, valued at $6,272 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In May, 2013, the Company issued 708,333 shares of common stock at a per share price of $0.0254, valued at $18,008 to two accredited investors for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In June, 2013, the Company issued 2,500,000 shares of common stock at a per share price of $0.02, valued at $50,000 to an accredited investor. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In July, 2013, the Company issued 6,000,000 shares of common stock at a share price of $0.0236 to our executive officers and employees and recognized stock based compensation expense of $141,600. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In July, 2013, the Company issued 2,000,000 shares of common stock at a per share price of $0.0236, valued at $47,200 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In July, 2013, the Company issued 3,500,000 shares of common stock at a per share price of $0.02, valued at $70,000 to an accredited investor. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In September, 2013, the Company issued 5,000,000 shares of common stock at a per share price of $0.03, valued at $150,000 to an accredited investor for services rendered. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
All stock based transactions listed above were valued at fair market value (quoted market prices) or the contractual rate which approximates fair market value as applicable. | |||||||||||||||||||||||||||||
Unregistered shares issued in connection with the Conversion of Notes | |||||||||||||||||||||||||||||
The Company issued 43,750,000 shares upon the conversion of notes payable at exercise prices ranging from $0.0444 to $0.075 per share. | |||||||||||||||||||||||||||||
Registered shares issued related to the exercise of common stock options | |||||||||||||||||||||||||||||
The Company issued 91,224,000 shares upon the exercise of stock options at various contractual exercise prices ranging from $0.001 to $0.075 per share. | |||||||||||||||||||||||||||||
Registered shares issued in connection with the Conversion of Notes | |||||||||||||||||||||||||||||
The Company issued 3,431,300 shares upon the conversion of notes payable at various contractual exercise prices ranging from $0.03627 to $0.0527 per share. | |||||||||||||||||||||||||||||
Registered shares issued in connection with the Exercise of Warrants | |||||||||||||||||||||||||||||
The Company issued 1,910,000 shares upon the exercise of common stock warrants at the contractual exercise price of $0.028 per share. | |||||||||||||||||||||||||||||
Year Ended September 30, 2012 Transactions | |||||||||||||||||||||||||||||
In July and August, 2012 the Company issued 2,434,871 shares of restricted common stock at an average per share price of $0.094, valued at $228,250, in lieu of pay to five of our employees, including three of our executive officers. The recipients were accredited investors and the issuances were exempt from registration under the Securities Act of 1933 in reliance on exemptions provided by Section 4(2) of that act. | |||||||||||||||||||||||||||||
In May, 2012 the Company executed a Finders' Agreement pursuant to which the finder acted as the exclusive finder with respect to sales by the Company in a private placement transaction of up to $2.5 million in aggregate principal amount of equity or equity-related securities. We sold 13,455,958 units in exchange for gross proceeds of $1,614,715. These sales were made in a private transaction exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of the Act and Regulation D thereunder. | |||||||||||||||||||||||||||||
On November 23, 2011, the Company entered into a Securities Purchase Agreement with three accredited investors pursuant to which we sold $2,012,500 in a principal amount of senior convertible notes and issued the investors Series O, Series P and Series Q warrants to purchase up to an aggregate of 35,514,789 shares of our common stock for an aggregate purchase price of $1,750,000 in a private transaction exempt from registration under the Securities Act of 1933. We issued the senior convertible notes at an original issue discount of 13%. We also entered into a Registration Rights Agreement with investors in which we agreed to register the shares underlying the senior convertible notes and the warrants. We paid Rodman & Renshaw, LLC, a broker-dealer and member of FINRA who acted as the exclusive placement agent for us in the offering, a cash commission of $155,000, issued it warrants to purchase an aggregate of 911,765 shares of our common stock with an exercise price of $0.17 per share which are identical to the Series O warrants, and reimbursed it for legal expenses of $20,000. We reimbursed Iroquois Master Fund LTD, an investor in the offering, $60,000 for its non-accountable expenses related to the investment. | |||||||||||||||||||||||||||||
Common Stock Warrants | |||||||||||||||||||||||||||||
A summary of the Company's outstanding common stock warrants as of June 30, 2014 and September 30, 2013 and 2012 and changes during the period ending on that date is as follows: | |||||||||||||||||||||||||||||
Nine Months Ended June 30, 2014 | Year Ended September 30, 2013 | Year Ended September 30, 2012 | |||||||||||||||||||||||||||
Weighted Average | Weighted Average | Weighted Average | |||||||||||||||||||||||||||
Number of Warrants | Exercise Price | Number of Warrants | Exercise Price | Number of Warrants | Exercise Price | ||||||||||||||||||||||||
Balance at beginning of period | 102,820,275 | $ | 0.028 | 118,434,173 | $ | 0.017 | 11,528,934 | $ | 0.017 | ||||||||||||||||||||
Granted | 2,297,310,308 | 0.00124 | 46,195,745 | 0.052 | 110,074,867 | 0.0816 | |||||||||||||||||||||||
Exercised | (5,176,615 | ) | 0.0054 | (1,910,000 | ) | 0.028 | (3,169,628 | ) | 0.0737 | ||||||||||||||||||||
Forfeited | (7,285,604 | ) | 0.0054 | (59,899,643 | ) | 0.08 | - | 0 | |||||||||||||||||||||
Balance at end of period | 2,387,668,364 | $ | 0.00202 | 102,820,275 | $ | 0.028 | 118,434,173 | $ | 0.0853 | ||||||||||||||||||||
The following table summarizes information about common stock warrants outstanding at June 30, 2014: | |||||||||||||||||||||||||||||
Warrants Outstanding | |||||||||||||||||||||||||||||
Warrants Exercisable | |||||||||||||||||||||||||||||
Number | Number | ||||||||||||||||||||||||||||
Outstanding at | Weighted Average | Weighted Average | Exercisable at | Weighted Average | |||||||||||||||||||||||||
30-Jun-14 | Remaining Life | Exercise Price | 30-Jun-14 | Exercise Price | |||||||||||||||||||||||||
2,338,703,090 | 2.25 Years | $ | 0.00066 | 2,338,703,090 | $ | 0.00066 | |||||||||||||||||||||||
30,488,720 | 2.40 Years | 0.028 | 30,488,720 | 0.028 | |||||||||||||||||||||||||
14,801,554 | 3.00 Years | 0.15 | 14,801,554 | 0.15 | |||||||||||||||||||||||||
3,675,000 | 1.25 Years | 0.055 | 3,675,000 | 0.055 | |||||||||||||||||||||||||
2,387,668,364 | 2.25 Years | $ | 0.00202 | 2,387,668,364 | $ | 0.00202 | |||||||||||||||||||||||
STOCK_OPTION_PLAN
STOCK OPTION PLAN | 9 Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||
STOCK OPTION PLAN [Abstract] | ' | |||||||||||||||||||||||||||||
STOCK OPTION PLAN | ' | |||||||||||||||||||||||||||||
NOTE 14 - STOCK OPTION PLAN | ||||||||||||||||||||||||||||||
In August 2012, the Board of Directors adopted the 2012 Equity Compensation Plan (the “2012 Plan”) for directors, officers and employees that provides for non-qualified and incentive stock options to be issued enabling holders thereof to purchase common shares of our stock at exercise prices determined by our Board of Directors. | ||||||||||||||||||||||||||||||
The purpose of the Plan is to advance the Company's interests and those of its stockholders by providing a means of attracting and retaining key employees, directors and consultants. In order to serve this purpose, the Company believes the Plan encourages and enables key employees, directors and consultants to participate in its future prosperity and growth by providing them with incentives and compensation based on its performance, development and financial success. Participants in the Plan may include the Company's officers, directors, other key employees and consultants who have responsibilities affecting our management, development or financial success. | ||||||||||||||||||||||||||||||
Awards may be made under the Plan in the form of Plan options, shares of the Company's common stock subject to a vesting schedule based upon certain performance objectives (“Performance Shares”) and shares subject to a vesting schedule based on the recipient's continued employment (“restricted shares”). Plan options may either be options qualifying as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended or options that do not so qualify. Any incentive stock option granted under the Plan must provide for an exercise price of not less than 100% of the fair market value of the underlying shares on the date of such grant, but the exercise price of any incentive option granted to an eligible employee owning more than 10% of our common stock must be at least 110% of such fair market value as determined on the date of the grant. Only persons who are officers or other key employees are eligible to receive incentive stock options and performance share grants. Any non-qualified stock option granted under the Plan must provide for an exercise price of not less than 50% of the fair market value of the underlying shares on the date of such grant. | ||||||||||||||||||||||||||||||
The Plan, as amended permits the grant of options and shares for up to 80,000,000 shares of our common stock. The Plan terminates 10 years from the date of the Plan's adoption by our stockholders. | ||||||||||||||||||||||||||||||
The term of each Plan option and the manner in which it may be exercised is determined by the Board of Directors, provided that no Plan option may be exercisable more than three years after the date of its grant and, in the case of an incentive option granted to an eligible employee owning more than 10% of our common stock, no more than five years after the date of the grant. The exercise price of the stock options may be paid in either cash, or delivery of unrestricted shares of common stock having a fair market value on the date of delivery equal to the exercise price, or surrender of shares of common stock subject to the stock option which has a fair market value equal to the total exercise price at the time of exercise, or a combination of the foregoing methods. | ||||||||||||||||||||||||||||||
The fair value of stock options granted was estimated at the date of grant using the Black-Scholes options pricing model. We used the following assumptions for determining the fair value of options granted under the Black-Scholes option pricing model: | ||||||||||||||||||||||||||||||
Nine Months Ended | Years Ended September 30, | |||||||||||||||||||||||||||||
30-Jun-14 | 2013 | 2012 | ||||||||||||||||||||||||||||
Expected volatility | 13% - 278% | 13% - 278% | 36%-278% | |||||||||||||||||||||||||||
Expected term | 1 -3 Years | 1 -3 Years | 1 -3 Years | |||||||||||||||||||||||||||
Risk-free interest rate | 0.01% - 0.34% | 0.01% - 0.34% | 0.67% - 0.77% | |||||||||||||||||||||||||||
Forfeiture rate | 0 | % | 0% - 45% | 0% - 45% | ||||||||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||||
The expected volatility was determined with reference to the historical volatility of the Company's stock. The Company uses historical data to estimate option exercise, employee termination, and forfeiture rate within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate in effect at the time of grant. | ||||||||||||||||||||||||||||||
For the nine month period ended June 30, 2014, total stock-based compensation charged to operations for option-based arrangements amounted to $194,531. At June 30, 2014, there was approximately $57,988 of total unrecognized compensation expense related to non-vested option-based compensation arrangements under the Plan. | ||||||||||||||||||||||||||||||
A summary of the status of our outstanding stock options as of June 30, 2014 and changes during the period ending on that date is as follows: | ||||||||||||||||||||||||||||||
Nine Months Ended June 30, 2014 | Year Ended September 30, 2013 | Year Ended September 30, 2012 | ||||||||||||||||||||||||||||
Weighted Average | Weighted Average | Weighted Average | ||||||||||||||||||||||||||||
Number of Options | Exercise Price | Number of Options | Exercise Price | Number of Options | Exercise Price | |||||||||||||||||||||||||
Balance at beginning of period | 3,417,970 | $ | 0.086 | 8,353,185 | $ | 0.0773 | 4,104,487 | $ | 0.375 | |||||||||||||||||||||
Granted | 27,000,000 | 0.0111 | 90,963,785 | 0.042 | 8,079,185 | 0.079 | ||||||||||||||||||||||||
Exercised | (27,000,000 | ) | 0.0111 | (91,224,000 | ) | 0.042 | (1,532,325 | ) | 0.167 | |||||||||||||||||||||
Forfeited | (525,000 | ) | 0.0989 | (4,675,000 | ) | 0.079 | (2,298,162 | ) | 0.554 | |||||||||||||||||||||
