Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 15, 2014 | Mar. 31, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 30-Sep-14 | ||
Entity Registrant Name | GULFSLOPE ENERGY, INC. | ||
Entity Central Index Key | 1341726 | ||
Current Fiscal Year End Date | -21 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 660,672,345 | ||
Entity Public Float | $345,144,421 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Current Assets | ||
Cash and Cash Equivalents | $4,410,302 | $310,199 |
Restricted Cash | 1,500,077 | 2,500,317 |
Prepaid Expenses and Other Current Assets | 33,602 | 5,514 |
Total Current Assets | 5,943,981 | 2,816,030 |
Property and Equipment, net of depreciation | 107,971 | 70,188 |
Oil and Natural Gas Properties, Full Cost Method of Accounting, Unproved Properties | 2,055,978 | |
Other Non-Current Assets | 150,000 | 18,760 |
Total Non-Current Assets | 2,313,949 | 88,948 |
Total Assets | 8,257,930 | 2,904,978 |
Current Liabilities | ||
Accounts Payable | 45,210 | 156,439 |
Related Party Payable | 266,737 | 490,101 |
Accrued Interest Payable | 40,812 | 94,986 |
Accrued Expenses and Other Payables | 2,503,064 | 3,093,065 |
Loans from Related Parties | 6,460,000 | 5,500,000 |
Note Payable | 4,427 | |
Total Current Liabilities | 9,320,250 | 9,334,591 |
Accrued Expenses and Other Payables, Net of Current Portion | 3,003,065 | |
Total Liabilities | 9,320,250 | 12,337,656 |
Commitments and Contingencies | ||
Stockholders' Equity (Deficit) | ||
Preferred Stock; par value ($0.001); Authorized 50,000,000 shares none issued or outstanding | ||
Common Stock; par value ($0.001); Authorized 975,000,000 and 750,000,000 shares, as of September 30, 2014 and 2013, respectively; issued and outstanding 660,672,345 and 577,210,000, as of September 30, 2014 and 2013, respectively | 660,672 | 577,210 |
Additional Paid-in-Capital | 22,936,685 | 9,139,917 |
Accumulated Deficit | -24,659,677 | -19,149,805 |
Total Stockholders' Equity (Deficit) | -1,062,320 | -9,432,678 |
Total Liabilities and Stockholders' Equity (Deficit) | $8,257,930 | $2,904,978 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Balance Sheets [Abstract] | ||
Preferred Stock, par value per share | $0.00 | $0.00 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | ||
Preferred Stock, shares outstanding | ||
Common Stock, par value per share | $0.00 | $0.00 |
Common Stock, shares authorized | 975,000,000 | 750,000,000 |
Common Stock, shares issued | 660,672,345 | 577,210,000 |
Common Stock, shares outstanding | 660,672,345 | 577,210,000 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Condensed Statements of Operations [Abstract] | |||
Revenues | |||
Impairment of Oil and Natural Gas Properties | 2,726,103 | 15,120,574 | |
General & Administrative Expenses | 2,496,248 | 2,237,269 | 1,537,215 |
Net Loss from Operations | -5,222,351 | -17,357,843 | -1,537,215 |
Other Income /(Expenses): | |||
Interest Income | 2,732 | 316 | |
Interest Expense | -290,253 | -94,986 | -60 |
Net Loss Before Income Taxes | -5,509,872 | -17,452,513 | -1,537,275 |
Provision for Income Taxes | |||
Net Loss | ($5,509,872) | ($17,452,513) | ($1,537,275) |
Loss Per Share - Basic and Diluted | ($0.01) | ($0.04) | ($0.02) |
Weighted Average Shares Outstanding - Basic and Diluted | 627,628,630 | 394,016,867 | 83,487,568 |
STATEMENTS_OF_STOCKHOLDERS_EQU
STATEMENTS OF STOCKHOLDERS' EQUITY / (DEFICIT) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Shares to be Issued [Member] | Additional Paid-in Capital Common Shares To Be Issued [Member] | Subscription Receivable [Member] | Accumulated Deficit [Member] |
Balance at Sep. 30, 2011 | $85,243 | $10,000 | $125,260 | $11,650,000 | $116,500 | ($6,500) | ($160,017) |
Balance, shares at Sep. 30, 2011 | 10,000,000 | ||||||
Shares issued from common shares to be issued | 6,500 | 11,650 | 104,850 | -11,650,000 | -116,500 | 6,500 | |
Shares issued from common share to be issued, shares | 11,650,000 | ||||||
Common shares issued for cash | 785,000 | 78,500 | 706,500 | ||||
Common shares issued for cash, shares | 78,500,000 | ||||||
Shares issued for services | 1,350,000 | 135,000 | 1,215,000 | ||||
Shares issued for services, shares | 135,000,000 | ||||||
Net loss for the year | -1,537,275 | -1,537,275 | |||||
Balance at Sep. 30, 2012 | 689,468 | 235,150 | 2,151,610 | -1,697,292 | |||
Balance, shares at Sep. 30, 2012 | 235,150,000 | ||||||
Shares issued from common shares to be issued | 2,435,167 | 243,517 | 2,191,650 | ||||
Shares issued from common share to be issued, shares | 243,516,666 | ||||||
Common shares issued for cash | 3,535,200 | 72,543 | 3,462,657 | ||||
Common shares issued for cash, shares | 72,543,334 | ||||||
Shares issued to settle debt with related party | 1,200,000 | 10,000 | 1,190,000 | ||||
Shares issued to settle debt with related party, shares | 10,000,000 | ||||||
Shares issued for services | 160,000 | 16,000 | 144,000 | ||||
Shares issued for services, shares | 16,000,000 | ||||||
Net loss for the year | -17,452,513 | -17,452,513 | |||||
Balance at Sep. 30, 2013 | -9,432,678 | 577,210 | 9,139,917 | -19,149,805 | |||
Balance, shares at Sep. 30, 2013 | 577,210,000 | 577,210,000 | |||||
Common shares issued for cash | 13,136,998 | 77,901 | 13,059,097 | ||||
Common shares issued for cash, shares | 77,901,442 | ||||||
Shares issued to settle debt with related party | 292,908 | 2,441 | 290,467 | ||||
Shares issued to settle debt with related party, shares | 2,440,903 | ||||||
Shares issued for services | 194,400 | 1,620 | 192,780 | ||||
Shares issued for services, shares | 1,620,000 | ||||||
Restricted Common stock | 45,000 | 1,500 | 43,500 | ||||
Restricted Common stock, shares | 1,500,000 | ||||||
Amortization of employee stock options and restricted stock | 210,928 | 210,928 | |||||
Net loss for the year | -5,509,872 | -5,509,872 | |||||
Balance at Sep. 30, 2014 | ($1,062,320) | $660,672 | $22,936,685 | ($24,659,677) | |||
Balance, shares at Sep. 30, 2014 | 660,672,345 | 660,672,345 |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
OPERATING ACTIVITIES | |||
Net Loss | ($5,509,872) | ($17,452,513) | ($1,537,275) |
Adjustments to reconcile net loss to net cash From Operating Activities: | |||
Impairment of Oil and Natural Gas Properties | 2,726,103 | 15,120,574 | |
Depreciation | 34,565 | 7,217 | |
Stock issued for services | 194,400 | 160,000 | 1,350,000 |
Stock based compensation | 151,712 | ||
Changes in operating assets and liabilities: | |||
(Increase) Decrease in Prepaid Expenses | 121,299 | 323,859 | -329,373 |
(Increase) Decrease in Other Assets | -18,760 | ||
Increase (Decrease) in Accounts Payable | -130,619 | 15,250 | 31,189 |
Increase (Decrease) in Related Party Payable | -223,364 | 322,418 | 29,563 |
Increase (Decrease) in Accrued Interest | -53,766 | 94,986 | |
Increase (Decrease) in Accrued Liabilities | -3,480,565 | 45,000 | -100 |
Net Cash Used in Operating Activities | -6,170,107 | -1,381,969 | -455,996 |
INVESTING ACTIVITIES | |||
Lease Deposits | -150,000 | ||
Leases Purchased | -8,126,972 | ||
Proceeds From Sale of Working Interest | 8,200,000 | ||
Capitalized Exploration Costs | -4,731,506 | -6,388,319 | |
Purchase of Equipment | -72,351 | -77,405 | |
Net Cash Used in Investing Activities | -4,880,829 | -6,465,724 | |
FINANCING ACTIVITIES | |||
Restricted cash | 1,000,240 | -2,500,317 | |
Proceeds from Stock Issuance | 13,136,998 | 3,535,200 | 791,500 |
Proceeds from Related Party Loans | 1,160,000 | 6,700,000 | |
Payments on Note Payable | -126,199 | ||
Payments on Related Party Loans | -20,000 | ||
Net Cash Provided by Financing Activities: | 15,151,039 | 7,734,883 | 791,500 |
Net Increase (Decrease) in cash | 4,100,103 | -112,810 | 335,504 |
Beginning Cash Balance | 310,199 | 423,009 | 87,505 |
Ending Cash Balance | 4,410,302 | 310,199 | 423,009 |
Supplemental Schedule of Cash Flow Activities | |||
Cash paid for income taxes | 125 | ||
Cash paid for interest | 344,427 | 60 | |
Common stock issued for prepaid expenses | 550,000 | ||
Common stock issued to settle accrued expenses | 112,500 | ||
Shares issued upon conversion of note payable | 180,000 | 1,200,000 | |
Non-cash Investing and Financing Activities | |||
Purchase of Developmental Capital Expenditures Through Issuance of Common Stock | 2,435,167 | ||
Purchases of Development Capital Expenditures Included in Accrued Expenses | 2,503,065 | 6,051,130 | |
Purchases of Development Capital Expenditures Included in Accounts Payable | 19,390 | 109,458 | |
Purchases of Development Capital Expenditures Included in Related Party Payable | $19,500 | $136,500 |
ORGANIZATION_AND_SUMMARY_OF_SI
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2014 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
(a) Organization | |
GulfSlope Energy, Inc. (the “Company”, “GulfSlope”, “us”, “we”, or “our”), is an independent oil and natural gas exploration company whose interests are concentrated in the United States Gulf of Mexico federal waters offshore Louisiana in less than 1000' of water depth. The Company has leased 21 federal Outer Continental Shelf blocks (referred to as “prospect,” “portfolio” or “leases”) and licensed 2.2 million acres of three-dimensional (3-D) seismic data in its area of concentration. | |
(b) Basis of Presentation | |
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and the instructions to Form 10-K and Regulation S-X published by the US Securities and Exchange Commission (the "SEC"). The accompanying financial statements include the accounts of the Company. | |
(c) Cash and Cash Equivalents | |
The Company considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of interest-bearing bank accounts and money market funds. The Company's cash positions represent assets held in a checking account. These assets are generally available on a daily or weekly basis and are highly liquid in nature. | |
(d) Restricted Cash | |
In accordance with a seismic data licensing agreement, certain funds have been placed in an escrow account for the purpose of making an installment payment in the future and are restricted from use in operations. These funds have been classified as restricted cash. | |
(e) Full Cost Method | |
The Company uses the full cost method of accounting for oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with the exploration for and development of oil and gas reserves are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include land acquisition costs, geological and geophysical (“G&G”) expenses, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells and overhead charges directly related to acquisition, exploration and development activities. All of the Company's oil and gas properties are located within the United States, its sole cost center. | |
