Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Jan. 02, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Regenicin, Inc. | ' |
Entity Central Index Key | '0001412659 | ' |
Document Type | '10-K | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $4,539,607 |
Entity Common Stock, Shares Outstanding | ' | 119,609,400 |
Document Fiscal Period Focus | 'FY | ' |
Document Fiscal Year Focus | '2013 | ' |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
CURRENT ASSETS | ' | ' |
Cash | $22,500 | $34,074 |
Prepaid expenses and other current assets | 66,335 | 54,339 |
Total current assets | 88,835 | 88,413 |
Intangible assets | 7,500 | 3,007,500 |
Total assets | 96,335 | 3,095,913 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 1,392,481 | 1,655,052 |
Accrued expenses | 1,475,002 | 1,132,840 |
Note payable - insurance financing | 52,220 | 42,160 |
Bridge financing (net of discount of $1,226 and $133,057) | 538,774 | 652,343 |
Convertible promissory notes (net of discount of $136,452 and $0) | 264,417 | ' |
Loan payable | 10,000 | 10,000 |
Loans payable - related parties | 64,400 | 58,000 |
Total current liabilities | 3,797,294 | 3,550,395 |
NON-CURRENT LIABILITY | ' | ' |
Derivative liabilities | 438,779 | ' |
Total liabilities | 4,236,073 | 3,550,395 |
STOCKHOLDERS' DEFICIENCY | ' | ' |
Series A 10% Convertible Preferred stock, $0.001 par value, 5,500,000 shares authorized; 885,000 issued and outstanding | 885 | 885 |
Common stock, $0.001 par value; 200,000,000 shares authorized; 120,159,009 and 93,836,324 issued, respectively; 115,730,649 and 89,407,964 outstanding, respectively | 120,159 | 93,836 |
Common stock to be issued; 6,701,018 and 7,363,281 shares | 334,968 | 368,326 |
Additional paid-in capital | 8,501,390 | 7,274,799 |
Deficit accumulated during development stage | -13,092,713 | -8,187,901 |
Less: treasury stock; 4,428,360 shares at par | -4,428 | -4,428 |
Total stockholders deficiency | -4,139,738 | -454,482 |
Total liabilities and stockholders' deficiency | $96,335 | $3,095,913 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Series A Preferred Stock, Par Value | $0.00 | $0.00 |
Series A Preferred Stock, Shares Authorized | 5,500,000 | 5,500,000 |
Series A Preferred Stock, Issued and outstanding | 885,000 | 885,000 |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Issued and outstanding | 120,159,000 | 93,836,324 |
Common Stock, Outstanding | 115,730,649 | 89,407,964 |
Common Stock, To Be Issued | 6,701,018 | 7,363,281 |
Treasury Stock, Issued | 4,428,360 | 4,428,360 |
Bridge financing discount | $1,226 | $113,057 |
Convertible promissory note discount | $136,452 | $0 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | 73 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Operating expenses | ' | ' | ' |
Research and development | $80,000 | $964,817 | $1,563,719 |
General and administrative | 917,763 | 1,394,122 | 5,322,608 |
Impairment of intangible asset | 3,000,000 | ' | 3,000,000 |
Stock based compensation - general and administrative | ' | ' | 1,248,637 |
Total operating expenses | 3,997,763 | 2,358,939 | 11,134,964 |
Loss from operations | -3,997,763 | -2,358,939 | -11,134,964 |
Other expenses | ' | ' | ' |
Interest expense, including amortization of debt discounts and beneficial conversion features | -766,680 | -787,719 | -1,817,380 |
Loss on derivative liability | -140,368 | ' | -140,368 |
Total Other Expenses | -907,049 | -787,719 | -1,957,749 |
Net loss | -4,904,812 | -3,146,658 | -13,092,713 |
Preferred stock dividends | -46,198 | -108,134 | -1,417,308 |
Net loss attibutable to common stockholders | ($4,951,010) | ($3,254,792) | ($14,510,021) |
Basic and diluted loss per share | ($0.05) | ($0.04) | ' |
Weighted average number of shares outstanding Basic and diluted | 109,139,729 | 88,963,643 | ' |
Shareholders_Equity
Shareholders Equity (USD $) | Convertible Preferred Stock | Common Stock | Common StockTo Be Issued | Discount On Common Stock | Additional Paid-In Capital | Deficit Accumulated During the Development Stage | Treasury Stock | Total |
Balance Beginning, Amount at Sep. 05, 2007 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for cash, Shares | ' | 73,100,000 | ' | ' | ' | ' | ' | ' |
Issuance of common stock for cash, Amount | ' | $73,100 | ' | ($30,100) | ' | ' | ' | $43,000 |
Net loss | ' | ' | ' | ' | ' | -4,000 | ' | -4,000 |
Balance Ending, Amount at Sep. 30, 2007 | ' | 73,100 | ' | -30,100 | ' | -4,000 | ' | 39,000 |
Balance Ending, Shares at Sep. 30, 2007 | ' | 73,100,000 | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | ' | -44,500 | ' | -44,500 |
Balance Ending, Amount at Sep. 30, 2008 | ' | 73,100 | ' | -30,100 | ' | -48,500 | ' | -5,500 |
Balance Ending, Shares at Sep. 30, 2008 | ' | 73,100,000 | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | ' | -11,000 | ' | -11,000 |
Balance Ending, Amount at Sep. 30, 2009 | ' | 73,100 | ' | -30,100 | ' | -59,500 | ' | -16,500 |
Balance Beginning, Shares at Sep. 30, 2009 | ' | 73,100,000 | ' | ' | ' | ' | ' | ' |
Shares issued for conversion of debt owed to stockholder, Shares | ' | 7,650,000 | ' | ' | ' | ' | ' | ' |
Shares issued for conversion of debt owed to stockholder, Amount | ' | 7,650 | ' | -5,400 | ' | ' | ' | 2,250 |
Shares issued under Security Purchase Agreement, Shares | ' | 4,035,524 | ' | ' | ' | ' | ' | ' |
Shares issued under Security Purchase Agreement, Amount | ' | 4,036 | ' | 35,500 | 2,093,356 | ' | ' | 2,132,892 |
Shares issued for conversion of Bridge Notes Payable, Shares | ' | 1,612,903 | ' | ' | ' | ' | ' | ' |
Shares issued for conversion of Bridge Notes Payable, Amount | ' | 1,613 | ' | ' | 748,387 | ' | ' | 750,000 |
Shares issued for conversion of interest on Bridge Notes Payable, Shares | ' | 7,830 | ' | ' | ' | ' | ' | ' |
Shares issued for conversion of interest on Bridge Notes Payable, Amount | ' | 8 | ' | ' | 3,634 | ' | ' | 3,642 |
Beneficial conversion feature on Bridge Notes Payable | ' | ' | ' | ' | 251,214 | ' | ' | 251,214 |
Forgiveness of officers' loans related to sale of prior business | ' | ' | ' | ' | 20,250 | ' | ' | 20,250 |
Net loss | ' | ' | ' | ' | ' | -935,250 | ' | -935,250 |
Balance Ending, Amount at Sep. 30, 2010 | ' | 86,407 | ' | ' | 3,116,841 | -994,750 | ' | 2,208,498 |
Balance Ending, Shares at Sep. 30, 2010 | ' | 86,406,257 | ' | ' | ' | ' | ' | ' |
Issuance of common stock for cash, Shares | ' | 623,400 | ' | ' | ' | ' | ' | ' |
Issuance of common stock for cash, Amount | ' | 623 | ' | ' | 391,150 | ' | ' | 391,773 |
Shares issued for services, Shares | ' | 540,000 | ' | ' | ' | ' | ' | ' |
Shares issued for services, Amount | ' | 540 | ' | ' | 359,935 | ' | ' | 360,475 |
Series A convertible preferred stock issued, Shares | 1,345,000 | ' | ' | ' | ' | ' | ' | ' |
Series A convertible preferred stock issued, Amount | 1,345 | ' | ' | ' | 2,679,055 | ' | ' | 2,680,400 |
Shares issued for conversion of amounts owed to a related party, Shares | ' | 666,667 | ' | ' | ' | ' | ' | ' |
Shares issued for conversion of amounts owed to a related party, Amount | ' | 667 | ' | ' | 505,333 | ' | ' | 506,000 |
Common stock returned to treasury, Shares | ' | ' | ' | ' | 4,428 | ' | -4,428 | ' |
Amortization of stock based compensation, Amount | ' | ' | ' | ' | 888,162 | ' | ' | 888,162 |
Preferred stock dividends, Amount | ' | ' | ' | ' | -1,371,110 | ' | ' | -1,371,110 |
Net loss | ' | ' | ' | ' | ' | -4,046,493 | ' | -4,046,493 |
Balance Ending, Amount at Sep. 30, 2011 | 1,345 | 88,237 | ' | ' | 6,573,794 | -5,041,243 | -4,428 | 1,617,705 |
Balance Ending, Shares at Sep. 30, 2011 | 1,345,000 | 88,236,324 | ' | ' | ' | ' | ' | ' |
Preferred stock dividends, Amount | ' | ' | ' | ' | -108,134 | ' | ' | -108,134 |
Shares issued for conversion of debt and accrued interest | ' | ' | 368,326 | ' | ' | ' | ' | 368,326 |
Shares issued as additional consideration for note payable, Shares | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Shares issued as additional consideration for note payable, Amount | ' | 1,000 | ' | ' | 55,250 | ' | ' | 56,250 |
Conversion of preferred stock to common stock, Shares | -460,000 | 4,600,000 | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock to common stock, Amount | -460 | 4,600 | ' | ' | -4,140 | ' | ' | ' |
Warrants to be issued in connection with conversion of debt, Shares | ' | ' | ' | ' | 7,653 | ' | ' | 7,653 |
Beneficial conversion features on bridge financing | ' | ' | ' | ' | 750,376 | ' | ' | 750,376 |
Net loss | ' | ' | ' | ' | ' | -3,146,658 | ' | -3,146,658 |
Balance Ending, Amount at Sep. 30, 2012 | 885 | 93,837 | 368,326 | ' | 7,274,799 | -8,187,901 | -4,428 | -454,482 |
Balance Ending, Shares at Sep. 30, 2012 | 885,000 | 93,836,324 | ' | ' | ' | ' | ' | ' |
Preferred stock dividends, Amount | ' | ' | ' | ' | -46,198 | ' | ' | -46,198 |
Shares issued for conversion of debt and accrued interest | ' | 25,521,685 | ' | ' | ' | ' | ' | ' |
Shares issued for conversion of debt and accrued interest, amount | ' | 25,522 | -453,827 | ' | 944,406 | ' | ' | 516,101 |
Share to be issued in connection with conversion of debt and accrued interest | ' | ' | 420,469 | ' | ' | ' | ' | 420,469 |
Shares issued under Consulting Agreement | ' | 801,000 | ' | ' | ' | ' | ' | ' |
Shares issued under Consulting Agreement, Amount | ' | 801 | 88,569 | ' | ' | ' | ' | 89,370 |
Reversal of derivative liabilities ot equity | ' | ' | 78,862 | ' | ' | ' | ' | 78,862 |
Beneficial conversion features on bridge financing | ' | ' | ' | ' | 160,952 | ' | ' | 160,952 |
Net loss | ' | ' | ' | ' | ' | -4,904,812 | ' | -4,904,812 |
Balance Ending, Amount at Sep. 30, 2013 | $885 | $120,160 | $334,968 | ' | $8,501,390 | ($13,092,713) | ($4,428) | ($4,139,738) |
Balance Ending, Shares at Sep. 30, 2013 | 885,000 | 120,159,009 | ' | ' | ' | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | 73 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net loss | ($4,904,812) | ($3,146,658) | ($13,092,713) |
Adjustments to reconcile net loss to net cash used in operating activities | ' | ' | ' |
Impairment of intangible asset | 3,000,000 | ' | 3,000,000 |
Amortization of debt discount | 170,053 | 63,903 | 233,956 |
Accrued interest on notes and loans payable | 77,419 | 104,350 | 181,769 |
Amortization of beneficial conversion features | 276,049 | 617,319 | 1,144,582 |
Original interest discount on convertible note payable | 95,905 | ' | 95,905 |
Stock based compensation general and administrative | ' | ' | 1,248,637 |
Stock based compensation Interest expense | 89,370 | ' | 89,370 |
Loss on derivative liability | -140,368 | ' | -140,368 |
Changes in operating assets and liabilities | ' | ' | ' |
Prepaid expenses and other current assets | 45,896 | 66,291 | 98,800 |
Accounts payable | 31,129 | 915,725 | 1,686,181 |
Accrued expenses | 293,481 | 320,141 | 1,249,405 |
Net cash used in operating activities | -685,142 | -1,058,929 | -3,923,740 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Acquisition of intangible assets | ' | ' | -3,007,500 |
Net cash used in investing activities | ' | ' | -3,007,500 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from the issuance of notes payable | 715,000 | 1,105,690 | 2,835,690 |