Balance at end of period | 2,892,970 | $ | 0.08366 | 3,417,970 | $ | 0.086 | 8,353,185 | $ | 0.0773 | |||||||||||||||||||||
The following table summarizes information about employee stock options outstanding at June 30, 2014: | ||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||
Number | Number | |||||||||||||||||||||||||||||
Outstanding at | Weighted Average | Weighted Average | Exercisable at | Weighted Average | ||||||||||||||||||||||||||
Range of Exercise Price | 30-Jun-14 | Remaining Life | Exercise Price | 30-Jun-14 | Exercise Price | |||||||||||||||||||||||||
$0.08 | 250,000 | 3.21 Years | $ | 0.077 | 145,833 | $ | 0.00066 | |||||||||||||||||||||||
$0.0847 - $0.081 | 2,642,970 | 3.21 Years | 0.0843 | 2,642,970 | 0.0843 | |||||||||||||||||||||||||
2,892,970 | 3.21 Years | $ | 0.08367 | 2,788,803 | $ | 0.08367 |
INVESTMENTS
INVESTMENTS | 9 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
INVESTMENTS [Abstract] | ' | ||||||||||||||||||||
INVESTMENTS | ' | ||||||||||||||||||||
NOTE 15 – INVESTMENTS | |||||||||||||||||||||
(a) Summary of Investments | |||||||||||||||||||||
Marketable Equity Securities: | |||||||||||||||||||||
As of June 30, 2014, the Company's investments in marketable equity securities are based on the June 30, 2014 and September 30, 2013 stock price as reflected on the OTCBB, respectively. These marketable equity securities are summarized as follows: | |||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Fair | |||||||||||||||||||
30-Jun-14 | Cost | Gains | Losses | Value | |||||||||||||||||
Publicly traded equity securities | $ | 81,000 | $ | - | $ | (80,997 | ) | $ | 3 | ||||||||||||
Total | $ | 81,000 | $ | - | $ | (80,997 | ) | $ | 3 | ||||||||||||
Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Fair | |||||||||||||||||||
30-Sep-13 | Cost | Gains | Losses | Value | |||||||||||||||||
Publicly traded equity securities | $ | 81,000 | $ | - | $ | (80,180 | ) | $ | 820 | ||||||||||||
Total | $ | 81,000 | $ | - | $ | (80,180 | ) | $ | 820 | ||||||||||||
The unrealized losses are presented in comprehensive income in the consolidated statements of comprehensive loss. | |||||||||||||||||||||
(b) Fair Value Measurements | |||||||||||||||||||||
On January 1, 2008, the Company adopted ASC 820, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. The Company did not adopt the ASC 820 fair value framework for nonfinancial assets and liabilities, except for items that are recognized or disclosed at fair value in the financial statements at least annually. ASC 820 clarifies that fair value is an exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||||||||||||
Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; | |||||||||||||||||||||
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |||||||||||||||||||||
Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||||||||||||||
Investments Measured at Fair Value on a Recurring Basis: | |||||||||||||||||||||
Quoted | Significant | ||||||||||||||||||||
Prices | Other | Significant | |||||||||||||||||||
in Active | Observable | Unobservable | |||||||||||||||||||
Markets | Inputs | Inputs | |||||||||||||||||||
30-Jun-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Marketable Equity Securities | $ | 3 | $ | - | $ | - | |||||||||||||||
Derivative liabilities, warrants | $ | - | $ | - | $ | 302,065 | |||||||||||||||
Derivative liabilities, convertible debt | $ | - | $ | - | $ | 469,632 | |||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Marketable Equity Securities | $ | 820 | $ | - | $ | - | |||||||||||||||
Derivative liabilities, warrants | $ | - | $ | - | $ | 117,424 | |||||||||||||||
Derivative liabilities, convertible debt | $ | - | $ | - | $ | - | |||||||||||||||
Under the guidance of ASC 320, “Investments”, we periodically evaluate other-than-temporary impairment (OTTI) of securities to determine whether a decline in their value is other than temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary. The term “other-than-temporary” is not intended to indicate that the decline is permanent. It indicates that the prospects for a near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the investment. Once a decline in value is determined to be other than temporary, the value of the security is reduced and a corresponding impairment charge to earnings is recognized. In the assessment of OTTI for various securities at June 30, 2014 the guidance in ASC 320, “the Investment-Debt and Equity Securities,” is carefully followed. | |||||||||||||||||||||
There were no impairment charges on investments in publicly traded equity securities for the nine months ended June 30, 2014 or the year ended September 30, 2013. | |||||||||||||||||||||
The Company has evaluated its publicly traded equity securities as of June 30, 2014, and has determined that there were no unrealized losses that indicate an other-than-temporary impairment. This determination was based on several factors, which include the length of time and extent to which fair value has been less than the cost basis and the financial condition and near-term prospects of the issuer, and the Company's intent and ability to hold the publicly traded equity securities for a period of time sufficient to allow for any anticipated recovery in market value. |
COMPREHENSIVE_INCOME_LOSS
COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Jun. 30, 2014 | |
COMPREHENSIVE INCOME (LOSS) [Abstract] | ' |
COMPREHENSIVE INCOME (LOSS) | ' |
NOTE 16 - COMPREHENSIVE INCOME (LOSS) | |
Comprehensive income is comprised of net income and other comprehensive income or loss. Other comprehensive income or loss refers to revenue, expenses, gains and losses that under accounting principles generally accepted in the United States are included in comprehensive income but excluded from net income as these amounts are recorded directly as an adjustment to stockholders' equity. | |
The Company's accumulated other comprehensive income at June 30, 2014 consists of unrealized losses on marketable securities available for sale of $80,997. |
SEGMENT_REPORTING
SEGMENT REPORTING | 9 Months Ended |
Jun. 30, 2014 | |
SEGMENT REPORTING [Abstract] | ' |
SEGMENT REPORTING | ' |
NOTE 17 - SEGMENT REPORTING | |
Although the Company has a number of operating divisions, separate segment data has not been presented as they meet the criteria for aggregation as permitted by ASC Topic 280, “Segment Reporting” (formerly Statement of Financial Accounting Standards (SFAS) No. 131, “Disclosures About Segments of an Enterprise and Related Information”). | |
Our chief operating decision-maker is considered to be our Chief Executive Officer (CEO). The CEO reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The financial information reviewed by the CEO is identical to the information presented in the accompanying consolidated statements of operations. Therefore, the Company has determined that it operates in a single operating segment, specifically, web communications services. For the nine months ended June 30, 2014 and the year ended September 30, 2013 all material assets and revenues of the Company were in the United States. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2014 | |
Legal Matters and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 18 - COMMITMENTS AND CONTINGENCIES | |
At June 30, 2014 the Company is the subject of, or party to, six known, pending or threatened, legal actions. Following is a discussion of each: | |
1. The Company was named as the defendant in a legal proceeding brought by FedEx Customer Information Services, Inc. (the plaintiff) on May 28, 2010 in the Circuit Court of Fairfax County, Virginia. The plaintiff asserts that the Company failed to pay the full amount owed for services. The plaintiff obtained a judgment for $16,322 plus interest and costs. The Company is seeking an out-of-court settlement. | |
2. The Company was named as the defendant in a legal proceeding brought by FedEx Customer Information Services, Inc. (the plaintiff) on September 15, 2010 in the General District Court of Fairfax County, Virginia. The plaintiff asserts that the Company failed to pay the full amount owed for services. The plaintiff obtained a Consent Judgment for $12,900 in compensatory damages plus $58 in costs. The Company is seeking an out-of-court settlement. | |
3. The Company was named as the defendant in a legal proceeding brought by i-Cubed Information LLC (the plaintiff) on August 10, 2012 in the General District Court of Fairfax County, Virginia. The plaintiff asserts that the Company failed to pay for delivery of services provided by plaintiff. The plaintiff was granted a judgment by consent in the amount of $12,920. The Company is seeking an out-of-court settlement. | |
4. The Company was named as the defendant in a legal proceeding brought by Pelligrino and Associates (the plaintiff) on August 14, 2014 in the Marion County Superior Court, Marion County, Indiana. The plaintiff asserts that IceWEB failed to pay the full amount owed for services. The plaintiff is seeking $17,250 plus attorney's fees, interest and cots. The Company is vigorously contesting this case. | |
5. The Company initiated a suit against WANsecurity on November 13, 2013 in the Jackson County Circuit Court of Kansas City, Missouri to prevent WANsecurity from taking action that could cause significant disruptions to the Company's customers. The matter is set for trial on June 1, 2015. The matter is currently in active settlement negotiation. | |
6. The Company was named as the defendant in a legal proceeding brought by Robert Half International (the plaintiff) on June 23, 2014 in the Jackson County Associate Circuit Court of Kansas City, Missouri. The plaintiff asserts that the Company failed to pay the full amount owed for services. The Company settled for $3,500 and, once proceeds have cleared, a Stipulation of Dismissal will be filed. This matter will be dismissed before the end of October 2014. | |
From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. |
ACQUISITION
ACQUISITION | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
ACQUISITION [Abstract] | ' | ||||||||||||||||
ACQUISITION | ' | ||||||||||||||||
NOTE 19 - ACQUISITION | |||||||||||||||||
On October 1, 2013 (the “Closing Date”), IceWEB, Inc. (the “Company”) entered into a share exchange agreement (the “Exchange Agreement”) by and among the Company, Computers and Tele-Comm., Inc., a Missouri corporation (“CTCI”), KC NAP, LLC (“KC NAP”), the stockholders of CTCI, and Streamside Partners, LLC, pursuant to which the Company purchased all of the outstanding common stock of CTCI and the outstanding membership interests in KC NAP, in exchange for 9,568,400 shares of our $0.001 par value common stock. Concurrently, and as part of the share exchange agreement, the Company issued shares to retire an outstanding debt owing by CTCI to Streamside Partners, LLC, which totaled $155,000, and other debts of CTCI totaling $267,823, in exchange for 13,485,798 shares of our $0.001 par value common stock (such transactions taken together are sometimes referred to herein as the “Share Exchange”). As a result of the Share Exchange, we are now the holding company of CTCI and we now operate a company in the business of operating data centers and providing Information Technology (“IT”) services. | |||||||||||||||||
On the Closing Date, pursuant to the Exchange Agreement, the shareholders of CTCI exchanged 250,000 shares of common stock of CTCI, representing 100% of the issued and outstanding stock of CTCI, for 9,568,400 newly issued shares of $0.001 par value common stock, which represents 2.2% of the Company's issued and outstanding common stock, immediately following the Share Exchange. In addition, we issued 13,485,798 shares of IceWEB common stock to pay a debt owing by CTCI to Streamside Partners, LLC, and other liabilities of CTCI which together totaled $422,823, at an effective exchange rate of $0.0314 per share. | |||||||||||||||||
On October 1, 2013, in conjunction with the acquisition, we entered into a lease agreement with Agility Ventures, LLC in the principal amount of $1,417,672 which is secured by all of the assets of IceWEB, Inc. The note has a term of 36 months and bears interest at 15% per annum. We also issued Agility Ventures 1,000,000 shares of IceWEB, Inc. restricted common stock, and a Series T common stock warrant covering a total of 3,675,000 shares with a term of two years and a conversion price of $0.055 per share. | |||||||||||||||||
The purchase of Computers and Tele-Comm, Inc. and Subsidiary (“CTCI”) included the acquisition of assets of $1,386,066, and liabilities of $1,469,269. The aggregate purchase price consisted of the following: | |||||||||||||||||
Fair Value of common stock issued to seller valued at quoted market price | $ | 234,426 | |||||||||||||||
Fair Value of common stock issued in exchange for debt valued at quoted market price | 330,402 | ||||||||||||||||
$ | 564,828 | ||||||||||||||||