The costs of unproved properties and related capitalized costs are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned or the property is considered to be impaired, the cost of the property or the amount of the impairment is added to costs subject to depletion and full cost ceiling calculations. Capitalized costs that are directly associated with unproved properties acquired by the Company during the year are included in the full cost pool. As of September 30, 2014, the Company had no proved reserves. | |
Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve month period. The ceiling limits such pooled costs to the aggregate of the present value of future net revenues attributable to proved crude oil and natural gas reserves discounted at 10% plus the lower of cost or market value of unproved properties less any associated tax effects. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. | |
Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. | |
(f) Capitalized Interest | |
Interest is capitalized on the cost of unevaluated gas and oil properties that are excluded from amortization and actively being evaluated, if any. | |
(g) Property and Equipment | |
Property and equipment are carried at cost and include expenditures for new equipment and those expenditures that substantially increase the productive lives of existing equipment and leasehold improvements. Maintenance and repair costs are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the assets' estimated useful lives. Fully depreciated property and equipment still in use are not eliminated from the accounts. | |
The Company assesses the carrying value of its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing estimated undiscounted cash flows, expected to be generated from such assets, to their net book value. If net book value exceeds estimated cash flows, the asset is written down to its fair value, determined by the estimated discounted cash flows from such asset. When an asset is retired or sold, its cost and related accumulated depreciation and amortization are removed from the accounts. The difference between the net book value of the asset and proceeds on disposition is recorded as a gain or loss in our statements of operations in the period in which they occur. | |
(h) Income Taxes | |
The Company applies the provisions of FASB Accounting Standard Codification (ASC) 740 Income Taxes. This standard requires an asset and liability approach for financial accounting and reporting for income taxes, and the recognition of deferred tax assets and liabilities for the temporary differences between the financial reporting basis and tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance is provided if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
(i) Stock-Based Compensation | |
The Company records expenses associated with the fair value of stock-based compensation. For fully vested and restricted stock grants, the Company calculates the stock based compensation expense based upon estimated fair value on the date of grant. For stock warrants and options, the Company uses the Black-Scholes option valuation model to calculate stock based compensation at the date of grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. | |
(j) Stock Issuance | |
The Company records the stock-based compensation awards issued to non-employees and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in FASB ASC 505-50-30. | |
(k) Earnings per Share – Basic and Dilutive | |
Basic earnings per share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and restricted stock. The number of potential common shares outstanding relating to stock options, warrants, and restricted stock is computed using the treasury stock method. | |
As the Company has incurred losses for the years ended September 30, 2014 and 2013, the potentially dilutive shares are anti-dilutive and thus not added into the EPS calculations. As of September 30, 2014, 2013 and 2012, there were 52,786,765; 45,833,333 and 0 potentially dilutive shares, respectively. | |
(l) Statement of Cash Flows | |
For purposes of the Statements of Cash Flows, the Company considers cash on deposit in the bank to be cash. The Company had $4,410,302 unrestricted cash as of September 30, 2014. The Company had $310,199 and $423,009 unrestricted cash as of September 30, 2013 and 2012, respectively. | |
(m) Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
(n) Impact of New Accounting Standards | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU No. 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2016. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
In June 2014, the FASB issued Accounting Standards Update No. 2014-10 (“ASU No. 2014-10”), which eliminated the definition of a Development Stage Entity and the related reporting requirements. ASU No. 2014-10 is effective for annual reporting periods beginning after December 15, 2014, with early adoption allowed. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows, and shareholder's equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments in this update are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein, and early adoption is required. The Company chose to adopt ASU No. 2014-10 early, effective in its financial statements for the period ended September 30, 2014. | |
In August 2014, the FASB issued Accounting Standard Update No. 2014-15 (“ASU No. 2014-15”), Presentation of Financial Statements Going Concern (Subtopic 205-40) which requires management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans and requires an express statement and other disclosures when substantial doubt is not alleviated. ASU No. 2014-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, early application is permitted. | |
We are currently evaluating the accounting implication and do not believe the adoption of ASU 2014-15 to have material impact on our consolidated financial statements, although there may be additional disclosures upon adoption. | |
The company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the company's financial statement. |
LIQUIDITYGOING_CONCERN
LIQUIDITY/GOING CONCERN | 12 Months Ended |
Sep. 30, 2014 | |
LIQUIDITY/GOING CONCERN [Abstract] | |
Liquidity/Going Concern | NOTE 2 - LIQUIDITY/GOING CONCERN |
The Company has incurred accumulated losses for the period from inception (December 12, 2003) to September 30, 2014 of $24,659,677. Further losses are anticipated in developing our business. As a result, the Company's auditors have expressed substantial doubt about its ability to continue as a going concern. As of September 30, 2014, the Company had $4,410,302 of unrestricted cash on hand. The Company estimates that it will need to raise a minimum of $14.5 million to meet its obligations and planned expenditures during October 1, 2014 through December 31, 2015. The Company plans to finance the Company through equity and/or debt financings. There are no assurances that financing will be available with acceptable terms, if at all. If the company is not successful in obtaining financing, operations would need to be curtailed or ceased. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
EXPLORATION_COSTS
EXPLORATION COSTS | 12 Months Ended |
Sep. 30, 2014 | |
EXPLORATION COSTS [Abstract] | |
EXPLORATION COSTS | NOTE 3 – EXPLORATION COSTS |
On March 20, 2013, the Company entered into an assignment and assumption agreement (the “Assignment Agreement”) with third parties pursuant to which the Company was assigned the exclusive right to license certain seismic data. On March 22, 2013, the Company executed a master license agreement with this seismic company. In consideration for the assignment and other transactions contemplated by the Assignment Agreement, the Company agreed to issue to the assignor parties an aggregate of 243,516,666 shares of the Company's common stock. The common stock was valued at $2,435,167 and the shares were subsequently issued in April 2013. These expenses were included in accrued expenses as of March 31, 2013. | |
In March 2013, the Company licensed certain seismic data from a seismic company. The seismic data license fee totaled $6,135,500. | |
In March 2013, the Company licensed certain seismic data from a different seismic company pursuant to another ordinary business course agreement. The seismic data purchase totaled $4,012,260. | |
During May 2013, the Company incurred $90,000 in costs to participate in a geophysical research program with a public institution. | |
During May through September 2013, the Company incurred $1,674,376 in costs associated with technological infrastructure and third party hosting services to maintain and interpret the aforementioned seismic data. | |
During May through September 2013, the Company incurred $773,271 in consulting fees and salaries and benefits associated with full-time employed geoscientists analyzing the aforementioned seismic data. | |
The Company properly capitalized these G&G costs incurred during the fiscal year ended September 30, 2013 and included them in the depletion base because the Company did not yet own the specific unevaluated properties these costs related to. Therefore, these G&G costs were subject to the ceiling limitation test, resulting in immediate impairment for accounting purposes. | |
During October through December 2013, the Company incurred $808,613 in consulting fees, salaries and benefits associated with consultants and full-time geoscientists, $787,935 associated with technological infrastructure and third party hosting services and seismic data, and $80,000 for an independent recoverable resource study. During January through March 2014, the Company incurred $618,173 in consulting fees, salaries and benefits associated with consultants and full-time geoscientists, and $431,382 associated with technological infrastructure and third party hosting services and seismic data. The Company properly capitalized these G&G costs and included them in the depletion base because the Company did not yet own the specific unevaluated properties these costs related to. Therefore, these G&G costs were subject to the ceiling limitation test, resulting in immediate impairment in accordance with the full cost method for the year ended September 30, 2014. |
OIL_AND_NATURAL_GAS_PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 12 Months Ended |
Sep. 30, 2014 | |
OIL AND NATURAL GAS PROPERTIES [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | NOTE 4 – OIL AND GAS PROPERTIES |
