Related Party Transactions | 12 Months Ended |
Sep. 30, 2013 |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 3 — Related Party Transactions |
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We have borrowed funds for our operations from certain major stockholders, directors and officers as disclosed below. |
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We have an unsecured note payable due to Deanna Stromback, a principal shareholder and former director and sister of our former Chairman, Rich Stromback, which bears interest at 4% per annum with principal and interest due on December 31, 2009. As of September 30, 2013 and September 30, 2012, the note had an outstanding balance of $110,500. The accrued interest on the note was $39,882 and $34,812 as of September 30, 2013 and September 30, 2012, respectively. The note is currently in default and carries conversion rights that allow the holder to convert all or part of the outstanding balance into shares of our common stock upon mutually agreeable terms and conversion price. |
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We have an unsecured note payable due to Doug Stromback, a principal shareholder and former director and brother of our former Chairman, Rich Stromback, which bears interest at 4% per annum with principal and interest due on December 31, 2009. As of September 30, 2013 and September 30, 2012, the note had an outstanding balance of $133,000. The accrued interest on the note was $33,130 and $28,917 as of September 30, 2013 and September 30, 2012, respectively. The note is currently in default and carries conversion rights that allow the holder to convert all or part of the outstanding balance into shares of our common stock upon mutually agreeable terms and conversion price. |
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We have a secured note payable to John Salpietra, a member of our Board of Directors. This note bears interest at 4.75% per annum, is secured by a lien on our intellectual property, and is convertible into shares of our common stock at $.06 per share. On December 15, 2011, the parties agreed to extend the due date to December 4, 2012. As of September 30, 2012 and September 30, 2011, the note had an outstanding balance of $600,000. On June 26, 2012, we issued a note for $40,000 to Mr. Salpietra. The note bears interest at 5% per annum, is unsecured, and matures on September, 26, 2012. Additionally, on June 28, 2012, we issued a note for $100,000 to Mr. Salpietra. The note bears interest at 5% per annum, is unsecured, and matures on September, 28, 2012. Accrued interest on all notes was $102,026 and $71,429 as of September 30, 2013 and September 30, 2012, respectively. |
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On January 2, 2012, we entered into a Sale and Leaseback Agreement with J.M. Land Co. where we raised cash by selling and leasing back our laboratory and computer equipment. Our balance sheet reflected a liability of $4,396 as of September 30, 2013. |
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On June 12, 2012, we issued a note for $30,000 to Omega Development Corporation, an entity owned by James Juliano. The note bears interest at 5% per annum, is unsecured, and matures on September, 12, 2012. Accrued interest of $1,286 was owed as of September 30, 2013. |
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We paid $27,000 in director fees to our Chairman James Juliano for the year ended September 30, 2013. We paid $8,000 in director fees to Mr. Juliano for the year ended September 30, 2012. |
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On August 15, 2012, we issued a promissory note to Joe Nirta in the principal amount of $100,000 bearing interest at 5% per annum. The note is due in full on November 16, 2012. The note is convertible into shares of our common stock on terms mutually agreed upon by the parties. |