The following table summarizes the estimated fair values of CTCI's assets acquired and liabilities assumed at the date of the acquisition: | |||||||||||||||||
Cash | $ | 3,609 | |||||||||||||||
Accounts Receivable | 67,160 | ||||||||||||||||
Prepaid Expenses | 93,802 | ||||||||||||||||
Property and equipment | 678,443 | ||||||||||||||||
Goodwill | 2,084,710 | ||||||||||||||||
Accounts payable and accrued expenses | (538,716 | ) | |||||||||||||||
Deferred revenue | (59,396 | ) | |||||||||||||||
Notes payable | (1,764,784 | ) | |||||||||||||||
$ | 564,828 | ||||||||||||||||
In conjunction with the acquisition of CTCI, we recorded goodwill in the amount of $2,084,710. We subsequently performed an impairment test on goodwill which requires an analysis based on estimates of future cash flows and an impairment loss is recognized for the difference between the carrying amount and the implied fair value of the asset. Based on this analysis we recorded an impairment expense of $2,084,710 for the nine months ended June 30, 2014. | |||||||||||||||||
The following table summarizes the required disclosures of the pro forma combined entity, as if the acquisition of CTCI occurred at October 1, 2012. | |||||||||||||||||
Year Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Revenues, net | $ | 917,082 | |||||||||||||||
Net loss | (8,466,472 | ) | |||||||||||||||
Net loss per common share - basic and diluted | $ | (0.03 | ) | ||||||||||||||
Weighted average common shares outstanding - basic and diluted | 282,215,733 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2014 | |
SUBSEQUENT EVENTS [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 20 – SUBSEQUENT EVENTS | |
On July 1, 2014, the Company obtained written consent from UnifiedOnline! LLC approving an amendment to the Company's Certificate of Incorporation to increase the number of authorized shares of Common Stock from One Billion (1,000,000,000) shares of Common Stock, par value $0.001 per share, to Five Billion (5,000,000,000) authorized shares of Common Stock, par value $0.001 per share; and to retain the class of its authorized stock known as Preferred Stock, comprised of Ten Million (10,000,000) shares, par value $0.001 per share. Series of the Preferred Stock may be created and issued from time to time, with such designations, preferences, conversion rights, cumulative, relative, participating, optional or other rights, including voting rights, qualifications, limitations or restrictions thereof as shall be stated and expressed in the resolution or resolutions providing for the creation and issuance of such series of Preferred Stock as adopted by the Board of Directors. The Preferred Stock continues to maintain the same designations, preferences, conversion and other rights that existed prior to the amendment to the Certificate of Incorporation. | |
UnifiedOnline! LLC is the Company shareholder holding sufficient votes to approve this amendment. The amendment was previously approved by the Company's Board of Directors, subject to shareholder approval. | |
On July 1, 2014, the Company filed a Certificate of Amendment of Certificate of Incorporation with the State of Delaware Secretary of State Division of Corporations to reflect the foregoing increase in authorized shares of Common Stock (the “Increase in Authorized”). The Increase in Authorized has an effective date with the State of Delaware Secretary of State Division of Corporations of July 1, 2014, the date the Certificate of Amendment of Certificate of Incorporation was filed. | |
Following the Certificate of Amendment of Certificate of Incorporation, the total number of shares of all classes of capital stock which the Company shall have the authority to issue is Five Billion Ten Million (5,010,000,000) shares of which Five Billion (5,000,000,000) shares shall be Common Stock, par value $0.001 per share and Ten Million (10,000,000) shares shall be Preferred Stock, par value $0.001 per share. Prior to the Certificate of Amendment of Certificate of Incorporation, the total number of shares of all classes of capital stock which the Company had the authority to issue was One Billion Ten Million (1,010,000,000) shares of which One Billion (1,000,000,000) shares were Common Stock, par value $0.001 per share, and Ten Million (10,000,000) shares were Preferred Stock, par value $0.001 per share. | |
Stock transactions after June 30, 2014: | |
In July, 2014, the Company issued 975,000,000 shares of common stock, at the original conversion terms, at a per share price ranging from $0.0006 to $0.00024 valued at $35,250 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |
In July, 2014, the Company issued 52,958,333 shares of common stock, at the original conversion terms, at a per share price of $0.00024 valued at $12,710 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |
In July, 2014, the Company issued 142,872.361 shares of common stock, at the original conversion terms, at a per share price ranging from $0.00048 to $0.00024 valued at $48,400 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |
In August, 2014, the Company issued 47,845,667 shares of common stock, at the original conversion terms, at a per share price of $0.00018 valued at $8,612, in full satisfaction of $62,222 of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |
In August, 2014, the Company issued 347,130,555 shares of common stock, at the original conversion terms, at a per share price ranging from $0.00018 to $0.00010 valued at $42,410 in full satisfaction of $55,120 of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |
In August, 2014, the Company issued 376,802,778 shares of common stock, at the original conversion terms, at a per share price ranging from $0.00018 to $0.00006 valued at $38,714 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |
In September, 2014, the Company issued 580,895,833 shares of common stock, at the original conversion terms, at a per share price ranging from $0.00008 to $0.00006 valued at $33,360 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |
In September, 2014, the Company issued 377,184,334 shares of common stock, at the original conversion terms, at a per share price of $0.00006 valued at $22,631 in full satisfaction of $109,745 of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |
In September, 2014, the Company issued 659,883,333 shares of common stock, at the original conversion terms, at a per share price ranging of $0.00006 valued at $39,593 as a partial conversion of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. | |
In October, 2014, the Company issued 128,241,333 shares of common stock, at the original conversion terms, at a per share price of $0.00006 valued at $7,694 in full satisfaction of $47,287 of principal and interest due under a convertible note. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act. |
BASIS_OF_PRESENTATION_AND_SUMM1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 9 Months Ended |
Jun. 30, 2014 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications have been made to previously reported amounts to conform to 2014 amounts. The reclassifications had no impact on previously reported results of operations or stockholders' deficit. | |
Going Concern | ' |
Going Concern | |
Our auditors stated in their report on the consolidated financial statements of the Company for the nine months ended June 30, 2014 and the year ended September 30, 2013 that we have had losses since inception that raise doubt about our ability to continue as a going concern. For the nine months ended June 30, 2014 and the year ended September 30, 2013 we incurred a net loss of $4.9 million and $7.1 million, respectively. The consolidated financial statements do not include any adjustments related to the recovery and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event we cannot continue in existence. | |
Management has established plans intended to increase the sales of our products and services. Management intends to seek new capital from new equity securities offerings to provide funds needed to increase liquidity, fund growth, and implement its business plan. However, no assurances can be given that we will be able to raise any additional funds. | |
Marketable Securities | ' |
Marketable Securities | |
The Company accounts for the purchase of marketable equity securities in accordance with FASB Accounting Standards Codification (ASC) 320, “Investment – Debt and Equity Securities” with any unrealized gains and losses included as a net amount as a separate component of stockholders' equity. However, those securities may not have the trading volume to support the stock price if the Company were to sell all their shares in the open market at once, so the Company may have a loss on the sale of marketable securities even though they record marketable equity securities at the current market value. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, useful lives of intangible assets and property and equipment, valuation of stock-based compensation, derivative liabilities and litigation reserves. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. | |
Accounts Receivable | ' |
Accounts Receivable | |
We record accounts receivable at the invoiced amount. We maintain an allowance for doubtful accounts to reserve for potentially uncollectible receivables. We recorded a bad debt allowance of $45,000 as of June 30, 2014 and $0 as of September 30, 2013. The Company performs ongoing evaluations of its accounts receivable to identify specific customers with known disputes or collectability issues. Bad debt expense amounted to $18,852 for the nine months ended June 30, 2014. | |
Derivative Liability | ' |
Derivative Liability | |
The Company issued warrants to purchase the Company's common stock in connection with the issuance of convertible debt, which contain certain ratchet provisions that reduce the exercise price of the warrants or the conversion price in certain circumstances. In accordance with ASC 815 the Company determined that the warrants and/or the conversion features with provisions that reduce the exercise price of the warrants did not qualify for a scope exception under ASC 815 as they were determined not to be indexed to the Company's stock. | |
Derivatives are required to be recorded on the balance sheet at fair value (see Note 11). These derivatives, including embedded derivatives in the Company's structured borrowings, are separately valued and accounted for on the Company's balance sheet. Fair values for exchange traded securities and derivatives are based on quoted market prices. Where market prices are not readily available, fair values are determined using market based pricing models incorporating readily observable market data and requiring judgment and estimates. In addition, additional disclosures is required about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. | |
Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The Company's financial instruments, including cash and cash equivalents, receivables, accounts payable and accrued liabilities and notes payable are carried at cost, which approximates their fair value, due to the relatively short maturity of these instruments. | |
Our derivative financial instruments, consisting of embedded conversion features in our convertible debt and ratchet provisions in our warrants, which are required to be measured at fair value on a recurring basis under FASB ASC 815-15-25 or FASB ASC 815 as of June 30, 2014 and September 30, 2013 are measured at fair value, using a Black-Scholes valuation model which approximates a binomial lattice valuation methodology utilizing Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities (see Note 11). | |
Inventory | ' |
Inventory | |
Inventory is valued at the lower of cost or market, on an average cost basis. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment is stated at cost, net of accumulated depreciation. Depreciation expense is recorded by using the straight-line method over the estimated useful lives of the related assets. | |
Product Warranties | ' |
Product Warranties | |
The Company's products typically carry a warranty for periods of up to three years. We have not had any significant warranty claims on our products. | |
Because our current process for developing software is essentially completed concurrently with the establishment of technological feasibility, which occurs upon the completion of a working model, no costs have been capitalized for any of the periods presented. | |
Long-lived Assets | ' |
Long-lived Assets | |
In accordance with Accounting Standards Codification (ASC) Topic 360, “Property, Plant, and Equipment” (formerly SFAS 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”), we review the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair market value. | |
Revenue Recognition | ' |
Revenue Recognition | |
We follow the guidance of ASC Topic 605, “Revenue Recognition” (formerly Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition”) for revenue recognition. In general, we record revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. | |