During March 2014, the Company bid on 23 blocks in the Central Gulf of Mexico Lease Sale 231, conducted by the Bureau of Ocean Energy Management (BOEM). Of those 23 bids, we were the high bidder on 22 of 23 blocks. During May and June of 2014, the Company was awarded 21 of the 22 blocks and paid the remaining 80 percent lease bid amount and the first year lease rentals on all of the awarded blocks. The total amount paid was $8,126,972, which includes the 20% lease deposit amount, the remaining 80% and the first year lease rental payment. For the period October 1, 2013 to March 31, 2014 the Company incurred $1,426,786 in consulting fees and salaries and benefits associated with full-time geoscientists, and $1,299,317 associated with technological infrastructure, third party hosting services and seismic data. In accordance with the full cost method of accounting, these costs were capitalized but then impaired. During the period April 1 to September 30, 2014 the Company incurred $1,365,238 in consulting fees and salaries and benefits associated with full-time geoscientists, and $763,767 associated with technological infrastructure, third party hosting services and seismic data. The Company properly capitalized these geological and geophysical (G&G) costs because the Company acquired specific unevaluated properties during the period that these costs relate to. The capitalized exploration costs of $2,129,005 and the $8,126,972 paid for the awarded leases are netted with the $8,200,000 received for the sale of a 20% working interest in five of our prospects resulting in the amount of our unproved oil and gas properties of $2,055,977 reflected on our balance sheet. | |
In March 2014, the Company entered into a farm out letter agreement with Texas South Energy, Inc. (“Texas South”) relating to five prospects located within the blocks the Company bid on at the Central Gulf of Mexico Lease Sale 231. Under the terms of the farm-out letter agreement, Texas South may acquire up to a 20% working interest in 5 prospects for up to $10 million. As of September 30, 2014, the Company had received $8.2 million of the proceeds from the agreement. In accordance with full cost requirements, the Company recorded the proceeds from the transaction as an adjustment to capitalized costs with no gain recognition. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
PROPERTY AND EQUIPMENT [Abstract] | |||||||||
PROPERTY AND EQUIPMENT | NOTE 5 – PROPERTY AND EQUIPMENT | ||||||||
Property and equipment consist of the following as of September 30, 2014, September 30, 2013 and September 30, 2012: | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Office equipment and computers | $ | 129,419 | $ | 57,071 | |||||
Furniture and fixtures | 16,280 | 16,280 | |||||||
Leasehold improvements | 4,054 | 4,054 | |||||||
Total | 149,753 | 77,405 | |||||||
Less: accumulated depreciation | (41,782 | ) | (7,217 | ) | |||||
Net property and equipment | $ | 107,971 | $ | 70,188 | |||||
Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, which were as follows: | |||||||||
Life | |||||||||
Office equipment and computers | 3 years | ||||||||
Furniture and fixtures | 5 years | ||||||||
Leasehold improvements | Shorter of 5 years or related lease term | ||||||||
Depreciation expense was $34,565; $7,217 and $0 for the years ended September 30, 2014, 2013 and 2012, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
INCOME TAXES | NOTE 6 - INCOME TAXES | ||||||||||||
The provision for income taxes consists of the following as of September 30, 2014, 2013 and 2012: | |||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | |||||||||||
FEDERAL | |||||||||||||
Current | $ | - | $ | - | $ | - | |||||||
Deferred | - | - | - | ||||||||||
STATE | |||||||||||||
Current | - | - | - | ||||||||||
Deferred | - | - | - | ||||||||||
TOTAL PROVISION | $ | - | $ | - | $ | - | |||||||
Deferred income tax assets and liabilities at September 30, 2014, 2013 and 2012 consist of the following temporary differences: | |||||||||||||
9/30/14 | 9/30/13 | ||||||||||||
DEFERRED TAX ASSETS | |||||||||||||
Current | $ | - | $ | - | |||||||||
Noncurrent | |||||||||||||
Net operating losses | 2,825,208 | 1,166,327 | |||||||||||
Exploration costs | 873,708 | 1,701,065 | |||||||||||
Differences in book/tax depreciation | - | - | |||||||||||
Total noncurrent | $ | 3,698,916 | $ | 2,867,392 | |||||||||
Valuation Allowance | (3,698,916 | ) | -2,867,392 | ||||||||||
NET DEFERRED TAX ASSET | - | - | |||||||||||
DEFERRED TAX LIABILITIES | - | - | |||||||||||
NET DEFERRED TAXES | $ | - | $ | - | |||||||||
The Company's valuation allowance has increased $831,524 during the year ended September 30, 2014; $2,531,363 during the year ended September 30, 2013, and $307,151 during the year ended September 30, 2012. | |||||||||||||
The following is a summary of federal net operating loss carryforwards and their expiration dates: | |||||||||||||
Amount | Expiration | ||||||||||||
$ | 3,203 | 9/30/24 | |||||||||||
7,695 | 9/30/25 | ||||||||||||
18,447 | 9/30/26 | ||||||||||||
16,876 | 9/30/27 | ||||||||||||
17,986 | 9/30/28 | ||||||||||||
8,596 | 9/30/29 | ||||||||||||
7,713 | 9/30/30 | ||||||||||||
64,097 | 9/30/31 | ||||||||||||
513,914 | 9/30/32 | ||||||||||||
7,155,229 | 9/30/33 | ||||||||||||
11,020,965 | 9/30/34 | ||||||||||||
$ | 18,834,721 | Total | |||||||||||
The actual income tax provision for continuing operations is as follows as of September 30, 2014, 2013, and 2012 respectively, and: | |||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | |||||||||||
Expected provision (based on statutory rate) | $ | (826,481 | ) | $ | (2,617,887 | ) | (307,455 | ) | |||||
Effect of: | |||||||||||||
Increase in valuation allowance | 831,524 | 2,531,363 | 307,152 | ||||||||||
State minimum tax, net of federal benefit | - | - | - | ||||||||||
Non-deductible expense | 1,108 | 2,541 | 303 | ||||||||||
Net Operating Loss Adjustment | (5,736 | ) | - | - | |||||||||
Rate Change | - | 83,973 | - | ||||||||||
Other, net | (415 | ) | 10 | - | |||||||||
Total actual provision | $ | - | $ | - | $ | - | |||||||
The Company has not made any adjustments to deferred tax assets or liabilities. The Company did not identify any material uncertain tax positions of the Company on returns that have been filed or that will be filed. The Company has not had operations and is carrying a large Net Operating Loss as disclosed above. Since this Net Operating Loss will not produce a tax benefit for several years, even if examined by taxing authorities and disallowed entirely, there would be no effect on the financial statements. | |||||||||||||
The Company's policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within general and administrative expenses for penalties and interest expense. For the years ended September 30, 2014, 2013 and 2012, the Company did not recognize any interest or penalties, nor did we have any interest or penalties accrued as of September 30, 2014, 2013 and 2012 relating to unrecognized benefits. | |||||||||||||
The tax years ended September 30, 2011 through 2014 are open for examination for federal income tax purposes and by other major taxing jurisdictions to which we are subject. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2014 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7 - RELATED PARTY TRANSACTIONS |
In May 2012, the Company and Mr. Askew entered into a consulting agreement pursuant to which Mr. Askew would provide the Company's board of directors advice relating to certain of the Company's strategic and business development activities, including business development financing, and corporate strategy. In consideration for entering into the consulting agreement, Mr. Askew was issued 50 million shares of the Company's common stock. Mr. Askew's obligations under the consulting agreement were replaced and superseded as described below. | |
In May 2012, the Company and John B. Connally III, entered into a consulting agreement pursuant to which Mr. Connally would provide the Company's board of directors advice relating to certain of the Company's strategic and business development activities, including business development financing, and corporate strategy. In consideration for entering into the consulting agreement, Mr. Connally was issued 50 million shares of the Company's common stock. In July 2012, Mr. Connally's consulting agreement was amended, providing for the Company to pay Mr. Connally a one-time $25,000 cash retainer and a monthly cash consulting fee of $10,000 per month beginning July 1, 2012. | |
In June 2012, James Askew was appointed as the Company's president, chief executive officer, secretary, treasurer, and as chairman of the board of directors. In connection with the appointment of Mr. Askew, in June 2012, the Company and Mr. Askew entered into an employment agreement whereby Mr. Askew was paid a base salary of $300,000 per year and a one-time cash sign-on bonus of $100,000. The employment agreement replaced and superseded Mr. Askew's consulting agreement entered into in May 2012 (see description of the May 2012 consulting agreement above). The 50 million shares issued to Mr. Askew were unaffected by the replacement of the May 2012 consulting agreement with the June 2012 employment agreement. | |
In June 2012, subsequent to the date of his resignation as an officer and director of the Company, the Company entered into a one-year consulting agreement with John Preftokis. In consideration for entering into the consulting agreement, Mr. Preftokis was issued 5 million shares of Company common stock. This agreement was valued at $50,000, or $0.01 per share. As of September 30, 2012, $13,611 had been expensed with $36,389 recorded as a prepaid expense. | |
During August and September 2012, James Askew paid $31,183 in expenses on behalf of the Company. The $31,183 related party payable was outstanding as of September 30, 2012 and paid during the twelve months ended September 30, 2013. | |
Effective March 2013, the Company amended the employment agreement of James Askew to allow the Company to terminate such agreement at any time. The Company agreed to pay Mr. Askew a severance payment upon termination in the amount of up to $100,000 as reimbursement for any tax liabilities incurred by Mr. Askew during calendar year 2013 arising from previous salary and other compensation paid to Mr. Askew. The termination amount was accrued and recorded as a related party payable as of September 30, 2013. The termination amount was paid during the fiscal year ended September 30, 2014. | |