Repayments of notes payable | ' | -10,000 | -245,000 |
Proceeds from loans from related parties | 6,400 | 61,200 | 573,600 |
Repayments of loans from related party | ' | -3,200 | -3,200 |
Repayments of notes payable - insurance financing | -47,832 | -65,083 | -112,915 |
Proceeds from the sale of common stock | ' | ' | 3,012,575 |
Proceeds from the sale of Series A convertible preferred stock | ' | ' | 1,180,000 |
Payments of expenses relating to the sale of common stock | ' | ' | -444,910 |
Payment of expenses relating to the sale of convertible preferred stock | ' | ' | -9,600 |
Proceeds from loans payable | ' | ' | 145,000 |
Proceeds from advances from officer | ' | ' | 22,500 |
Net cash provided by financing activities | 673,568 | 1,088,607 | 6,953,740 |
NET (DECREASE) INCREASE IN CASH | -11,574 | 29,678 | 22,500 |
CASH BEGINNING OF PERIOD | 34,074 | 4,396 | ' |
CASH END OF PERIOD | 22,500 | 34,074 | 22,500 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Cash paid for interest | 1,664 | 2,019 | ' |
Preferred stock dividends | 46,198 | 108,134 | ' |
Shares issued/to be issued in connection with conversion of debt and accrued interest | 936,570 | 368,326 | ' |
Issuance of preferred stock to common | ' | 460 | ' |
Beneficial conversion features and warrant value on bridge financing | 160,952 | 750,376 | ' |
Insurance premium financed | 57,892 | 47,000 | ' |
Derivative liabilities reclassifed to additional paid-in capital | $78,862 | ' | ' |
THE_COMPANY
THE COMPANY | 12 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
THE COMPANY | ' |
Windstar, Inc. (the “Company”) was incorporated in the state of Nevada on September 6, 2007 and is in the development stage. On July 19, 2010, the Company amended its Articles of Incorporation to change the name of the Company to Regenicin, Inc. (“Regenicin”). In September 2013, Regenicin formed a new wholly-owned subsidiary for the sole purpose of conducting research in the State of Georgia (together, the “Company”). The subsidiary had no activity in fiscal 2013. | |
The Company’s original business was the development of a purification device. Such business was assigned to the Company’s former management in July 2010. | |
The Company has adopted a new business plan and intended to develop and commercialize a potentially lifesaving technology by the introduction of tissue-engineered skin substitutes to restore the qualities of healthy human skin for use in the treatment of burns, chronic wounds and a variety of plastic surgery procedures. | |
The Company entered into a Know-How License and Stock Purchase Agreement (the “Know-How SPA”) with Lonza Walkersville, Inc. (“Lonza Walkersville”) on July 21, 2010. Pursuant to the terms of the Know-How SPA, the Company paid Lonza Walkersville $3,000,000 and, in exchange, the Company was to receive an exclusive license to use certain proprietary know-how and information necessary to develop and seek approval by the U.S. Food and Drug Administration (“FDA”) for the commercial sale of technology held by the Cutanogen Corporation (“Cutanogen”), a subsidiary of Lonza Walkersville. Additionally, pursuant to the terms of the Know-How SPA, the Company was entitled to receive certain related assistance and support from Lonza Walkersville upon payment of the $3,000,000. Once the Company secured FDA approval for the commercial sale of technology, the Know-How SPA provided that the Company was to pay Lonza Walkersville an additional $2,000,000 to buy Cutanogen. | |
Unfortunately, after prolonged attempts to negotiate disputes with Lonza Walkersville failed, on September 30, 2013, the Company filed a lawsuit against Lonza Walkersville, Lonza Group Ltd. (“Lonza Group”) and Lonza America, Inc. (“Lonza America”) (collectively, the “Defendant”) in Fulton County Superior Court in the State of Georgia. | |
The Company alleges in the complaint that, because of the Defendant’s breaches and tortious conduct, that the Company lost fees paid to the Defendant, which the Defendant did not earn, and suffered consequential damages and lost opportunities. See Notes J and K. It should also be noted that the $3,000,000 initially paid to Lonza Walkersville, which was recorded as an intangible asset, has been fully written down in the accompanying financial statements as of September 30, 2013. See Note C. | |
The Company intends to continue to develop and gain FDA approval of cell therapy and biotechnology products separate from the Defendant’s patent, under the name PermaDerm®, while fully prosecuting the Defendant to regain the Company’s losses. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
INTANGIBLES ASSETS | ' |
In July 2010, the Company entered into an agreement with Lonza to purchase an exclusive license to use certain proprietary know-how and information necessary to develop and seek approval by the FDA for the commercial sale of PermaDerm. | |
The Company made an initial payment of $3,000,000 to Lonza to purchase this exclusive know-how license and assistance in gaining FDA approval. In conjunction with Lonza, the Company's management intended to create and implement a strategy to conduct clinical trials and assemble and present relevant information and data in order to obtain the necessary approvals. The $3,000,000 payment was recorded as an intangible asset. | |
After prolonged negotiations, the Company has been unable to resolve contractual and other disputes with Lonza. As a result, on September 30, 2013, the Company filed a lawsuit against Lonza and related entities. The complaint alleges that Lonza determined it would make more money on PermaDerm if it was not approved by the FDA and that Lonza used certain proprietary information, which the Company had purchased, for at least 13 other companies. The allegations also included that Lonza utilized threats and coercion, including false claims of breach of contract and securities violations, in order to terminate the exclusive know-how license. As a result, the Company received neither the exclusive know-how license that Lonza had promised nor the benefits of the exclusive know-how license. | |
For the year ended September 30, 2013, due to ongoing dispute and pending any settlement of the lawsuit, the Company has determined that value of the intangible asset and related intellectual property has been impaired. As a result, the Company has written down the value of the intangible asset and recorded a current charge of $3,000,000 in the accompanying consolidated financial statements. | |
In August 2010, the Company paid $7,500 and obtained the rights to the trademarks PermaDerm® and TempaDerm® from KJR-10 Corp. |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
ACCRUED EXPENSES | ' | ||||||||
Accrued expenses consisted of the following: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Registration penalty | $ | 250,203 | $ | 250,203 | |||||
Salaries and payroll taxes | 792,907 | 569,412 | |||||||
Professional fees | 166,802 | 130,450 | |||||||
Accrued dividends | 180,442 | 134,244 | |||||||
Interest | 84,648 | 46,312 | |||||||
Other | — | 2,219 | |||||||
$ | 1,475,002 | $ | 1,132,840 |
LOANS_PAYABLE
LOANS PAYABLE | 12 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
LOANS PAYABLE | ' |
Loan Payable: | |
In February 2011, an investor advanced $10,000. The loan does not bear interest and is due on demand. At both September 30, 2013 and 2012, the loan payable totaled $10,000. | |
Loans Payable - Related Parties: | |
In October 2011, Craig Eagle, a director of the Company, advanced the Company $35,000. The loan does not bear interest and is due on demand. At September 30, 2013 and 2012, the loan balance was $35,000. | |
John Weber, the Company’s Chief Financial Officer, advanced the Company $13,000 in February 2012, $10,000 in April 2012 and $5,100 in March 2013. The loans do not bear interest and are due on demand. At September 30, 2013 and 2012, the loan balance was $28,100 and $23,000, respectively. | |
For the year ended September 30, 2013, the Company received other advances totaling $1,300. The loans do not bear interest and are due on demand. At September 30, 2013, the loan balance was $1,300. |
NOTES_PAYABLE
NOTES PAYABLE | 12 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
NOTES PAYABLE | ' |
Note Payable - Insurance Financing: | |
In August 2012, the Company financed certain insurance premiums totaling $47,000. The note was payable over a nine-month term. At September 30, 2013, the note was paid in full in accordance with the original terms. At September 30, 2012, the balance owed under the note was $42,160. | |
In August 2013, the Company renewed its policy and financed premiums totaling $57,892. The new note is payable over a nine-month term. At September 30, 2013, the balance owed under the note was $52,220. | |
Bridge Financing: | |
On October 12, 2011, the Company issued a $10,000 secured promissory note (“Note 1”) to NPNC Management LLC, a company whose principals also represent the Company as securities counsel. Note 1 bore interest at the rate of 5% per annum and was due on June 14, 2012. Note 1 was secured by the Company’s assets. At September 30, 2012, the Note 1 balance including interest was repaid in full. | |
On December 21, 2011, the Company issued a $150,000 promissory note (“Note 2”) to an individual. Note 2 bore interest so that the Company would repay $175,000 on the maturity date of June 21, 2012, which correlated to an effective rate of 31.23%. Additional interest of 10% will be charged on any late payments. At maturity, the Company was supposed to issue one million shares of common stock as additional consideration. The shares have been issued. For financial reporting purposes, the Company recorded a discount of $56,250 to reflect the value of these shares. The discount was amortized over the term of Note 2. Note 2 was not paid at the maturity date and the Company is incurring additional interest described above. At September 30, 2013 and 2012, the Note 2 balance was $175,000. | |
On January 18, 2012, the Company issued a $165,400 convertible promissory note (“Note 3”) to an individual. Note 3 bore interest at the rate of 5% per annum and was due on June 18, 2012. Note 3 and accrued interest thereon was convertible into units at a conversion price of $2.00 per unit. A unit consisted of one share of Series A Convertible Preferred Stock (“Series A Preferred”) and a warrant to purchase one-fourth (1/4), or 25% of one share of common stock. For financial reporting purposes, the Company recorded a discount of $6,686 to reflect the beneficial conversion feature. The discount was amortized over the term of Note 3. Upon maturity, Note 3 was not automatically converted and the Units were not issued. Instead, in October 2012, a new note was issued with a six month term. The new note bore interest at the rate of 8% per annum and the principal and accrued interest thereon were convertible into shares of common stock at a rate of $0.05 per share. In addition, at the date of conversion, the Company was to issue a two-year warrant to purchase an additional 500,000 shares of common stock at $0.10 per share. The warrant has not been issued. At maturity, the principal and interest automatically converted and the Company was supposed to issue 3,522,440 shares of common stock. As of September 30, 2013, the shares were not issued and were classified as common stock to be issued. At September 30, 2013 and 2012, the Note 2 balance was $0 and $165,400, respectively. | |
On January 27, 2012, the Company issued a $149,290 convertible promissory note (“Note 4”) to an individual. Note 4 bore interest at the rate of 8% per annum and was due on March 31, 2012. Note 4 and accrued interest thereon was convertible into shares of common stock at a rate of $0.05 per share. In addition, the Company issued a warrant to purchase an additional 500,000 shares of common stock at $0.10 per share that expires on January 27, 2014. On March 31, 2012, Note 4 and the accrued interest became due and the Company was supposed to issue 3,027,683 shares of common stock. In May 2013, the Company issued 3,027,683 shares of its common stock for the conversion of principal and accrued interest. For financial reporting purposes, the Company recorded a discount of $7,653 to reflect the value of the warrant and a discount of $149,290 to reflect the value of the beneficial conversion feature. The discounts were amortized over the term of Note 4. | |
In March 2012, the Company issued a series of convertible promissory notes (“Notes 5-9”) totaling $186,000 to four individuals. Notes 5-9 bore interest at the rate of 33% per annum and were due in August and September 2012. Notes 5-9 and accrued interest thereon were convertible into shares of common stock at the rate of $0.05 per share and automatically convert on the maturity dates unless paid sooner by the Company. For financial reporting purposes, the Company recorded discounts of $186,000 to reflect the beneficial conversion features. The discounts were amortized over the terms of Notes 5-9. At maturity, the principal and interest automatically converted and the Company was supposed to issue 4,335,598 shares of common stock. As of September 30, 2012, the shares were not issued and were classified as common stock to be issued. In December 2012, the Company issued 4,079,000 shares to the note holders of Notes 5, 6, 7 and 9. The unissued 256,598 shares for Note 8 are classified as common stock to be issued at September 30, 2013. At both September 30, 2013 and 2012, the Note 5-9 balances were $0. | |
In April 2012 through June 2012, the Company issued a series of convertible promissory notes (“Notes 10-18”) totaling $220,000 to nine individuals. Notes 10-18 bore interest at the rate of 33% per annum and were due in October through November 2012. Notes 10-18 and accrued interest thereon were convertible into shares of common stock at the rate of $0.05 per share and automatically converted on the maturity dates unless paid sooner by the Company. For financial reporting purposes, the Company recorded discounts of $215,900 to reflect the beneficial conversion features. The discounts were amortized over the terms of Notes 10-18. In December 2012, the Company issued 5,124,500 shares of its common stock for the conversion of principal and accrued interest through the various maturity dates of the notes. At September 30, 2013, the Note 10-18 balances were $0. At September 30, 2012, the Note 10-18 balances were $179,884, net of debt discounts of $40,116. | |
In April 2012, the Company issued a convertible promissory note (“Note 19”) totaling $25,000 to an individual for services previously rendered. Note 19 bore interest at the rate of 33% per annum and was due in October 2012. Note 19 and accrued interest thereon was convertible into shares of common stock at the rate of $0.05 per share and automatically converted on the maturity date unless paid sooner by the Company. For financial reporting purposes, the Company recorded a discount of $24,837 to reflect the beneficial conversion feature. The discount was amortized over the term of Note 19. In December 2012, the Company issued 582,500 shares of its common stock for the conversion of principal and accrued interest through the maturity date. At September 30, 2013, the Note 19 balance was $0. At September 30, 2012, the Note 19 balance was $24,369, net of a debt discount of $631. | |
In July 2012, the Company issued a series of convertible promissory notes (“Notes 20-22”) totaling $100,000 to three individuals. Notes 20-22 bore interest at the rate of 10% per annum and were due in December 2012 and January 2013. Notes 20-22 and accrued interest thereon were convertible into shares of common stock at the rate of $0.10 per share and automatically converted on the maturity dates unless paid sooner by the Company. For financial reporting purposes, the Company recorded discounts of $67,500 to reflect the beneficial conversion features. The discounts were amortized over the terms of Notes 20-22. In February 2013, the Company issued 1,050,000 shares of common stock for the conversion of Notes 20-22 and accrued interest thereon. At September 30, 2013, the Note 20-22 balance was $0. At September 30, 2012, the Note 20-22 balances were $65,842, net of debt discounts of $34,158. | |
In July 2012, the Company issued a convertible promissory note (“Note 23”) totaling $100,000 to an individual. Note 23 bore interest at the rate of 8% per annum and was due in January 2013. Note 23 and accrued interest thereon were convertible into shares of common stock at the rate of $0.05 per share and automatically converted on the maturity date, unless paid sooner by the Company. In addition, at the date of conversion, the Company was to issue a two-year warrant to purchase an additional 500,000 shares of common stock at $0.10 per share. For financial reporting purposes, the Company recorded a discount of $100,000 to reflect the beneficial conversion feature. The discount was amortized over the term of the Note. In January 2013, the Company issued 2,080,000 shares of common stock for the conversion of Note 23 and accrued interest thereon. At September 30, 2013, the Note 23 balance was $0. At September 30, 2012, the Note 23 balance was $41,848, net of a debt discount of $58,152. | |
In December 2012, the Company issued a convertible promissory note (“Note 24”) totaling $100,000 to an individual. Note 24 bears interest at the rate of 8% per annum and was due in June 2013. Note 24 and accrued interest thereon were convertible into shares of common stock at the rate of $0.05 per share and automatically converted on the maturity date, unless paid sooner by the Company. In addition, at the date of conversion, the Company was to issue a two-year warrant to purchase an additional 500,000 shares of common stock at $0.10 per share. For financial reporting purposes, the Company recorded a discount of $100,000 to reflect the beneficial conversion feature. The discount was amortized over the term of the Note. At maturity, the principal and interest automatically converted and the Company was supposed to issue 2,089,863 shares of common stock. As of September 30, 2013, the shares were not issued and were classified as common stock to be issued. The warrant has not been issued as of the date of the issuance of the financial statements. At September 30, 2013, the Note 24 balance was $0. | |
In January 2013, the Company issued a convertible promissory note (“Note 25”) totaling $35,000 to an individual. Note 25 bears interest at the rate of 8% per annum and was due in July 2013. Note 25 and accrued interest thereon was convertible into shares of common stock at the rate of $0.05 per share and automatically converted on the maturity date unless paid sooner by the Company. In addition, at the date of conversion, the Company was to issue a two-year warrant to purchase an additional 175,000 shares of common stock at $0.50 per share. For financial reporting purposes, the Company recorded a discount of $21,000 to reflect the value of the beneficial conversion feature. The value of the warrant was not recorded as the value was deemed to be immaterial. The discount was amortized over the term of the Note. On August 1, 2013, the Company issued 728,000 shares of common stock for the conversion of principal and accrued interest through the date of maturity. The warrant has not been issued as of the issuance of the financial statements. At September 30, 2013, the Note 25 balance was $0. | |
In March 2013, the Company issued a convertible promissory note (“Note 26”) totaling $25,000 to an individual. Note 26 bears interest at the rate of 8% per annum and was due in September 2013. Note 26 and accrued interest thereon was convertible into shares of common stock at the rate of $0.05 per share and automatically converted on the maturity date unless paid sooner by the Company. In addition, at the date of conversion, the Company was to issue a one-year warrant to purchase an additional 640,000 shares of common stock at $0.001 per share. For financial reporting purposes, the Company recorded a discount of $14,507 to reflect the value of the warrant and a discount of $10,493 to reflect the value of the beneficial conversion feature. The discounts were amortized over the term of the Note. At maturity, the principal and interest automatically converted and the Company was supposed to issue 520,000 shares of common stock. As of September 30, 2013, the shares were not issued and were classified as common stock to be issued. The warrant was issued in December 2013 and was exercised on December 24, 2013. At September 30, 2013, the Note 26 balance was $0. | |
In April 2013, the Company issued a convertible promissory note (“Note 27”) totaling $15,000 to an individual. Note 27 bears interest at the rate of 8% per annum and was due in September 2013. Note 27 and accrued interest thereon are convertible into shares of common stock at the rate of $0.05 per share and automatically convert on the maturity date unless paid sooner by the Company. For financial reporting purposes, the Company recorded a discount of $1,500 to reflect the beneficial conversion feature. The discount was amortized over the term of the Note. At maturity, the principal and interest on Note 27 automatically converted and the Company was supposed to issue 312,100 shares of common stock. As of September 30, 2013, the shares were not issued and were classified as common stock to be issued. At September 30, 2013, the Notes 27 balance was $0. | |
In April 2013, the Company issued a convertible promissory note (“Note 28”) totaling $25,000 to an individual. Note 28 bears interest at the rate of 8% per annum and is due in October 2013. Note 28 and accrued interest thereon are convertible into shares of common stock at the rate of $0.05 per share and automatically convert on the maturity date unless paid sooner by the Company. For financial reporting purposes, the Company recorded a discount of $10,000 to reflect the beneficial conversion feature. The discount is being amortized over the term of the Note. At September 30, 2013, the Notes 28 balance was $25,000. | |
In May 2013, the Company issued a convertible promissory note (“Note 29”) totaling $25,000 to an individual. Note 29 bear interest at the rate of 8% per annum and is due in November 2013. Note 29 and accrued interest thereon are convertible into shares of common stock at the rate of $0.05 per share and automatically convert on the maturity dates unless paid sooner by the Company. The Company did not record a discount for the conversion feature as the conversion price was greater than the price of the common stock on the issuance date. At September 30, 2013, the Note 29 balance was $25,000. | |
In June 2013, the Company issued convertible promissory notes (“Notes 30-31”) totaling $30,000 to two individuals. The notes bear interest at the rate of 8% per annum and are due December 2013. The principal and accrued interest thereon are convertible into shares of common stock at the rate of $0.05 per share and automatically convert on the maturity dates unless paid sooner by the Company. In addition, at the date of conversion, the Company is to issue two-year warrants to purchase an additional 600,000 shares of common stock at $0.05 per share. For financial reporting purposes, the Company recorded discounts of $3,451 to reflect the value of the warrants but did not record discounts for the conversion features as the conversion prices were greater than the stock prices at the issuance dates. The discounts are being amortized over the terms of the Notes. At September 30, 2013, the Notes 30-31 balances were $28,774, net of debt discounts of $1,226. | |
In July 2013, the Company issued convertible promissory notes (“Note 32-34”) totaling $35,000 to three individuals. The notes bears interest at the rate of 8% per annum and are due in January 2014. The principal and accrued interest thereon are convertible into shares of common stock at the rate of $0.05 per share and automatically convert on the maturity dates unless paid sooner by the Company. The Company did not record discounts for the conversion features as the conversion prices were greater than the prices of the common stock on the issuance dates. At September 30, 2013, the Notes 32-34 balances were $35,000. | |
In August 2013, the Company issued convertible promissory notes (“Note 35-36”) totaling $250,000 to two individuals. The notes bears interest at the rate of 8% per annum and are due in August 2014. The principal and accrued interest thereon are convertible (after February 13, 2014) into shares of common stock at the rate of $0.03 per share and automatically convert on the maturity dates unless paid sooner by the Company. The Company did not record discounts for the conversion features as the conversion prices were greater than the prices of the common stock on the issuance dates. At September 30, 2013, the Notes 35-36 balances were $250,000 | |
Convertible Promissory Note: | |
In October 2012, the Company issued a promissory note to a financial institution (the “Lender”) to borrow up to a maximum of $225,000. The note bears interest so that the Company would repay a maximum of $250,000 at maturity, which correlated to an effective rate of 10.59%. In October 2012, the Company received $50,000 upon the signing of the note and then in January through September 2013, the Company received additional proceeds totaling $125,000. Material terms of the note include the following: | |
1. The Lender may make additional loans in such amounts and at such dates at its sole discretion. | |
2. The maturity date of each loan is one year after such loan is received. | |
3. The original interest discount is prorated to each loan received. | |
4. Principal and accrued interest is convertible into shares of the Company’s common stock at the lesser of $0.069 or 65%-70% (as defined) of the lowest trading price in the 25 trading days previous to the conversion. | |
5. Unless otherwise agreed to in writing by both parties, at no time can the Lender convert any amount of the principal and/or accrued interest owed into common stock that would result in the Lender owning more than 4.99% of the common stock outstanding. | |
6. If each loan is not paid within 90 days, there is a one-time interest charge of 10% of amounts borrowed that is due at the maturity date of each loan. | |
7. At all times during which the note is convertible, the Company shall reserve from its authorized and unissued common stock to provide for the issuance of common stock under the full conversion of the promissory note. The Company will at all times reserve at least 13,000,000 shares of its common stock for conversion. | |
8. The Company agreed to include on its next registration statement it files, all shares issuable upon conversion of balances due under the promissory note. Failure to do so would result in liquidating damages of 25% of the outstanding principal balance of the promissory note but not less than $25,000. | |
The Company is accreting the original issue discount (“OID”) over the life of each loan using the effective interest method. For the year ended September 30, 2013, the accretion amounted to $8,405. | |
The conversion feature contained in the promissory note is considered to be an embedded derivative. The Company bifurcated the conversion feature and recorded a derivative liability on the balance sheet. The Company recorded the derivative liability equal to its estimated fair value of $136,473. Such amount was also recorded as a discount to the convertible promissory note and is being amortized to interest expense using the effective interest method. For the year ended September 30, 2013, amortization of the debt discount amounted to $64,125. At September 30, 2013, the unamortized discount is $72,348. | |
The Company is required to mark-to-market the derivative liability at the end of each reporting period. For the year ended September 30, 2013, the Company recorded a loss on the change in fair value of the conversion option of $18,804, and as of September 30, 2013, the fair value of the conversion option was $224,920. | |
In the year ended September 30, 2013, the Company issued 8,850,000 shares of common stock for the conversion of principal and accrued interest of $31,061. At September 30, 2013, the balance of the convertible note was $34,821, net of the debt discount of $72,348. In November 2013, the Company issued 2,200,000 shares of common stock for the conversion of approximately $19,000 of principal and accrued interest. | |
In May 2013, the Company issued a convertible promissory note totaling $293,700 to a vendor in lieu of amounts payable. The note bears interest at the rate of 12% per annum and is due November 21, 2013. The note and accrued interest are convertible into shares of common stock at a conversion rate of the lower of $0.04 per share or 80% of the average of the lowest three trading prices in the 20 trading days previous to the conversion. In addition, the Company issued a five-year warrant to purchase an additional 50,000 shares of common stock at a per share exercise price of the lower of $0.04 per share or 80% of the average of the lowest three trading prices in the 20 trading days previous to the conversion. | |
The conversion features contained in the promissory note and the warrant are considered to be embedded derivatives. The Company bifurcated the conversion features and recorded derivative liabilities on the balance sheet. The Company recorded the derivative liabilities equal to their estimated fair value of $153,300. Such amount was also recorded as a discount to the convertible promissory note and is being amortized to interest expense using the effective interest method. For the year ended September 30, 2013, amortization of the debt discount amounted to $89,195. At September 30, 2013, the unamortized discount is $64,104. | |
The Company is required to mark-to-market the derivative liabilities at the end of each reporting period. For the year ended September 30, 2013, the Company recorded a loss on the change in fair value of the conversion option of $60,559, and as of September 30, 2013, the fair value of the conversion option was $213,858. | |
At September 30, 2013, the balance of the convertible note was $229,596 net of the debt discount of $64,104. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
Officers: | |
The Company’s principal executive offices are located in Little Falls, New Jersey. The headquarters is located in the offices of McCoy Enterprises LLC, an entity controlled by Mr. McCoy. The office is attached to his residence but has its own entrances, restroom and kitchen facilities. | |
The Company also maintains an office in Pennington, New Jersey, which is the materials and testing laboratory. This office is owned by Materials Testing Laboratory, and the principal is an employee of the Company. | |
No rent is charged for either premise. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
At September 30, 2013, the Company had available approximately $6.7 million of net operating loss carry forwards which expire in the years 2028 through 2032. | |||||||||
Significant components of the Company’s deferred tax assets at September 30, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Net operating loss carry forwards | $ | 2,698,087 | $ | 2,348,856 | |||||
Intangible assets | 1,200,000 | — | |||||||
Stock based compensation | 355,265 | 355,265 | |||||||
Accrued expenses | 396,232 | 199,980 | |||||||
Total deferred tax assets | 4,649,584 | 2,904,101 | |||||||
Valuation allowance | (4,649,584 | ) | (2,904,101 | ) | |||||
Net deferred tax assets | $ | — | $ | — | |||||
Due to the uncertainty of their realization, no income tax benefit has been recorded by the Company for these deferred tax assets as valuation allowances have been established for any such benefits. The increase in the valuation allowance was the result of increases in the above stated items. | |||||||||
The following is a reconciliation of the Company’s income tax rate using the federal statutory rate to the actual income tax rate as of September 30, 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Federal tax rate | (34 | %) | (34 | %) | |||||
Effect of state taxes | (6 | %) | (6 | %) | |||||
Permanent differences | 5 | % | 9 | % | |||||
Net operating loss carry forward | 35 | % | 31 | % | |||||
Total | 0 | % | 0 | % | |||||
At September 30, 2013 and 2012, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required. The Company does not expect that its unrecognized tax benefits will materially increase within the next twelve months. The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expense. As of September 30, 2013 and 2012, the Company has not recorded any provisions for accrued interest and penalties related to uncertain tax positions. | |||||||||
The Company files its federal income tax returns under a statute of limitations. The 2009 through 2012 tax years generally remain subject to examination by federal and state tax authorities. The Company has not filed any of its state income tax returns since inception. Due to recurring losses, management believes that once such returns are filed, the Company would incur state minimum tax liabilities that were not deemed material to accrue. |
STOCKHOLDERS_DEFICIENCY_EQUITY
STOCKHOLDERS (DEFICIENCY) EQUITY | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||
STOCKHOLDERS (DEFICIENCY) EQUITY | ' | ||||||||||||||||||||||
Preferred Stock: | |||||||||||||||||||||||
Series A | |||||||||||||||||||||||
Series A Preferred pays a dividend of 8% per annum on the stated value and has a liquidation preference equal to the stated value of the shares. Each share of Preferred Stock has an initial stated value of $1 and was convertible into shares of the Company’s common stock at the rate of 10 for 1. Series A Preferred contains a full ratchet anti-dilution feature on the shares of common stock underlying the Series A Preferred for three years on any stock issued below $0.10 per share with the exception of shares issued in a merger or acquisition. As the Company issued common stock at $0.05 per share for the conversion of debt, the conversion rate for the Series A Preferred is now 20 to 1. | |||||||||||||||||||||||
The dividends are cumulative commencing on the issue date whether or not declared. Dividends amounted to $46,198 and $108,134 for the years ended September 30, 2013 and 2012, respectively. At September 30, 2013 and 2012, dividends payable totaled $180,442 and $134,244, respectively, and are included in accrued expenses. | |||||||||||||||||||||||
In January and February 2012, 460,000 shares of Series A Preferred were converted into 4,600,000 shares of common stock. | |||||||||||||||||||||||
At both September 30, 2013 and 2012, 885,000 shares of Series A Preferred were outstanding. | |||||||||||||||||||||||
Series B | |||||||||||||||||||||||
On January 23, 2012, the Company designated a new class of preferred stock called Series B Convertible Preferred Stock (“Series B Preferred”). Four million shares have been authorized with a liquidation preference of $2.00 per share. Each share of Series B Preferred is convertible into ten shares of common stock. Holders of Series B Convertible Preferred Stock have a right to a dividend (pro-rata to each holder) based on a percentage of the gross revenue earned by the Company in the United States, if any, and the number of outstanding shares of Series B Convertible Preferred Stock, as follows: Year 1 - Total Dividend to all Series B holders =03 x Gross Revenue in the U.S. Year 2 - Total Dividend to all Series B holders =02 x Gross Revenue in the U.S. Year 3 - Total Dividend to all Series B holders =01 x Gross Revenue in the U.S. At September 30, 2013, no shares of Series B Preferred are outstanding. | |||||||||||||||||||||||
Common Stock Issuances: | |||||||||||||||||||||||
In January and February 2012, 460,000 shares of Series A Preferred were converted into 4,600,000 shares of common stock. | |||||||||||||||||||||||
Effective June 21, 2012, the Company issued the holder of Note 2 1,000,000 shares of common stock as additional consideration. | |||||||||||||||||||||||
On December 18, 2012, the Company issued 801,000 shares of its common stock as a finder’s fee to an entity for introducing investors and/or lenders who provided funding to the Company. The shares were valued at $89,370. | |||||||||||||||||||||||
For the year ended September 30, 2013, the Company issued 16,671,685 shares of its common stock for the conversion of notes payable issued under the Bridge Financing and accrued interest. | |||||||||||||||||||||||
For the year ended September 30, 2013, the Company issued 8,850,000 shares of common stock for the conversion of principal and accreted interest owed to the Lender. In November 2013, the Company issued 2,200,000 shares of common stock for the conversion of principal and accreted interest. | |||||||||||||||||||||||
In December 2013, the Company issued 640,000 shares of common stock for the exercise of a warrant. | |||||||||||||||||||||||
On December 24, 2013, the Company issued 1,038,751 shares of its common stock as a finder’s fee to an entity for introducing investors and/or lenders who provided funding to the Company. | |||||||||||||||||||||||
2010 Incentive Plan: | |||||||||||||||||||||||
On December 15, 2010, the board of directors approved the Regenicin, Inc. 2010 Incentive Plan (the “Plan”). The Plan provides for the granting of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, stock units, performance shares and performance units to the Company’s employees, officers, directors and consultants, including incentive stock options, non-qualified stock options, restricted stock, and other benefits. The Plan provides for the issuance of up to 4,428,360 shares of the Company’s common stock. | |||||||||||||||||||||||
On January 6, 2011, the Company approved the issuance of 885,672 options to each of the four members of the board of directors at an exercise price of $0.62 per share. The options originally vested over a three-year period and expire on December 22, 2015. On May 11, 2011, the terms of the options were amended to allow for immediate vesting. On December 10, 2013, the exercise price of the options was changed to $0.035 per share. | |||||||||||||||||||||||
In addition, in November 2010, the Company issued 2,000,000 options to a consultant at an exercise price of $0.46 per share. The options vested immediately and expire in November 2015. | |||||||||||||||||||||||
Option activity for 2012 and 2011 is summarized as follows: | |||||||||||||||||||||||
Options | Weighted Average Exercise Price | ||||||||||||||||||||||
Options outstanding, October 1, 2011 | 5,542,688 | $ | 0.56 | ||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||||
Options outstanding, September 30, 2012 and 2013 | 5,542,688 | $ | 0.56 | ||||||||||||||||||||
Aggregate intrinsic value | $ | — | |||||||||||||||||||||
The aggregate intrinsic value was calculated based on the positive difference between the closing market price of the Company’s Common Stock and the exercise price of the underlying options. | |||||||||||||||||||||||
The following table summarizes information regarding stock options outstanding at September 30, 2013: | |||||||||||||||||||||||
Weighted Average Remaining | Options Exercisable Weighted Average | ||||||||||||||||||||||
Ranges of prices | Number | Contractual | Exercise | Number | Exercise | ||||||||||||||||||
Outstanding | Life | Price | Exercisable | Price | |||||||||||||||||||
$ | 0.46 | 2,000,000 | 2.27 | $ | 0.46 | 2,000,000 | $ | 0.46 | |||||||||||||||
$ | 0.62 | 3,542,688 | 2.14 | 0.62 | 3,542,688 | 0.62 | |||||||||||||||||
$0.46-$0.62 | 5,542,688 | 2.22 | $ | 0.56 | 5,542,688 | $ | 0.56 | ||||||||||||||||
There were no option grants in 2012 or 2013. | |||||||||||||||||||||||
As of September 30, 2013, there was no unrecognized compensation cost related to non-vested options granted. | |||||||||||||||||||||||
Warrants: | |||||||||||||||||||||||
In March 2011, the Company issued 623,400 warrants to various investors at an exercise price of $0.50 for registration penalties relating to the October 2010 Securities Purchase Agreement (see below). The warrants vested immediately and expired in March 2012. These warrants were deemed to have minimal value utilizing a Black-Scholes option pricing model with the following assumptions: share price: $0.36; exercise price: $0.50; expected volatility: 13.43%; risk-free rate: 0.13%; expected term: .5 years. | |||||||||||||||||||||||
The expected life is the number of years that the Company estimates, based upon history, that warrants will be outstanding prior to exercise or forfeiture. Expected life is determined using the “simplified method” permitted by Staff Accounting Bulletin No. 107. The stock volatility factor is based on the Nasdaq Biotechnology Index. The Company did not use the volatility rate for Company’s common stock as the Company’s common stock had not been trading for the sufficient length of time to accurately compute its volatility when these options were issued. | |||||||||||||||||||||||
In June and July 2011, in connection with the Private Placement of Series A Preferred, the Company issued 672,000 seven-year warrants exercisable at $0.15 per share. | |||||||||||||||||||||||
In November 2011, in connection with a finder fee, the Company issued a three-year warrant to purchase 49,500 shares of common stock at $1.00 per share | |||||||||||||||||||||||
In March 2012 in connection with the conversion of a note the Company issued a two-year warrant to purchase 500,000 shares of common stock at $0.10 per share. | |||||||||||||||||||||||
In fiscal 2013 in connection with the issuance of convertible notes the Company issued warrants to purchase 2,365,000 shares of common stock at a per share exercise prices ranging from $0.001 to $0.50 . | |||||||||||||||||||||||
These warrants were valued utilizing a Black-Scholes option pricing model with the following assumptions: exercise price: $0.001 - $0.50; expected volatility: 13.43%; risk-free rate: 0.14%; expected term: 1 - 5 years. | |||||||||||||||||||||||
A summary of the warrants outstanding at September 30, 2013 is as follows: | |||||||||||||||||||||||
Exercise | Expiration | ||||||||||||||||||||||
Warrants | Price | Date | |||||||||||||||||||||
50,000 | Var | 2018 | |||||||||||||||||||||
640,000 | $ | 0.001 | 2014 | ||||||||||||||||||||
2,000,000 | $ | 0.1 | 2014-2015 | ||||||||||||||||||||
672,500 | $ | 0.15 | 2018 | ||||||||||||||||||||
175,000 | $ | 0.75 | 2015 | ||||||||||||||||||||
10,000 | $ | 0.75 | 2016 | ||||||||||||||||||||
49,500 | $ | 1 | 2014 | ||||||||||||||||||||
66,667 | $ | 1.5 | 2016 | ||||||||||||||||||||
3,663,667 | |||||||||||||||||||||||
Registration Penalties: | |||||||||||||||||||||||
On August 16, 2010, the Company sold 4,035,524 shares of common stock as part of a Securities Purchase Agreement with certain accredited investors (the “Purchasers”) pursuant to the closing of the Private Placement Offering (the “Offering”). | |||||||||||||||||||||||
Pursuant to a Registration Rights Agreement that accompanied the Securities Purchase Agreement, the Company agreed to file an initial registration statement covering the resale of the common stock no later than 45 days from the closing of the Offering and to have such registration statement declared effective no later than 180 days from filing of the registration statement. If the Company did not timely file the registration statement, cause it to be declared effective by the required date, or maintain the filing, then each Purchaser in the offering was entitled to liquidated damages equal to 1% of the aggregate purchase price paid by such Purchaser for the securities, and an additional 1% for each month that the Company did not file the registration statement, cause it to be declared effective, or fail to maintain the filing (subject to a maximum penalty of 10% of the aggregate purchase price). The Offering closed on August 16, 2010. The Company did not file an initial registration statement and accrued liquidating damages from October 1, 2010. Registration penalties totaled $250,203 for the year ended September 30, 2011. The registration penalties have not been paid and are included in accrued expenses in the consolidated balance sheets as of September 30, 2013 and 2012. No actions have been taken by the investors to collect the penalty. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2013 | |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | ' |
Lonza Transaction: | |
The Company entered into the “Know-How SPA with Lonza Walkersville on July 21, 2010. Pursuant to the terms of the Know-How SPA, the Company paid Lonza Walkersville $3,000,000 and, in exchange, the Company was to receive an exclusive license to use certain proprietary know-how and information necessary to develop and seek approval by the U.S. Food and Drug Administration (“FDA”) for the commercial sale of the Cutanogen technology. Additionally, pursuant to the terms of the Know-How SPA, the Company was entitled to receive certain related assistance and support from Lonza Walkersville upon payment of the $3,000,000. Once the Company secured FDA approval for the commercial sale of technology, the Know-How SPA provided that the Company was to pay Lonza Walkersville an additional $2,000,000 to buy its subsidiary, Cutanogen. | |
On September 30, 2013, the Company filed a lawsuit against Lonza Walkersville, Lonza Group Ltd. (“Lonza Group”) and Lonza America (collectively, the “Defendant”) in Fulton County Superior Court in the State of Georgia. | |
As the Company alleges in the complaint, the Company believes the Defendant determined that it would make more money on the technology if it was not approved by the FDA and, unbeknownst to the Company, Lonza Walkersville never intended to fulfill its obligations under the Know-How SPA. In this regard, the Company alleges in the complaint that Lonza Walkersville used certain proprietary know-how and information for at least thirteen (13) other companies. The same certain proprietary know-how and information the Company had purchased for $3 million under the exclusive Know-How SPA. Further, as the Company alleges in the complaint, the Defendant utilized threats and coercion against the Company throughout the contract term, including false claims of breach and securities violations, in order to attempt to terminate the Know-How SPA unilaterally. As a result, the Company received neither the exclusive license the Defendant had promised, nor the benefit of the exclusive Know-How SPA. Therefore, the Company alleges in the complaint that, because of the Defendant’s breaches and tortious conduct, that the Company lost the fees paid to the Defendant, which the Defendant did not earn, and suffered consequential damages and lost opportunities. | |
Employment Agreement: | |
On October 4, 2010, the Company entered into a written employment agreement with Chris Hadsall. Pursuant to the terms and conditions of the employment agreement: | |
Mr. Hadsall will serve as Chief Operating Officer of the Company for a period of three years; | |
Mr. Hadsall will earn a base salary of $120,000 for the first 12 months, and will be entitled to increases thereafter as determined by the Company’s board of directors; | |
Mr. Hadsall will be eligible for an annual bonus as determined by the Company’s board of directors; and | |
Mr. Hadsall will be entitled to participate in any employee benefit plans, as established by the Company’s board of directors. | |
Mr. Hadsall signed an agreement to keep certain information confidential and not compete with or solicit from the Company for a period of time. |
LEGAL_PROCEEDING
LEGAL PROCEEDING | 12 Months Ended |
Sep. 30, 2013 | |
COMMITMENTS AND CONTINGENCIES | ' |
LEGAL PROCEEDINGS | ' |
On April 18, 2012, a settlement was reached in the case involving litigation between the Company’s Chief Executive Officer, Mr. Randall McCoy, and the former President, Mr. Joseph Connell in the United States District Court for the Southern District of New York. | |
As previously reported, on March 11, 2011, Mr. Connell filed a complaint in the Supreme Court of the State of New York (which was later removed to federal court) against Mr. Randall McCoy, the Company, and the members of the Company’s board of directors. The Company and members of the board were dismissed earlier from the proceedings and the chronology of the case is set forth in previous filings. | |
As a final resolution, a Confidential Settlement Agreement and General Release (the “Settlement Agreement”) was signed by and among Mr. McCoy, Mr. Connell, the Company, and the board of directors. An amendment (the “Amendment”) to the Settlement Agreement was signed on April 24, 2012. Pursuant to the Settlement Agreement and Amendment, in exchange for dismissal of the pending lawsuit with prejudice and a mutual release of all claims involving all parties concerned, Mr. McCoy agreed to issue to Mr. Connell 12,500,000 shares of his common stock in the Company. On April 19, 2012, 10,000,000 of the shares were transferred to Mr. Connell, with the remaining shares assigned to his counsel in the case. | |
As a result of the Settlement Agreement and Amendment and the transfer of these shares, Mr. Connell is now a greater than 10% stockholder of the Company. | |
On November 19, 2012, the law firm of Stevens & Lee, a Pennsylvania Professional Corporation filed a civil complaint in Superior Court of New Jersey Mercer County against the Company. The lawsuit alleged that the Company incurred, but had not paid, fees for legal services that were due and owing to Stevens & Lee pursuant to a letter of engagement entered into by the parties on July 14, 2010. | |
The Company settled the lawsuit with Stevens & Lee for $45,000. The Company has paid this amount and, on September 18, 2013, the lawsuit was dismissed. | |
On September 30, 2013, the Company filed a lawsuit against the Defendant in Fulton County Superior Court in the State of Georgia. | |
In the Company’s complaint, the Company alleges that the Company entered into the Know-How SPA with Lonza Walkersville on July 21, 2010. Pursuant to the terms of the Know-How SPA, the Company paid Lonza Walkersville $3,000,000 and, in exchange, the Company was to receive an exclusive license to use certain proprietary know-how and information necessary to develop and seek approval by the FDA for the commercial sale of technology owned by Cutanogen. Additionally, pursuant to the terms of the Know-How SPA, the Company was entitled to receive certain related assistance and support from Lonza Walkersville upon payment of the $3,000,000. Once the Company secured FDA approval for the commercial sale of the technology, the Know-How SPA provided that the Company was to pay Lonza Walkersville an additional $2,000,000 to buy its subsidiary, Cutanogen. | |
However, as the Company alleges in the complaint, the Company believes the Defendant determined that it would make more money on the technology if it was not approved by the FDA and, unbeknownst to the Company, Lonza Walkersville never intended to fulfill its obligations under the Know-How SPA. In this regard, the Company alleges in the complaint that Lonza Walkersville used certain proprietary know-how and information for at least thirteen (13) other companies. Further, as the Company alleges in the complaint, the Defendant utilized threats and coercion against the Company throughout the contract term, including false claims of breach and securities violations, in order to attempt to terminate the Know-How SPA unilaterally. As a result, the Company received neither the exclusive license the Defendant had promised, nor the benefit of the exclusive Know-How SPA. Therefore, the Company alleges in the complaint that, because of the Defendant’s breaches and tortious conduct, that the Company lost the fees paid to the Defendant, which the Defendant did not earn, and suffered consequential damages and lost opportunities. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
Management has evaluated subsequent events through the date of this filing. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Principles of Consolidation | ' | ||||||||
The accompanying consolidated financial statements include the accounts of Regenicin and its wholly-owned subsidiary. All significant inter-company balances and transactions have been eliminated. | |||||||||
Going Concern | ' | ||||||||
The Company’s consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has incurred cumulative losses of approximately $13.1 million from inception, expects to incur further losses in the development of its business and has been dependent on funding operations through the issuance of convertible debt and private sale of equity securities. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans include continuing to finance operations through the private or public placement of debt and/or equity securities and the reduction of expenditures. However, no assurance can be given at this time as to whether the Company will be able to achieve these objectives. The consolidated financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. | |||||||||
Development Stage Activities and Operations | ' | ||||||||
The Company is in the development stage and has had no revenues. A development stage company is defined as one in which all efforts are devoted substantially to establishing a new business and even if planned principal operations have commenced, revenues are insignificant. | |||||||||
Intangible assets | ' | ||||||||
Intangible assets, which include purchased licenses, patents and patent rights, are stated at cost and will be amortized using the straight-line method over their useful lives based upon the pattern in which the expected benefits will be realized, or on a straight-line basis, whichever is greater (see Note C). Such amortization will begin once the Company has a saleable product. | |||||||||
The Company reviews intangible assets subject to amortization whenever events or changes in circumstances indicate that the carrying amount of such an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amount to the future undiscounted cash flows the assets are expected to generate. If such assets are considered impaired, the impairment to be recognized is equal to the amount by which the carrying value of the assets exceeds their fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. In assessing recoverability, the Company must make assumptions regarding estimated future cash flows and discount factors. If these estimates or related assumptions change in the future, the Company may be required to record impairment charges. The Company recorded an impairment charge of $3,000,000 and $-0- in the years ended September 30, 2013 and 2012 (see Note C). | |||||||||
Research and development | ' | ||||||||
Research and development costs are charged to expense as incurred. | |||||||||
Loss per share | ' | ||||||||
Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share give effect to dilutive convertible securities, options, warrants and other potential common stock outstanding during the period, only in periods in which such effect is dilutive. The following securities have been excluded from the calculation of net loss per share, as their effect would be anti-dilutive: | |||||||||
Shares of Common Stock | |||||||||
Issuable upon Conversion/Exercise | |||||||||
as of September 30, | |||||||||
2013 | 2012 | ||||||||
Options | 5,542,688 | 5,542,688 | |||||||
Warrants | 3,663,667 | 1,269,842 | |||||||
Convertible preferred stock | 17,700,000 | 19,354,000 | |||||||
Convertible debentures | 31,828,330 | 7,746,274 | |||||||
Fair Value of Financial Instruments | ' | ||||||||
Substantially all of the Company’s financial instruments, consisting primarily of accounts payable, accrued expenses, bridge financing and loans payable are carried at, or approximate, fair value because of their short-term nature or because they carry market rates of interest. | |||||||||
Use of Estimates | ' | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period. Such estimation includes the selection of assumptions underlying the calculation of the fair value of options. Actual results could differ from those estimates. | |||||||||
Stock-Based Compensation | ' | ||||||||
The Company accounts for stock-based compensation in accordance with FASB ASC 718, “Compensation - Stock Compensation.” Under the fair value recognition provision of the ASC, stock-based compensation cost is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option pricing model. | |||||||||
The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 505, “Equity.” Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services as defined by ASC 505. | |||||||||
Income Taxes | ' | ||||||||
The Company accounts for income taxes in accordance with accounting guidance now codified as FASB ASC 740, "Income Taxes," which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized. | |||||||||
The Company has adopted the provisions of FASB ASC 740-10-05 "Accounting for Uncertainty in Income Taxes." The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. | |||||||||
Recently Issued Accounting Pronouncements | ' | ||||||||
On July 18, 2013, the FASB issued Accounting Standards Update No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). ASU 2013-11 is expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this update should be applied prospectively for annual and interim periods beginning after December 15, 2013. The Company is currently evaluating the impact of its pending adoption of ASU 2013-11 on its consolidated financial statements. | |||||||||
Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule Of Common Stock Issuable upon Conversion/Exercise | ' | ||||||||
Shares of Common Stock | |||||||||
Issuable upon Conversion/Exercise | |||||||||
as of September 30, | |||||||||
2013 | 2012 | ||||||||
Options | 5,542,688 | 5,542,688 | |||||||
Warrants | 3,663,667 | 1,269,842 | |||||||
Convertible preferred stock | 17,700,000 | 19,354,000 | |||||||
Convertible debentures | 31,828,330 | 7,746,274 |
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
SCHEDULE OF ACCRUED EXPENSES | ' | ||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Registration penalty | $ | 250,203 | $ | 250,203 | |||||
Salaries and payroll taxes | 792,907 | 569,412 | |||||||
Professional fees | 166,802 | 130,450 | |||||||
Accrued dividends | 180,442 | 134,244 | |||||||
Interest | 84,648 | 46,312 | |||||||
Other | — | 2,219 | |||||||
$ | 1,475,002 | $ | 1,132,840 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Deferred Tax Assets | ' | ||||||||
2013 | 2012 | ||||||||
Net operating loss carry forwards | $ | 2,698,087 | $ | 2,348,856 | |||||
Intangible assets | 1,200,000 | — | |||||||
Stock based compensation | 355,265 | 355,265 | |||||||
Accrued expenses | 396,232 | 199,980 | |||||||
Total deferred tax assets | 4,649,584 | 2,904,101 | |||||||
Valuation allowance | (4,649,584 | ) | (2,904,101 | ) | |||||
Net deferred tax assets | $ | — | $ | — | |||||
Schedule Of Effective Income Tax Rate | ' | ||||||||
2013 | 2012 | ||||||||
Federal tax rate | (34 | %) | (34 | %) | |||||
Effect of state taxes | (6 | %) | (6 | %) | |||||
Permanent differences | 5 | % | 9 | % | |||||
Net operating loss carry forward | 35 | % | 31 | % | |||||
Total | 0 | % | 0 | % |
STOCKHOLDERS_DEFICIENCY_EQUITY1
STOCKHOLDERS (DEFICIENCY) EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||
SCHEDULE OF OPTION ACTIVITY | ' | ||||||||||||||||||||||
Options | Weighted Average Exercise Price | ||||||||||||||||||||||
Options outstanding, October 1, 2011 | 5,542,688 | $ | 0.56 | ||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||||
Options outstanding, September 30, 2012 and 2013 | 5,542,688 | $ | 0.56 | ||||||||||||||||||||
Aggregate intrinsic value | $ | — | |||||||||||||||||||||
SCHEDULE OF STOCK OPTIONS | ' | ||||||||||||||||||||||
Weighted Average Remaining | Options Exercisable Weighted Average | ||||||||||||||||||||||
Ranges of prices | Number | Contractual | Exercise | Number | Exercise | ||||||||||||||||||
Outstanding | Life | Price | Exercisable | Price | |||||||||||||||||||
$ | 0.46 | 2,000,000 | 2.27 | $ | 0.46 | 2,000,000 | $ | 0.46 | |||||||||||||||
$ | 0.62 | 3,542,688 | 2.14 | 0.62 | 3,542,688 | 0.62 | |||||||||||||||||
$0.46-$0.62 | 5,542,688 | 2.22 | $ | 0.56 | 5,542,688 | $ | 0.56 | ||||||||||||||||
SCHEDULE OF WARRANTS OUTSTANDING | ' | ||||||||||||||||||||||
Exercise | Expiration | ||||||||||||||||||||||
Warrants | Price | Date | |||||||||||||||||||||
50,000 | Var | 2018 | |||||||||||||||||||||
640,000 | $ | 0.001 | 2014 | ||||||||||||||||||||
2,000,000 | $ | 0.1 | 2014-2015 | ||||||||||||||||||||
672,500 | $ | 0.15 | 2018 | ||||||||||||||||||||
175,000 | $ | 0.75 | 2015 | ||||||||||||||||||||
10,000 | $ | 0.75 | 2016 | ||||||||||||||||||||
49,500 | $ | 1 | 2014 | ||||||||||||||||||||
66,667 | $ | 1.5 | 2016 | ||||||||||||||||||||
3,663,667 |
THE_COMPANY_Details_Narrative
THE COMPANY (Details Narrative) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Date Of Incorporation | 6-Sep-07 | ' |
Cumulative losses since inception | ($13,092,713) | ($8,187,901) |
Know-How SPA | 3,000,000 | ' |
Additional due with FDA Approval | $200,000 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | 73 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' |
Cumulative Loss | ($4,904,812) | ($3,146,658) | ($13,092,713) |
Impairement | $3,000,000 | ' | $3,000,000 |
LOSS_PER_SHARE_SCHEDULE_OF_COM
LOSS PER SHARE - SCHEDULE OF COMMON STOCK ISSUABLE UPON CONVERSION/EXERCISE (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Accounting Policies [Abstract] | ' | ' |
Options | $5,542,688 | $5,542,688 |
Warrants | 3,663,667 | 1,269,842 |
Convertible preferred stock | 17,700,000 | 19,354,000 |
Convertible debentures | $31,828,330 | $7,746,274 |
INTANGIBLE_ASSETS_Details_Narr
INTANGIBLE ASSETS (Details Narrative) (USD $) | Aug. 31, 2010 | Jul. 31, 2010 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Payment To Acquire Intangible Assets | ' | $3,000,000 |
Obtained Rights To Trademarks | $7,500 | ' |
ACCRUED_EXPENSES_SCHEDULE_OF_A
ACCRUED EXPENSES - SCHEDULE OF ACCRUED EXPENSES (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | |
Notes to Financial Statements | ' | ' | ' |
Registration penalty | $250,203 | ' | ' |
Salaries and payroll taxes | ' | 792,907 | 569,412 |
Professional fees | ' | 166,802 | 130,450 |
Accrued dividends | ' | 180,442 | 134,211 |
Interest | ' | 84,648 | 46,312 |
Other | ' | ' | 2,219 |
Accrued Expenses | ' | $1,475,002 | $1,132,840 |
LOANS_PAYABLE_Details_Narrativ
LOANS PAYABLE (Details Narrative) (USD $) | 1 Months Ended | 12 Months Ended | |||||
Mar. 30, 2013 | Apr. 30, 2012 | Feb. 29, 2012 | Oct. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 28, 2011 | |
Notes to Financial Statements | ' | ' | ' | ' | ' | ' | ' |
Loans Payable from investor | ' | ' | ' | ' | ' | ' | $10,000 |
Loans Payable from investor, current balance | ' | ' | ' | ' | 10,000 | 10,000 | ' |
Loans Payable from Craig Eagle | ' | ' | ' | 35,000 | ' | ' | ' |
Loans Payable from Craig Eagle, current balance | ' | ' | ' | ' | 35,000 | 35,000 | ' |
Loans Payable from John Weber | 5,100 | 10,000 | 13,000 | ' | ' | ' | ' |
Loans Payable from John Weber, current balance | ' | ' | ' | ' | 28,100 | 23,000 | ' |
Advances | ' | ' | ' | ' | 1,300 | ' | ' |
Advances, loan balance | ' | ' | ' | ' | $1,300 | ' | ' |
NOTES_PAYABLE_Details_Narrativ
NOTES PAYABLE (Details Narrative) (USD $) | Sep. 30, 2013 | Aug. 31, 2013 | Sep. 30, 2012 | Aug. 31, 2012 | Sep. 30, 2012 | Oct. 12, 2011 | Sep. 30, 2012 | Dec. 21, 2011 | Sep. 30, 2013 | Oct. 31, 2012 | Sep. 30, 2012 | Jan. 18, 2012 | Sep. 30, 2013 | 31-May-13 | Mar. 31, 2012 | Jan. 27, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Apr. 30, 2012 | Sep. 30, 2013 | Feb. 28, 2013 | Sep. 30, 2012 | Jul. 31, 2012 | Sep. 30, 2013 | Jan. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Aug. 01, 2013 | Jan. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2013 | 30-May-13 | Sep. 30, 2013 | 30-May-13 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 30, 2013 | Sep. 30, 2013 | 31-May-13 |
Promissory Note 1 | Promissory Note 1 | Promissory Note 2 | Promissory Note 2 | Promissory Note 3 | Promissory Note 3 | Promissory Note 3 | Promissory Note 3 | Promissory Note 4 | Promissory Note 4 | Promissory Note 4 | Promissory Note 4 | Promissory Note 5 to 9 | Promissory Note 5 to 9 | Promissory Note 5 to 9 | Promissory Note 5 to 9 | Promissory Note 5 to 9 | Promissory Note 10 to 18 | Promissory Note 10 to 18 | Promissory Note 10 to 18 | Promissory Note 10 to 18 | Promissory Note 19 | Promissory Note 19 | Promissory Note 19 | Promissory Note 19 | Promissory Note 20 to 22 | Promissory Note 20 to 22 | Promissory Note 20 to 22 | Promissory Note 20 to 22 | Promissory Note 23 | Promissory Note 23 | Promissory Note 23 | Promissory Note 23 | Promissory Note 24 | Promissory Note 24 | Promissory Note 25 | Promissory Note 25 | Promissory Note 25 | Promissory Note 26 | Promissory Note 26 | Promissory Note 27 | Promissory Note 27 | Promissory Note 28 | Promissory Note 28 | Promissory Note 29 | Promissory Note 29 | Promissory Note 30 to 31 | Promissory Note 30 to 31 | Promissory Note 32 to 34 | Promissory Note 32 to 34 | Promissory Note 35 to 36 | Promissory Note 35 to 36 | Promissory Note To Lender | Promissory Note To Lender | Promissory Note To Lender | Convertible Note 1 | Convertible Note 2 | Convertible Note To Vendor | Convertible Note To Vendor | |||||
Insurance Premiums | ' | ' | ' | $47,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance Premium Note | ' | ' | 42,130 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes Payable | ' | ' | ' | ' | ' | 10,000 | ' | 150,000 | ' | ' | ' | 165,400 | ' | ' | ' | 149,290 | ' | ' | ' | ' | 186,000 | ' | ' | ' | 220,000 | ' | ' | ' | 25,000 | ' | ' | ' | 100,000 | ' | ' | ' | 100,000 | ' | 100,000 | ' | ' | 35,000 | ' | 25,000 | ' | 15,000 | ' | 25,000 | ' | 25,000 | ' | 30,000 | ' | 35,000 | ' | 250,000 | ' | ' | ' | ' | ' | ' | 293,700 |
Convertible Notes Payable, amount to be repaid | ' | ' | ' | ' | ' | ' | ' | 175,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | 5.00% | ' | 31.23% | ' | 8.00% | ' | 5.00% | ' | ' | ' | 8.00% | ' | ' | ' | ' | 33.00% | ' | ' | ' | 33.00% | ' | ' | ' | 33.00% | ' | ' | ' | 10.00% | ' | ' | ' | 8.00% | ' | 8.00% | ' | ' | 8.00% | ' | 8.00% | ' | 8.00% | ' | 8.00% | ' | 8.00% | ' | 8.00% | ' | 8.00% | ' | 8.00% | 10.59% | 10.59% | 10.59% | ' | ' | ' | 12.00% |
Additional interest rate if late | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18-Jun-12 | ' | ' | ' | 31-Mar-13 | ' | ' | ' | ' | 30-Sep-12 | ' | ' | ' | 30-Nov-12 | ' | ' | ' | 31-Oct-12 | ' | ' | ' | 31-Jan-13 | ' | ' | ' | 1-Jan-13 | ' | 30-Jun-13 | ' | ' | 31-Jul-13 | ' | 30-Sep-13 | ' | 30-Sep-13 | ' | 31-Oct-13 | ' | 30-Nov-13 | ' | 31-Dec-13 | ' | 31-Jan-14 | ' | 31-Aug-14 | ' | ' | ' | ' | ' | ' | 21-Nov-13 |
Maturity Date | ' | ' | ' | ' | ' | 14-Jun-12 | ' | 21-Jun-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares to be issued pursuant to Convertible Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,522,440 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,335,598 | 4,335,598 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,089,863 | ' | ' | ' | ' | 520,000 | ' | 312,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued pursuant to Convertible Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,079,000 | 0 | ' | ' | 5,124,500 | ' | ' | ' | 582,500 | ' | ' | ' | 1,050,000 | ' | ' | ' | 2,080,000 | ' | ' | ' | ' | ' | 728,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price per unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.05 | ' | ' | ' | ' | $0.05 | ' | ' | ' | $0.05 | ' | ' | ' | $0.05 | ' | ' | ' | $0.10 | ' | ' | ' | $0.05 | ' | $0.05 | ' | ' | $0.05 | ' | $0.05 | ' | $0.05 | ' | $0.05 | ' | $0.05 | ' | $0.05 | ' | $0.05 | ' | $0.03 | ' | ' | ' | ' | ' | ' | ' |
Discount on debt | ' | ' | ' | ' | ' | ' | ' | 56,250 | ' | ' | ' | ' | 7,653 | ' | ' | ' | ' | ' | ' | ' | 186,000 | ' | ' | 40,116 | 215,900 | ' | ' | 631 | 24,837 | ' | ' | 34,158 | ' | ' | ' | 58,152 | ' | ' | ' | ' | ' | ' | ' | 14,507 | ' | ' | ' | 10,000 | ' | ' | 1,226 | ' | ' | ' | ' | ' | ' | 64,125 | 64,125 | 72,348 | ' | 89,195 | ' |
Balance of Convertible Notes Payable | ' | ' | ' | ' | 0 | ' | 175,000 | ' | 0 | ' | 165,400 | ' | ' | ' | ' | ' | 0 | ' | ' | 186,000 | ' | 0 | ' | 179,884 | ' | 0 | ' | 24,369 | ' | 0 | ' | 65,842 | ' | 0 | ' | 41,848 | ' | 0 | ' | 0 | ' | ' | 0 | ' | 0 | ' | 25,000 | ' | 25,000 | ' | 28,774 | ' | 35,000 | ' | 250,000 | ' | ' | ' | ' | 34,821 | ' | 229,595 | ' |
Beneficial Conversion Feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,686 | 149,290 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,500 | ' | ' | ' | 100,000 | ' | 100,000 | ' | ' | 21,000 | ' | 10,493 | ' | 1,500 | ' | ' | ' | ' | ' | 3,451 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,027,683 | 3,027,683 | ' | ' | 256,598 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,850,000 | 2,200,000 | ' | ' |
Warrants to purchase issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | 500,000 | ' | ' | 175,000 | ' | 640,000 | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 |
Warrants to purchase issued, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | $0.10 | ' | ' | $0.50 | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | $0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to purchase issued, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P5Y |
Line Of Credit Current Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225,000 | 225,000 | 225,000 | ' | ' | ' | ' |
Insurance Permium Renewal | ' | 57,892 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance Premium Renweal Note | 52,220 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to purchase, expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27-Jan-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | 125,000 | ' | ' | ' | ' | ' |
Accreted Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,405 | ' | ' | ' | ' |
Fair Value of Derivative Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 136,473 | 136,473 | ' | ' | ' | 153,300 |
Unamortized Debt Discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,348 | 72,348 | ' | ' | 64,105 | ' |
Loss on the change in fair value of the conversion option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,804 | ' | ' | 60,559 | ' |
Fair value of the conversion option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 213,858 | ' |
Convertible Note Payable, conversion amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31,061 | $19,000 | ' | ' |
INCOME_TAXES_DEFERRED_TAX_ASSE
INCOME TAXES - DEFERRED TAX ASSET (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Notes to Financial Statements | ' | ' |
Net operating loss carryover | $2,698,087 | $2,348,856 |
Intangible assets | 1,200,000 | ' |
Stock based compensation | 355,265 | 355,265 |
Accrued expenses | 396,232 | 199,980 |
Total deferred tax assets | 4,649,584 | 2,904,101 |
Valuation allowance | -4,648,584 | -2,904,101 |
Net deferred tax asset | ' | ' |
INCOME_TAXES_SCHEDULE_OF_EFFEC
INCOME TAXES - SCHEDULE OF EFFECTIVE INCOME TAX RATE (Details) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Notes to Financial Statements | ' | ' |
Federal tax rate | -34.00% | -34.00% |
Effect of state taxes | -6.00% | -6.00% |
Permanent differences | 5.00% | 9.00% |
Net operating loss carry forward | 35.00% | 31.00% |
Total | 0.00% | 0.00% |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Operating Loss Carryforwards | $6,700,000 |
Carryforward Expiration Date | 1-Jan-32 |
STOCKHOLDERS_DEFICIENCY_EQUITY2
STOCKHOLDERS (DEFICIENCY) EQUITY - SCHEDULE OF OPTION ACTIVITY (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 |
Other Liabilities Disclosure [Abstract] | ' | ' | ' | ' |
Beginning Balance, Issued Options | 5,542,688 | 5,542,688 | 5,542,688 | 5,542,688 |
Beginning Balance, Average Exercise Price | $0.56 | $0.56 | $0.56 | $0.56 |
Ending Balance, Issued Options | 5,542,688 | 5,542,688 | 5,542,688 | 5,542,688 |
Ending Balance, Average Exercise Price | $0.56 | $0.56 | $0.56 | $0.56 |
STOCKHOLDERS_DEFICIENCY_EQUITY3
STOCKHOLDERS (DEFICIENCY) EQUITY - SCHEDULE OF STOCK OPTIONS (Details) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Stock Options 1 | ' |
Number Outstanding | 2,000,000 |
Weighted Average Remaining Contractual Life | '2 years |
Weighted Average Remaining Exercise Price | $0.46 |
Options Exercisable Weighted Average Number Exercisable | 2,000,000 |
Options Exercisable Weighted Average Exercise Price | $0.46 |
Stock Options 2 | ' |
Number Outstanding | 3,542,688 |
Weighted Average Remaining Contractual Life | '2 years |
Weighted Average Remaining Exercise Price | $0.62 |
Options Exercisable Weighted Average Number Exercisable | 3,542,688 |
Options Exercisable Weighted Average Exercise Price | $0.62 |
Stock Options (total) | ' |
Number Outstanding | 5,542,688 |
Weighted Average Remaining Contractual Life | '2 years |
Weighted Average Remaining Exercise Price | $0.56 |
Options Exercisable Weighted Average Number Exercisable | 5,542,688 |
Options Exercisable Weighted Average Exercise Price | $0.56 |
STOCKHOLDERS_DEFICIENCY_EQUITY4
STOCKHOLDERS (DEFICIENCY) EQUITY - SCHEDULE OF WARRANTS OUTSTANDING (Details) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Warrant 1 | ' |
Warrant Amount | 50,000 |
Expiration Date | 1-Jan-18 |
Warrant 2 | ' |
Warrant Amount | 640,000 |
Exercise Price | 0.001 |
Expiration Date | 1-Jan-14 |
Warrant 3 | ' |
Warrant Amount | 2,000,000 |
Exercise Price | 0.1 |
Expiration Date | 1-Jan-15 |
Warrant 4 | ' |
Warrant Amount | 672,500 |
Exercise Price | 0.15 |
Expiration Date | 1-Jan-18 |
Warrant 5 | ' |
Warrant Amount | 175,000 |
Exercise Price | 0.75 |
Expiration Date | 1-Jan-15 |
Warrant 6 | ' |
Warrant Amount | 10,000 |
Exercise Price | 0.75 |
Expiration Date | 1-Jan-16 |
Warrant 7 | ' |
Warrant Amount | 49,500 |
Exercise Price | 1 |
Expiration Date | 1-Jan-14 |
Warrant 8 | ' |
Warrant Amount | 66,667 |
Exercise Price | 1.5 |
Expiration Date | 1-Jan-16 |
Warrant (total) | ' |
Warrant Amount | 3,663,667 |
STOCKHOLDERS_DEFICIENCY_EQUITY5
STOCKHOLDERS (DEFICIENCY) EQUITY (Details Narrative) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 21, 2012 | Dec. 24, 2013 | Dec. 18, 2012 | Nov. 30, 2011 | Sep. 30, 2013 | Nov. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 15, 2010 | Dec. 10, 2013 | Jan. 06, 2011 | Nov. 30, 2010 | Mar. 30, 2011 | Jul. 31, 2011 | Sep. 30, 2013 | Mar. 31, 2012 | Aug. 16, 2010 | |
Series A | Series A | Series B | Series B | Add'l Consideration | Finders Fee | Finders Fee | Finders Fee | Bridge Financing Conversion | Lender Conversion | Lender Conversion | Warrant Exercise | 2010 Incentive Plan | 4 Board Members | 4 Board Members | Consultant Options | Various Investors | PPM Series A | Note Conversion | Note Conversion | SPA | ||||
Series A Preferred Stock, Shares Authorized | ' | 5,500,000 | 5,500,000 | 5,500,000 | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,500 | ' | ' | ' | ' | ' | ' | ' | ' | 623,400 | 672,000 | 2,365,000 | 500,000 | ' |
Warrants issued, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.15 | $0.00 | $0.10 | ' |
Warrants issued, exercise price, max | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | ' | ' |
Warrants issued, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P3Y | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P7Y | ' | 'P2Y | ' |
Dividends | ' | ' | ' | $46,198 | $108,134 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable | ' | ' | ' | 180,442 | 134,244 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series A Perferred stock, Converted | ' | ' | ' | ' | 460,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, Issued | ' | 120,159,000 | 93,836,324 | ' | 4,600,000 | ' | ' | 1,000,000 | 1,038,751 | 801,000 | ' | 16,671,685 | 2,200,000 | 8,850,000 | 640,000 | ' | ' | ' | ' | ' | ' | ' | ' | 4,035,524 |
Common stock, Value | ' | 120,159 | 93,836 | ' | ' | ' | ' | ' | ' | 89,370 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series A Preferred Stock, Issued and outstanding | ' | 885,000 | 885,000 | 885,000 | 885,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series B Preferred Stock, Shares Authorized | ' | ' | ' | ' | ' | 4,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | ' | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,428,360 | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Option, Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 885,672 | 2,000,000 | ' | ' | ' | ' | ' |
Common Stock Option, Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.04 | $0.62 | $0.46 | ' | ' | ' | ' | ' |
Common Stock, Vesting Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P3Y | 'P5Y | ' | ' | ' | ' | ' |
Registration penalty | $250,203 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | Oct. 04, 2010 | Jul. 21, 2010 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Stock Purchase Agreement with Lonza, purchase price | ' | $3,000,000 |
Employment Agreement with Chris Hadsall, term of employment | '3 years | ' |
Employment Agreement with Chris Hadsall, base salary | $120,000 | ' |
Employment Agreement with Chris Hadsall, term of base salary | '12 years | ' |
LEGAL_PROCEEDING_Details_Narra
LEGAL PROCEEDING (Details Narrative) | Apr. 24, 2012 |
COMMITMENTS AND CONTINGENCIES | ' |
Common Stock Shares Issued Pursuant To Legal Settlement | 12,500,000 |