It is our practice to obtain a signed master sales agreement for recurring revenue sales, and/or a sales order for events and one-time services. Taxes collected from customers and remitted to government authorities are reported on a net basis and are excluded from revenue. | |
We derive the majority of our revenues from recurring revenue streams, consisting of: | |
1. Wireless and fiber broadband service; | |
2. Co-location, which includes the licensing of cabinet space and power; | |
3. Interconnection services, such as cross connects; | |
4. Managed infrastructure services. | |
Revenues from recurring revenue streams are generally billed monthly and recognized ratably over the term of the contract, generally one to three years for data center space customers. We generally recognize revenue beginning on the date the customer commences use of our services. | |
Implementation and set-up fees are recognized at the time those services are completed, unless prior agreement was made for interim billings for work completed. | |
For services that are billed according to customer usage, revenue is recognized in the month in which the usage is provided. | |
Professional services are recognized in the period services are provided. | |
Amounts that have been invoiced are recorded in accounts receivable and revenue. | |
Our customers generally have the right to cancel their contracts by providing prior written notice to us of their intent to cancel the remainder of the contract term. The customer would be required to pay any charge for early cancellation that their contract specifies. In the event that a customer cancels their contract, they are not entitled to a refund for services already rendered. A customer can continue service on a month-to-month basis after their contract expires. | |
Advertising | ' |
Advertising | |
Advertising costs are expensed as incurred and amounted to $31,190 in the nine months ended June 30, 2014 and $20,813 in Fiscal 2013. | |
Barter Transactions | ' |
Barter Transactions | |
Barter activity is accounted for in accordance with ASC 845, “Nonmonetary Transactions”. Barter revenue relates to the exchange of wireless bandwidth and internet connectivity provided by CTC to business customers in exchange primarily for roof rights for antennae, advertising and other products and services that CTC would otherwise be required to buy for cash. Barter expenses reflect the expense offset to barter revenue. The amount of barter revenue and expense is recorded at the estimated fair value of the services received or the services provided, whichever is more objectively determinable, in the month the services are exchanged. For the nine months ended June 30, 2014, the Company recorded barter revenue of $22,500 and barter expense of $31,190. | |
Prepaid Expenses | ' |
Prepaid Expenses | |
Prepaid expenses are comprised primarily of prepaid costs related to the installation of new customers, prepaid advertising costs which are expensed when used and deferred financing costs which are amortized over the life of the related financing. | |
Deferred Financing Costs | ' |
Deferred Financing Costs | |
Debt issuance costs incurred in connection with the issuance of debt are capitalized and amortized to interest expense based on the related debt agreements on a straight-line basis, which approximates the effective interest method. Unamortized amounts are included in prepaid expenses in the accompanying consolidated balance sheets. | |
Earnings per Share | ' |
Earnings per Share | |
We compute earnings per share in accordance with ASC Topic 260, “Earnings Per Share” Under the provisions of ASC Topic 260, basic earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of the common shares issuable upon the exercise of stock options and warrants (using the treasury stock method) and upon the conversion of convertible notes and preferred stock (using the if-converted method). Potentially dilutive common shares are excluded from the calculation if their effect is antidilutive. At June 30, 2014, there were options and warrants to purchase 2,390,561,334 shares of common stock and 626,667 shares issuable upon conversion of Series B preferred stock outstanding which could potentially dilute future earnings per share. Additionally, on or after May 15, 2014, to the extent sufficient shares of Common Stock are authorized, the shares of Series AA Preferred Stock shall be convertible into shares of the Company's fully diluted Common Stock to provide the holders ninety percent of all shares of Common Stock of the Company. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
As more fully described in Note 14, we have two stock option plans that provide for non-qualified options to be issued to directors, officers, employees and consultants (the 2012 Equity Compensation Plan and the 2013 Equity Plan (the “Plans”). | |
Recently Adopted and Recently Issued Accounting Standards | ' |
Recently Adopted and Recently Issued Accounting Standards | |
In the first quarter of Fiscal 2013, the Company adopted Accounting Standards Update No. 2011-05, “Comprehensive Income (Topic 200) – Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05”. The adoption of these amended standards impacted the presentation of other comprehensive income, as the Company elected to present two separate but consecutive statements, but did not impact our financial position or results of operation. | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard requires that an unrecognized tax benefits, or a portion of an unrecognized tax benefit be presented on a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions to this rule. If certain exception conditions exists, an entity should present an unrecognized tax benefit in the financial statements as a liability and should not net the unrecognized tax benefit with a deferred tax asset. This standard is effective for fiscal years and interim periods within those years beginning after December 15, 2013. The Company does not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. | |
The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations. |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
PROPERTY AND EQUIPMENT [Abstract] | ' | |||||||||||||||||||
Schedule of Property and Equipment | ' | |||||||||||||||||||
Estimated | June 30, | September 30, | September 30, | |||||||||||||||||
Life | 2014 | 2013 | 2012 | |||||||||||||||||
Equipment | 3 years | $ | 934,654 | $ | 644,020 | $ | 644,020 | |||||||||||||
Furniture and Fixtures | 3 years | 12,984 | - | - | ||||||||||||||||
Computer Software | 3 years | 59,612 | 52,841 | 29,523 | ||||||||||||||||
Vehicle | 3 years | 502 | - | - | ||||||||||||||||
Leasehold Improvements | 3 years | 2,502 | 1,033,495 | 1,033,495 | ||||||||||||||||
997,270 | 1,730,356 | 1,707,038 | ||||||||||||||||||
Less: Accumulated Depreciation | -545,427 | -1,422,488 | -1,207,253 | |||||||||||||||||
Net, Property and Equipment | $ | 451,843 | $ | 307,868 | $ | 499,785 |
NOTES_PAYABLE_Tables
NOTES PAYABLE (Tables) | 9 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
NOTES PAYABLE [Abstract] | ' | ||||||||||||||
Summary of notes payable | ' | ||||||||||||||
June 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
IWEB Growth Fund | $ | 186,000 | $ | 186,000 | $ | - | |||||||||
UO! IP of NC, LLC | 660,458 | - | - | ||||||||||||
Sand Hill Finance, LLC | - | - | 2,059,582 | ||||||||||||
Other Notes Payable | 101,017 | - | - | ||||||||||||
$ | 947,475 | $ | 186,000 | $ | 2,059,582 |
INVENTORY_Tables
INVENTORY (Tables) | 9 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
INVENTORY [Abstract] | ' | ||||||||||||||
Schedule of Inventory | ' | ||||||||||||||
June 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Raw Materials | $ | 19,069 | $ | 130,534 | $ | 175,258 | |||||||||
Work in Progress | - | 24,476 | 42,335 | ||||||||||||
Finished Goods | - | 8,158 | 64,638 | ||||||||||||
$ | 19,069 | $ | 163,168 | $ | 282,231 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | ||||
Jun. 30, 2014 | |||||
[CommitmentsAndContingenciesDisclosureAbstract] | ' | ||||
Schedule of Future Minimum Payments | ' | ||||
For the Year Ending, | |||||
June 30, | Amount | ||||
2015 | $ | 76,375 | |||
2016 | 63,275 | ||||
2017 | 15,385 | ||||
2018 | - | ||||
$ | 155,035 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Deferred Tax Assets | ' | |||||||||||||||
June 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Tax benefit of net operating loss carry forward | $ | 9,249,000 | $ | 7,089,500 | $ | 5,637,000 | ||||||||||
Unpaid accrued salaries | - | 48,500 | 13,000 | |||||||||||||
Allowance for doubtful accounts | - | - | 154,000 | |||||||||||||
Amortiztion of leasehold improvements | - | - | 339,000 | |||||||||||||
9,249,000 | 7,138,000 | 6,143,000 | ||||||||||||||
Less: valuation allowance | (9,249,000 | ) | (7,138,000 | ) | (6,143,000 | ) | ||||||||||
Net deferred tax assets | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Reconciliation of Effective Tax Rate | ' | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Computed "expected" tax benefit | (34.0 | %) | (34.0 | %) | (34.0 | %) | ||||||||||
State income taxes, net of federal tax benefit | (3.6 | %) | (3.6 | %) | (3.6 | %) | ||||||||||
Goodwill | 16 | % | 0 | % | 0 | % | ||||||||||
Other permanent differences | 4.6 | % | 15 | % | 13.6 | % | ||||||||||
Change in valuation allowance | 17 | % | 22.6 | % | 24 | % | ||||||||||
Effective tax rate | 0 | % | 0 | % | 0 | % |
CONVERTIBLE_NOTES_Tables
CONVERTIBLE NOTES (Tables) | 9 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
CONVERTIBLE NOTES [Abstract] | ' | ||||||||||||||||||
Schedule of Convertible Notes | ' | ||||||||||||||||||
June 30, | 30-Sep-13 | 30-Sep-12 | |||||||||||||||||
2014 | |||||||||||||||||||
April 2013 $124,444 Convertible Note, 12% interest, due June 2014, with a 10% original issue discount, net of debt discount of $0, $2,328 and $0, respectively | $ | - | $ | 122,116 | $ | - | (1 | ) | |||||||||||
June 2013 $62,222 Convertible Note, 12% interest, due June 2014, with a 10% original issue discount, net of debt discount of $0, $2,460 and $0 respectively | - | 59,762 | - | (2 | ) | ||||||||||||||
November 2013 $83,500 Convertible Note, 8% interest, due August 2014, net of debt discount of $0 | - | - | - | (3 | ) | ||||||||||||||
December, 2013 $62,222 Convertible Note, 12% interest, due July 2014, with a 10% original issue discount, net of debt discount of $0 | 43,862 | - | - | (4 | ) | ||||||||||||||
November 2013 $132,000 Convertible Note, 10% interest, due November 2014, with a 10% original issue discount, net of debt discount of $51,500 | 50,500 | - | - | (5 | ) | ||||||||||||||
December 2013 $43,821 Convertible Note, 10% interest, due December 2014, net of debt discount of $18,259 | 25,562 | - | - | (6 | ) | ||||||||||||||
December 2013 $60,000 Convertible Note, 10% interest, due December 2014, net of debt discount of $25,000 | 35,000 | - | - | (7 | ) | ||||||||||||||
January 2014 $53,000 Convertible Note, 8% interest, due October 2014, net of debt discount of $24,724 | 28,276 | - | - | (8 | ) | ||||||||||||||
February 2014 $32,500 Convertible Note, due November 2014, net of debt discount of $18,055 | 14,445 | - | - | (9 | ) | ||||||||||||||
November 2011 $2,012,500 Convertible Note, with a 13% original issue discount, net of debt discount of $0, $0 and $59,293, respectively | - | - | 105,176 | (10 | ) | ||||||||||||||
$ | 197,645 | $ | 181,878 | $ | 105,176 |
DERIVATIVE_LIABILITIES_Tables
DERIVATIVE LIABILITIES (Tables) | 9 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
DERIVATIVE LIABILITIES [Abstract] | ' | |||||||||
Schedule of Changes in Value of Derivative Warrant Liability and Derivative Current Debt | ' | |||||||||
Value | No. of Warrants | |||||||||
Balance at September 30, 2013 - Derivative liability - warrants | $ | 117,424 | 88,018,721 | |||||||
Increase in fair value of derivative warrant liability | 184,641 | - | ||||||||
Balance at June 30, 2014 - Derivative liability - warrants | $ | 302,065 | 2,338,703,090 | |||||||
Value | ||||||||||
Balance at September 30, 2013 - Derivative liability - convertible debt | $ | - | ||||||||
Increase in derivative liability related to issuance of convertible debt | 592,503 | |||||||||
Decrease in fair value of derivative liability | (122,871 | ) | ||||||||
Balance at June 30, 2014 - Derivative liability - convertible debt | $ | 469,632 | ||||||||
Schedule of Fair Value of Warrant Liability Using Black-Scholes Model | ' | |||||||||
30-Jun-14 | ||||||||||
Current exercise price | $0.0006 - $0.00066 | |||||||||
Time to expiration | 1 month to 2.25 years | |||||||||
Risk-free interest rate | 0.88 | % | ||||||||
Estimated volatility | 209.21 | % | ||||||||
Dividend | $ | 0 | ||||||||
Stock price on June 30, 2014 | $ | 0.0014 | ||||||||
Expected forfeiture rate | 0% to 90% |
CONCENTRATION_OF_CREDIT_RISK_T