In March 2013, the Company entered into a one-year consulting agreement with ConRon Consulting, Inc. (“ConRon”) whereby ConRon assisted the Company in negotiating licensing for certain seismic data, as well as providing other general consulting. ConRon is an affiliate of Ron Bain, the Company's current chief operating officer. Pursuant to the agreement, compensation for ConRon was $30,000 per month. The ConRon consulting agreement was terminated in October 2013, and beginning in November 2013, Mr. Bain is paid an annual salary of $360,000 as an employee of the Company. As of September 30, 2013, the consulting fees for the months of March through September totaling $210,000 were unpaid and recorded as a related party payable. $150,000 of this amount was paid during the fiscal year ended September 30, 2014. | |
In March 2013, the Company entered into a one-year consulting agreement with John N. Seitz, its current chief executive officer and chairman, whereby Mr. Seitz assisted the Company in negotiating licensing for certain seismic data, as well as provide other general consulting. Pursuant to the agreement, Mr. Seitz was to receive compensation of $40,000 per month. The agreement was terminated in May 2013, as Mr. Seitz was appointed as the Company's chief executive officer and chairman and it is expected that Mr. Seitz will enter into an arrangement with the Company in the future regarding compensation. As of September 30, 2013, the consulting fees for the months of March through May totaling $120,000 were unpaid and recorded as a related party payable. The fees were paid during the fiscal year ended September 30, 2014. | |
In March 2013, John N. Seitz, Ronald A. Bain, and Dwight "Clint" M. Moore (all current officers of the Company) were issued 190,045,556 shares, 40,045,555 shares, and 10,045,555 shares, respectively, of common stock in consideration for the assignment of rights to purchase certain seismic data. The shares issued were valued at $0.01 per share. As a result of that transaction, both Mr. Seitz and Dr. Bain became holders in excess of 5% of our outstanding shares of common stock. | |
In May 2013, James Askew resigned as the Company's chief executive officer. Simultaneously, John Seitz was appointed chief executive officer and chairman of the board of directors. | |
In May 2013, Ronald A. Bain was appointed as the president and chief operating officer, and Dwight "Clint" M. Moore was appointed as the vice president and secretary. | |
During April 2013 through June 2013, the Company entered into convertible promissory notes whereby it borrowed a total of $6,500,000 from John Seitz, its current Chief Executive Officer (CEO). The notes are due on demand, bear interest at a rate of 5% per annum, and are convertible into shares of common stock at a conversion price equal to $0.12 per share of common stock (the then offering price of shares of common stock to unaffiliated investors). In May 2013, Mr. Seitz converted $1,200,000 of the aforementioned debt into 10,000,000 shares of common stock pursuant to the aforementioned convertible promissory notes. The shares were issued in July 2013. As of September 30, 2013, there was a total of $94,319 accrued interest associated with these loans and the Company has recorded $94,319 in interest expense. Additionally, in June of 2014, the Company entered into a promissory note whereby it borrowed a total of $1,160,000 from Mr. Seitz. The note is due on demand and bears interest at a rate of 5% per annum. There was a total of $40,812 of unpaid interest associated with these loans included in accrued liabilities within our balance sheet as of September 30, 2014. | |
During September 2013, the Company entered into convertible promissory notes whereby it borrowed a total of $200,000 from Dr. Ronald Bain, its current President and Chief Operating Officer (COO), and his affiliate ConRon. The notes are due on demand, bear interest at a rate of 5% per annum, and are convertible into shares of common stock at a conversion price equal to $0.12 per share of common stock (the then offering price of shares of common stock to unaffiliated investors). In October 2013, Dr. Bain converted principal and accrued interest in the amount of $180,408 into 1,503,403 shares of common stock. In November 2013, the Company repaid in full the $20,000 remaining principal balance (plus accrued interest) of the convertible promissory note. | |
In October 2013, the Company issued 937,500 shares of common stock to Brady Rodgers, the Company's Vice President of Engineering and Business Development, to settle $112,500 of fees due to Mr. Rodgers for services rendered. | |
In October 2013, the Company issued a ten-year option to purchase 2,000,000 shares of the Company's common stock at an exercise price of $0.12 per share to Mr. Rodgers. A fair value of $161,143 was computed using the Black-Scholes option-pricing model, of which $112,874 has been expensed during the twelve months ended September 30, 2014. The options vest 50% in October 2014 and 50% in October 2015. | |
Domenica Seitz CPA, has provided accounting consulting services to the Company. During the twelve month period ended September 30, 2014, the services provided were valued at $59,510 based on market-competitive salaries, time devoted and professional rates. The Company has accrued this amount, and it has been reflected in the September 30, 2014 financial statements. The Company has also engaged a third party professional services firm to assist with accounting and internal controls and maintains the proper segregation of duties. | |
James M. Askew is the sole officer, director and greater than 10% shareholder of Texas South Energy, Inc. ("Texas South"), the entity with which the Company entered into the March 2014 farm-out letter agreement pursuant to which the Company agreed to convey certain working interests in potential prospects. Subsequent to the execution of the March 2014 Texas South farm-out agreement, Mr. Askew resigned as a director of the Company. | |
Mr. Seitz has not received a salary since May 31, 2013, the date he commenced serving as our CEO and accordingly, no amount has been accrued on our financial statements. Prior to serving as an executive officer, Mr. Seitz served as a Company consultant and the Company has accrued $120,000 of consulting compensation owed to Mr. Seitz. As of September 30, 2014, Mr. Seitz beneficially owns 244,552,321 shares of the Company's common stock (including shares issuable upon conversion of the principal amount plus accrued interest of convertible notes held by Mr. Seitz). The Company recognizes that his level of stock ownership significantly aligns his interests with shareholders' interests. From time to time, the compensation committee may consider compensation arrangements for Mr. Seitz given his continuing contributions and leadership. | |
In connection with the Company's 2013 private placement of common stock at a purchase price of $0.12 per share, Mr. John Malanga, our Chief Financial Officer, purchased 166,667 shares of common stock, Mr. Rodgers, purchased 256,106 shares of common stock, Mr. Paul Morris, a Director, purchased 1,666,667 shares of common stock, and Mr. Richard Langdon, a Director, purchased 416,667 shares of common stock. | |
In connection with the Company's 2014 private placement of common stock at a purchase price of $0.24 per share, Mr. Bain, our President and COO, purchased 750,000 shares of common stock, Mr. Charles Hughes, Vice President, Land purchased 100,000 shares of common stock, and Mr. Paul Morris, a Director, purchased 416,667 shares of common stock. |
COMMON_STOCKPAID_IN_CAPITAL
COMMON STOCK/PAID IN CAPITAL | 12 Months Ended |
Sep. 30, 2014 | |
COMMON STOCK/PAID IN CAPITAL [Abstract] | |
COMMON STOCK/PAID IN CAPITAL | NOTE 8 - COMMON STOCK/PAID IN CAPITAL |
In October 2011, the Company sold 2,000,000 shares of common stock for $20,000 cash in a private placement. | |
Effective April 13, 2012, the Company completed a reincorporation in the State of Delaware from the State of Utah. The reincorporation was effected by the merger of Plan A with and into GulfSlope Energy, Inc., a newly formed, wholly owned Delaware subsidiary. As of the effective time of the reincorporation merger, Plan A ceased to exist as a separate entity with GulfSlope being the surviving entity. Each outstanding share of common stock of Plan A was automatically converted into one share of GulfSlope common stock. The par value of GulfSlope common stock and preferred stock changed from $0.01 per share to $0.001 per share. In addition, the number of authorized shares of common stock was increased from 50,000,000 to 750,000,000 and the number of authorized shares of preferred stock was increased from 5,000,000 to 50,000,000. These financial statements and related notes give retroactive effect to the change in par value. | |
In May 2012, the Company issued 20,000,000 shares of common stock to John Preftokis, the Company's former president and chief executive officer, for services rendered valued at $200,000 or $0.01 per share. | |
In May 2012, the Company issued 10,000,000 shares of common stock to five third parties for services rendered valued at $100,000 or $0.01 per share. | |
In May 2012, the Company issued 50,000,000 shares of common stock to a third party for services rendered pursuant to a one-year consulting agreement. This agreement was valued at $500,000 or $0.01 per share. As of September 30, 2012, $208,333 had been expensed with $291,667 recorded as a prepaid expense. The remaining $291,667 was expensed as of September 30, 2013. | |
In May 2012, the Company issued 50,000,000 shares of common stock to James Askew, its former president and chief executive officer, for services rendered pursuant to a one-year consulting agreement. This agreement was valued at $500,000 or $0.01 per share and expensed in full as the issuance was to an employee of the Company (see Note 6 above). | |
In May and June 2012, the Company sold 76,500,000 shares of common stock for $765,000 cash in a private placement. | |
In June 2012, the Company entered into a one-year consulting agreement with John Preftokis, the Company's former president and chief executive officer, for 5,000,000 shares of common stock. The shares were subsequently issued in July 2012. This agreement was valued at $50,000, or $0.01 per share. As of September 30, 2012, $13,611 had been expensed with $36,389 recorded as a prepaid expense. The remaining $36,389 was expensed as of September 30, 2013. | |
During February and March 2013, the Company sold 47,000,000 shares of common stock for cash proceeds of $470,000. | |
During April 2013, the Company issued a total of 6,000,000 shares of common stock to two third parties for services rendered. The shares were valued at $60,000. | |
During April 2013, the Company issued 10,000,000 shares of common stock to John B. Connally III as consideration for termination of a consulting agreement (see Note 6 above). | |
During April 2013, the Company issued 243,516,666 shares of common stock to third parties in relation to the licensing of certain seismic data (see Note 3 above). | |