CONCENTRATION OF CREDIT RISK (Tables) | 9 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
CONCENTRATION OF CREDIT RISK [Abstract] | ' | ||||||||||||||
Schedule of Major Customers | ' | ||||||||||||||
Major Customers | |||||||||||||||
Sales to 1 customer for the nine months ended June 30, 2014 represented 13% of total sales and sales to 2 major customers represented 39% and 60% of total sales for the years ended September 30, 2013 and 2012, respectively. | |||||||||||||||
Nine Months Ended | Years Ended September 30, | ||||||||||||||
30-Jun-14 | 2013 | 2012 | |||||||||||||
Customer A | 13 | % | 26 | % | 41 | % | |||||||||
Customer B | 0 | % | 13 | % | 19 | % | |||||||||
All others | 87 | % | 61 | % | 40 | % | |||||||||
100 | % | 100 | % | 100 | % | ||||||||||
As of June 30, 2014 and September 30, 2013 and 2012, respectively, approximately 95%, 70% and 80% of our accounts receivable was due from two customers. | |||||||||||||||
June 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Customer A | 68 | % | 47 | % | 54 | % | |||||||||
Customer B | 27 | % | 23 | % | 26 | % | |||||||||
All others | 5 | % | 30 | % | 20 | % | |||||||||
100 | % | 100 | % | 100 | % |
STOCKHOLDERS_DEFICIT_Tables
STOCKHOLDERS' DEFICIT (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
STOCKHOLDERS' DEFICIT [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Changes in Outstanding Common Stock Warrants | ' | ||||||||||||||||||||||||||||
Nine Months Ended June 30, 2014 | Year Ended September 30, 2013 | Year Ended September 30, 2012 | |||||||||||||||||||||||||||
Weighted Average | Weighted Average | Weighted Average | |||||||||||||||||||||||||||
Number of Warrants | Exercise Price | Number of Warrants | Exercise Price | Number of Warrants | Exercise Price | ||||||||||||||||||||||||
Balance at beginning of period | 102,820,275 | $ | 0.028 | 118,434,173 | $ | 0.017 | 11,528,934 | $ | 0.017 | ||||||||||||||||||||
Granted | 2,297,310,308 | 0.00124 | 46,195,745 | 0.052 | 110,074,867 | 0.0816 | |||||||||||||||||||||||
Exercised | (5,176,615 | ) | 0.0054 | (1,910,000 | ) | 0.028 | (3,169,628 | ) | 0.0737 | ||||||||||||||||||||
Forfeited | (7,285,604 | ) | 0.0054 | (59,899,643 | ) | 0.08 | - | 0 | |||||||||||||||||||||
Balance at end of period | 2,387,668,364 | $ | 0.00202 | 102,820,275 | $ | 0.028 | 118,434,173 | $ | 0.0853 | ||||||||||||||||||||
Summary of information about common stock warrants | ' | ||||||||||||||||||||||||||||
Warrants Outstanding | |||||||||||||||||||||||||||||
Warrants Exercisable | |||||||||||||||||||||||||||||
Number | Number | ||||||||||||||||||||||||||||
Outstanding at | Weighted Average | Weighted Average | Exercisable at | Weighted Average | |||||||||||||||||||||||||
30-Jun-14 | Remaining Life | Exercise Price | 30-Jun-14 | Exercise Price | |||||||||||||||||||||||||
2,338,703,090 | 2.25 Years | $ | 0.00066 | 2,338,703,090 | $ | 0.00066 | |||||||||||||||||||||||
30,488,720 | 2.40 Years | 0.028 | 30,488,720 | 0.028 | |||||||||||||||||||||||||
14,801,554 | 3.00 Years | 0.15 | 14,801,554 | 0.15 | |||||||||||||||||||||||||
3,675,000 | 1.25 Years | 0.055 | 3,675,000 | 0.055 | |||||||||||||||||||||||||
2,387,668,364 | 2.25 Years | $ | 0.00202 | 2,387,668,364 | $ | 0.00202 | |||||||||||||||||||||||
STOCK_OPTION_PLAN_Tables
STOCK OPTION PLAN (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||
STOCK OPTION PLAN [Abstract] | ' | |||||||||||||||||||||||||||||
Schedule of Fair Value of Stock Options Using Black-Scholes Model | ' | |||||||||||||||||||||||||||||
Nine Months Ended | Years Ended September 30, | |||||||||||||||||||||||||||||
30-Jun-14 | 2013 | 2012 | ||||||||||||||||||||||||||||
Expected volatility | 13% - 278% | 13% - 278% | 36%-278% | |||||||||||||||||||||||||||
Expected term | 1 -3 Years | 1 -3 Years | 1 -3 Years | |||||||||||||||||||||||||||
Risk-free interest rate | 0.01% - 0.34% | 0.01% - 0.34% | 0.67% - 0.77% | |||||||||||||||||||||||||||
Forfeiture rate | 0 | % | 0% - 45% | 0% - 45% | ||||||||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||||
Schedule of Changes in Outstanding Stock Options | ' | |||||||||||||||||||||||||||||
Nine Months Ended June 30, 2014 | Year Ended September 30, 2013 | Year Ended September 30, 2012 | ||||||||||||||||||||||||||||
Weighted Average | Weighted Average | Weighted Average | ||||||||||||||||||||||||||||
Number of Options | Exercise Price | Number of Options | Exercise Price | Number of Options | Exercise Price | |||||||||||||||||||||||||
Balance at beginning of period | 3,417,970 | $ | 0.086 | 8,353,185 | $ | 0.0773 | 4,104,487 | $ | 0.375 | |||||||||||||||||||||
Granted | 27,000,000 | 0.0111 | 90,963,785 | 0.042 | 8,079,185 | 0.079 | ||||||||||||||||||||||||
Exercised | (27,000,000 | ) | 0.0111 | (91,224,000 | ) | 0.042 | (1,532,325 | ) | 0.167 | |||||||||||||||||||||
Forfeited | (525,000 | ) | 0.0989 | (4,675,000 | ) | 0.079 | (2,298,162 | ) | 0.554 | |||||||||||||||||||||
Balance at end of period | 2,892,970 | $ | 0.08366 | 3,417,970 | $ | 0.086 | 8,353,185 | $ | 0.0773 | |||||||||||||||||||||
Summary of information about employee stock options outstanding | ' | |||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||
Number | Number | |||||||||||||||||||||||||||||
Outstanding at | Weighted Average | Weighted Average | Exercisable at | Weighted Average | ||||||||||||||||||||||||||
Range of Exercise Price | 30-Jun-14 | Remaining Life | Exercise Price | 30-Jun-14 | Exercise Price | |||||||||||||||||||||||||
$0.08 | 250,000 | 3.21 Years | $ | 0.077 | 145,833 | $ | 0.00066 | |||||||||||||||||||||||
$0.0847 - $0.081 | 2,642,970 | 3.21 Years | 0.0843 | 2,642,970 | 0.0843 | |||||||||||||||||||||||||
2,892,970 | 3.21 Years | $ | 0.08367 | 2,788,803 | $ | 0.08367 |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
INVESTMENTS [Abstract] | ' | ||||||||||||||||||||
Schedule of Marketable Equity Securities | ' | ||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Fair | |||||||||||||||||||
30-Jun-14 | Cost | Gains | Losses | Value | |||||||||||||||||
Publicly traded equity securities | $ | 81,000 | $ | - | $ | (80,997 | ) | $ | 3 | ||||||||||||
Total | $ | 81,000 | $ | - | $ | (80,997 | ) | $ | 3 | ||||||||||||
Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Fair | |||||||||||||||||||
30-Sep-13 | Cost | Gains | Losses | Value | |||||||||||||||||
Publicly traded equity securities | $ | 81,000 | $ | - | $ | (80,180 | ) | $ | 820 | ||||||||||||
Total | $ | 81,000 | $ | - | $ | (80,180 | ) | $ | 820 | ||||||||||||
Schedule of Investments Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||
Quoted | Significant | ||||||||||||||||||||
Prices | Other | Significant | |||||||||||||||||||
in Active | Observable | Unobservable | |||||||||||||||||||
Markets | Inputs | Inputs | |||||||||||||||||||
30-Jun-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Marketable Equity Securities | $ | 3 | $ | - | $ | - | |||||||||||||||
Derivative liabilities, warrants | $ | - | $ | - | $ | 302,065 | |||||||||||||||
Derivative liabilities, convertible debt | $ | - | $ | - | $ | 469,632 | |||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Marketable Equity Securities | $ | 820 | $ | - | $ | - | |||||||||||||||
Derivative liabilities, warrants | $ | - | $ | - | $ | 117,424 | |||||||||||||||
Derivative liabilities, convertible debt | $ | - | $ | - | $ | - |
ACQUISITION_Tables
ACQUISITION (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
ACQUISITION [Abstract] | ' | ||||||||||||||||
Schedule of Purchase Price | ' | ||||||||||||||||
Fair Value of common stock issued to seller valued at quoted market price | $ | 234,426 | |||||||||||||||
Fair Value of common stock issued in exchange for debt valued at quoted market price | 330,402 | ||||||||||||||||
$ | 564,828 | ||||||||||||||||
Schedule of Assets Acquired and Liabilities Assumed | ' | ||||||||||||||||
Cash | $ | 3,609 | |||||||||||||||
Accounts Receivable | 67,160 | ||||||||||||||||
Prepaid Expenses | 93,802 | ||||||||||||||||
Property and equipment | 678,443 | ||||||||||||||||
Goodwill | 2,084,710 | ||||||||||||||||
Accounts payable and accrued expenses | (538,716 | ) | |||||||||||||||
Deferred revenue | (59,396 | ) | |||||||||||||||
Notes payable | (1,764,784 | ) | |||||||||||||||
$ | 564,828 | ||||||||||||||||
Schedule of Pro Forma Results | ' | ||||||||||||||||
Year Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Revenues, net | $ | 917,082 | |||||||||||||||
Net loss | (8,466,472 | ) | |||||||||||||||
Net loss per common share - basic and diluted | $ | (0.03 | ) | ||||||||||||||
Weighted average common shares outstanding - basic and diluted | 282,215,733 |
NATURE_OF_BUSINESS_Details
NATURE OF BUSINESS (Details) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Sep. 30, 2013 | |
item | item | |
NATURE OF BUSINESS [Abstract] | ' | ' |
Number of wholly owned operating subsidiaries | 3 | 1 |
BASIS_OF_PRESENTATION_AND_SUMM2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ' | ' | ' | ' |
Net loss for the year | ($4,894,278) | ($4,511,631) | ($7,108,819) | ' | ($6,485,048) |
Bad debt allowance | 45,000 | ' | 0 | ' | ' |
Bad debt expense | -18,852 | ' | ' | ' | ' |
Advertising expense | 31,190 | ' | ' | 20,813 | ' |
Barter revenue | 22,500 | ' | ' | ' | ' |
Barter expense | 31,190 | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Net cash used in operating activities | -1,286,842 | -3,376,493 | -2,700,609 | ' | -4,067,539 |
Accumulated deficit | -52,816,224 | ' | -47,921,946 | ' | -40,813,128 |
Other receivables | ' | ' | $28 | ' | ' |
Stock Options [Member] | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Antidilutive securities | 2,390,561,334 | ' | ' | ' | ' |
Convertible Debt Securities [Member] | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Antidilutive securities | 626,667 | ' | ' | ' | ' |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and Equipment, Gross | $997,270 | $1,730,356 | $1,707,038 |
Less: Accumulated Depreciation | -545,427 | -1,422,488 | -1,207,253 |
Net, Property and Equipment | 451,843 | 307,868 | 499,785 |
Capitalized equipment | 1,983,854 | 0 | 0 |
Depreciation expense | 550,799 | 215,237 | 202,130 |
Depreciation expense included in cost of sales | 28,950 | ' | ' |
Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated Life | '3 years | ' | ' |
Property and Equipment, Gross | 934,654 | 644,020 | 644,020 |
Computer Software [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated Life | '3 years | ' | ' |
Property and Equipment, Gross | 59,612 | 52,841 | 29,523 |
Vehicle [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated Life | '3 years | ' | ' |
Property and Equipment, Gross | 502 | ' | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated Life | '3 years | ' | ' |
Property and Equipment, Gross | $2,502 | $1,033,495 | $1,033,495 |
OTHER_CURRENT_ASSETS_Details
OTHER CURRENT ASSETS (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
OTHER CURRENT ASSETS [Abstract] | ' | ' | ' |
Other current assets | $51,708 | $175,551 | $6,875 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 1 Months Ended | 2 Months Ended | 0 Months Ended | |||
Oct. 01, 2013 | 31-May-12 | Nov. 23, 2011 | Aug. 31, 2012 | Apr. 23, 2014 | Apr. 23, 2014 | |
Unified Online LLC [Member] | Unified Online LLC [Member] | |||||
Series AA Preferred Stock [Member] | ||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' |
Stock issued, shares | ' | 13,455,958 | ' | 2,434,871 | ' | 400,000 |
Stock issued | $330,402 | $1,614,715 | $1,750,000 | $228,250 | ' | $116,087 |
Advances from related parties | ' | ' | ' | ' | $664,578 | ' |
Interest rate percentage on advances from related parties | ' | ' | ' | ' | 10.00% | ' |
NOTES_PAYABLE_Details
NOTES PAYABLE (Details) (USD $) | 1 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 8 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||||||||||||
Oct. 01, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 23, 2011 | Oct. 02, 2013 | Oct. 01, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 27, 2014 | Oct. 01, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 11, 2013 | Nov. 02, 2012 | Aug. 20, 2013 | Apr. 12, 2013 | Apr. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2008 | Dec. 19, 2005 | Dec. 19, 2005 | Jun. 30, 2014 | Apr. 12, 2013 | |
Lease Agreements [Member] | Lease Agreements [Member] | IWEB Growth Fund | IWEB Growth Fund | IWEB Growth Fund | UO! IP of NC, LLC | UO! IP of NC, LLC | UO! IP of NC, LLC | UO! IP of NC, LLC | UO! IP of NC, LLC | Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | ||||||||
Lease Agreements [Member] | Lease Agreements [Member] | IWEB Growth Fund | IWEB Growth Fund | Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | |||||||||||||||||||
Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | Sand Hill Finance, LLC [Member] | ||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | ' | ' | ' | ' | ' | $2,750,000 | $1,800,000 | ' | ' | ' |
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 1,678,531 | ' | ' | ' | ' | ' | ' | 1,717,853 | 1,983,164 | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Proceeds from notes payable, related party | ' | ' | 664,578 | 111,000 | 186,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | '2 years | ' | '36 months | ' | ' | ' | ' | ' | ' |
Proceeds from convertible note payable | ' | 467,043 | 427,820 | ' | 168,000 | 1,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,139,235 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price | $0.03 | ' | ' | ' | ' | ' | ' | ' | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.04 | $0.08 | ' | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate | ' | ' | ' | ' | ' | ' | 13.00% | ' | 15.00% | ' | ' | ' | ' | ' | ' | 3.75% | ' | ' | ' | ' | 12.00% | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent monthly payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum equity financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 |
Amount of note converted | 155,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,642,739 | ' | 506,250 | ' | ' | ' | ' | ' | ' | ' |
Conversion of notes payable, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | 6,750,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | $0.00 | $0.00 | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' |
Stock price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | ' | 265,311 | ' | 481,588 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 265,311 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 481,588 | ' | ' | ' | ' | ' |
Number of days to file financial statements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 days | ' |
Notes payable | ' | 947,475 | 947,475 | ' | 186,000 | 2,059,582 | ' | ' | ' | 186,000 | 186,000 | ' | 660,458 | ' | ' | ' | ' | ' | ' | 2,059,582 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Payment of debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock issued, shares | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
No. of Warrants | ' | 2,338,703,090 | 2,338,703,090 | ' | 88,018,721 | ' | 911,765 | ' | 3,675,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Notes Payable | ' | $101,017 | $101,017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INVENTORY_Details
INVENTORY (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
INVENTORY [Abstract] | ' | ' | ' |
Raw Materials | $19,069 | $130,534 | $175,258 |
Work in Progress | ' | 24,476 | 42,335 |
Finished Goods | ' | 8,158 | 64,638 |
Total Inventory | $19,069 | $163,168 | $282,231 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Sep. 30, 2013 | |
sqft | ||
[CommitmentsAndContingenciesDisclosureAbstract] | ' | ' |
Operating lease term | '2 years | ' |
Area of office space | 6,875 | ' |
Rent expenses | $73,682 | $73,894 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments) (Details) (USD $) | Jun. 30, 2014 |
[CommitmentsAndContingenciesDisclosureAbstract] | ' |
2015 | $76,375 |
2016 | 63,275 |
2017 | 15,385 |
2018 | ' |
Total | $155,035 |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Assets) (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred Tax Assets: | ' | ' | ' |
Tax benefit of net operating loss carryforward | $9,249,000 | $7,089,500 | $5,637,000 |
Unpaid accrued salaries | ' | 48,500 | 13,000 |
Allowance for doubtful accounts | ' | ' | 154,000 |
Amortization of leasehold improvements | ' | ' | 339,000 |
Deferred tax assets, gross | 9,249,000 | 7,138,000 | 6,143,000 |
Less: valuation allowance | -9,249,000 | -7,138,000 | -6,143,000 |
Net deferred tax assets | $0 | $0 | $0 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Apr. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Net operating loss carry forwards | ' | ' | $22,400,000 | ' |
Estimated tax loss | ' | 24,300,000 | ' | ' |
Net operating loss carry forwards, expiration date | ' | 30-Jun-34 | ' | ' |
Ownership threshold | 50.00% | 50.00% | ' | ' |
Valuation allowance | ' | 9,249,000 | 7,138,000 | 6,143,000 |
Increase in valuation allowance | ' | $2,111,000 | ' | ' |
Federal tax rate | ' | 34.00% | 34.00% | 34.00% |
State tax rate | ' | 3.60% | 3.60% | 3.60% |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of Effective Tax Rate) (Details) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Computed "expected" tax benefit | -34.00% | -34.00% | -34.00% |
State income taxes, net of federal tax benefit | -3.60% | -3.60% | -3.60% |
Goodwill | 16.00% | 0.00% | 0.00% |
Other permanent differences | 4.60% | 15.00% | 13.60% |
Change in valuation allowance | 17.00% | 22.60% | 24.00% |
Effective tax rate | 0.00% | 0.00% | 0.00% |
CONVERTIBLE_NOTES_Narrative_De
CONVERTIBLE NOTES (Narrative) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||||||
Oct. 01, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 23, 2011 | Apr. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Nov. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jan. 31, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 30, 2011 | |
Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | |||||||
Note One [Member] | Note One [Member] | Note One [Member] | Note One [Member] | Note One [Member] | Note Two [Member] | Note Two [Member] | Note Two [Member] | Note Two [Member] | Note Two [Member] | Note Three [Member] | Note Three [Member] | Note Three [Member] | Note Three [Member] | Note Four [Member] | Note Four [Member] | Note Four [Member] | Note Five [Member] | Note Five [Member] | Note Five [Member] | Note Six [Member] | Note Six [Member] | Note Seven [Member] | Note Seven [Member] | Note Eight [Member] | Note Eight [Member] | Note Nine [Member] | Note Nine [Member] | Note Ten [Member] | Note Ten [Member] | Note Ten [Member] | Note Ten [Member] | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issued | ' | ' | ' | ' | ' | ' | $124,444 | ' | ' | ' | ' | $62,222 | ' | ' | ' | ' | ' | $83,500 | ' | ' | ' | $62,222 | ' | ' | $132,000 | ' | $43,821 | ' | $60,000 | ' | $53,000 | ' | $32,500 | ' | ' | ' | ' | $2,012,500 |
Maturity date | ' | ' | ' | ' | ' | ' | 30-Jun-14 | ' | ' | ' | ' | 30-Jun-14 | ' | ' | ' | ' | ' | 31-Aug-14 | ' | ' | ' | 31-Jul-14 | ' | ' | 30-Nov-14 | ' | 31-Dec-14 | ' | 31-Dec-14 | ' | 31-Oct-14 | ' | 30-Nov-14 | ' | ' | ' | ' | ' |
Annual interest rate | ' | ' | ' | ' | ' | 13.00% | 12.00% | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | 12.00% | ' | ' | 10.00% | ' | 10.00% | ' | 10.00% | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' |
Percentage of lowest trading price | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | 60.00% | ' | ' | 60.00% | ' | 60.00% | ' | 60.00% | ' | 60.00% | ' | 60.00% | ' | ' | ' | ' | ' |
Discount rate | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | 40.00% | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Floor price | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | $0.00 | ' | ' | $0.00 | ' | $0.00 | ' | $0.00 | ' | $0.00 | ' | $0.00 | ' | ' | ' | ' | ' |
Amortization of debt discount | ' | 477,813 | ' | ' | ' | ' | ' | 2,328 | ' | 7,196 | ' | ' | ' | 13,561 | 3,095 | ' | ' | ' | 81,463 | ' | ' | ' | 55,556 | ' | ' | 88,121 | ' | 25,562 | ' | 35,000 | ' | 19,316 | ' | 14,444 | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | 2,794 | ' | 8,635 | ' | ' | ' | 1,492 | 3,714 | ' | ' | ' | 3,340 | ' | ' | ' | 3,000 | ' | ' | 7,700 | ' | 2,556 | ' | 3,500 | ' | 1,767 | ' | 867 | ' | ' | ' | ' |
Unamortized discount | ' | ' | ' | ' | ' | ' | 11,111 | 0 | ' | 2,328 | 0 | 5,556 | ' | 0 | 2,460 | 0 | 0 | ' | 0 | ' | 0 | 5,556 | 0 | 51,500 | 12,000 | 51,500 | ' | 18,259 | ' | 25,000 | ' | 24,724 | ' | 18,055 | 0 | 0 | 59,293 | ' |
Liability derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,463 | ' | 50,000 | ' | 114,000 | ' | 114,000 | ' | 43,821 | ' | 60,000 | ' | 44,040 | ' | 32,500 | ' | ' | ' | ' |
Amount of note converted | $155,000 | ' | ' | ' | ' | ' | ' | ' | $124,444 | ' | ' | ' | $62,222 | ' | ' | ' | $86,840 | ' | ' | ' | $18,360 | ' | ' | $30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONVERTIBLE_NOTES_Schedule_of_
CONVERTIBLE NOTES (Schedule of Convertible Notes) (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 23, 2011 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 28, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 30, 2011 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Note One [Member] | Note One [Member] | Note One [Member] | Note One [Member] | Note Two [Member] | Note Two [Member] | Note Two [Member] | Note Two [Member] | Note Three [Member] | Note Three [Member] | Note Three [Member] | Note Three [Member] | Note Four [Member] | Note Four [Member] | Note Four [Member] | Note Four [Member] | Note Five [Member] | Note Five [Member] | Note Five [Member] | Note Five [Member] | Note Six [Member] | Note Six [Member] | Note Six [Member] | Note Six [Member] | Note Seven [Member] | Note Seven [Member] | Note Seven [Member] | Note Seven [Member] | Note Eight [Member] | Note Eight [Member] | Note Eight [Member] | Note Eight [Member] | Note Nine [Member] | Note Nine [Member] | Note Nine [Member] | Note Nine [Member] | Note Ten [Member] | Note Ten [Member] | Note Ten [Member] | Note Ten [Member] | |||||
Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | ||||||||
item | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes payable, net of discount | $197,645 | $181,878 | $105,176 | ' | $197,645 | $181,878 | $105,176 | ' | ' | $122,116 | ' | ' | ' | $59,762 | ' | ' | ' | ' | ' | ' | $43,862 | ' | ' | ' | $50,500 | ' | ' | ' | $25,562 | ' | ' | ' | $35,000 | ' | ' | ' | $28,276 | ' | ' | ' | $14,445 | ' | ' | ' | ' | ' | $105,176 |
Debt issued | ' | ' | ' | ' | ' | ' | ' | 124,444 | ' | ' | ' | 62,222 | ' | ' | ' | 83,500 | ' | ' | ' | 62,222 | ' | ' | ' | 132,000 | ' | ' | ' | 43,821 | ' | ' | ' | 60,000 | ' | ' | ' | 53,000 | ' | ' | ' | 32,500 | ' | ' | ' | 2,012,500 | ' | ' | ' |
Annual interest rate | ' | ' | ' | 13.00% | ' | ' | ' | 12.00% | ' | ' | ' | 12.00% | ' | ' | ' | 8.00% | ' | ' | ' | 12.00% | ' | ' | ' | 10.00% | ' | ' | ' | 10.00% | ' | ' | ' | 10.00% | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issue discount | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | ' | ' | 30-Jun-14 | ' | ' | ' | 30-Jun-14 | ' | ' | ' | 31-Aug-14 | ' | ' | ' | 31-Jul-14 | ' | ' | ' | 30-Nov-14 | ' | ' | ' | 31-Dec-14 | ' | ' | ' | 31-Dec-14 | ' | ' | ' | 31-Oct-14 | ' | ' | ' | 30-Nov-14 | ' | ' | ' | ' | ' | ' | ' |
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | $11,111 | $0 | $2,328 | $0 | $5,556 | $0 | $2,460 | $0 | ' | $0 | ' | ' | $5,556 | $0 | ' | ' | $12,000 | $51,500 | ' | ' | ' | $18,259 | ' | ' | ' | $25,000 | ' | ' | ' | $24,724 | ' | ' | ' | $18,055 | ' | ' | ' | $0 | $0 | $59,293 |
Number of accredited investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
DERIVATIVE_LIABILITIES_Narrati
DERIVATIVE LIABILITIES (Narrative) (Details) (USD $) | 8 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
DERIVATIVE LIABILITIES [Abstract] | ' | ' | ' | ' | ' |
Weighted-average remaining life | ' | '2 years 3 months | ' | ' | ' |
Proceeds from convertible note payable | $467,043 | $427,820 | ' | $168,000 | $1,750,000 |
Amendment of convertible notes | 186,667 | ' | ' | ' | ' |
Gain/(loss) on change of fair value of derivative liability | ' | -61,221 | ' | 987,075 | 645,501 |
Derivative liability - warrants | $302,065 | $302,065 | ' | $117,424 | $1,104,499 |
DERIVATIVE_LIABILITIES_Schedul
DERIVATIVE LIABILITIES (Schedule of Changes in Value of Derivative Warrant Liability) (Details) (USD $) | 8 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 23, 2011 | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Balance at beginning of period - Derivative liability | ' | ' | $1,104,499 | $1,104,499 | ' | ' |
Increase in derivative liability related to issuance of convertible debt | 467,043 | 427,820 | ' | 168,000 | 1,750,000 | ' |
Increase (Decrease) in fair value of derivative liability | ' | -61,221 | ' | 987,075 | 645,501 | ' |
Increase in fair value, number of warrants | ' | ' | ' | ' | ' | ' |
Balance at end of period - Derivative liability | 302,065 | 302,065 | ' | 117,424 | 1,104,499 | ' |
No. of Warrants | 2,338,703,090 | 2,338,703,090 | ' | 88,018,721 | ' | 911,765 |
Convertible Debt Securities [Member] | ' | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Increase in derivative liability related to issuance of convertible debt | ' | 592,503 | ' | ' | ' | ' |
Increase (Decrease) in fair value of derivative liability | ' | -122,871 | ' | ' | ' | ' |
Balance at end of period - Derivative liability | $469,632 | $469,632 | ' | ' | ' | ' |
DERIVATIVE_LIABILITIES_Schedul1
DERIVATIVE LIABILITIES (Schedule of Fair Value of Warrant Liability Using Black-Scholes Model) (Details) (Warrants [Member], USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate | 0.88% |
Estimated volatility | 209.21% |
Dividend | 0.00% |
Stock price | $0.00 |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Current exercise price | $0.00 |
Time to expiration | '1 month |
Expected forfeiture rate | 0.00% |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Current exercise price | $0.00 |
Time to expiration | '2 years 3 months |
Expected forfeiture rate | 90.00% |