During April 2013, the Company sold 16,666,667 shares of common stock for $2,000,000 cash or $0.12 per share. | |
During June 2013, the Company sold 833,333 shares of common stock for $100,000 cash or $0.12 per share. | |
During July 2013, the Company issued 10,000,000 shares of common stock to its chief executive officer upon conversion of $1,200,000 in debt (see Note 6 above). | |
During August and September 2013, the Company sold a total of 8,043,334 shares of common stock for $965,200 cash or $0.12 per share. | |
During October 2013, the Company sold 42,952,773 shares of common stock in a private placement at a price of $0.12 per share for $5,154,333 cash. | |
In October 2013, the Company issued 1,620,000 shares of common stock, with a fair value of $194,400, to three employees pursuant to employment arrangements. The Company also made gross-up payments to cover the three employees' personal income tax obligations in connection with these grants. | |
In October 2013, the Company issued a ten-year option to purchase 2,000,000 shares of the Company's common stock at an exercise price of $0.12 per share to Mr. Rodgers. The options vest 50% in October 2014 and 50% in October 2015. | |
In March 2014, the Company awarded 500,000 shares of restricted stock to an employee, of which one-half vests in April 2015 and the remaining half vests in April 2016. | |
In March 2014, the Company issued an aggregate of 1,000,000 shares of restricted stock to two non-employee directors. The restricted stock is subject to vesting pursuant to which one-half will vest on March 27, 2015 and the remaining one-half will vest on March 27, 2016. | |
In May 2014, the Company awarded 550,000 shares of restricted stock to an employee, one-half of which vests in May 2015 and the remaining half vests in May 2016. | |
At our annual meeting in May of 2014 our shareholders approved increasing the number of authorized shares of common stock from 750,000,000 to 975,000,000. | |
During July 2014, the Company sold 33,448,335 shares of common stock in a private placement at a price of $0.24 per share for $8,027,600 cash. | |
In July 2014, John H. Malanga, chief financial officer and chief accounting officer, was awarded 2,500,000 shares of restricted stock, with a fair value of $600,000, one-half of which vests in July 2015 and the remaining half vests in July 2016. | |
In August 2014, the Company closed an equity financing in which 1,500,000 shares of common stock were sold at a price of $0.24 per share for gross proceeds of $360,000. | |
In September 2014, the Company awarded 3,030,000 shares of restricted stock to six employees, one-half of which vests in September 2015 and the remaining half vests in September 2016. Shares of the restricted stock awards will be issued to the recipients according to the vesting terms. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | NOTE 9– STOCK-BASED COMPENSATION | |||||||||||||||||||||||||||||
Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized over the required vesting period. The Company recognized $255,924 in stock-based compensation expense during the year ended September 30, 2014, and $0 during the years ended September 30, 2013 and 2012. A portion of these costs, $104,212, were capitalized to unproved properties and the remainder were recorded as general and administrative expenses. | ||||||||||||||||||||||||||||||
The following table summarizes the Company's stock option activity during the year ended September 30, 2014: | ||||||||||||||||||||||||||||||
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining | Average Intrinsic Value | |||||||||||||||||||||||||||
Contractual Term (In years) | ||||||||||||||||||||||||||||||
Outstanding at beginning of period | - | - | ||||||||||||||||||||||||||||
Granted | 2,000,000 | $ | 0.12 | - | ||||||||||||||||||||||||||
Exercised | - | - | - | |||||||||||||||||||||||||||
Cancelled | - | - | - | |||||||||||||||||||||||||||
Outstanding at end of period | 2,000,000 | $ | 0.12 | 4.81 | $ | 260,000 | ||||||||||||||||||||||||
Vested and expected to vest | 2,000,000 | $ | 0.12 | 4.81 | $ | 260,000 | ||||||||||||||||||||||||
Exercisable at end of period | - | - | - | - | ||||||||||||||||||||||||||
The Company uses the Black-Scholes option-pricing model to estimate the fair value of options granted. The weighted-average fair values of stock options granted for the year ended September 30, 2014 were based on the following assumptions at the date of grant as follows: | ||||||||||||||||||||||||||||||
Expected dividend yield | 0% | |||||||||||||||||||||||||||||
Expected stock price volatility | 79.02% | |||||||||||||||||||||||||||||
Risk-free interest rate | 1.53% | |||||||||||||||||||||||||||||
Expected life of options | 5.75 years | |||||||||||||||||||||||||||||
Weighted-average grant date fair value | $0.08 | |||||||||||||||||||||||||||||
The Company used a variety of comparable and peer companies to determine the expected volatility. The Company has no historical data regarding the expected life of the options and therefore used the simplified method of calculating the expected life. The risk free rate was calculated using the U.S. Treasury constant maturity rates similar to the expected life of the options, as published by the Federal Reserve. The Company has no plans to declare any future dividends. | ||||||||||||||||||||||||||||||
As of September 30, 2014 there was $48,269 of unrecognized stock-based compensation cost related to the stock option grant that is expected to be expensed over a weighted-average period of one year. As of September 30, 2014 there was $1,478,150 of unrecognized stock-based compensation cost related to restricted stock grants that is expected to be expensed over a period of two years. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10– COMMITMENTS AND CONTINGENCIES |
In March 2013, the Company licensed certain seismic data pursuant to two agreements. With respect to the first agreement, as of September 30, 2014, the Company has paid $4,163,500 in cash, and has provided an additional $1,500,000 in an escrow account, which will be released to the vendor in 2015. This amount has been recorded as restricted cash as of September 30, 2014. With respect to the second agreement, as September 30, 2014, the Company has paid $3,009,195 in cash and is obligated to pay $1,003,065 during April 2015. | |
In July 2013, the Company entered into a two-year office lease agreement. The agreement calls for monthly payments of approximately $20,200 for the first twelve months and $20,500 for the second twelve months. In addition, the Company paid an $18,760 security deposit in July 2013. | |
In May 2014, the Company entered into an agreement with a seismic data reprocessing company in which the Company agreed to purchase an aggregate of $3 million of reprocessing services, of which $1.5 million will be paid in cash and the remaining by the issuance of 2 million shares of our common stock. As of September 30, 2014, no services have been provided by the seismic data reprocessing company and the Company has not paid for any services or issued any shares under this contract. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2014 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS |
In October 2014, the Company purchased an insurance policy for $245,291 and financed $224,360 of the premium by executing a note payable. |
ORGANIZATION_AND_SUMMARY_OF_SI1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Organization | (a) Organization |
GulfSlope Energy, Inc. (the “Company”, “GulfSlope”, “us”, “we”, or “our”), is an independent oil and natural gas exploration company whose interests are concentrated in the United States Gulf of Mexico federal waters offshore Louisiana in less than 1000' of water depth. The Company has leased 21 federal Outer Continental Shelf blocks (referred to as “prospect,” “portfolio” or “leases”) and licensed 2.2 million acres of three-dimensional (3-D) seismic data in its area of concentration. | |
Basis of Presentation | (b) Basis of Presentation |
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and the instructions to Form 10-K and Regulation S-X published by the US Securities and Exchange Commission (the "SEC"). The accompanying financial statements include the accounts of the Company. | |
Cash and Cash Equivalents | (c) Cash and Cash Equivalents |
The Company considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of interest-bearing bank accounts and money market funds. The Company's cash positions represent assets held in a checking account. These assets are generally available on a daily or weekly basis and are highly liquid in nature. | |
Restricted Cash | (d) Restricted Cash |
In accordance with a seismic data licensing agreement, certain funds have been placed in an escrow account for the purpose of making an installment payment in the future and are restricted from use in operations. These funds have been classified as restricted cash. | |
Full Cost Method | (e) Full Cost Method |
The Company uses the full cost method of accounting for oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with the exploration for and development of oil and gas reserves are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include land acquisition costs, geological and geophysical (“G&G”) expenses, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells and overhead charges directly related to acquisition, exploration and development activities. All of the Company's oil and gas properties are located within the United States, its sole cost center. | |
The costs of unproved properties and related capitalized costs are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned or the property is considered to be impaired, the cost of the property or the amount of the impairment is added to costs subject to depletion and full cost ceiling calculations. Capitalized costs that are directly associated with unproved properties acquired by the Company during the year are included in the full cost pool. As of September 30, 2014, the Company had no proved reserves. | |
Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve month period. The ceiling limits such pooled costs to the aggregate of the present value of future net revenues attributable to proved crude oil and natural gas reserves discounted at 10% plus the lower of cost or market value of unproved properties less any associated tax effects. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. | |
Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. | |
Capitalized Interest | (f) Capitalized Interest |
Interest is capitalized on the cost of unevaluated gas and oil properties that are excluded from amortization and actively being evaluated, if any. | |
Property and Equipment | (g) Property and Equipment |
Property and equipment are carried at cost and include expenditures for new equipment and those expenditures that substantially increase the productive lives of existing equipment and leasehold improvements. Maintenance and repair costs are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the assets' estimated useful lives. Fully depreciated property and equipment still in use are not eliminated from the accounts. | |
The Company assesses the carrying value of its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing estimated undiscounted cash flows, expected to be generated from such assets, to their net book value. If net book value exceeds estimated cash flows, the asset is written down to its fair value, determined by the estimated discounted cash flows from such asset. When an asset is retired or sold, its cost and related accumulated depreciation and amortization are removed from the accounts. The difference between the net book value of the asset and proceeds on disposition is recorded as a gain or loss in our statements of operations in the period in which they occur. | |
Income Taxes | (h) Income Taxes |
The Company applies the provisions of FASB Accounting Standard Codification (ASC) 740 Income Taxes. This standard requires an asset and liability approach for financial accounting and reporting for income taxes, and the recognition of deferred tax assets and liabilities for the temporary differences between the financial reporting basis and tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance is provided if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
Stock-Based Compensation | (i) Stock-Based Compensation |
The Company records expenses associated with the fair value of stock-based compensation. For fully vested and restricted stock grants, the Company calculates the stock based compensation expense based upon estimated fair value on the date of grant. For stock warrants and options, the Company uses the Black-Scholes option valuation model to calculate stock based compensation at the date of grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. | |
Stock Issuance | (j) Stock Issuance |
The Company records the stock-based compensation awards issued to non-employees and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in FASB ASC 505-50-30. | |
Earnings per Share - Basic and Dilutive | (k) Earnings per Share – Basic and Dilutive |
Basic earnings per share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and restricted stock. The number of potential common shares outstanding relating to stock options, warrants, and restricted stock is computed using the treasury stock method. | |
As the Company has incurred losses for the years ended September 30, 2014 and 2013, the potentially dilutive shares are anti-dilutive and thus not added into the EPS calculations. As of September 30, 2014, 2013 and 2012, there were 52,786,765; 45,833,333 and 0 potentially dilutive shares, respectively. | |
Statement of Cash Flows | (l) Statement of Cash Flows |
For purposes of the Statements of Cash Flows, the Company considers cash on deposit in the bank to be cash. The Company had $4,410,302 unrestricted cash as of September 30, 2014. The Company had $310,199 and $423,009 unrestricted cash as of September 30, 2013 and 2012, respectively. | |
Use of Estimates | (m) Use of Estimates |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Impact of New Accounting Standards | (n) Impact of New Accounting Standards |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU No. 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2016. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
In June 2014, the FASB issued Accounting Standards Update No. 2014-10 (“ASU No. 2014-10”), which eliminated the definition of a Development Stage Entity and the related reporting requirements. ASU No. 2014-10 is effective for annual reporting periods beginning after December 15, 2014, with early adoption allowed. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows, and shareholder's equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments in this update are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein, and early adoption is required. The Company chose to adopt ASU No. 2014-10 early, effective in its financial statements for the period ended September 30, 2014. | |
In August 2014, the FASB issued Accounting Standard Update No. 2014-15 (“ASU No. 2014-15”), Presentation of Financial Statements Going Concern (Subtopic 205-40) which requires management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans and requires an express statement and other disclosures when substantial doubt is not alleviated. ASU No. 2014-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, early application is permitted. | |
We are currently evaluating the accounting implication and do not believe the adoption of ASU 2014-15 to have material impact on our consolidated financial statements, although there may be additional disclosures upon adoption. | |
The company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the company's financial statement. |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
PROPERTY AND EQUIPMENT [Abstract] | |||||||||
Schedule of Property and Equipment | Property and equipment consist of the following as of September 30, 2014, September 30, 2013 and September 30, 2012: | ||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Office equipment and computers | $ | 129,419 | $ | 57,071 | |||||
Furniture and fixtures | 16,280 | 16,280 | |||||||
Leasehold improvements | 4,054 | 4,054 | |||||||
Total | 149,753 | 77,405 | |||||||
Less: accumulated depreciation | (41,782 | ) | (7,217 | ) | |||||
Net property and equipment | $ | 107,971 | $ | 70,188 | |||||
Schedule of Estimated Useful Lives of Assets | Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, which were as follows: | ||||||||
Life | |||||||||
Office equipment and computers | 3 years | ||||||||
Furniture and fixtures | 5 years | ||||||||
Leasehold improvements | Shorter of 5 years or related lease term | ||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
Schedule of Income Tax Provision | The provision for income taxes consists of the following as of September 30, 2014, 2013 and 2012: | ||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | |||||||||||
FEDERAL | |||||||||||||
Current | $ | - | $ | - | $ | - | |||||||
Deferred | - | - | - | ||||||||||
STATE | |||||||||||||
Current | - | - | - | ||||||||||
Deferred | - | - | - | ||||||||||
TOTAL PROVISION | $ | - | $ | - | $ | - | |||||||
Schedule of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities at September 30, 2014, 2013 and 2012 consist of the following temporary differences: | ||||||||||||
9/30/14 | 9/30/13 | ||||||||||||
DEFERRED TAX ASSETS | |||||||||||||
Current | $ | - | $ | - | |||||||||
Noncurrent | |||||||||||||
Net operating losses | 2,825,208 | 1,166,327 | |||||||||||
Exploration costs | 873,708 | 1,701,065 | |||||||||||
Differences in book/tax depreciation | - | - | |||||||||||
Total noncurrent | $ | 3,698,916 | $ | 2,867,392 | |||||||||
Valuation Allowance | (3,698,916 | ) | -2,867,392 | ||||||||||
NET DEFERRED TAX ASSET | - | - | |||||||||||
DEFERRED TAX LIABILITIES | - | - | |||||||||||
NET DEFERRED TAXES | $ | - | $ | - | |||||||||
Summary of Federal Net Operating Loss Carryforwards | The following is a summary of federal net operating loss carryforwards and their expiration dates: | ||||||||||||
Amount | Expiration | ||||||||||||
$ | 3,203 | 9/30/24 | |||||||||||
7,695 | 9/30/25 | ||||||||||||
18,447 | 9/30/26 | ||||||||||||
16,876 | 9/30/27 | ||||||||||||
17,986 | 9/30/28 | ||||||||||||
8,596 | 9/30/29 | ||||||||||||
7,713 | 9/30/30 | ||||||||||||
64,097 | 9/30/31 | ||||||||||||
513,914 | 9/30/32 | ||||||||||||
7,155,229 | 9/30/33 | ||||||||||||
11,020,965 | 9/30/34 | ||||||||||||
$ | 18,834,721 | Total | |||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The actual income tax provision for continuing operations is as follows as of September 30, 2014, 2013, and 2012 respectively, and: | ||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | |||||||||||
Expected provision (based on statutory rate) | $ | (826,481 | ) | $ | (2,617,887 | ) | (307,455 | ) | |||||
Effect of: | |||||||||||||
Increase in valuation allowance | 831,524 | 2,531,363 | 307,152 | ||||||||||
State minimum tax, net of federal benefit | - | - | - | ||||||||||
Non-deductible expense | 1,108 | 2,541 | 303 | ||||||||||
Net Operating Loss Adjustment | (5,736 | ) | - | - | |||||||||
Rate Change | - | 83,973 | - | ||||||||||
Other, net | (415 | ) | 10 | - | |||||||||
Total actual provision | $ | - | $ | - | $ | - | |||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||
Summary of Stock Options Activity | The following table summarizes the Company's stock option activity during the year ended September 30, 2014: | |||||||||||||||||||||||||||||
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining | Average Intrinsic Value | |||||||||||||||||||||||||||
Contractual Term (In years) | ||||||||||||||||||||||||||||||
Outstanding at beginning of period | - | - | ||||||||||||||||||||||||||||
Granted | 2,000,000 | $ | 0.12 | - | ||||||||||||||||||||||||||
Exercised | - | - | - | |||||||||||||||||||||||||||
Cancelled | - | - | - | |||||||||||||||||||||||||||
Outstanding at end of period | 2,000,000 | $ | 0.12 | 4.81 | $ | 260,000 | ||||||||||||||||||||||||
Vested and expected to vest | 2,000,000 | $ | 0.12 | 4.81 | $ | 260,000 | ||||||||||||||||||||||||
Exercisable at end of period | - | - | - | - | ||||||||||||||||||||||||||
Schedule of Fair Value Assumptions | The weighted-average fair values of stock options granted for the year ended September 30, 2014 were based on the following assumptions at the date of grant as follows: | |||||||||||||||||||||||||||||
Expected dividend yield | 0% | |||||||||||||||||||||||||||||
Expected stock price volatility | 79.02% | |||||||||||||||||||||||||||||
Risk-free interest rate | 1.53% | |||||||||||||||||||||||||||||
Expected life of options | 5.75 years | |||||||||||||||||||||||||||||
Weighted-average grant date fair value | $0.08 |
ORGANIZATION_AND_SUMMARY_OF_SI2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
item | ||||
acre | ||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||
Number of leased federal outer continental shelf blocks | 21 | |||
Area of three-dimensional (3-D) seismic data licensed | 2,200,000 | |||
Shares excluded from the computation of diluted loss per share | 52,786,765 | 45,833,333 | 0 | |
Cash | $4,410,302 | $310,199 | $423,009 | $87,505 |
LIQUIDITYGOING_CONCERN_Details
LIQUIDITY/GOING CONCERN (Details) (USD $) | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
LIQUIDITY/GOING CONCERN [Abstract] | ||||
Accumulated losses | $24,659,677 | $19,149,805 | ||
Cash | 4,410,302 | 310,199 | 423,009 | 87,505 |
Minimum capital which company estimated to raise to meet its obligations and planned expenditures during October 1, 2014 through December 31, 2015 | $14,500,000 |
EXPLORATION_COSTS_Details
EXPLORATION COSTS (Details) (USD $) | 1 Months Ended | ||||
Mar. 31, 2013 | 31-May-13 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
License Fee [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Exploration costs capitalized during the period | $6,135,500 | ||||
Seismic Data Purchase [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Exploration costs capitalized during the period | 4,012,260 | ||||
Geophysical Research Program [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Exploration costs capitalized during the period | 90,000 | ||||
Technological Infrastructure And Third Party Hosting Services [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Exploration costs capitalized during the period | 431,382 | 787,935 | 1,674,376 | ||
Consulting Fees And Salaries And Benefits [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Exploration costs capitalized during the period | 618,173 | 808,613 | 773,271 | ||
Independent Reserve Study [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Exploration costs capitalized during the period | 80,000 | ||||
TGS [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Shares issued in consideration for seismic data | 243,516,666 | ||||
Value of shares issued in consideration for seismic data | $2,435,167 |
OIL_AND_NATURAL_GAS_PROPERTIES1
OIL AND NATURAL GAS PROPERTIES (Details) (USD $) | 12 Months Ended | 6 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Mar. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Exploration costs capitalized during the period | $2,129,005 | ||||
Paid for lease | 8,126,972 | ||||
Proceeds from sale of working interest | 8,200,000 | ||||
Unproved oil and gas properties | 2,055,978 | 2,055,978 | |||
Technological Infrastructure And Third Party Hosting Services [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Exploration costs capitalized during the period | 763,767 | 1,299,317 | |||
Consulting Fees And Salaries And Benefits [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Exploration costs capitalized during the period | 1,365,238 | 1,426,786 | |||
Farm Out Letter Agreement Texas South [Member] | |||||
Deferred Costs, Capitalized, Prepaid And Other Assets [Line Items] | |||||
Maximum proceeds to be received under farm out agreement | 10,000,000 | 10,000,000 | |||
Proceeds received under farm out agreement | $8,200,000 |
PROPERTY_AND_EQUIPMENT_Schedul
PROPERTY AND EQUIPMENT (Schedule of Property and Equipment) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $149,753 | $77,405 |
Less: accumulated depreciation | -41,782 | -7,217 |
Net property and equipment | 107,971 | 70,188 |
Office Equipment and Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 129,419 | 57,071 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 16,280 | 16,280 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $4,054 | $4,054 |
PROPERTY_AND_EQUIPMENT_Schedul1
PROPERTY AND EQUIPMENT (Schedule of Estimated Useful Lives of Assets) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $34,565 | $7,217 | |
Office Equipment and Computers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES (Schedule of Income Tax Provision) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
FEDERAL | |||
Current | |||
Deferred | |||
STATE | |||
Current | |||
Deferred | |||
TOTAL PROVISION |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Income Tax Assets and Liabilities) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
DEFERRED TAX ASSETS | |||
Current | |||
Noncurrent | |||
Net operating losses | 2,825,208 | 1,166,327 | |
Exploration costs | 873,708 | 1,701,065 | |
Differences in book/tax depreciation | |||
Total noncurrent | 3,698,916 | 2,867,392 | |
Valuation Allowance | -3,698,916 | -2,867,392 | |
NET DEFERRED TAX ASSET | |||
DEFERRED TAX LIABILITIES | |||
NET DEFERRED TAXES | |||
Valuation allowance increase | $831,524 | $2,531,363 | $307,151 |
INCOME_TAXES_Summary_of_Federa
INCOME TAXES (Summary of Federal Net Operating Loss Carryforwards) (Details) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | |
Amount | $18,834,721 |
Federal Net Operating Loss Carryforward 1 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 3,203 |
Expiration | 30-Sep-24 |
Federal Net Operating Loss Carryforward 2 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 7,695 |
Expiration | 30-Sep-25 |
Federal Net Operating Loss Carryforward 3 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 18,447 |
Expiration | 30-Sep-26 |
Federal Net Operating Loss Carryforward 4 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 16,876 |
Expiration | 30-Sep-27 |
Federal Net Operating Loss Carryforward 5 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 17,986 |
Expiration | 30-Sep-28 |
Federal Net Operating Loss Carryforward 6 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 8,596 |
Expiration | 30-Sep-29 |
Federal Net Operating Loss Carryforward 7 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 7,713 |
Expiration | 30-Sep-30 |
Federal Net Operating Loss Carryforward 8 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 64,097 |
Expiration | 30-Sep-31 |
Federal Net Operating Loss Carryforward 9 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 513,914 |
Expiration | 30-Sep-32 |
Federal Net Operating Loss Carryforward 10 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | 7,155,229 |
Expiration | 30-Sep-33 |
Federal Net Operating Loss Carryforward 11 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amount | $11,020,965 |
Expiration | 30-Sep-34 |
INCOME_TAXES_Schedule_of_Effec
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
INCOME TAXES [Abstract] | |||
Expected provision (based on statutory rate) | ($826,481) | ($2,617,887) | ($307,455) |
Effect of: | |||
Increase in valuation allowance | 831,524 | 2,531,363 | 307,152 |
State minimum tax, net of federal benefit | |||
Non-deductible expense | 1,108 | 2,541 | 303 |
Net Operating Loss Adjustment | -5,736 | ||
Rate Change | 83,973 | ||
Other, net | -415 | 10 | |
TOTAL PROVISION |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 1 Months Ended | 2 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 7 Months Ended | 1 Months Ended | ||||||||||||
Oct. 30, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Jun. 22, 2012 | Jun. 30, 2012 | 31-May-12 | Mar. 31, 2013 | Jun. 30, 2014 | 31-May-13 | Nov. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Aug. 31, 2014 | Jun. 21, 2012 | |
Related Party Transaction [Line Items] | ||||||||||||||||||||
Related parties payable | $490,101 | $266,737 | $490,101 | $31,183 | $490,101 | |||||||||||||||
Stock issued for services | 194,400 | 160,000 | 1,350,000 | |||||||||||||||||
Common stock issued for consulting services, per share value | $0.12 | $0.12 | $0.12 | $0.12 | ||||||||||||||||
Proceeds from Related Party Loans | 1,160,000 | 6,700,000 | ||||||||||||||||||
Payment to related party | 20,000 | |||||||||||||||||||
Accrued expense | 94,986 | 40,812 | 94,986 | 94,986 | ||||||||||||||||
Issuance of common stock for services | 194,400 | 160,000 | 1,350,000 | |||||||||||||||||
Exercise price | $0.12 | |||||||||||||||||||
Stock-based compensation expense | 151,712 | |||||||||||||||||||
Common stock issued, price per share | $0.24 | |||||||||||||||||||
ConRon Consulting Inc. [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Monthly consulting fee | 210,000 | 30,000 | ||||||||||||||||||
Amount paid to related party | 150,000 | |||||||||||||||||||
John Preftokis [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Shares issued | 5,000,000 | 20,000,000 | ||||||||||||||||||
Stock issued for services | 50,000 | 50,000 | 200,000 | |||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | $0.01 | $0.01 | |||||||||||||||||
Prepaid expense | 36,389 | |||||||||||||||||||
Accrued expense | 36,389 | 36,389 | 13,611 | 36,389 | ||||||||||||||||
James Askew [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Shares issued | 50,000,000 | |||||||||||||||||||
Stock issued for services | 500,000 | |||||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | |||||||||||||||||||
Base salary | 300,000 | |||||||||||||||||||
Signing bonus | 100,000 | |||||||||||||||||||
Issuance of common stock for services, shares | 1,000,000 | |||||||||||||||||||
James Askew [Member] | Texas South Energy Inc [Member] | Minimum [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Percentage holding of related party in third party with whom entity has entered into the March 2014 farm-out letter agreement | 10.00% | |||||||||||||||||||
John Connally III [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Shares issued | 10,000,000 | |||||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | |||||||||||||||||||
Cash retainer | 25,000 | |||||||||||||||||||
Monthly consulting fee | 10,000 | |||||||||||||||||||
John Seitz [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Consulting agreement, term | 1 year | |||||||||||||||||||
Stock issued for services | 190,045,556 | |||||||||||||||||||
Common stock issued for consulting services, per share value | $0.12 | $0.01 | ||||||||||||||||||
Interest rate | 5.00% | 5.00% | ||||||||||||||||||
Conversion of notes payable, shares | 10,000,000 | |||||||||||||||||||
Debt conversion, price per share | $0.00 | |||||||||||||||||||
Monthly consulting fee | 120,000 | 40,000 | ||||||||||||||||||
Accrued expense | 120,000 | |||||||||||||||||||
Interest Expense | 94,319 | 40,812 | ||||||||||||||||||
Note payable from related party, original amount | 6,500,000 | 1,160,000 | ||||||||||||||||||
Stock issued for debt | 1,200,000 | |||||||||||||||||||
Number of common shares beneficially owned | 244,552,321 | |||||||||||||||||||
Officers [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock issued for services | 10,045,555 | |||||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | |||||||||||||||||||
Ron Bain, COO [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Outstanding common stock owned, percent | 5.00% | 5.00% | ||||||||||||||||||
Dr. Ronald Bain [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock issued for services | 40,045,555 | |||||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | |||||||||||||||||||
Proceeds from Related Party Loans | 200,000 | |||||||||||||||||||
Interest rate | 5.00% | 5.00% | 5.00% | |||||||||||||||||
Conversion of notes payable, shares | 1,503,403 | |||||||||||||||||||
Debt conversion, price per share | $0.12 | $0.12 | $0.12 | |||||||||||||||||
Payment to related party | 20,000 | |||||||||||||||||||
Base salary | 360,000 | |||||||||||||||||||
Stock issued for debt | 180,408 | |||||||||||||||||||
Dr. Ronald Bain [Member] | Private Placement [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock issued during period, shares | 750,000 | |||||||||||||||||||
Common stock issued, price per share | $0.24 | |||||||||||||||||||
Brady Rodgers [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Issuance of common stock for services | 112,500 | |||||||||||||||||||
Issuance of common stock for services, shares | 937,500 | |||||||||||||||||||
Number of common stock shares that can be purchased through options granted | 2,000,000 | |||||||||||||||||||
Exercise price | $0.12 | $0.12 | ||||||||||||||||||
Stock-based compensation expense | 112,874 | 161,143 | ||||||||||||||||||
Brady Rodgers [Member] | Private Placement [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock issued during period, shares | 256,106 | |||||||||||||||||||
Brady Rodgers [Member] | October 2014 [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Vesting percentage of options granted | 50.00% | |||||||||||||||||||
Brady Rodgers [Member] | October 2015 [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Vesting percentage of options granted | 50.00% | |||||||||||||||||||
Paul Morris [Member] | Private Placement [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock issued during period, shares | 100,000 | 1,666,667 | ||||||||||||||||||
Common stock issued, price per share | $0.24 | |||||||||||||||||||
Richard Langdon [Member] | Private Placement [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock issued during period, shares | 416,667 | |||||||||||||||||||
Domenica Seitz [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Accrued expense | $59,510 | |||||||||||||||||||
John Malanga [Member] | Private Placement [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock issued during period, shares | 166,667 | |||||||||||||||||||
Mr. Charles Hughes [Member] | Private Placement [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock issued during period, shares | 416,667 | |||||||||||||||||||
Common stock issued, price per share | $0.24 |
COMMON_STOCKPAID_IN_CAPITAL_De
COMMON STOCK/PAID IN CAPITAL (Details) (USD $) | 1 Months Ended | 2 Months Ended | 12 Months Ended | 1 Months Ended | 7 Months Ended | 1 Months Ended | |||||||||||||||||
Aug. 31, 2014 | Oct. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 22, 2012 | Jun. 30, 2012 | 31-May-12 | Mar. 31, 2013 | Jul. 31, 2014 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2014 | 31-May-14 | 30-May-14 | Apr. 13, 2012 | 31-May-13 | |
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Stock issued for services | $194,400 | $160,000 | $1,350,000 | ||||||||||||||||||||
Shares of common stock issued for cash | 1,500,000 | 42,952,773 | 10,000,000 | 833,333 | 16,666,667 | 8,043,334 | 47,000,000 | ||||||||||||||||
Common shares issued for cash | 360,000 | 5,154,333 | 1,200,000 | 100,000 | 2,000,000 | 965,200 | 470,000 | 13,136,998 | 3,535,200 | 785,000 | |||||||||||||
Common stock issued for consulting services, per share value | $0.12 | $0.12 | $0.12 | $0.12 | |||||||||||||||||||
Common Stock, shares authorized | 750,000,000 | 975,000,000 | 750,000,000 | 975,000,000 | 975,000,000 | 750,000,000 | 50,000,000 | ||||||||||||||||
Common Stock, par value per share | $0.00 | $0.00 | $0.00 | 0.001 | $0.00 | ||||||||||||||||||
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 5,000,000 | ||||||||||||||||||
Preferred Stock, par value per share | $0.00 | $0.00 | $0.00 | 0.001 | $0.01 | ||||||||||||||||||
Accrued liabilities | 94,986 | 40,812 | 94,986 | 40,812 | |||||||||||||||||||
Value of stock issued for services | 194,400 | 160,000 | 1,350,000 | ||||||||||||||||||||
Shares issued, price per share | $0.24 | ||||||||||||||||||||||
Weighted average exercise price per share | $0.12 | 0.12 | |||||||||||||||||||||
John Preftokis [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Shares issued | 5,000,000 | 20,000,000 | |||||||||||||||||||||
Stock issued for services | 50,000 | 50,000 | 200,000 | ||||||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | $0.01 | $0.01 | ||||||||||||||||||||
Prepaid expense | 36,389 | ||||||||||||||||||||||
Accrued liabilities | 36,389 | 36,389 | 13,611 | ||||||||||||||||||||
James Askew [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Shares issued | 50,000,000 | ||||||||||||||||||||||
Stock issued for services | 500,000 | ||||||||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | ||||||||||||||||||||||
Shares of stock issued for services | 1,000,000 | ||||||||||||||||||||||
John Connally III [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Shares issued | 10,000,000 | ||||||||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | ||||||||||||||||||||||
Private Placement [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Shares issued | 76,500,000 | 76,500,000 | 2,000,000 | ||||||||||||||||||||
Stock issued for services | 765,000 | 765,000 | 20,000 | ||||||||||||||||||||
Shares of common stock issued for cash | 33,448,335 | ||||||||||||||||||||||
Common shares issued for cash | 8,027,600 | ||||||||||||||||||||||
Stock price per share | $0.24 | ||||||||||||||||||||||
Third Party [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Shares issued | 6,000,000 | 50,000,000 | |||||||||||||||||||||
Stock issued for services | 60,000 | 500,000 | |||||||||||||||||||||
Shares of common stock issued for cash | 243,516,666 | ||||||||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | ||||||||||||||||||||||
Prepaid expense | 291,667 | ||||||||||||||||||||||
Accrued liabilities | 291,667 | 291,667 | 208,333 | ||||||||||||||||||||
Five Third Parties [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Shares issued | 10,000,000 | ||||||||||||||||||||||
Stock issued for services | 100,000 | ||||||||||||||||||||||
Common stock issued for consulting services, per share value | $0.01 | ||||||||||||||||||||||
John Seitz [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Stock issued for services | 190,045,556 | ||||||||||||||||||||||
Common stock issued for consulting services, per share value | $0.12 | 0.01 | |||||||||||||||||||||
Accrued liabilities | 120,000 | ||||||||||||||||||||||
Dr. Ronald Bain [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Stock issued for services | 40,045,555 | ||||||||||||||||||||||
Common stock issued for consulting services, per share value | 0.01 | ||||||||||||||||||||||
Brady Rodgers [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Shares of stock issued for services | 937,500 | ||||||||||||||||||||||
Value of stock issued for services | 112,500 | ||||||||||||||||||||||
Weighted average exercise price per share | $0.12 | $0.12 | |||||||||||||||||||||
Number of common stock shares that can be purchased through options granted | 2,000,000 | ||||||||||||||||||||||
Employees [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Stock issued for services | 194,400 | ||||||||||||||||||||||
Shares of stock issued for services | 500,000 | 1,620,000 | 3,030,000 | 550,000 | |||||||||||||||||||
Number of individuals to whom restricted stock awarded | 6 | ||||||||||||||||||||||
John H. Malanga, Chief Financial Officer and Chief Accounting Officer [Member] | |||||||||||||||||||||||
Common Stock Issuance [Line Items] | |||||||||||||||||||||||
Shares of stock issued for services | 2,500,000 | ||||||||||||||||||||||
Value of stock issued for services | $600,000 |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
STOCK-BASED COMPENSATION [Abstract] | |||
Stock-based compensation expense | $151,712 | ||
Options outstanding, aggregate intrinsic value | $260,000 |
STOCKBASED_COMPENSATION_Summar
STOCK-BASED COMPENSATION (Summary of Stock Options Activity) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Number of Options | ||
Outstanding at beginning of period | ||
Granted | 2,000,000 | |
Exercised | ||
Cancelled | ||
Outstanding at end of period | 2,000,000 | |
Vested and expected to vest | 2,000,000 | |
Exercisable at end of period | ||
Weighted Average Exercise Price | ||
Granted | $0.12 | |
Exercised | ||
Cancelled | ||
Outstanding at end of period | $0.12 | |
Vested and expected to vest | $0.12 | |
Exercisable at end of period | ||
Weighted Average Remaining Contractual Term | ||
Outstanding at end of period | 4 years 9 months 22 days | |
Vested and expected to vest | 4 years 9 months 22 days | |
Average Intrinsic Value | ||
Outstanding at end of period | $260,000 | |
Vested and expected to vest | 260,000 | |
Exercisable at end of period |
STOCKBASED_COMPENSATION_Schedu
STOCK-BASED COMPENSATION (Schedule of Fair Value Assumptions) (Details) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
STOCK-BASED COMPENSATION [Abstract] | |
Expected dividend yield | 0.00% |
Expected stock price volatility | 79.02% |
Risk-free interest rate | 1.53% |
Expected life of options | 5 years 9 months |
Weighted-average grant date fair value, per option | $0.08 |
Stock option [Member] | |
Stock-based compensation [Line Items] | |
Unrecognized compensation cost | $48,269 |
Unrecognized compensation cost, period of recognition | 1 year |
Restricted stock [Member] | |
Stock-based compensation [Line Items] | |
Unrecognized compensation cost | $1,478,150 |
Unrecognized compensation cost, period of recognition | 2 years |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Share data in Millions, unless otherwise specified | 31-May-14 | Jul. 31, 2013 | Sep. 30, 2014 |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Security deposit | $18,760 | ||
Aggregate purchase of reprocessing services | 3,000,000 | ||
Reprocessing services purchase payment in cash | 1,500,000 | ||
Shares issued for reprocessing services purchase | 2 | ||
First Period [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Agreement monthly amount | 20,200 | ||
Second Period [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Agreement monthly amount | 20,500 | ||
TGS [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Payments for exploration costs | 4,163,500 | ||
Remaining amount obligated to escrow by end of April, 2013 | 1,500,000 | ||
Payment due during April 2015 | 1,003,065 | ||
Nonspecified Siesmic Company [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Payments for exploration costs | $3,009,195 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], USD $) | 1 Months Ended |
Oct. 31, 2014 | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Insurance policy purchased | $245,291 |
Amount of premium paid by executing a note payable | $224,360 |