CONCENTRATION_OF_CREDIT_RISK_N
CONCENTRATION OF CREDIT RISK (Narrative) (Details) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Sales [Member] | Two Major Customers [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | ' | 39.00% | 60.00% |
Number of customers | ' | 2 | 2 |
Sales [Member] | One Major Customers [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 13.00% | ' | ' |
Number of customers | 1 | ' | ' |
Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 100.00% | 100.00% | 100.00% |
Accounts Receivable [Member] | Two Major Customers [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 95.00% | 70.00% | 80.00% |
Number of customers | 2 | 2 | 2 |
CONCENTRATION_OF_CREDIT_RISK_S
CONCENTRATION OF CREDIT RISK (Schedule of Major Customers) (Details) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Sales [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 100.00% | 100.00% | 100.00% |
Sales [Member] | Customer A [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 13.00% | 26.00% | 41.00% |
Sales [Member] | Customer B [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 0.00% | 13.00% | 19.00% |
Sales [Member] | All Other Customers [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 87.00% | 61.00% | 40.00% |
Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 100.00% | 100.00% | 100.00% |
Accounts Receivable [Member] | Customer A [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 68.00% | 47.00% | 54.00% |
Accounts Receivable [Member] | Customer B [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 27.00% | 23.00% | 26.00% |
Accounts Receivable [Member] | All Other Customers [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 5.00% | 30.00% | 20.00% |
STOCKHOLDERS_DEFICIT_Preferred
STOCKHOLDERS' DEFICIT (Preferred Stock Narrative) (Details) (USD $) | Jun. 30, 2014 | Apr. 23, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 23, 2014 | Mar. 31, 2005 | Apr. 23, 2014 | Dec. 29, 2005 | Sep. 30, 2005 |
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | |||||
item | |||||||||
Preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 400,000 | 1,666,667 | ' | 1,833,334 | 833,334 |
Preferred stock, shares issued | 1,026,667 | ' | 1,026,667 | 626,667 | ' | ' | 626,667 | ' | ' |
Preferred stock, shares outstanding | 626,667 | ' | 626,667 | 626,667 | ' | ' | 626,667 | ' | ' |
Preferred stock, shares remaining | ' | 9,373,333 | ' | ' | ' | ' | ' | ' | ' |
Par value per share | $0.00 | ' | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' |
Liquidation preference | ' | ' | ' | ' | ' | ' | ' | $0.27 | ' |
Maximum percent of beneficial ownership after conversion, by holder | 4.90% | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of votes to number of shares of common stock | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' |
Percentage of shares, fully diluted basis | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' |
STOCKHOLDERS_DEFICIT_Narrative
STOCKHOLDERS' DEFICIT (Narrative) (Details) (USD $) | 1 Months Ended | 2 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 2 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oct. 01, 2013 | 31-May-12 | Nov. 30, 2011 | Nov. 23, 2011 | Aug. 31, 2012 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 02, 2014 | Jul. 02, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 01, 2013 | 31-May-14 | Apr. 30, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | 31-May-13 | Nov. 30, 2012 | Feb. 28, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jan. 15, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | 31-May-14 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | 31-May-14 | Dec. 31, 2013 | Oct. 03, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Jul. 31, 2013 | 31-May-13 | Apr. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Nov. 13, 2014 | Feb. 03, 2014 | Oct. 02, 2013 | Oct. 31, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Oct. 04, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Feb. 05, 2014 | Nov. 26, 2013 | Oct. 02, 2013 | Sep. 30, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Nov. 12, 2013 | Sep. 30, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Nov. 30, 2013 | Nov. 11, 2013 | Nov. 30, 2013 | |
Warrant [Member] | Warrant [Member] | Warrant [Member] | Before amendment to the certificate of incorporation | After amendment to the certificate of incorporation | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Lease Agreements [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||||||||
Subsequent Event [Member] | Subsequent Event [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Four [Member] | Transaction Four [Member] | Transaction Five [Member] | ||||||||||||||||||||||||||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Minimum [Member] | Maximum [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | ' | ' | ' | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | ' | ' | ' | 1,000,000,000 | 5,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | ' | ' | ' | ' | $0.00 | $0.00 | $0.00 | ' | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued in business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,054,198 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing price of share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.02 | $0.01 | $0.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | $0.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.02 | ' | ' | ' | ' | ' | ' | ' | ' | $0.02 | ' |
Value of shares issued in business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $564,827.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued, shares | ' | 13,455,958 | ' | ' | 2,434,871 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,880,550 | 7,000,000 | 2,000,000 | 4,500,000 | 5,000,000 | 224,000 | 918,919 | 16,000,000 | 6,405,164 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,231,313 | 5,000,000 | 8,000,000 | 2,000,000 | 6,000,000 | 708,333 | 18,000,000 | 5,000,000 | 175,000 | 216,216 | 112,000 | ' | ' | ' | 128,241,333 | 580,895,833 | 47,845,667 | 975,000,000 | ' | ' | ' | ' | ' | ' | ' | 45,454,545 | 8,000,000 | 2,000,000 | 5,000,000 | 2,000,000 | 2,500,000 | 2,250,000 | 1,200,000 | 1,950,000 | 500,000 | 500,000 | ' | ' | ' | 377,184,334 | 347,130,555 | 52,958,333 | ' | ' | 18,000,000 | 7,000,000 | 4,750,000 | 3,500,000 | 2,500,000 | 362,000 | 112,000 | 112,000 | ' | 659,883,333 | 376,802,778 | 142,872.36 | ' | ' | ' | ' | 4,117,652 | ' | 3,000,000 |
Stock issued | 330,402 | 1,614,715 | ' | 1,750,000 | 228,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,856.66 | 17,220 | 24,000 | 26,730 | 150,000 | 6,272 | 68,000 | 528,000 | ' | 271,168 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,840 | 21,000 | 91,200 | 31,000 | 141,600 | 18,008 | 594,000 | 200,000 | 12,950 | 16,000 | 8,228 | ' | ' | ' | 7,694 | 33,360 | 8,612 | 35,250 | ' | ' | ' | ' | ' | ' | ' | 30,000 | 19,680 | 23,200 | 65,000 | 47,200 | 50,000 | 68,675 | 25,000 | 77,300 | 37,000 | 37,000 | ' | ' | ' | 22,631 | 42,410 | 12,710 | ' | ' | 18,360 | 42,000 | 76,000 | 70,000 | 50,000 | 11,196 | 4,368 | 8,228 | ' | 39,593 | 38,714 | 48,400 | ' | ' | ' | ' | 70,000 | ' | 18,180 |
Shares sold, price per share | ' | ' | ' | ' | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.04 | $0.08 | ' | ' | $0.00 | ' | $0.01 | $0.03 | $0.03 | $0.07 | $0.03 | $0.01 | ' | $0.03 | $0.01 | $0.04 | $0.02 | $0.00 | $0.02 | $0.05 | $0.01 | $0.00 | $0.01 | ' | ' | $0.00 | ' | ' | $0.02 | $0.03 | $0.03 | $0.04 | $0.07 | $0.07 | $0.07 | ' | ' | ' | $0.00 | ' | $0.00 | ' | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ' | $0.00 | $0.00 | ' | ' | $0.02 | $0.02 | $0.03 | $0.02 | $0.04 | $0.07 | $0.07 | ' | ' | ' | $0.00 | ' | $0.00 | $0.00 | $0.00 | $0.00 | $0.01 | ' | $0.02 | $0.02 | $0.03 | $0.04 | $0.07 | ' | $0.00 | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | $0.01 |
Stock options exercised | ' | ' | ' | ' | ' | ' | ' | ' | 5,176,615 | 1,910,000 | 3,169,628 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,224,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.03 | $0.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | $0.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued as payment on convertible notes, shares | 13,485,798 | ' | ' | 35,514,789 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,431,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of common stock warrants, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,285,604 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of executive officers to whom shares are issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock purchase warrant, exercise price per share | ' | ' | ' | $0.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issues of common stock for compensation | ' | ' | ' | 155,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for debt and interest | ' | 2,500,000 | ' | 2,012,500 | ' | 321,866 | 2,313,459 | 1,848,031 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
No. of Warrants | ' | ' | ' | 911,765 | ' | 2,338,703,090 | 88,018,721 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,675,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issue discount | ' | ' | ' | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance costs | ' | ' | $60,000 | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKHOLDERS_DEFICIT_Schedule_
STOCKHOLDERS' DEFICIT (Schedule of Changes in Outstanding Common Stock Warrants) (Details) (Warrant [Member], USD $) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Warrant [Member] | ' | ' | ' |
Number of Warrants | ' | ' | ' |
Balance at beginning of period | ' | 118,434,173 | 11,528,934 |
Granted | 2,297,310,308 | 46,195,745 | 110,074,867 |
Exercised | -5,176,615 | -1,910,000 | -3,169,628 |
Forfeited | -7,285,604 | -59,899,643 | ' |
Balance at end of period | 2,387,668,364 | 102,820,275 | 118,434,173 |
Weighted Average Exercise Price | ' | ' | ' |
Balance at beginning of period | ' | $0.09 | $0.02 |
Granted | $0.00 | $0.05 | $0.08 |
Exercised | $0.01 | $0.03 | $0.07 |
Forfeited | $0.01 | $0.08 | $0 |
Balance at end of period | $0.00 | $0.03 | $0.09 |
STOCKHOLDERS_DEFICIT_Schedule_1
STOCKHOLDERS' DEFICIT (Schedule of information about common stock warrants outstanding) (Details) (USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number Outstanding at June 30, 2014 | 2,892,970 |
Outstanding, Weighted Average Exercise Price | $0.08 |
Number Exercisable at June 30, 2014 | 2,788,803 |
Exercisable, Weighted Average Exercise Price | $0.08 |
Warrants [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number Outstanding at June 30, 2014 | 2,387,668,364 |
Outstanding, Weighted Average Remaining Contractual Life | '2 years 3 months |
Outstanding, Weighted Average Exercise Price | $0.00 |
Number Exercisable at June 30, 2014 | 2,387,668,364 |
Exercisable, Weighted Average Exercise Price | $0.00 |
Warrants [Member] | $0.00066 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number Outstanding at June 30, 2014 | 2,338,703,090 |
Outstanding, Weighted Average Remaining Contractual Life | '2 years 3 months |
Outstanding, Weighted Average Exercise Price | $0.00 |
Number Exercisable at June 30, 2014 | 2,338,703,090 |
Exercisable, Weighted Average Exercise Price | $0.00 |
Warrants [Member] | $0.02800 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number Outstanding at June 30, 2014 | 30,488,720 |
Outstanding, Weighted Average Remaining Contractual Life | '2 years 4 months 24 days |
Outstanding, Weighted Average Exercise Price | $0.03 |
Number Exercisable at June 30, 2014 | 30,488,720 |
Exercisable, Weighted Average Exercise Price | $0.03 |
Warrants [Member] | $0.15000 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number Outstanding at June 30, 2014 | 14,801,554 |
Outstanding, Weighted Average Remaining Contractual Life | '3 years |
Outstanding, Weighted Average Exercise Price | $0.15 |
Number Exercisable at June 30, 2014 | 14,801,554 |
Exercisable, Weighted Average Exercise Price | $0.15 |
Warrants [Member] | $0.05500 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number Outstanding at June 30, 2014 | 3,675,000 |
Outstanding, Weighted Average Remaining Contractual Life | '1 year 3 months |
Outstanding, Weighted Average Exercise Price | $0.06 |
Number Exercisable at June 30, 2014 | 3,675,000 |
Exercisable, Weighted Average Exercise Price | $0.06 |
STOCK_OPTION_PLAN_Narrative_De
STOCK OPTION PLAN (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
STOCK OPTION PLAN [Abstract] | ' | ' | ' | ' |
Price per share, minimum percentage of fair market value | 100.00% | ' | ' | ' |
Stock owned, maximum percentage of total combined voting power | 10.00% | ' | ' | ' |
Price per share for employees owning more than 10% of voting power, minimum percentage of fair market value | 110.00% | ' | ' | ' |
Price per share, minimum percentage of fair market value for non-qualified stock options granted | 50.00% | ' | ' | ' |
Stock options expiration term, maximum | '3 years | ' | ' | ' |
Stock options expiration term for employees owning more than 10% of voting power, maximum | '5 years | ' | ' | ' |
Share-based compensation | $170,000 | $678,000 | $969,600 | $310,250 |
Unrecognized compensation expense | $57,988 | ' | ' | ' |
STOCK_OPTION_PLAN_Schedule_of_
STOCK OPTION PLAN (Schedule of Fair Value of Stock Options Using Black-Scholes Model) (Details) (Stock Options [Member]) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility, minimum | 13.00% | 13.00% | 36.00% |
Expected volatility, maximum | 278.00% | 278.00% | 278.00% |
Forfeiture Rate, minimum | 0.00% | 0.00% | 0.00% |
Forfeiture Rate, maximum | ' | 45.00% | 45.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term | '1 year | '1 year | '1 year |
Risk-free interest rate | 0.01% | 0.01% | 0.67% |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term | '3 years | '3 years | '3 years |
Risk-free interest rate | 0.34% | 0.34% | 0.77% |
STOCK_OPTION_PLAN_Schedule_of_1
STOCK OPTION PLAN (Schedule of Changes in Outstanding Stock Options) (Details) (Stock Options [Member], USD $) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options [Member] | ' | ' | ' |
Number of Options | ' | ' | ' |
Balance at beginning of period | ' | 8,353,185 | 4,104,487 |
Granted | 27,000,000 | 90,963,785 | 8,079,185 |
Exercised | -27,000,000 | -91,224,000 | -1,532,325 |
Forfeited | -525,000 | -4,675,000 | -2,298,162 |
Balance at end of period | 2,892,970 | 3,417,970 | 8,353,185 |
Weighted Average Exercise Price | ' | ' | ' |
Balance at beginning of period | ' | $0.08 | $0.38 |
Granted | $0.01 | $0.04 | $0.08 |
Exercised | $0.01 | $0.04 | $0.17 |
Forfeited | $0.10 | $0.08 | $0.55 |
Balance at end of period | $0.08 | $0.09 | $0.08 |
STOCK_OPTION_PLAN_Schedule_of_2
STOCK OPTION PLAN (Schedule of Information about Stock Options) (Details) (USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Options Outstanding | ' |
Number Outstanding at June 30, 2014 | 2,892,970 |
Weighted average remaining life | '3 years 2 months 16 days |
Weighted average exercise price | $0.08 |
Options Exercisable | ' |
Number of options exercisable | 2,788,803 |
Weighted average exercise price | $0.08 |
$0.08 | ' |
Options Outstanding | ' |
Number Outstanding at June 30, 2014 | 250,000 |
Weighted average remaining life | '3 years 2 months 16 days |
Weighted average exercise price | $0.08 |
Options Exercisable | ' |
Number of options exercisable | 145,833 |
Weighted average exercise price | $0.00 |
$0.0847 - $0.081 | ' |
STOCK OPTION PLAN | ' |
Range of exercise price, lower limit | $0.08 |
Range of exercise price, upper limit | $0.08 |
Options Outstanding | ' |
Number Outstanding at June 30, 2014 | 2,642,970 |
Weighted average remaining life | '3 years 2 months 16 days |
Weighted average exercise price | $0.08 |
Options Exercisable | ' |
Number of options exercisable | 2,642,970 |
Weighted average exercise price | $0.08 |
INVESTMENTS_Schedule_of_Market
INVESTMENTS (Schedule of Marketable Equity Securities) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Sep. 30, 2013 | |
Marketable Equity Securities: | ' | ' |
Cost | $81,000 | $81,000 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | -80,997 | -80,180 |
Fair Value | 3 | 820 |
Publicly Traded Equity Securities [Member] | ' | ' |
Marketable Equity Securities: | ' | ' |
Cost | 81,000 | 81,000 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | -80,997 | -80,180 |
Fair Value | $3 | $820 |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
Assets: | ' | ' |
Marketable Equity Securities | $3 | $820 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ' | ' |
Assets: | ' | ' |
Marketable Equity Securities | 3 | 820 |
Liabilities: | ' | ' |
Derivative liabilities, warrants | ' | ' |
Derivative liabilities, convertible debt | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets: | ' | ' |
Marketable Equity Securities | ' | ' |
Liabilities: | ' | ' |
Derivative liabilities, warrants | ' | ' |
Derivative liabilities, convertible debt | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets: | ' | ' |
Marketable Equity Securities | ' | ' |
Liabilities: | ' | ' |
Derivative liabilities, warrants | 302,065 | 117,424 |
Derivative liabilities, convertible debt | $469,632 | ' |
COMPREHENSIVE_INCOME_LOSS_Deta
COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 9 Months Ended |
Jun. 30, 2014 | |
COMPREHENSIVE INCOME (LOSS) [Abstract] | ' |
Unrealized gains on marketable securities | $80,997 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Commitments and contingencies [Line Items] | ' |
Number of known, pending or threatened, legal actions | 6 |
Legal proceeding brought by FedEx Customer Information Services, Inc. on May 28, 2010 | ' |
Commitments and contingencies [Line Items] | ' |
Amount obtained by plaintiff in judgement | $16,322 |
Legal proceeding brought by FedEx Customer Information Services, Inc. on September 15, 2010 | ' |
Commitments and contingencies [Line Items] | ' |
Amount obtained by plaintiff in judgement | 12,920 |
Amount obtained by plaintiff in judgement for costs | 58 |
Legal proceeding brought by i-Cubed Information LLC on August 10, 2012 | ' |
Commitments and contingencies [Line Items] | ' |
Amount obtained by plaintiff in judgement | 12,900 |
Legal proceeding brought by Pelligrino and Associates on August 14, 2014 | ' |
Commitments and contingencies [Line Items] | ' |
Amount sought by plaintiff | 17,250 |
Legal proceeding brought by Robert Half International on June 23, 2014 | ' |
Commitments and contingencies [Line Items] | ' |
Litigation settlement amount | $3,500 |
ACQUISITION_Narrative_Details
ACQUISITION (Narrative) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | |||||
Oct. 01, 2013 | Nov. 23, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 01, 2013 | Oct. 02, 2013 | Oct. 01, 2013 | |
CTCI | Lease Agreements [Member] | Lease Agreements [Member] | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued for acquisition, shares | 9,568,400 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued for acquisition, percentage of issued and outstanding common stock | 2.20% | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | ' | $0.00 | ' | $0.00 | $0.00 | ' | ' | ' |
Amount of note converted | $155,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of other debt converted | 267,823 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price | $0.03 | ' | ' | ' | ' | ' | ' | ' | $0.06 |
Total amount of debt assumed | 422,823 | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock issued, shares | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Annual interest rate | ' | 13.00% | ' | ' | ' | ' | ' | ' | 15.00% |
Common stock issued as payment on convertible notes, shares | 13,485,798 | 35,514,789 | ' | ' | ' | ' | ' | ' | ' |
Lease agreement, principal amount | 1,417,672 | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | 1,469,269 | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | 1,386,066 | ' | ' | ' | ' | ' | ' | ' | ' |
No. of Warrants | ' | 911,765 | 2,338,703,090 | ' | 88,018,721 | ' | ' | ' | 3,675,000 |
Loss on extinguishment of debt | ' | ' | -265,311 | ' | -481,588 | ' | ' | ' | ' |
Goodwill | 2,084,710 | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment | ' | ' | $2,084,710 | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | ' | ' | 695,941,098 | ' | 410,262,072 | 215,943,809 | 250,000 | ' | ' |
Percentage of stock issued and outstanding | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
ACQUISITION_Schedule_of_Purcha
ACQUISITION (Schedule of Purchase Price) (Details) (USD $) | 1 Months Ended | 2 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 01, 2013 | 31-May-12 | Nov. 23, 2011 | Aug. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
ACQUISITION [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of common stock issued to seller valued at quoted market price | $234,426 | ' | ' | ' | $564,725 | ' | ' | ' |
Stock issued | 330,402 | 1,614,715 | 1,750,000 | 228,250 | ' | ' | ' | ' |
Total purchase price | $564,828 | ' | ' | ' | ' | ' | ' | ' |
ACQUISITION_Schedule_of_Assets
ACQUISITION (Schedule of Assets Acquired and Liabilities Assumed) (Details) (USD $) | Oct. 01, 2013 |
ACQUISITION [Abstract] | ' |
Cash | $3,609 |
Accounts Receivable | 67,160 |
Prepaid expenses | 93,802 |
Property and equipment | 678,443 |
Goodwill | 2,084,710 |
Accounts payable and accrued expenses | -538,716 |
Deferred revenue | -59,396 |
Notes Payable | -1,764,784 |
Net assets acquired | $564,828 |
ACQUISITION_Schedule_of_Pro_Fo
ACQUISITION (Schedule of Pro Forma Results) (Details) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
ACQUISITION [Abstract] | ' |
Revenues, net | $917,082 |
Net loss | ($8,466,472) |
Net loss per common share - basic and diluted | ($0.03) |
Weighted average common shares outstanding - basic and diluted | 282,215,733 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 1 Months Ended | 2 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 2 Months Ended | 7 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oct. 01, 2013 | 31-May-12 | Nov. 23, 2011 | Aug. 31, 2012 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 23, 2014 | 31-May-14 | Apr. 30, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | 31-May-13 | Nov. 30, 2012 | Feb. 28, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jan. 15, 2014 | Jun. 30, 2014 | 31-May-14 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | 31-May-14 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Jul. 31, 2013 | 31-May-13 | Apr. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Jul. 02, 2014 | Jul. 02, 2014 | |
Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||
Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Before amendment to the certificate of incorporation | After amendment to the certificate of incorporation | ||||||||||||||||||||
Minimum [Member] | Maximum [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction One [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Two [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | Transaction Three [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | ' | ' | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 5,000,000,000 |
Common stock, par value (in dollars per share) | $0.00 | ' | ' | ' | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 |
Series B and Series AA convertible preferred stock, shares authorized | ' | ' | ' | ' | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 10,000,000 |
Series B and Series AA convertible preferred stock, par value | ' | ' | ' | ' | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 |
Capital stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,010,000,000 | 5,010,000,000 |
Shares issued | ' | 13,455,958 | ' | 2,434,871 | ' | ' | ' | ' | 29,880,550 | 7,000,000 | 2,000,000 | 4,500,000 | 5,000,000 | 224,000 | 918,919 | 16,000,000 | 6,405,164 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,231,313 | 5,000,000 | 8,000,000 | 2,000,000 | 6,000,000 | 708,333 | 18,000,000 | 5,000,000 | 175,000 | 216,216 | 112,000 | ' | ' | 45,454,545 | 8,000,000 | 2,000,000 | 5,000,000 | 2,000,000 | 2,500,000 | 2,250,000 | 1,200,000 | 1,950,000 | 500,000 | 500,000 | 18,000,000 | 7,000,000 | 4,750,000 | 3,500,000 | 2,500,000 | 362,000 | 112,000 | 112,000 | 128,241,333 | 580,895,833 | 47,845,667 | 975,000,000 | ' | ' | ' | ' | 377,184,334 | 347,130,555 | 52,958,333 | ' | ' | 659,883,333 | 376,802,778 | 142,872.36 | ' | ' | ' | ' | ' | ' |
Per share price of shares issued (in dollars per share) | ' | ' | ' | $0.09 | ' | ' | ' | ' | ' | $0.00 | ' | $0.01 | $0.03 | $0.03 | $0.07 | $0.03 | $0.01 | ' | $0.01 | $0.02 | $0.00 | $0.02 | $0.04 | $0.01 | $0.00 | $0.01 | $0.05 | ' | $0.00 | ' | ' | $0.02 | $0.03 | $0.03 | $0.04 | $0.07 | $0.07 | $0.07 | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | $0.02 | $0.02 | $0.03 | $0.02 | $0.04 | $0.07 | $0.07 | $0.00 | $0.01 | ' | $0.02 | $0.02 | $0.03 | $0.04 | $0.07 | $0.00 | ' | $0.00 | ' | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' |
Value of shares issued | $330,402 | $1,614,715 | $1,750,000 | $228,250 | ' | ' | ' | ' | $41,856.66 | $17,220 | $24,000 | $26,730 | $150,000 | $6,272 | $68,000 | $528,000 | ' | $271,168 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $86,840 | $21,000 | $91,200 | $31,000 | $141,600 | $18,008 | $594,000 | $200,000 | $12,950 | $16,000 | $8,228 | ' | ' | $30,000 | $19,680 | $23,200 | $65,000 | $47,200 | $50,000 | $68,675 | $25,000 | $77,300 | $37,000 | $37,000 | $18,360 | $42,000 | $76,000 | $70,000 | $50,000 | $11,196 | $4,368 | $8,228 | $7,694 | $33,360 | $8,612 | $35,250 | ' | ' | ' | ' | $22,631 | $42,410 | $12,710 | ' | ' | $39,593 | $38,714 | $48,400 | ' | ' | ' | ' | ' | ' |
Principal and interest due converted into shares | 155,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,287 | ' | 62,222 | ' | ' | ' | ' | ' | 109,745 | 55,120 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for debt and interest | ' | $2,500,000 | $2,012,500 | ' | $321,866 | $2,313,459 | $1,848,031 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |