Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2016 | Aug. 18, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | ACTIVECARE, INC. | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Trading Symbol | acar | |
Amendment Flag | false | |
Entity Central Index Key | 1,429,896 | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 110,035,710 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | No | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash | $ 143,429 | $ 172,436 |
Accounts receivable, net | 981,325 | 936,866 |
Inventory | 328,361 | 742,471 |
Prepaid expenses and other | 330,774 | 523,561 |
Total current assets | 1,783,889 | 2,375,334 |
Property and equipment, net | 101,603 | 135,770 |
Deposits and other assets | 17,846 | 17,846 |
Domain name, net | 9,474 | 10,010 |
Total assets | 1,912,812 | 2,538,960 |
Current liabilities: | ||
Accounts payable | 1,101,693 | 4,493,211 |
Accounts payable, related party | 189,236 | 162,797 |
Accrued liabilities | 1,711,407 | 743,967 |
Current portion of notes payable | 3,332,513 | 1,259,916 |
Current portion of notes payable, related party | 3,864,763 | 492,495 |
Dividends payable | 580,319 | 567,350 |
Derivatives liability | 2,483,991 | 79,347 |
Total current liabilities | 13,263,922 | 7,799,083 |
Notes payable, net of current portion | 7,751,884 | |
Notes payable, related party, net of current portion | 3,348,251 | |
Total liabilities | 21,015,806 | 11,147,334 |
Stockholders' deficit: | ||
Preferred stock, $.00001 par value: 10,000,000 shares authorized;45,000 shares of Series D; 70,070 shares of Series E; and 0 and 5,361 shares of Series F outstanding, respectively | 1 | 1 |
Common stock, $.00001 par value: 200,000,000 shares authorized;110,035,710 and 78,113,971 shares outstanding, respectively | 1,100 | 781 |
Additional paid-in capital, common and preferred | 87,660,970 | 83,231,002 |
Accumulated deficit | (106,765,065) | (91,840,158) |
Total stockholders' deficit | (19,102,994) | (8,608,374) |
Total liabilities and stockholders' deficit | $ 1,912,812 | $ 2,538,960 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Parenthetical - $ / shares | Jun. 30, 2016 | Sep. 30, 2015 |
Condensed Consolidated Balance Sheets Parenthetical | ||
Preferred stock par value | $ 0.00001 | $ 0.00001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares outstanding | 120,431 | 120,431 |
Common stock par value | $ 0.00001 | $ 0.00001 |
Common stock shares authorized | 200,000,000 | 200,000,000 |
Common stock shares outstanding | 110,035,710 | 78,113,971 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Chronic illness monitoring supplies revenues | $ 1,858,926 | $ 1,891,881 | $ 4,972,196 | $ 4,683,530 |
Chronic illness monitoring fee revenues | 317,156 | 145,371 | 888,453 | 413,941 |
Total Chronic illness monitoring revenues | 2,176,082 | 2,037,252 | 5,860,649 | 5,097,471 |
Cost of revenues: | ||||
Chronic illness monitoring supplies cost of revenues | 1,269,828 | 1,674,317 | 3,878,972 | 3,675,800 |
Chronic illness monitoring fee cost of revenues | 112,486 | 103,986 | 358,436 | 394,409 |
Total Chronic illness monitoring cost of revenues | 1,382,314 | 1,778,303 | 4,237,408 | 4,070,209 |
Gross profit | 793,768 | 258,949 | 1,623,241 | 1,027,262 |
Operating expenses: | ||||
Selling, general and administrative (including $1,004,211, $1,725,930, $3,257,614 and $4,148,228, respectively, of stock-based compensation) | 2,169,603 | 2,986,953 | 6,944,098 | 7,712,427 |
Research and development | 57,611 | 15,868 | 139,023 | 88,024 |
Total operating expenses | 2,227,214 | 3,002,821 | 7,083,121 | 7,800,451 |
Loss from operations | (1,433,446) | (2,743,872) | (5,459,880) | (6,773,189) |
Other income (expense): | ||||
Interest expense, net | (813,517) | (164,692) | (1,935,486) | (788,682) |
Gain (loss) on extinguishment of debt | (15,393) | (3,058,809) | 769,449 | |
Gain (loss) on liability settlements | 8,859 | (288,569) | 295,099 | (10,017) |
Gain on derivatives liability | 5,603,411 | 2,796,542 | 106,444 | |
Loss on induced conversions of debt | (379,132) | |||
Gain (loss) on disposal of property and equipment | 245 | (42,336) | ||
Other income | 36,611 | 12,985 | ||
Gain on lease termination | 91,692 | 0 | 91,692 | |
Total other income (expense), net | 4,783,360 | (324,958) | (2,281,541) | 139,535 |
Income (loss) from continuing operations | 3,349,914 | (3,068,830) | (7,741,421) | (6,633,654) |
Gain (loss) from discontinued operations | 5,284 | (182,281) | ||
Net income (loss) | 3,349,914 | (3,063,546) | (7,741,421) | (6,815,935) |
Deemed dividends on redemption of preferred stock | (6,484,236) | |||
Deemed dividends on conversion of accrued dividends to common stock | (301,097) | (301,097) | ||
Dividends on preferred stock | (45,781) | (266,599) | (699,250) | (656,836) |
Net income (loss) attributable to common stockholders | $ 3,304,133 | $ (3,631,242) | $ (14,924,907) | $ (7,773,868) |
Net income (loss) per common share - basic | ||||
Continuing operations - basic | $ 0.03 | $ (0.07) | $ (0.16) | $ (0.16) |
Discontinued operations - basic | 0 | 0 | 0 | 0 |
Net income (loss) per common share - basic | 0.03 | (0.07) | (0.16) | (0.16) |
Net loss per common share - diluted | ||||
Continuing operations - diluted | (0.01) | (0.07) | (0.17) | (0.16) |
Discontinued operations - diluted | 0 | 0 | 0 | 0 |
Net income (loss) per common share - diluted | $ (0.01) | $ (0.07) | $ (0.17) | $ (0.16) |
Weighted average common shares outstanding - basic | 108,783,000 | 52,206,000 | 91,477,000 | 49,150,000 |
Weighted average common shares outstanding - diluted | 129,972,000 | 52,206,000 | 100,952,000 | 49,150,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations Parenthetical - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Consolidated Statements of Operations Parenthetical | ||||
Compensation expense paid in stock or amortization of stock options and warrants | $ 1,004,211 | $ 1,725,930 | $ 3,257,614 | $ 4,148,228 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (7,741,421) | $ (6,815,935) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss (gain) on extinguishment of debt | 3,058,809 | (769,449) |
Gain on derivatives liability | (2,796,542) | (106,444) |
Stock-based compensation expense | 2,801,432 | 3,464,401 |
Amortization of debt discounts | 904,115 | 667,588 |
Loss on induced conversions of debt | 379,132 | |
Stock and warrants issued for services | 456,182 | 683,827 |
Depreciation and amortization | 39,353 | 277,135 |
Loss (gain) on disposal of property and equipment | (245) | 42,336 |
Loss (gain) on liability settlements | (295,099) | 10,017 |
Gain on lease termination | 0 | (91,692) |
Changes in operating assets and liabilities: | ||
Change in accounts receivable | (44,459) | 532,951 |
Change in inventory | 414,110 | 515,428 |
Change in prepaid expenses and other | (178,053) | 1,094 |
Change in accounts payable | (732,265) | 650,607 |
Change in accrued liabilities | 931,492 | 192,173 |
Net cash used in operating activities | (2,803,459) | (745,963) |
Cash flows from investing activities: | ||
Proceeds from sale of property and equipment | 600 | 938 |
Purchases of property and equipment | (5,004) | (10,267) |
Proceeds from sale of discontinued operations | 478,738 | |
Net cash used in investing activities | (4,404) | 469,409 |
Cash flows from financing activities: | ||
Proceeds from issuance of notes payable, net | 5,709,287 | 800,000 |
Proceeds from issuance of related-party notes payable, net | 250,000 | 0 |
Proceeds from issuance of warrants in connection with notes payable | 2,967 | |
Principal payments on related-party notes payable | (7,795) | 0 |
Principal payments on notes payable | (3,175,603) | (641,299) |
Net cash provided by financing activities | 2,778,856 | 158,701 |
Net decrease in cash | (29,007) | (117,853) |
Cash, beginning of the period | 172,436 | 197,027 |
Cash, end of the period | 143,429 | 79,174 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 191,943 | 16,107 |
Non-Cash Investing and Financing Activities: | ||
Deemed dividend on the redemption of preferred stock and accrued dividends for notes payable, common stock and exchange of warrants | 6,484,236 | |
Conversion of accounts payable and accrued liabilities to notes payable | 2,555,189 | 100,000 |
Dividends on preferred stock and related interest | 699,250 | 656,837 |
Assignment of related-party notes payable to an unrelated third party | 263,082 | |
Issuance of common stock for consulting services | 227,500 | 600,000 |
Issuance of common stock options for loan origination fees | 201,058 | |
Accrual of a liability to issue common stock options for loan origination fees | 130,246 | |
Cancellation and reissuance of shares of common stock | 121,250 | |
Conversion of related-party accounts payable and accrued liabilities to related-party notes payable | 84,404 | 105,000 |
Issuance of common stock options for related-party loan origination fees | 70,000 | |
Issuance of stock for loan extension fees | 31,250 | |
Accrual of a liability to issue common stock for loan amendment fees | 28,500 | |
Issuance of common stock for dividends | 12,434 | $ 963,034 |
Accrual of a liability to issue common stock for past and future consulting services | $ 7,600 |
1. Organization and Nature of O
1. Organization and Nature of Operations | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
1. Organization and Nature of Operations | 1. Basis of Presentation The unaudited interim condensed consolidated financial statements of ActiveCare, Inc. (the “Company” or “ActiveCare”) have been prepared in accordance with Article 8 of Regulation S-X, promulgated by the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with US generally accepted accounting principles (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position as of June 30, 2016 and September 30, 2015, and the results of its operations for the three and nine months ended June 30, 2016 and 2015 and its cash flows for the nine months ended June 30, 2016 and 2015. These financial statements should be read in conjunction with the annual consolidated financial statements and notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2015. The results of operations for the three and nine months ended June 30, 2016 may not be indicative of the results for the full fiscal year ending September 30, 2016. Going Concern The Company continues to incur negative cash flows from operating activities and net losses. The Company had minimal cash, negative working capital and negative total equity as of June 30, 2016 and September 30, 2015, and is in default with respect to certain debt. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. In order for the Company to eliminate substantial doubt about its ability to continue as a going concern, it must achieve profitability, generate positive cash flows from operating activities and obtain the necessary debt or equity funding to meet its projected capital investment requirements. Management's plans with respect to this uncertainty consist of raising additional capital by issuing debt or equity securities and increasing the sales of the Company's services and products. There can be no assurance that the Company will be able to raise sufficient additional capital or that revenues will increase rapidly enough to achieve operating profits. If the Company is unable to increase revenues or obtain additional financing, it will be unable to continue the development of its products and services and may have to cease operations. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet dates and the reported amounts of revenues and expenses for the reporting periods. Actual results could differ from these estimates. Fair Value of Financial Instruments The Company measures the fair values of its assets and liabilities using the US GAAP hierarchy. The carrying amounts reported in the condensed consolidated balance sheets for cash, accounts receivable, accounts payable, and accrued liabilities approximate fair values due to the short-term nature of these financial instruments. Derivative financial instruments are recorded at fair value based on current market pricing models. The carrying amounts reported for notes payable approximate fair values because the underlying instruments are at interest rates which approximate current market rates. Reclassifications Certain prior year amounts have been reclassified to conform to the current period’s presentation. The reclassifications had no effect on the previously reported net loss. |
2. Discontinued Operations
2. Discontinued Operations | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
2. Discontinued Operations | 2. Discontinued Operations In December 2014, the Company sold substantially all of its customer contracts and equipment leased to customers associated with its CareServices segment. The sale included all segment assets that generated revenue related to the CareServices segment. The Company no longer holds any ownership interest in these assets and has ceased incurring costs related to the operations and development of the CareServices segment. This segment was engaged in the business of developing, distributing and marketing mobile health monitoring and concierge services to distributors and consumers. The debt secured by the CareServices customer contracts was amended in January 2015, December 2015 and subsequent to June 30, 2016, and remains an obligation of the Company (see Notes 12 and 22). There were no material liabilities of discontinued operations. As a result of the sale of the CareServices assets, the Company has reflected this segment as discontinued operations in the condensed consolidated financial statements for the three and nine months ended June 30, 2015. The following table summarizes certain operating data for discontinued operations for the three months ended June 30: 2016 2015 Revenues $ - $ 5,284 Cost of revenues - - Gross profit - 5,284 Selling, general and administrative expenses - - Gain from discontinued operations $ - $ 5,284 The following table summarizes certain operating data for discontinued operations for the nine months ended June 30: 2016 2015 Revenues $ - $ 150,576 Cost of revenues - (121,647) Gross profit - 28,929 Selling, general and administrative expenses - (211,210) Loss from discontinued operations $ - $ (182,281) |
3. Net Loss per Common Share
3. Net Loss per Common Share | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
3. Net Loss per Common Share | 3. Net Income (Loss) per Common Share Basic net income (loss) per common share ("Basic EPS") is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share ("Diluted EPS") is computed by dividing net loss available to common stockholders by the sum of the weighted average number of common shares outstanding and the weighted-average dilutive common share equivalents outstanding. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect. Common share equivalents consist of shares issuable upon the exercise of common stock warrants and options, shares issuable from restricted stock grants, and shares issuable pursuant to convertible notes and convertible Series D, Series E and Series F preferred stock. The following table reflects the calculation of basic and diluted net income per share from continuing operations for the three and nine months ended June 30, 2016 and 2015: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income (loss), excluding discontinued operations 3,304,133 (3,636,526) (14,924,907) (7,591,587) Effect of dilutive securities on net income (loss): Common stock options and warrants (2,427,640) - - - Convertible debt (1,860,373) - (1,790,407) - Total net loss for purpose of calculating diluted net imcome (loss) per share $ (983,880) $ (3,636,526) $ (16,715,314) $ (7,591,587) Number of shares used in per share calculations: Total shares for purposes of calculating basic net income (loss) per share 108,783,000 52,206,000 91,477,000 49,150,000 Weighted-average effect of dilutive securities: Common stock options and warrants 1,522,000 - - - Convertible debt 19,667,000 - 9,475,000 - Total shares for purpose of calculating diluted net loss per share 129,972,000 52,206,000 91,477,000 49,150,000 Net income (loss) per share: Basic $ 0.03 $ (0.07) $ (0.16) $ (0.16) Diluted $ (0.01) $ (0.07) $ (0.17) $ (0.16) The effect of dilutive securities on the numerator for purposes of calculating diluted loss per share is related to the common stock options and warrants and convertible debt is mainly due to the reduction of the gain on derivatives liability. The following table reflects the calculation of basic and diluted net income per share from discontinued operations for the three and nine months ended June 30, 2016 and 2015: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Gain (loss) from discontinued operations - 5,284 - (182,281) Number of shares used in per share calculations: Total shares for purposes of calculating basic net income (loss) per share 108,783,000 52,206,000 91,477,000 49,150,000 Weighted-average effect of dilutive securities: Common stock options and warrants 1,522,000 - - - Convertible debt 19,667,000 - 9,475,000 - Total shares for purpose of calculating diluted net income (loss) per share 129,972,000 52,206,000 100,952,000 49,150,000 Net income (loss) per share: Basic $ - $ 0.00 $ - $ 0.00 Diluted $ - $ 0.00 $ - $ 0.00 As of June 30, 2016 and 2015, there were certain outstanding common share equivalents, respectively, that were not included in the computation of Diluted EPS as their effect would be anti-dilutive for the respective three and nine months then ended. The common stock equivalents outstanding consist of the following: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 Common stock options and warrants 11,946,351 9,567,551 21,186,701 9,567,551 Series D convertible preferred stock 225,000 225,000 225,000 225,000 Series E convertible preferred stock 477,834 477,830 477,834 477,830 Series F convertible preferred stock - 16,065,328 - 16,065,328 Convertible debt 47,899,372 1,146,010 47,899,372 1,146,010 Restricted shares of common stock 7,500 7,500 7,500 7,500 Liability to issue common stock 1,122,826 - 1,122,826 - Total common stock equivalents 61,678,883 27,489,219 70,919,233 27,489,219 |
4. Recent Accounting Pronouncem
4. Recent Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
4. Recent Accounting Pronouncements | 4. Recent Accounting Pronouncements In May 2014, August 2015 and May 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers, Deferral of the Effective Date Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern In November 2014, the FASB issued ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity In April 2015 and August 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements – Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements In July 2015, the FASB issued ASU 2015-11, Inventory: Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting |
5. Accounts Receivable
5. Accounts Receivable | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
5. Accounts Receivable | 5. Accounts Receivable Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts. Specific reserves are estimated by management based on certain assumptions and variables, including the customerÂ’s financial condition, age of the customerÂ’s receivables and changes in payment histories. Accounts receivable are written off when management determines the likelihood of collection is remote. A receivable is considered to be past due if any portion of the receivable balance has not been received by the contractual payment date. Interest is not charged on accounts receivable that are past due. The Company recorded an allowance for doubtful accounts of $60,397 and $30,495 as of June 30, 2016 and September 30, 2015, respectively. |
6. Inventory
6. Inventory | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
6. Inventory | 6. Inventory Inventory is recorded at the lower of cost or market value, cost being determined using the first-in, first-out ("FIFO") method. Inventory consists of diabetic supplies. Inventory held by distributors is reported as inventory until the supplies are shipped to the end user by the distributor. The Company estimates an inventory reserve for obsolescence and excessive quantities. Due to competitive pressures and technological innovation, it is possible that estimates of net realizable values could change in the near term. During the nine months ended June 30, 2016, the Company disposed of $298,202 of inventory for which a reserve for obsolescence had previously been recorded. Inventory consists of the following as of: June 30, 2016 September 30, 2015 Finished goods $ 630,607 $ 206,038 Finished goods held by distributors - 1,350,368 Total inventory 630,607 1,556,406 Inventory reserve (302,246) (813,935) Net inventory $ 328,361 $ 742,471 |
7. Prepaid Expenses and Other C
7. Prepaid Expenses and Other Current Assets | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
7. Prepaid Expenses and Other Current Assets | 7. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of: June 30, 2016 September 30, 2015 Prepaid legal and professional fees $ 130,714 $ 2,500 Prepaid consulting services 97,021 291,648 Prepaid information technology services 38,214 9,810 Line of credit acquisition fees 36,600 - Prepaid insurance 14,981 5,942 Other 13,244 8,661 Prepaid employee services - 205,000 Total prepaid expenses and other current assets $ 330,774 $ 523,561 |
8. Customer Contracts
8. Customer Contracts | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
8. Customer Contracts | 8. Customer Contracts The Company amortized the cost of Chronic Illness Monitoring customer contracts of $214,106 acquired during 2012 over their estimated useful lives through 2014. As of June 30, 2016 and September 30, 2015, the cost associated with these customer contracts was fully amortized and, therefore, there was no amortization expense related to these contracts for the nine months ended June 30, 2016 and 2015. The Company sold substantially all of the CareServices customer contracts during December 2014. Amortization expense related to customer contracts in the CareServices segment for the nine months ended June 30, 2016 and 2015, was $0 and $179,648, respectively. |
9. Patents
9. Patents | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
9. Patents | 9. Patents Amortization expense for the nine months ended June 30, 2016 and 2015, was $0 and $31,718, respectively. As of June 30, 2016 and September 30, 2015, patents totaling $514,046 have been fully amortized. |
10. Property and Equipment
10. Property and Equipment | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
10. Property and Equipment | 10. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are determined using the straight-line method over the estimated useful lives of the assets, which range between 3 and 7 years. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the terms of the lease. Expenditures for maintenance and repairs are expensed as incurred. Upon the sale or disposal of property and equipment, any gains or losses are included in operations. Property and equipment consisted of the following as of: June 30, 2016 September 30, 2015 Software $ 100,574 $ 100,574 Leasehold improvements 98,023 98,023 Furniture 68,758 68,758 Equipment 49,772 59,754 Total property and equipment 317,127 327,109 Accumulated depreciation and amortization (215,524) (191,339) Property and equipment, net $ 101,603 $ 135,770 Assets to be disposed of are reported at the lower of their carrying amounts or fair values, less the estimated costs to sell or dispose. During the nine months ended June 30, 2016, the Company recorded a gain on the disposal of property and equipment of $245, and a loss of $ 42,336 65,234 |
11. Accrued Liabilities
11. Accrued Liabilities | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
11. Accrued Liabilities | 11. Accrued Liabilities Accrued liabilities consisted of the following as of: June 30, 2016 September 30, 2015 Interest $ 865,271 $ 190,045 Payroll 196,222 270,974 Deferred revenue 152,420 147,344 Liability to issue warrants 130,246 - Liability to issue common stock 107,254 40,000 Warranty liability 96,190 - Commissions and fees 82,190 64,432 Other 81,614 31,172 Total accrued liabilities $ 1,711,407 $ 743,967 |
12. Notes Payable
12. Notes Payable | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
12. Notes Payable | 12. Notes Payable The Company had the following notes payable outstanding as of: June 30, 2016 September 30, 2015 Unsecured notes payable with interest at 10% per annum, due November 2018. The notes may go into default in the event other notes payable go into default subsequent to the effective date of the note. In February 2016, the Company redeemed all 5,361 shares of its Series F Convertible Preferred Stock ("Series F preferred") plus accrued dividends of $673,948 for 10,000,000 shares of common stock with a fair value of $1,600,000 containing certain temporary restrictions, and $5,900,000 of notes payable. Payments on the notes are partially or fully convertible at the Company's option at $0.30 per share to a maximum of 19,667,000 shares of common stock. The conversion rate is adjustable to any lower rates granted through equity sales or other conversion rates provided by issuances of other debt, warrants, options or other instruments, with the exception of certain other raises. A note may only be converted if the holder owns less than 4.99% of the CompanyÂ’s common stock after conversion. The Company recorded a derivative liability of $2,461,899 related to the conversion feature of the notes. In connection with the redemption of the Series F preferred stock, the Company issued new warrants in exchange for warrants held by the Series F preferred stockholders for the purchase of 5,534,097 shares of common stock at an exercise price of $0.30 per common share, adjustable to any lower rates granted through equity sales or other conversion rates provided by issuances of other debt, warrants, options or other instruments, with the exception of certain other raises. The Company is also required to issue additional warrants for the purchase of up to 8,000,000 shares of common stock exercisable at $0.001 per share, also adjustable, that vest upon certain events of default. The fair value of $1,344,608 related to the new warrants was recorded as a derivative (see Notes 15 and 18). The fair value of the stock, conversion feature, warrants and $25,000 of fees, in excess of the carrying value of the Series F preferred stock were recorded as a deemed dividend of $6,484,236. $ 5,900,000 $ - Unsecured note payable with a vendor with interest at 0.65% per annum, due January 2018, issued in March 2016 upon the conversion of $2,523,937 in accounts payable to the vendor. 2,373,937 - Secured note payable to a third party with interest at 12.75% per annum, due February 2019. The note is secured by the assets of the Company and may go into default in the event other notes payable go into default subsequent to the effective date of the note. The Company entered into the note payable agreement in conjunction with a line of credit. The Company initially borrowed $1,500,000 and may borrow additional amounts under the note payable agreement up to a total balance of $3,000,000 as the Company meets certain milestones. The interest rate may also reduce to 11.25% per annum as the Company meets certain milestones. In conjunction with the note and related line of credit, the Company issued warrants to the lender to purchase 12,015,350 shares of common stock at $0.065 per share with a fair market value of $3,732,100 (see Notes 15 and 18), which resulted in a loss on derivative of $2,309,461. The Company has recorded discounts of $1,500,000 which are being amortized to interest expense over the term of the note. In April 2016, the Company borrowed an additional $500,000 on the note and incurred additional fees of $25,000, which are being amortized to interest expense over the remaining term of the note. 1,819,444 - Secured line of credit with a third party with interest at 12.25% per annum, due February 2018. The note is secured by the assets of the Company and may go into default in the event other notes payable go into default subsequent to the effective date of the note. The Company entered into the line of credit agreement in conjunction with a note payable. The Company may draw up to the lesser of 80% of certain accounts receivable or $1,500,000 and increase the maximum it may borrow under the agreement up to a total balance of $3,000,000 at $500,000 per increase as the Company meets certain milestones. The interest rate may also reduce to 10.75% per annum as the Company meets certain milestones. In conjunction with the line of credit and related note, the Company issued warrants to purchase 12,015,350 shares of common stock at $0.065 per share with a fair market value of $3,732,100 (see Notes 15 and 18), which resulted in a loss on derivative valuation of $2,309,461. The Company has recorded prepaid expenses of $44,665 which are being amortized to interest expense over the term of the line of credit. 929,518 - Secured borrowings from a third party that purchased $1,099,000 of customer receivables for $830,000, with due dates ranging from September 2016 to December 2016, and payable in daily payments ranging from $2,454 to $2,823. The $269,000 difference between the customer receivables and cash received is being amortized to interest expense over the term of the respective notes. The secured borrowings are guaranteed by two officers of the Company and are subordinated to other notes payable. 656,892 - Note payable previously secured by CareServices customer contracts. In January 2015, the note was amended to reduce the outstanding principal to $375,000, interest at 9% per annum, and payable in 15 monthly installments beginning in February 2015. The amendment released the collateralized customer contracts and the note payable is guaranteed by both a former Executive Chairman of the Board of Directors and a member of the Board of Directors. A gain on the extinguishment of the old note of $769,449 was recorded in other income. In December 2015, the note was amended to extend maturity to January 2018 payable in monthly installments beginning in July 2016, convert $31,252 from accrued interest into principal, interest at 10% per annum, and provide that the note is convertible into common stock at its fair value per share. The Company recorded a derivative in connection with the convertible feature of the note (see Note 15) and is amortizing the initial $302,690 fair value of the derivative liability over the life of the note. In February 2016, the note was amended to subordinate to other notes payable also issued during February 2016. In July 2016, the note was amended to extend the maturity date to the earlier of an equity raise in excess of $10,000,000 or November 2016 and included additional default penalties and payment terms. 334,464 303,212 Unsecured note payable with interest at 12% per annum, due February 2016, convertible into common stock at $0.30 per share. In connection with the issuance of the note, the Company repriced previously issued warrants to purchase shares of common stock. The $22,397 increase in relative fair value of the warrants was included as a loss on the extinguishment of the old note in other expense in fiscal 2015. The note also required a payment of 3,000,000 shares of common stock. The fair value of $780,000 was included as a loss on the extinguishment of the old note in other expense in fiscal 2015. The maturity date was subsequently extended on two occasions for a total of 250,000 shares of common stock and the note was due May 2016. The $31,250 fair value of these shares was being amortized over the extension period. In February 2016, the note was amended to subordinate to other notes payable also issued during February 2016, and the conversion price was reduced to $0.06 per share, which was below the fair value of the CompanyÂ’s common stock on the date of the amendment. The note may only be converted if the holder owns less than 9.99% of the CompanyÂ’s common stock after conversion. The Company recorded the value of the beneficial conversion feature of $381,299 to loss on termination of debt as a result of the modification. In May 2016, the note was amended to extend the maturity date to the earlier of an equity raise of $10,000,000 or October 2016 which required a payment of 300,000 shares of common stock. The $28,500 fair value of these shares has been included in accrued liabilities and is being amortized over the extension period. 300,000 300,000 Unsecured note payable with interest at 12% per annum, due September 2016, subordinated to other notes payable. In connection with the issuance of the note, the Company issued 1,000,000 shares of common stock. The $100,000 fair value of the stock is being amortized to interest expense over the term of the note. 250,000 - Secured note payable to a third party with interest at 18% per annum, due June 2017. The note is secured by shares of the Company's common stock held by, and other assets of an entity controlled by a former Executive Chairman of the Board of Directors. The note is guaranteed by a former Executive Chairman of the Board of Directors and his related entity and may go into default in the event other notes payable go into default subsequent to the effective date of the note. Payments on the note are convertible at the holder's option into common stock at 75% of its fair value if not paid by its respective due date, which is subject to a 20 trading day true-up and is adjustable to any lower rates granted through equity sales or other conversion rates provided by issuances of other debt, warrants, options or other instruments, with the exception of other certain raises. The note may only be converted if the holder owns less than 4.99% of the CompanyÂ’s common stock after conversion. The Company recognized a derivative liability related to the conversion feature with a fair value of $181,670, which was recognized as a loss on termination of debt. In June 2016, $13,713 of principal and $11,287 of accrued interest converted into 476,190 shares of common stock, pursuant to the terms of the note. 249,369 - Unsecured notes with interest at 18% per annum, due April 2013, in default. The Company issued 20,000 shares of Series D preferred stock as loan origination fees. The $195,000 fair value of the preferred stock was amortized over the original term of the note. Principal of $50,000 and accrued interest of $13,333 were converted to common stock in December 2013. 64,261 64,261 Secured borrowings from a third party that purchased $945,000 of customer receivables for $750,000, with due dates ranging from November 2015 to December 2016, payable in daily payments ranging from $955 to $1,909. The $195,000 difference between the customer receivables and cash received is being amortized to interest expense over the term of the respective notes. The secured borrowings are guaranteed by two officers of the Company. In November 2015, one of the notes was amended to subordinate to another note and to increase the principal by $28,385. The additional principal amount is being amortized to interest expense over the term of the note. In February 2016, the remaining principal balance on the borrowings of $417,160 was settled for a cash payment of $377,607, or 91% of the then outstanding balance, which resulted in a loss on termination of debt of $61,319. - 421,413 Secured borrowings from third parties that purchased a $337,600 customer receivable for $200,000. The Company was able to buy back the receivable for $233,333 less cash received by the third parties before June 2015. The $33,333 difference between the buyback and cash received, plus $20,000 of fees paid to a related party, was amortized to interest expense through June 2015. In February 2016, the notes were converted into 5,800,000 shares of common stock, at $0.04 per share, which was below the fair value of the CompanyÂ’s stock on the date of conversion, which resulted in a loss on induced conversion of debt of $230,667. - 233,333 Unsecured notes payable with interest at 12% per annum, with due dates ranging from March 2016 to April 2016, convertible into common stock at a 15% discount from the 10-day volume adjusted weighted average closing price per share upon maturity. In connection with the issuance of the notes, the Company also issued 841,176 shares of common stock as an origination fee. The $119,205 fair value of the stock is being amortized to interest expense over the term of the notes. The notes included loan origination fees of $35,049, which are being amortized to interest expense over the term of the notes. The Company recorded a derivative liability in connection with the convertible feature of the notes (see Note 15) and is amortizing the initial $151,283 fair value of the derivatives liability over the life of the notes. In February 2016, the notes with outstanding principal balances totaling $350,490 plus accrued interest of $15,629 were converted into 9,287,985 shares of common stock at $0.04 per common share, which was below the fair value of the CompanyÂ’s stock on the date of conversion. The Company recognized a loss on induced conversion of debt of $148,465 and a gain on termination of debt of $64,099 in relation to the conversion. $ - $ 212,490 Total notes payable before discount 12,877,885 1,534,709 Less discount (1,793,488) (274,793) Total notes payable 11,084,397 1,259,916 Less current portion (3,332,513) (1,259,916) Notes payable, net of current portion $ 7,751,884 $ - |
13. Related Party Notes Payable
13. Related Party Notes Payable | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
13. Related Party Notes Payable | 13. Related-Party Notes Payable The Company had the following related-party notes payable outstanding as of: June 30, 2016 September 30, 2015 Secured borrowings from entities controlled by an officer who purchased a $2,813,175 customer receivable for $1,710,500. The Company bought back the receivable for $1,950,000 less cash received by the entities through March 2015. The $239,500 difference between the buyback and cash received plus $253,500 of loan origination fees was amortized to interest expense through March 2015. In September 2015, the note was modified to extend the maturity date to January 2017, with interest at 18% per annum. The Company added $81,600 of extension fees and issued 3,000,000 shares of common stock to a lender as part of the modification. The note is convertible into common stock at $0.30 per share. The $540,000 fair value of the common stock was recognized as a loss on extinguishment of debt in fiscal 2015. In February 2016, the note was amended to subordinate to other notes payable also issued during February 2016, and the conversion price was reduced to $0.06 per share, which was below the fair value of the CompanyÂ’s stock on the date of the amendment. The conversion of the note is now limited to a maximum of 20,000,000 common shares in combination with other convertible notes payable held by the lenders. The note has a default penalty of 4,203,389 shares of common stock, in combination with other convertible notes held by the lenders, if not paid by maturity. The Company recorded the value of the beneficial conversion feature of $1,400,000 to loss on termination of debt as a result of the amendment. $ 1,721,100 $ 1,721,100 Unsecured note payable to an entity controlled by an officer with interest at 18% per annum, due January 2017, convertible into common stock at $0.30 per share. The Company issued 3,000,000 shares of common stock to a lender as loan origination fees. The $540,000 fair value of the common stock was recognized as a loss on extinguishment of debt in fiscal 2015. In February 2016, the note was amended to subordinate to other notes payable also issued during February 2016, and reduced the conversion price to $0.06 per share, which was below the fair value of the CompanyÂ’s stock on the date of the amendment. The conversion of the note is now limited to a maximum of 20,000,000 common shares in combination with other convertible notes payable held by the lender. The note has a default penalty of 4,203,389 shares of common stock, in combination with other convertible notes held by the lender, if not paid by maturity. The Company recorded the value of the beneficial conversion feature of $1,400,000 to loss on termination of debt as a result of the amendment. 1,303,135 1,303,135 Unsecured note payable to an entity controlled by a former Executive Chairman of the Board of Directors with interest at 18% per annum, due January 2017. In February 2016, notes payable to the same entity, with outstanding balances of $511,005 plus accrued interest of $30,999 combined into this note. The note is subordinated to notes payable to unrelated parties and is convertible into shares of common stock at $0.06 per share, which was below the fair value of the CompanyÂ’s stock on the date of the agreement. The conversion of the note is limited to a maximum of 9,250,000 common shares. The Company recorded the value of the beneficial conversion feature of $632,339 to loss on termination of debt. The note has a default penalty of 734,489 shares of common stock if not paid by maturity. The note may only be converted if the holder owns less than 4.99% of the CompanyÂ’s common stock after conversion. 542,004 - Unsecured note payable to an entity controlled by an officer with interest at 12% per annum, due September 2016, subordinated to other third party notes payable. In connection with the issuance of the note, the Company issued 1,000,000 shares of common stock. The $70,000 fair value of the stock is being amortized to interest expense over the term of the note. 250,000 - Unsecured note payable to a former officer with interest at 12% per annum, due September 2013. This note is in default and is convertible into common stock at $0.75 per share. 26,721 26,721 Unsecured note payable to an entity controlled by an officer with interest at 18% per annum, due on demand. In February 2016, the note was amended to subordinate the note to other notes payable also issued during February 2016. The note is convertible into shares of common stock at $0.06 per share, which was below the fair value of the CompanyÂ’s stock on the date of the amendment. The conversion of the note is now limited to a maximum of 20,000,000 common shares in combination with other convertible notes payable held by the entity. The note has a default penalty of 4,203,389 shares of common stock, in combination with other convertible notes held by the entity, if not paid by maturity. The Company recorded the value of the beneficial conversion feature of $1,400,000 to loss on termination of debt as a result of the amendment. 25,463 25,463 Unsecured note payable to a former officer with interest at 15% per annum, due June 2012, in default. The note included a $3,000 loan origination fee added to the principal and is convertible into common stock at $0.50 per share. 22,205 30,000 Unsecured note payable to a former officer with interest at 12% per annum, due on demand. 13,644 13,644 Unsecured note payable to an entity controlled by a former Executive Chairman of the Board of Directors with no interest (18% per annum in the event of default), due on demand. The holder demanded payment by May 15, 2015. In February 2016, the note with an outstanding balance of $396,667 plus accrued interest of $53,403 was bifurcated into two notes payable of $243,082 and $206,988. The $243,082 bifurcated note plus $20,000 of the second bifurcated note was assigned to a third party and converted into a convertible note payable. The remaining $186,989 portion of the second bifurcated note, plus $3,521 of accrued interest, in combination with another note payable held by the entity in the amount of $324,016 plus $27,478 of related accrued interest, were converted into a convertible note payable of $542,004. - 396,667 Unsecured note payable to an entity controlled by a former Executive Chairman of the Board of Directors with interest at 18% per annum, due January 2017. In February 2016, the note with an outstanding balance of $324,016 plus accrued interest of $27,478, in combination with another note payable held by the entity of $186,989 plus $3,521 of accrued interest, were converted into a convertible note payable of $542,004. $ - $ 324,016 Total notes payable, related-party, before discount 3,904,272 3,840,746 Less discount (39,509) - Total notes payable, related-party 3,864,763 3,840,746 Less current portion (3,864,763) (492,495) Notes payable, related-party, net of current portion $ - $ 3,348,251 |
14. Fair Value Measurements
14. Fair Value Measurements | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
14. Fair Value Measurements | 14. Fair Value Measurements The Company measures the fair values of its assets and liabilities using the US GAAP hierarchy levels as follows: Level 1 The Company does not have any Level 1 inputs available to measure its assets. Level 2 Certain of the CompanyÂ’s embedded derivative liabilities are measured on a recurring basis using Level 2 inputs. Level 3 Certain of the CompanyÂ’s embedded derivative liabilities are measured on a recurring basis using Level 3 inputs. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Items measured at fair value on a recurring basis include embedded derivatives related to the CompanyÂ’s warrants and notes payable. During the nine months ended June 30, 2016, the Company has not changed the manner in which it values liabilities that are measured at fair value using Level 3 inputs. The following fair value hierarchy table presents information about the Company's financial liabilities measured at fair value on a recurring basis: Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total June 30, 2016 Derivative liabilities $ - $ 325,662 $ 2,158,329 $ 2,483,991 September 30, 2015 Derivative liabilities $ - $ 79,347 $ - $ 79,347 The following is a reconciliation of the opening and closing balances for the derivatives liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended June 30, 2016: Derivatives liabilities Balance, September 30, 2015 $ - Issuance of warrants recorded as derivatives 5,076,577 Issuance of embedded derivatives related to notes payable 2,643,569 Loss (gain) on derivatives liability resulting from changes in fair value (5,561,817) Balance, June 30, 2016 $ 2,158,329 The CompanyÂ’s embedded derivative liabilities are re-measured to fair value as of each reporting date. See Note 15 for more information about the valuation methods of derivatives and the inputs used for calculating fair value. |
15. Derivatives Liability
15. Derivatives Liability | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
15. Derivatives Liability | 15. Derivatives Liability The derivatives liability as of June 30, 2016 and September 30, 2015, was $2,483,991 and $79,347, respectively. The derivatives liability as of September 30, 2014, was related to a variable conversion price adjustment on the Series F preferred stock. The derivatives liability as of December 31, 2014, was eliminated due to the conversion price on Series F preferred stock being adjusted from $1.00 to $0.3337 based on the number of subscribers as of December 31, 2014. The derivatives liability as of June 30, 2016 and September 30, 2015 is related to a variable conversion price adjustment on outstanding notes payable and warrants. A portion of derivatives liability as of December 31, 2015, and all of the derivatives outstanding as of September 30, 2015, were eliminated during February 2016, due to the conversion of notes payable into shares of common stock (see Note 12). During the nine months ended June 30, 2016, the Company estimated the fair value of some of the embedded derivatives upon issuance, at the end of each reporting period and prior to their conversion and elimination using a binomial option-pricing model with the following assumptions, according to the instrument: exercise prices ranging from $0.03 to $0.09 per share; risk free interest rates ranging from 0.16% to 1.06%; expected lives ranging from 0.05 to 2.09 years; expected dividends of 0%; volatility factors ranging from 125.33% to 510.03%; and stock prices ranging from $0.03 to $0.14. During the nine months ended June 30, 2016, the Company estimated the fair value of the remaining embedded derivatives upon issuance and at the end of each reporting period using a Monte Carlo valuation model with the following assumptions: exercise prices ranging from $0.01 to $0.25 per share; risk free interest rates ranging from 0.20% to 1.44%; expected lives ranging from 0.08 to 6.40 years; expected dividends of 0%; volatility factors of 129% to 140%; and stock prices ranging from $0.01 to $0.95. During the fiscal year ended September 30, 2015, the Company estimated the fair value of the embedded derivatives prior to their conversion and elimination using a binomial option-pricing model with the following assumptions, according to the instrument: exercise prices ranging from $0.12 to $0.33 per share; risk free interest rates ranging from 0.010% to 0.260%; expected lives ranging from 0.001 to 0.50 years; expected dividends of 0%; volatility factors ranging from 0.01% to 138.68%; and stock prices ranging from $0.12 to $0.33. The expected lives of the instruments were equal to the average term of the conversion option or expected exercise period of the warrants. The expected volatility is based on the historical price volatility of the Company's common stock. The risk-free interest rate represents the US Treasury constant maturities rate for the expected life of the related conversion option. The dividend yield represents anticipated cash dividends to be paid over the expected life of the conversion option. The Company recognized a gain on derivatives liability for the nine months ended June 30, 2016 and 2015, of $2,796,542 and $106,444, respectively. |
16. Preferred Stock
16. Preferred Stock | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
16. Preferred Stock | 16. Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock, with a par value of $0.00001 per share. Pursuant to the Company's Certificate of Incorporation, the Board of Directors has the authority to amend the Company's Certificate of Incorporation, without further stockholder approval, to designate and determine the preferences, limitations and relative rights of the preferred stock before any issuance of the preferred stock and to create one or more series of preferred stock, fix the number of shares of each such series, and determine the preferences, limitations and relative rights of each series of preferred stock, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, and liquidation preferences. Series D Convertible Preferred Stock The Board of Directors has designated 1,000,000 shares of preferred stock as Series D Convertible Preferred Stock ("Series D preferred stock"). The Series D preferred stock votes on an as-converted basis. The Series D preferred stock has a dividend rate of 8%, payable quarterly. The Company may redeem the Series D preferred stock at a redemption price equal to 120% of the original purchase price with 15 days' notice. During the three months ended June 30, 2016 and 2015, the Company accrued $6,183 and $6,183 of dividends on Series D preferred stock and settled $11,000 and $6,115 of accrued dividends, respectively, by issuing 189,538 and 22,470 shares of common stock, respectively. During the nine months ended June 30, 2016 and 2015, the Company accrued $18,617 and $18,549 of dividends on Series D preferred stock, respectively, and settled $12,434 and $18,617 of accrued dividends, respectively, by issuing 226,651 and 58,424 shares of common stock, respectively Series E Convertible Preferred Stock During fiscal year 2013, the Board of Directors designated shares of preferred stock as Series E Convertible Preferred Stock ("Series E preferred stock"), convertible into common stock at $1.00 per share, adjustable if there are distributions of common stock or stock splits by the Company. The Series E preferred stock is non-voting and receives a monthly dividend of 3.322% for 25 to 32 months. In addition, the convertibility and the redemption price of the Series E preferred stock is gradually reduced by dividend payments over 25 to 32 months. After the dividend payment term, the redemption price of Series E preferred stock is $0, the Series E preferred stock has no convertibility to common stock and the holders are entitled to receive a pro-rata share of cumulative royalties totaling 4% of the Company's gross profits payable quarterly for a two-year period. During fiscal year 2014, $83,473 of debenture loans and accrued interest converted into 8,347 shares of Series E preferred stock. During the three months ended June 30, 2016 and 2015, the Company accrued dividends of $39,598 and $81,716, respectively, payable to Series E preferred stockholders. During the nine months ended June 30, 2016 and 2015, the Company accrued dividends of $185,485 and $ 245,147 Series F Convertible Preferred Stock During fiscal year 2014, the Board of Directors designated 7,803 shares of preferred stock as Series F Convertible Preferred Stock ("Series F preferred stock"). In April 2014, the Company increased the authorized shares of Series F preferred stock to 10,000. Series F preferred stock is non-voting, has a stated value of $1,000 per share and is convertible into common stock at $0.3337 per share (see Note 15). The Series F preferred stock has a dividend rate, payable quarterly, of 8% until April 30, 2015, 16% from May 1, 2015 to July 31, 2015, 20% from August 1, 2015 to October 31, 2015, and 25% thereafter. In February 2016, the Company redeemed all 5,361 outstanding shares and $673,848 of accrued dividends for 10,000,000 shares of common stock, $5,900,000 of notes payable and exchanged warrants for the purchase of 5,534,097 shares of common stock held by Series F preferred stockholders for new warrants with new terms for the purchase of the same number of shares (see Note 18). The Company recorded a deemed dividend of $6,484,236 as a result of the transactions. During fiscal year 2014, the Company issued 5,361 858 4,503 Liquidation Preference Upon any liquidation, dissolution or winding up of the Company, before any distribution or payment may be made to the holders of the common stock, the holders of the Series D preferred stock, Series E preferred stock, and Series F preferred stock are entitled to be paid out of the assets an amount equal to $1.00 per share plus all accrued but unpaid dividends. If the assets of the Company are insufficient to make payment in full to all holders of preferred stock, then the assets shall be distributed among the holders of preferred stock ratably in proportion to the full amounts to which they would otherwise be entitled. |
17. Common Stock
17. Common Stock | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
17. Common Stock | 17. Common Stock In April 2014, the Company amended its Certificate of Incorporation increasing the total number of authorized shares of common stock from 50,000,000 shares to 200,000,000 shares. During the nine months ended June 30, 2016, the Company issued 32,963,405 shares of common stock as follows: · 15,564,175 shares to settle notes payable and related accrued interest; the value on the date of grant was $1,445,851 ; · 1,008,047 shares for employee compensation for past services and bonuses; the value on the date of grant was $39,063 ; · 1,750,000 shares for services provided by independent consultants; the value on the date of grant was $227,500 ; · 10,000,000 shares as part of the redemption of Series F preferred stock (see Note 16); the value on the date of grant was $1,600,000 ; · 2,122,866 shares for notes payable origination and financing fees; the value on the date of grant was $201,058 ; · 1,041,666 shares were reissued, which were returned and cancelled in the same period; the original value was $121,250 ; · 1,000,000 shares issued to an entity controlled by an officer of the Company for a related-party note payable origination fee; the value on the date of grant was $70,000 ; · 250,000 shares for the extension of notes payable; the value on the date of grant was $31,250 ; · 226,651 shares to settle accrued dividends for Series D preferred stock; the value on the date of grant was $12,434 . |
18. Common Stock Options and Wa
18. Common Stock Options and Warrants | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
18. Common Stock Options and Warrants | 18. Common Stock Options and Warrants The fair value of each stock option or warrant is estimated on the date of grant using a binomial option-pricing model or the Monte Carlo valuation model. The expected life of stock options or warrants represents the period of time that the stock options or warrants are expected to be outstanding, based on the simplified method. Expected volatilities are based on historical volatility of the Company's common stock, among other factors. The Company uses the simplified method within the binomial option-pricing valuation model due to the Company's short trading history. The risk-free rate related to the expected term of the stock options or warrants is based on the US Treasury yield curve in effect at the time of grant. The dividend yield is zero. During the nine months ended June 30, 2016, the Company granted warrants to purchase 12,015,350 shares with an exercise price of $0.065 per share in connection with the acquisition of a note payable and line of credit; warrants for the purchase of 7,392,800 shares vested immediately, 1,847,550 vested upon the disbursement of the second tranche of the related note payable, and 2,775,000 vest evenly in the event of three available increases on the related line of credit (see Note 12). The warrants expire in February 2023, may be settled in a cashless exercise, and are puttable upon expiration or liquidation for the greater of $500,000 or up to 6.5% of the equity value of the Company, depending on the number of warrants vested. The fair value of the warrants upon grant of $3,731,969 was recorded as a derivative and the Company received cash of $2,967 upon issuance of the warrants. The Company recognized $1,419,541 as debt discount for the portion allocated to the note payable and the debt discount is being amortized over the life of the note payable to interest expense. During February 2016, the Company exchanged warrants held by the holders of its Series F preferred stock for the purchase of 5,534,097 shares of common stock in connection with the redemption of Series F preferred stock for new warrants for the purchase of the same number of shares on different terms. The new warrants are exercisable for $0.30 per share, adjustable to any lower rates granted through equity sales or other conversion rates provided by issuances of other debt, warrants, options or other instruments, with the exception of certain other raises. The new warrants expire in February 2021, and may be settled in a cashless exercise. Additional warrants for the purchase of 8,000,000 shares of common stock may be issued in the event of default on the related notes payable, exercisable at $0.001 per share, with 25% issuable upon the first event of default, 37.5% upon the second event, and 37.5% upon the third event. The warrants issuable upon default expire in February 2026 (if issued), may be settled in a cashless exercise, and are puttable upon expiration or liquidation with the primary warrants. The new warrants may only be exercised to the extent the respective holder would own a maximum of 4.99% of the Company’s common stock after exercise, but the holders may elect to increase the maximum to 9.99%. The Company recognized a deemed dividend of $6,484,236 as a result of the exchange and related redemption of Series F preferred stock. During the nine months ended June 30, 2015, the Company measured the fair value of warrants using a binomial valuation model with the following assumptions: Nine Months Ended June 30, 2015 Exercise price $0.30 - $1.00 Expected term (years) 1 - 2 Volatility 228% - 302% Risk-free rate 0.22% - 0.63% Dividend rate 0% During the nine months ended June 30, 2016, the Company measured the fair value of warrants classified as liabilities on the date of issuance and on each re-measurement date using the Monte Carlo valuation model. For this liability, the Company and specialist developed their own assumptions that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of the Company’s common stock, stock price volatility, the contractual term of the warrants, risk–free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants uses Level 3 measurements. The following assumptions were used: Nine Months Ended June 30, 2016 Exercise price $0.01 - $0.25 Expected term (years) 0.08 - 6.40 Volatility 129% - 140% Risk-free rate 0.20% - 1.44% Dividend rate 0% Common stock price $0.01 - $0.95 The following table summarizes information about stock options and warrants outstanding as of June 30, 2016: Options and Warrants Number of Options and Warrants Weighted-Average Exercise Price Outstanding as of October 1, 2015 9,497,551 $ 0.97 Granted 17,549,447 0.14 Exercised - Cancelled (5,534,097) 1.10 Forfeited (326,200) 0.81 Outstanding as of June 30, 2016 21,186,701 0.22 Exercisable as of June 30, 2016 16,681,701 0.22 As of June 30, 2016, the outstanding warrants have an aggregate intrinsic value of $0 and the weighted average remaining term of the warrants was 5.3 years. The total compensation cost related to unvested awards not yet recognized (options, warrants, and shares) was $621,681. |
19. Segment Information
19. Segment Information | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
19. Segment Information | 19. Segment Information The Company operated one business segment during the three and nine months ended June 30, 2016. The Company operated two business segments during the three and nine months ended June 30, 2015, based primarily on the nature of the Company's products. The Chronic Illness Monitoring segment is engaged in the business of developing, distributing and marketing mobile monitoring of patient vital signs and physical activity to insurance companies, disease management companies, third-party administrators, and self-insured companies. The customer contracts and equipment leased to customers of the CompanyÂ’s CareServices segment were sold in December 2014, and that segment was discontinued. The CareServices segment was engaged in the business of developing, distributing and marketing mobile health monitoring and concierge services to distributors and consumers. At the corporate level, the Company raises capital and provides for the administrative operations of the Company as a whole. The following table reflects certain financial information relating to each reportable segment as of June 30, 2016 and 2015, and for the three months then ended: Corporate Chronic Illness Monitoring CareServices (Discontinued Operations) Total As of June 30, 2016 and for the Three Months Then Ended Sales to external customers $ - $ 1,858,926 $ - $ 1,858,926 Segment income (loss) 2,855,979 493,935 - 3,349,914 Interest expense, net 813,517 - - 813,517 Segment assets 603,126 1,309,686 - 1,912,812 Depreciation and amortization 12,670 - - 12,670 As of June 30, 2015 and for the Three Months Then Ended Sales to external customers $ - $ 2,037,252 $ 5,284 $ 2,042,536 Segment income (loss) (2,839,603) (229,227) 5,284 (3,063,546) Interest expense, net 164,692 - - 164,692 Segment assets 824,805 3,136,315 - 3,961,120 Depreciation and amortization 13,283 - - 13,283 The following table reflects certain financial information relating to each reportable segment as of June 30, 2016 and 2015, and for the nine months then ended: Corporate Chronic Illness Monitoring CareServices (Discontinued Operations) Total As of June 30, 2016 and for the Nine Months Then Ended Sales to external customers $ - $ 4,972,196 $ - $ 4,972,196 Segment income (loss) (8,570,588) 829,167 - (7,741,421) Interest expense, net 1,935,486 - - 1,935,486 Segment assets 603,126 1,309,686 - 1,912,812 Property and equipment purchases 5,004 - - 5,004 Depreciation and amortization 39,353 - - 39,353 As of June 30, 2015 and for the Nine Months Then Ended Sales to external customers $ - $ 5,097,471 $ 150,576 $ 5,248,047 Segment income (loss) (6,755,947) 122,293 (182,281) (6,815,935) Interest expense, net 788,682 - - 788,682 Segment assets 824,805 3,136,315 - 3,961,120 Property and equipment purchases 10,267 - - 10,267 Depreciation and amortization 43,471 - 233,664 277,135 |
20. Related-party Transactions
20. Related-party Transactions Not Otherwise Disclosed | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
20. Related-party Transactions Not Otherwise Disclosed | 20. Related-Party Transactions Not Otherwise Disclosed In February 2016, the Company amended a consulting agreement dated September 2015, with an entity controlled by a former Executive Chairman of the Board of Directors, effective January 2016. The amendment extended the agreement through December 2016, with monthly automatic renewals, adjusted the monthly compensation of $6,000 to an hourly rate of $250 per hour, and eliminated the previously included bonus structure. In July 2016, the Company entered into a Consulting Agreement with a former Executive Chairman and Chief Executive Officer of the Company. This Consulting Agreement is for an initial period of one year, and shall automatically renew for consecutive one month periods unless terminated by the Company or the former Executive Chairman and Chief Executive Officer. As consideration for the services previously described, the Company shall pay the former Executive Chairman and Chief Executive Officer at the rate of $250 per hour, but such compensation may not exceed $20,000 during any calendar month. |
21. Commitments and Contingenci
21. Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
21. Commitments and Contingencies | 21. Commitments and Contingencies During the nine months ended June 30, 2015, the Company leased office space under a non-cancelable operating lease. In February 2015, the Company entered into a sublease agreement for part of the office space under the non-cancelable operating lease through the end of the original lease period. Payments under the sublease were made by the sublessee directly to the Company's landlord. The non-cancelable operating lease was terminated during June 2015. The Company's rent expense for facilities under the terminated operating lease for the nine months ended June 30, 2015, was approximately $226,000. During June 2015, the Company entered into a new non-cancelable operating lease for its existing office space, excluding the previously subleased space, with payments beginning in July 2015. Future minimum rental payments under the non-cancelable operating lease as of June 30, 2016, were as follows: Years Ending September 30, 2016 (three months) $ 31,951 2017 130,036 2018 111,340 $ 273,327 The Company's rent expense under the new non-cancelable operating lease for nine months ended June 30, 2016, was approximately $94,000. During February 2016, the Company entered into an agreement with one if its vendors to purchase a minimum of $200,000 of inventory per quarter through January 2018. During February 2016, the Company redeemed all of its Series F preferred stock in exchange for 10,000,000 shares of common stock and $5,900,000 of notes payable (see Note 12). As part of the redemption, the Company exchanged warrants held by the Series F stockholders for the purchase of 5,534,097 shares of common stock for new warrants to purchase the same number of shares with different terms. As part of the redemption, the Company may be required to issue additional warrants for the purchase of up to 8,000,000 shares of common stock upon three events of default on the notes payable (see Note 18). During February 2016, the Company converted notes payable and accrued interest payable to an entity controlled by a former Executive Chairman of the Board of Directors into a convertible note payable (see Note 12). The Company may be required to issue 734,489 shares of common stock if the note is not paid by maturity. During February 2016, the Company amended notes payable to an entity controlled by an officer of the Company to subordinate to notes payable also issued during February 2016, reduced the conversion price per share to $0.06 per share and limited the shares into which it is convertible (see Note 12). The Company may be required to issue 4,203,389 shares of common stock if the note is not paid by maturity. On May 28, 2015, an investor of the Company filed a lawsuit claiming damages of $1,000,000 exclusive of interest and costs against the Company, a former Executive Chairman, an entity controlled by another former Executive Chairman, and 4G Biometrics, a wholly owned subsidiary of the Company, for breach of contract. The Company has engaged legal counsel regarding the matter. It is not possible to predict the outcome of the matter at this time. The Company intends to vigorously dispute the claims and believes it has meritorious defenses. On November 4, 2015, the Company received a demand for payment of $275,000 from a former employee of the Company and former principal of 4G Biometrics whose employment was terminated for cause. On December 4, 2015, the Company filed a complaint against the former owners of 4G Biometrics, including this former employee, seeking damages in excess of $300,000 related to alleged misrepresentations made to induce the Company to acquire 4G Biometrics. Between February 4, 2016 and February 8, 2016, the Company settled the complaint with each of the former owners of 4G Biometrics and all parties released each other from all outstanding claims, including any current monetary obligations to each party, excluding one former owner of 4G Biometrics who continues to be employed by the Company. A Stipulation for Order of Dismissal with Prejudice of all Claims and Counterclaims has been filed and is in the process of being approved. The settlement resulted in the termination of $39,863 of related-party accounts payable. |
22. Subsequent Events
22. Subsequent Events | 9 Months Ended |
Jun. 30, 2016 | |
Notes | |
22. Subsequent Events | 22. Subsequent Events Subsequent to June 30, 2016, the Company entered into the following agreements and transactions: (1) In July 2016, James Dalton resigned his positions as the CompanyÂ’s Chief Executive Officer and Chairman. Mr. Dalton will remain with the Company in a consulting capacity. The Company will pay Mr. Dalton severance of $20,000 per month for a period of six months in addition to his consulting agreement. (2) In July 2016, Jeffrey Peterson, the CompanyÂ’s Chief Financial Officer, Secretary and Treasurer was appointed as the CompanyÂ’s Chief Executive Officer. Concurrently, Mr. Peterson resigned from his Chief Financial Officer, Secretary and Treasurer positions. (3) In July 2016, the Company appointed Bradley Robinson to the Board of Directors and Eric Robinson as the CompanyÂ’s Chief Financial Officer, Secretary and Treasurer. Mr. Bradley Robinson and Mr. Eric Robinson are brothers. (4) In July 2016, the Company received a cash advance from a third party of $350,000. (5) In July 2016, the Company amended a note payable to extend the maturity date to the earlier of 1) an equity offering in excess of $10,000,000, or 2) November 30, 2016; and to include additional default penalties and payment terms. |
1. Organization and Nature of29
1. Organization and Nature of Operations: Going Concern (Policies) | 9 Months Ended |
Jun. 30, 2016 | |
Policies | |
Going Concern | Going Concern The Company continues to incur negative cash flows from operating activities and net losses. The Company had minimal cash, negative working capital and negative total equity as of June 30, 2016 and September 30, 2015, and is in default with respect to certain debt. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. In order for the Company to eliminate substantial doubt about its ability to continue as a going concern, it must achieve profitability, generate positive cash flows from operating activities and obtain the necessary debt or equity funding to meet its projected capital investment requirements. Management's plans with respect to this uncertainty consist of raising additional capital by issuing debt or equity securities and increasing the sales of the Company's services and products. There can be no assurance that the Company will be able to raise sufficient additional capital or that revenues will increase rapidly enough to achieve operating profits. If the Company is unable to increase revenues or obtain additional financing, it will be unable to continue the development of its products and services and may have to cease operations. |
1. Organization and Nature of30
1. Organization and Nature of Operations: Use of Estimates in The Preparation of Financial Statements (Policies) | 9 Months Ended |
Jun. 30, 2016 | |
Policies | |
Use of Estimates in The Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet dates and the reported amounts of revenues and expenses for the reporting periods. Actual results could differ from these estimates. |
1. Organization and Nature of31
1. Organization and Nature of Operations: Fair Value of Financial Instruments (Policies) | 9 Months Ended |
Jun. 30, 2016 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures the fair values of its assets and liabilities using the US GAAP hierarchy. The carrying amounts reported in the condensed consolidated balance sheets for cash, accounts receivable, accounts payable, and accrued liabilities approximate fair values due to the short-term nature of these financial instruments. Derivative financial instruments are recorded at fair value based on current market pricing models. The carrying amounts reported for notes payable approximate fair values because the underlying instruments are at interest rates which approximate current market rates. |
1. Organization and Nature of32
1. Organization and Nature of Operations: Reclassifications (Policies) | 9 Months Ended |
Jun. 30, 2016 | |
Policies | |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current periodÂ’s presentation. The reclassifications had no effect on the previously reported net loss. |
4. Recent Accounting Pronounc33
4. Recent Accounting Pronouncements: New Accounting Pronouncements (Policies) | 9 Months Ended |
Jun. 30, 2016 | |
Policies | |
New Accounting Pronouncements | In May 2014, August 2015 and May 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers, Deferral of the Effective Date Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern In November 2014, the FASB issued ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity In April 2015 and August 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements – Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements In July 2015, the FASB issued ASU 2015-11, Inventory: Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting |
2. Discontinued Operations_ Sch
2. Discontinued Operations: Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | 2016 2015 Revenues $ - $ 5,284 Cost of revenues - - Gross profit - 5,284 Selling, general and administrative expenses - - Gain from discontinued operations $ - $ 5,284 The following table summarizes certain operating data for discontinued operations for the nine months ended June 30: 2016 2015 Revenues $ - $ 150,576 Cost of revenues - (121,647) Gross profit - 28,929 Selling, general and administrative expenses - (211,210) Loss from discontinued operations $ - $ (182,281) |
3. Net Loss per Common Share_ S
3. Net Loss per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income (loss), excluding discontinued operations 3,304,133 (3,636,526) (14,924,907) (7,591,587) Effect of dilutive securities on net income (loss): Common stock options and warrants (2,427,640) - - - Convertible debt (1,860,373) - (1,790,407) - Total net loss for purpose of calculating diluted net imcome (loss) per share $ (983,880) $ (3,636,526) $ (16,715,314) $ (7,591,587) Number of shares used in per share calculations: Total shares for purposes of calculating basic net income (loss) per share 108,783,000 52,206,000 91,477,000 49,150,000 Weighted-average effect of dilutive securities: Common stock options and warrants 1,522,000 - - - Convertible debt 19,667,000 - 9,475,000 - Total shares for purpose of calculating diluted net loss per share 129,972,000 52,206,000 91,477,000 49,150,000 Net income (loss) per share: Basic $ 0.03 $ (0.07) $ (0.16) $ (0.16) Diluted $ (0.01) $ (0.07) $ (0.17) $ (0.16) The effect of dilutive securities on the numerator for purposes of calculating diluted loss per share is related to the common stock options and warrants and convertible debt is mainly due to the reduction of the gain on derivatives liability. The following table reflects the calculation of basic and diluted net income per share from discontinued operations for the three and nine months ended June 30, 2016 and 2015: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Gain (loss) from discontinued operations - 5,284 - (182,281) Number of shares used in per share calculations: Total shares for purposes of calculating basic net income (loss) per share 108,783,000 52,206,000 91,477,000 49,150,000 Weighted-average effect of dilutive securities: Common stock options and warrants 1,522,000 - - - Convertible debt 19,667,000 - 9,475,000 - Total shares for purpose of calculating diluted net income (loss) per share 129,972,000 52,206,000 100,952,000 49,150,000 Net income (loss) per share: Basic $ - $ 0.00 $ - $ 0.00 Diluted $ - $ 0.00 $ - $ 0.00 |
3. Net Loss per Common Share_36
3. Net Loss per Common Share: Schedule of Common Stock Equivalents (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Common Stock Equivalents | Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 Common stock options and warrants 11,946,351 9,567,551 21,186,701 9,567,551 Series D convertible preferred stock 225,000 225,000 225,000 225,000 Series E convertible preferred stock 477,834 477,830 477,834 477,830 Series F convertible preferred stock - 16,065,328 - 16,065,328 Convertible debt 47,899,372 1,146,010 47,899,372 1,146,010 Restricted shares of common stock 7,500 7,500 7,500 7,500 Liability to issue common stock 1,122,826 - 1,122,826 - Total common stock equivalents 61,678,883 27,489,219 70,919,233 27,489,219 |
6. Inventory_ Schedule of Inven
6. Inventory: Schedule of Inventory (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Inventory | June 30, 2016 September 30, 2015 Finished goods $ 630,607 $ 206,038 Finished goods held by distributors - 1,350,368 Total inventory 630,607 1,556,406 Inventory reserve (302,246) (813,935) Net inventory $ 328,361 $ 742,471 |
7. Prepaid Expenses and Other38
7. Prepaid Expenses and Other Current Assets: Schedule of Other Current Assets (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Other Current Assets | June 30, 2016 September 30, 2015 Prepaid legal and professional fees $ 130,714 $ 2,500 Prepaid consulting services 97,021 291,648 Prepaid information technology services 38,214 9,810 Line of credit acquisition fees 36,600 - Prepaid insurance 14,981 5,942 Other 13,244 8,661 Prepaid employee services - 205,000 Total prepaid expenses and other current assets $ 330,774 $ 523,561 |
10. Property and Equipment_ Pro
10. Property and Equipment: Property, Plant and Equipment (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Property, Plant and Equipment | June 30, 2016 September 30, 2015 Software $ 100,574 $ 100,574 Leasehold improvements 98,023 98,023 Furniture 68,758 68,758 Equipment 49,772 59,754 Total property and equipment 317,127 327,109 Accumulated depreciation and amortization (215,524) (191,339) Property and equipment, net $ 101,603 $ 135,770 |
11. Accrued Liabilities_ Schedu
11. Accrued Liabilities: Schedule of Accrued Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Accrued Liabilities | June 30, 2016 September 30, 2015 Interest $ 865,271 $ 190,045 Payroll 196,222 270,974 Deferred revenue 152,420 147,344 Liability to issue warrants 130,246 - Liability to issue common stock 107,254 40,000 Warranty liability 96,190 - Commissions and fees 82,190 64,432 Other 81,614 31,172 Total accrued liabilities $ 1,711,407 $ 743,967 |
12. Notes Payable_ Schedule of
12. Notes Payable: Schedule of Debt - Other (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Debt - Other | June 30, 2016 September 30, 2015 Unsecured notes payable with interest at 10% per annum, due November 2018. The notes may go into default in the event other notes payable go into default subsequent to the effective date of the note. In February 2016, the Company redeemed all 5,361 shares of its Series F Convertible Preferred Stock ("Series F preferred") plus accrued dividends of $673,948 for 10,000,000 shares of common stock with a fair value of $1,600,000 containing certain temporary restrictions, and $5,900,000 of notes payable. Payments on the notes are partially or fully convertible at the Company's option at $0.30 per share to a maximum of 19,667,000 shares of common stock. The conversion rate is adjustable to any lower rates granted through equity sales or other conversion rates provided by issuances of other debt, warrants, options or other instruments, with the exception of certain other raises. A note may only be converted if the holder owns less than 4.99% of the CompanyÂ’s common stock after conversion. The Company recorded a derivative liability of $2,461,899 related to the conversion feature of the notes. In connection with the redemption of the Series F preferred stock, the Company issued new warrants in exchange for warrants held by the Series F preferred stockholders for the purchase of 5,534,097 shares of common stock at an exercise price of $0.30 per common share, adjustable to any lower rates granted through equity sales or other conversion rates provided by issuances of other debt, warrants, options or other instruments, with the exception of certain other raises. The Company is also required to issue additional warrants for the purchase of up to 8,000,000 shares of common stock exercisable at $0.001 per share, also adjustable, that vest upon certain events of default. The fair value of $1,344,608 related to the new warrants was recorded as a derivative (see Notes 15 and 18). The fair value of the stock, conversion feature, warrants and $25,000 of fees, in excess of the carrying value of the Series F preferred stock were recorded as a deemed dividend of $6,484,236. $ 5,900,000 $ - Unsecured note payable with a vendor with interest at 0.65% per annum, due January 2018, issued in March 2016 upon the conversion of $2,523,937 in accounts payable to the vendor. 2,373,937 - Secured note payable to a third party with interest at 12.75% per annum, due February 2019. The note is secured by the assets of the Company and may go into default in the event other notes payable go into default subsequent to the effective date of the note. The Company entered into the note payable agreement in conjunction with a line of credit. The Company initially borrowed $1,500,000 and may borrow additional amounts under the note payable agreement up to a total balance of $3,000,000 as the Company meets certain milestones. The interest rate may also reduce to 11.25% per annum as the Company meets certain milestones. In conjunction with the note and related line of credit, the Company issued warrants to the lender to purchase 12,015,350 shares of common stock at $0.065 per share with a fair market value of $3,732,100 (see Notes 15 and 18), which resulted in a loss on derivative of $2,309,461. The Company has recorded discounts of $1,500,000 which are being amortized to interest expense over the term of the note. In April 2016, the Company borrowed an additional $500,000 on the note and incurred additional fees of $25,000, which are being amortized to interest expense over the remaining term of the note. 1,819,444 - Secured line of credit with a third party with interest at 12.25% per annum, due February 2018. The note is secured by the assets of the Company and may go into default in the event other notes payable go into default subsequent to the effective date of the note. The Company entered into the line of credit agreement in conjunction with a note payable. The Company may draw up to the lesser of 80% of certain accounts receivable or $1,500,000 and increase the maximum it may borrow under the agreement up to a total balance of $3,000,000 at $500,000 per increase as the Company meets certain milestones. The interest rate may also reduce to 10.75% per annum as the Company meets certain milestones. In conjunction with the line of credit and related note, the Company issued warrants to purchase 12,015,350 shares of common stock at $0.065 per share with a fair market value of $3,732,100 (see Notes 15 and 18), which resulted in a loss on derivative valuation of $2,309,461. The Company has recorded prepaid expenses of $44,665 which are being amortized to interest expense over the term of the line of credit. 929,518 - Secured borrowings from a third party that purchased $1,099,000 of customer receivables for $830,000, with due dates ranging from September 2016 to December 2016, and payable in daily payments ranging from $2,454 to $2,823. The $269,000 difference between the customer receivables and cash received is being amortized to interest expense over the term of the respective notes. The secured borrowings are guaranteed by two officers of the Company and are subordinated to other notes payable. 656,892 - Note payable previously secured by CareServices customer contracts. In January 2015, the note was amended to reduce the outstanding principal to $375,000, interest at 9% per annum, and payable in 15 monthly installments beginning in February 2015. The amendment released the collateralized customer contracts and the note payable is guaranteed by both a former Executive Chairman of the Board of Directors and a member of the Board of Directors. A gain on the extinguishment of the old note of $769,449 was recorded in other income. In December 2015, the note was amended to extend maturity to January 2018 payable in monthly installments beginning in July 2016, convert $31,252 from accrued interest into principal, interest at 10% per annum, and provide that the note is convertible into common stock at its fair value per share. The Company recorded a derivative in connection with the convertible feature of the note (see Note 15) and is amortizing the initial $302,690 fair value of the derivative liability over the life of the note. In February 2016, the note was amended to subordinate to other notes payable also issued during February 2016. In July 2016, the note was amended to extend the maturity date to the earlier of an equity raise in excess of $10,000,000 or November 2016 and included additional default penalties and payment terms. 334,464 303,212 Unsecured note payable with interest at 12% per annum, due February 2016, convertible into common stock at $0.30 per share. In connection with the issuance of the note, the Company repriced previously issued warrants to purchase shares of common stock. The $22,397 increase in relative fair value of the warrants was included as a loss on the extinguishment of the old note in other expense in fiscal 2015. The note also required a payment of 3,000,000 shares of common stock. The fair value of $780,000 was included as a loss on the extinguishment of the old note in other expense in fiscal 2015. The maturity date was subsequently extended on two occasions for a total of 250,000 shares of common stock and the note was due May 2016. The $31,250 fair value of these shares was being amortized over the extension period. In February 2016, the note was amended to subordinate to other notes payable also issued during February 2016, and the conversion price was reduced to $0.06 per share, which was below the fair value of the CompanyÂ’s common stock on the date of the amendment. The note may only be converted if the holder owns less than 9.99% of the CompanyÂ’s common stock after conversion. The Company recorded the value of the beneficial conversion feature of $381,299 to loss on termination of debt as a result of the modification. In May 2016, the note was amended to extend the maturity date to the earlier of an equity raise of $10,000,000 or October 2016 which required a payment of 300,000 shares of common stock. The $28,500 fair value of these shares has been included in accrued liabilities and is being amortized over the extension period. 300,000 300,000 Unsecured note payable with interest at 12% per annum, due September 2016, subordinated to other notes payable. In connection with the issuance of the note, the Company issued 1,000,000 shares of common stock. The $100,000 fair value of the stock is being amortized to interest expense over the term of the note. 250,000 - Secured note payable to a third party with interest at 18% per annum, due June 2017. The note is secured by shares of the Company's common stock held by, and other assets of an entity controlled by a former Executive Chairman of the Board of Directors. The note is guaranteed by a former Executive Chairman of the Board of Directors and his related entity and may go into default in the event other notes payable go into default subsequent to the effective date of the note. Payments on the note are convertible at the holder's option into common stock at 75% of its fair value if not paid by its respective due date, which is subject to a 20 trading day true-up and is adjustable to any lower rates granted through equity sales or other conversion rates provided by issuances of other debt, warrants, options or other instruments, with the exception of other certain raises. The note may only be converted if the holder owns less than 4.99% of the CompanyÂ’s common stock after conversion. The Company recognized a derivative liability related to the conversion feature with a fair value of $181,670, which was recognized as a loss on termination of debt. In June 2016, $13,713 of principal and $11,287 of accrued interest converted into 476,190 shares of common stock, pursuant to the terms of the note. 249,369 - Unsecured notes with interest at 18% per annum, due April 2013, in default. The Company issued 20,000 shares of Series D preferred stock as loan origination fees. The $195,000 fair value of the preferred stock was amortized over the original term of the note. Principal of $50,000 and accrued interest of $13,333 were converted to common stock in December 2013. 64,261 64,261 Secured borrowings from a third party that purchased $945,000 of customer receivables for $750,000, with due dates ranging from November 2015 to December 2016, payable in daily payments ranging from $955 to $1,909. The $195,000 difference between the customer receivables and cash received is being amortized to interest expense over the term of the respective notes. The secured borrowings are guaranteed by two officers of the Company. In November 2015, one of the notes was amended to subordinate to another note and to increase the principal by $28,385. The additional principal amount is being amortized to interest expense over the term of the note. In February 2016, the remaining principal balance on the borrowings of $417,160 was settled for a cash payment of $377,607, or 91% of the then outstanding balance, which resulted in a loss on termination of debt of $61,319. - 421,413 Secured borrowings from third parties that purchased a $337,600 customer receivable for $200,000. The Company was able to buy back the receivable for $233,333 less cash received by the third parties before June 2015. The $33,333 difference between the buyback and cash received, plus $20,000 of fees paid to a related party, was amortized to interest expense through June 2015. In February 2016, the notes were converted into 5,800,000 shares of common stock, at $0.04 per share, which was below the fair value of the CompanyÂ’s stock on the date of conversion, which resulted in a loss on induced conversion of debt of $230,667. - 233,333 Unsecured notes payable with interest at 12% per annum, with due dates ranging from March 2016 to April 2016, convertible into common stock at a 15% discount from the 10-day volume adjusted weighted average closing price per share upon maturity. In connection with the issuance of the notes, the Company also issued 841,176 shares of common stock as an origination fee. The $119,205 fair value of the stock is being amortized to interest expense over the term of the notes. The notes included loan origination fees of $35,049, which are being amortized to interest expense over the term of the notes. The Company recorded a derivative liability in connection with the convertible feature of the notes (see Note 15) and is amortizing the initial $151,283 fair value of the derivatives liability over the life of the notes. In February 2016, the notes with outstanding principal balances totaling $350,490 plus accrued interest of $15,629 were converted into 9,287,985 shares of common stock at $0.04 per common share, which was below the fair value of the CompanyÂ’s stock on the date of conversion. The Company recognized a loss on induced conversion of debt of $148,465 and a gain on termination of debt of $64,099 in relation to the conversion. $ - $ 212,490 Total notes payable before discount 12,877,885 1,534,709 Less discount (1,793,488) (274,793) Total notes payable 11,084,397 1,259,916 Less current portion (3,332,513) (1,259,916) Notes payable, net of current portion $ 7,751,884 $ - |
13. Related Party Notes Payab42
13. Related Party Notes Payable: Schedule of Related Party Transactions (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Related Party Transactions | June 30, 2016 September 30, 2015 Secured borrowings from entities controlled by an officer who purchased a $2,813,175 customer receivable for $1,710,500. The Company bought back the receivable for $1,950,000 less cash received by the entities through March 2015. The $239,500 difference between the buyback and cash received plus $253,500 of loan origination fees was amortized to interest expense through March 2015. In September 2015, the note was modified to extend the maturity date to January 2017, with interest at 18% per annum. The Company added $81,600 of extension fees and issued 3,000,000 shares of common stock to a lender as part of the modification. The note is convertible into common stock at $0.30 per share. The $540,000 fair value of the common stock was recognized as a loss on extinguishment of debt in fiscal 2015. In February 2016, the note was amended to subordinate to other notes payable also issued during February 2016, and the conversion price was reduced to $0.06 per share, which was below the fair value of the CompanyÂ’s stock on the date of the amendment. The conversion of the note is now limited to a maximum of 20,000,000 common shares in combination with other convertible notes payable held by the lenders. The note has a default penalty of 4,203,389 shares of common stock, in combination with other convertible notes held by the lenders, if not paid by maturity. The Company recorded the value of the beneficial conversion feature of $1,400,000 to loss on termination of debt as a result of the amendment. $ 1,721,100 $ 1,721,100 Unsecured note payable to an entity controlled by an officer with interest at 18% per annum, due January 2017, convertible into common stock at $0.30 per share. The Company issued 3,000,000 shares of common stock to a lender as loan origination fees. The $540,000 fair value of the common stock was recognized as a loss on extinguishment of debt in fiscal 2015. In February 2016, the note was amended to subordinate to other notes payable also issued during February 2016, and reduced the conversion price to $0.06 per share, which was below the fair value of the CompanyÂ’s stock on the date of the amendment. The conversion of the note is now limited to a maximum of 20,000,000 common shares in combination with other convertible notes payable held by the lender. The note has a default penalty of 4,203,389 shares of common stock, in combination with other convertible notes held by the lender, if not paid by maturity. The Company recorded the value of the beneficial conversion feature of $1,400,000 to loss on termination of debt as a result of the amendment. 1,303,135 1,303,135 Unsecured note payable to an entity controlled by a former Executive Chairman of the Board of Directors with interest at 18% per annum, due January 2017. In February 2016, notes payable to the same entity, with outstanding balances of $511,005 plus accrued interest of $30,999 combined into this note. The note is subordinated to notes payable to unrelated parties and is convertible into shares of common stock at $0.06 per share, which was below the fair value of the CompanyÂ’s stock on the date of the agreement. The conversion of the note is limited to a maximum of 9,250,000 common shares. The Company recorded the value of the beneficial conversion feature of $632,339 to loss on termination of debt. The note has a default penalty of 734,489 shares of common stock if not paid by maturity. The note may only be converted if the holder owns less than 4.99% of the CompanyÂ’s common stock after conversion. 542,004 - Unsecured note payable to an entity controlled by an officer with interest at 12% per annum, due September 2016, subordinated to other third party notes payable. In connection with the issuance of the note, the Company issued 1,000,000 shares of common stock. The $70,000 fair value of the stock is being amortized to interest expense over the term of the note. 250,000 - Unsecured note payable to a former officer with interest at 12% per annum, due September 2013. This note is in default and is convertible into common stock at $0.75 per share. 26,721 26,721 Unsecured note payable to an entity controlled by an officer with interest at 18% per annum, due on demand. In February 2016, the note was amended to subordinate the note to other notes payable also issued during February 2016. The note is convertible into shares of common stock at $0.06 per share, which was below the fair value of the CompanyÂ’s stock on the date of the amendment. The conversion of the note is now limited to a maximum of 20,000,000 common shares in combination with other convertible notes payable held by the entity. The note has a default penalty of 4,203,389 shares of common stock, in combination with other convertible notes held by the entity, if not paid by maturity. The Company recorded the value of the beneficial conversion feature of $1,400,000 to loss on termination of debt as a result of the amendment. 25,463 25,463 Unsecured note payable to a former officer with interest at 15% per annum, due June 2012, in default. The note included a $3,000 loan origination fee added to the principal and is convertible into common stock at $0.50 per share. 22,205 30,000 Unsecured note payable to a former officer with interest at 12% per annum, due on demand. 13,644 13,644 Unsecured note payable to an entity controlled by a former Executive Chairman of the Board of Directors with no interest (18% per annum in the event of default), due on demand. The holder demanded payment by May 15, 2015. In February 2016, the note with an outstanding balance of $396,667 plus accrued interest of $53,403 was bifurcated into two notes payable of $243,082 and $206,988. The $243,082 bifurcated note plus $20,000 of the second bifurcated note was assigned to a third party and converted into a convertible note payable. The remaining $186,989 portion of the second bifurcated note, plus $3,521 of accrued interest, in combination with another note payable held by the entity in the amount of $324,016 plus $27,478 of related accrued interest, were converted into a convertible note payable of $542,004. - 396,667 Unsecured note payable to an entity controlled by a former Executive Chairman of the Board of Directors with interest at 18% per annum, due January 2017. In February 2016, the note with an outstanding balance of $324,016 plus accrued interest of $27,478, in combination with another note payable held by the entity of $186,989 plus $3,521 of accrued interest, were converted into a convertible note payable of $542,004. $ - $ 324,016 Total notes payable, related-party, before discount 3,904,272 3,840,746 Less discount (39,509) - Total notes payable, related-party 3,864,763 3,840,746 Less current portion (3,864,763) (492,495) Notes payable, related-party, net of current portion $ - $ 3,348,251 |
14. Fair Value Measurements_ Fa
14. Fair Value Measurements: Fair Value, Liabilities Measured on Recurring Basis (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Fair Value, Liabilities Measured on Recurring Basis | Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total June 30, 2016 Derivative liabilities $ - $ 325,662 $ 2,158,329 $ 2,483,991 September 30, 2015 Derivative liabilities $ - $ 79,347 $ - $ 79,347 |
14. Fair Value Measurements_ 44
14. Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Derivatives liabilities Balance, September 30, 2015 $ - Issuance of warrants recorded as derivatives 5,076,577 Issuance of embedded derivatives related to notes payable 2,643,569 Loss (gain) on derivatives liability resulting from changes in fair value (5,561,817) Balance, June 30, 2016 $ 2,158,329 |
18. Common Stock Options and 45
18. Common Stock Options and Warrants: Schedule of fair value assumptions (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of fair value assumptions | Nine Months Ended June 30, 2015 Exercise price $0.30 - $1.00 Expected term (years) 1 - 2 Volatility 228% - 302% Risk-free rate 0.22% - 0.63% Dividend rate 0% |
18. Common Stock Options and 46
18. Common Stock Options and Warrants: Schedule of Share Based Payment Award Stock Options Valuation Assumptions, Level 3 (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Share Based Payment Award Stock Options Valuation Assumptions, Level 3 | Nine Months Ended June 30, 2016 Exercise price $0.01 - $0.25 Expected term (years) 0.08 - 6.40 Volatility 129% - 140% Risk-free rate 0.20% - 1.44% Dividend rate 0% Common stock price $0.01 - $0.95 |
18. Common Stock Options and 47
18. Common Stock Options and Warrants: Schedule of Share-based Compensation, Activity (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Activity | Options and Warrants Number of Options and Warrants Weighted-Average Exercise Price Outstanding as of October 1, 2015 9,497,551 $ 0.97 Granted 17,549,447 0.14 Exercised - Cancelled (5,534,097) 1.10 Forfeited (326,200) 0.81 Outstanding as of June 30, 2016 21,186,701 0.22 Exercisable as of June 30, 2016 16,681,701 0.22 |
19. Segment Information_ Schedu
19. Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | The following table reflects certain financial information relating to each reportable segment as of June 30, 2016 and 2015, and for the three months then ended: Corporate Chronic Illness Monitoring CareServices (Discontinued Operations) Total As of June 30, 2016 and for the Three Months Then Ended Sales to external customers $ - $ 1,858,926 $ - $ 1,858,926 Segment income (loss) 2,855,979 493,935 - 3,349,914 Interest expense, net 813,517 - - 813,517 Segment assets 603,126 1,309,686 - 1,912,812 Depreciation and amortization 12,670 - - 12,670 As of June 30, 2015 and for the Three Months Then Ended Sales to external customers $ - $ 2,037,252 $ 5,284 $ 2,042,536 Segment income (loss) (2,839,603) (229,227) 5,284 (3,063,546) Interest expense, net 164,692 - - 164,692 Segment assets 824,805 3,136,315 - 3,961,120 Depreciation and amortization 13,283 - - 13,283 The following table reflects certain financial information relating to each reportable segment as of June 30, 2016 and 2015, and for the nine months then ended: Corporate Chronic Illness Monitoring CareServices (Discontinued Operations) Total As of June 30, 2016 and for the Nine Months Then Ended Sales to external customers $ - $ 4,972,196 $ - $ 4,972,196 Segment income (loss) (8,570,588) 829,167 - (7,741,421) Interest expense, net 1,935,486 - - 1,935,486 Segment assets 603,126 1,309,686 - 1,912,812 Property and equipment purchases 5,004 - - 5,004 Depreciation and amortization 39,353 - - 39,353 As of June 30, 2015 and for the Nine Months Then Ended Sales to external customers $ - $ 5,097,471 $ 150,576 $ 5,248,047 Segment income (loss) (6,755,947) 122,293 (182,281) (6,815,935) Interest expense, net 788,682 - - 788,682 Segment assets 824,805 3,136,315 - 3,961,120 Property and equipment purchases 10,267 - - 10,267 Depreciation and amortization 43,471 - 233,664 277,135 |
21. Commitments and Contingen49
21. Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | Years Ending September 30, 2016 (three months) $ 31,951 2017 130,036 2018 111,340 $ 273,327 |
2. Discontinued Operations_ S50
2. Discontinued Operations: Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Gain (loss) from discontinued operations | $ 5,284 | $ (182,281) |
Sales | ||
Gain (loss) from discontinued operations | 5,284 | 150,576 |
Cost of Sales | ||
Gain (loss) from discontinued operations | (121,647) | |
Gross profit (loss) | ||
Gain (loss) from discontinued operations | $ 5,284 | 28,929 |
Selling, General and Administrative Expenses | ||
Gain (loss) from discontinued operations | $ (211,210) |
3. Net Loss per Common Share_51
3. Net Loss per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income (loss), excluding discontinued operations | $ 3,304,133 | $ (3,636,526) | $ (14,924,907) | $ (7,591,587) |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ (983,880) | $ (3,636,526) | $ (16,715,314) | $ (7,591,587) |
Weighted average common shares outstanding - basic | 108,783,000 | 52,206,000 | 91,477,000 | 49,150,000 |
Weighted average common shares outstanding - diluted | 129,972,000 | 52,206,000 | 100,952,000 | 49,150,000 |
Continuing operations - basic | $ 0.03 | $ (0.07) | $ (0.16) | $ (0.16) |
Continuing operations - diluted | (0.01) | $ (0.07) | (0.17) | $ (0.16) |
Gain (loss) from discontinued operations | $ 5,284 | $ (182,281) | ||
Discontinued operations - basic | $ 0 | $ 0 | $ 0 | $ 0 |
Income (Loss) from Extraordinary Items, Net of Tax, Per Diluted Share | $ 0 | $ 0 | ||
Discontinued Operations | ||||
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ 129,972,000 | $ 52,206,000 | $ 100,952,000 | $ 49,150,000 |
Weighted average common shares outstanding - basic | 108,783,000 | 52,206,000 | 91,477,000 | 49,150,000 |
Common stock options and warrants | ||||
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ (2,427,640) | |||
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $ 1,522,000 | |||
Common stock options and warrants | Discontinued Operations | ||||
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ 1,522,000 | |||
Convertible Debt Securities | ||||
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ (1,860,373) | $ (1,790,407) | ||
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $ 19,667,000 | $ 9,475,000 | ||
Convertible Debt Securities | Discontinued Operations | ||||
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ 19,667,000 | $ 9,475,000 |
3. Net Loss per Common Share_52
3. Net Loss per Common Share: Schedule of Common Stock Equivalents (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Details | ||||
Exercise of outstanding common stock options and warrants | 11,946,351 | 9,567,551 | 21,186,701 | 9,567,551 |
Conversion of Series D preferred stock | 225,000 | 225,000 | 225,000 | 225,000 |
Conversion of Series E preferred stock | 477,834 | 477,830 | 477,834 | 477,830 |
Conversion of Series F preferred stock | 16,065,328 | 16,065,328 | ||
Conversion of debt | 47,899,372 | 1,146,010 | 47,899,372 | 1,146,010 |
Issuance of employee restricted shares | 7,500 | 7,500 | 7,500 | 7,500 |
Liability to issue common stock | 1,122,826 | 1,122,826 | ||
Common stock equivalents | 61,678,883 | 27,489,219 | 70,919,233 | 27,489,219 |
5. Accounts Receivable (Details
5. Accounts Receivable (Details) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Details | ||
Allowance for Doubtful Accounts Receivable | $ 60,397 | $ 30,495 |
6. Inventory (Details)
6. Inventory (Details) | 9 Months Ended |
Jun. 30, 2016USD ($) | |
Details | |
Disposal of Inventory | $ 298,202 |
6. Inventory_ Schedule of Inv55
6. Inventory: Schedule of Inventory (Details) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Details | ||
Inventory, Finished Goods, Gross | $ 630,607 | $ 206,038 |
Finished goods held by distributors | 1,350,368 | |
Inventory, Gross | 630,607 | 1,556,406 |
Inventory Valuation Reserves | (302,246) | (813,935) |
Inventory | $ 328,361 | $ 742,471 |
7. Prepaid Expenses and Other56
7. Prepaid Expenses and Other Current Assets: Schedule of Other Current Assets (Details) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Prepaid expenses and other | $ 330,774 | $ 523,561 |
Prepaid professional fees | ||
Prepaid expenses and other | 130,714 | 2,500 |
Prepaid consulting services | ||
Prepaid expenses and other | 97,021 | 291,648 |
Prepaid information technology services | ||
Prepaid expenses and other | 38,214 | 9,810 |
Line of credit acquisition fees | ||
Prepaid expenses and other | 36,600 | |
Prepaid insurance | ||
Prepaid expenses and other | 14,981 | 5,942 |
Other | ||
Prepaid expenses and other | $ 13,244 | 8,661 |
Prepaid employee services | ||
Prepaid expenses and other | $ 205,000 |
8. Customer Contracts (Details)
8. Customer Contracts (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Customer Contracts | CareServices | ||
Amortization of Acquisition Costs | $ 0 | $ 179,648 |
9. Patents (Details)
9. Patents (Details) - Patents - USD ($) | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | |
Amortization of Intangible Assets | $ 0 | $ 31,718 | |
Cost Associated with Intangible Assets - fully amortized | $ 514,046 | $ 514,046 |
10. Property and Equipment_ P59
10. Property and Equipment: Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Property and equipment, net | $ 101,603 | $ 135,770 |
Property, Plant and Equipment, Gross | 317,127 | 327,109 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (215,524) | (191,339) |
Computer Software, Intangible Asset | ||
Property and equipment, net | 100,574 | 100,574 |
Leaseholds and Leasehold Improvements | ||
Property and equipment, net | 98,023 | 98,023 |
Furniture and Fixtures | ||
Property and equipment, net | 68,758 | 68,758 |
Equipment | ||
Property and equipment, net | $ 49,772 | $ 59,754 |
10. Property and Equipment (Det
10. Property and Equipment (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Details | ||
Gain (loss) on disposal of property and equipment | $ 245 | $ (42,336) |
Depreciation, Amortization and Accretion, Net | $ 38,817 | $ 65,234 |
11. Accrued Liabilities_ Sche61
11. Accrued Liabilities: Schedule of Accrued Liabilities (Details) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Accrued liabilities | $ 1,711,407 | $ 743,967 |
Accrued Liabilities | 1,711,407 | 743,967 |
Interest Expense | ||
Accrued liabilities | 865,271 | 190,045 |
Payroll Expense | ||
Accrued liabilities | 196,222 | 270,974 |
DeferredRevenueMember | ||
Accrued liabilities | 152,420 | 147,344 |
Liability to Issue Warrants | ||
Accrued liabilities | 130,246 | |
Liability To Issue Common Stock | ||
Accrued liabilities | 107,254 | 40,000 |
Warranty Liability | ||
Accrued liabilities | 96,190 | |
CommissionsAndFeesMember | ||
Accrued liabilities | 82,190 | 64,432 |
Other Expense | ||
Accrued liabilities | $ 81,614 | $ 31,172 |
12. Notes Payable_ Schedule o62
12. Notes Payable: Schedule of Debt - Other (Details) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Gross notes payable before discount | $ 12,877,885 | $ 1,534,709 |
Discount on notes payable | (1,793,488) | (274,793) |
Notes payable current and noncurrent | 11,084,397 | 1,259,916 |
Current portion of notes payable | (3,332,513) | (1,259,916) |
Notes payable, net of current portion | 7,751,884 | |
Note 1 | ||
Gross notes payable before discount | 5,900,000 | |
Note 2 | ||
Gross notes payable before discount | 2,373,937 | |
Note 3 | ||
Gross notes payable before discount | 1,819,444 | |
Note 4 | ||
Gross notes payable before discount | 929,518 | |
Note 5 | ||
Gross notes payable before discount | 656,892 | |
Note 6 | ||
Gross notes payable before discount | 334,464 | 303,212 |
Note 7 | ||
Gross notes payable before discount | 300,000 | 300,000 |
Note 8 | ||
Gross notes payable before discount | 250,000 | |
Note 9 | ||
Gross notes payable before discount | 249,369 | |
Note 10 | ||
Gross notes payable before discount | $ 64,261 | 64,261 |
Note 11 | ||
Gross notes payable before discount | 421,413 | |
Note 12 | ||
Gross notes payable before discount | 233,333 | |
Note 13 | ||
Gross notes payable before discount | $ 212,490 |
13. Related Party Notes Payab63
13. Related Party Notes Payable: Schedule of Related Party Transactions (Details) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Notes Payable, Related Parties | $ 3,864,763 | $ 3,840,746 |
Notes payable, related party, before discount | 3,904,272 | 3,840,746 |
Discount on notes payable, related party | (39,509) | |
Current portion of notes payable, related party | (3,864,763) | (492,495) |
Notes payable, related party, net of current portion | 3,348,251 | |
Related Party Note 1 | ||
Notes Payable, Related Parties | 1,721,100 | 1,721,100 |
Related Party Note 2 | ||
Notes Payable, Related Parties | 1,303,135 | 1,303,135 |
Related Party Note 3 | ||
Notes Payable, Related Parties | 542,004 | |
Related Party Note 4 | ||
Notes Payable, Related Parties | 250,000 | |
Related Party Note 5 | ||
Notes Payable, Related Parties | 26,721 | 26,721 |
Related Party Note 6 | ||
Notes Payable, Related Parties | 25,463 | 25,463 |
Related Party Note 7 | ||
Notes Payable, Related Parties | 22,205 | 30,000 |
Related Party Note 8 | ||
Notes Payable, Related Parties | $ 13,644 | 13,644 |
Related Party Note 9 | ||
Notes Payable, Related Parties | 396,667 | |
Related Party Note 10 | ||
Notes Payable, Related Parties | $ 324,016 |
14. Fair Value Measurements_ 64
14. Fair Value Measurements: Fair Value, Liabilities Measured on Recurring Basis (Details) - USD ($) | Jun. 30, 2016 | Sep. 30, 2015 |
Derivatives liability | $ 2,483,991 | $ 79,347 |
Fair Value, Inputs, Level 2 | ||
Derivatives liability | 325,662 | $ 79,347 |
Fair Value, Inputs, Level 3 | ||
Derivatives liability | $ 2,158,329 |
14. Fair Value Measurements_ 65
14. Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2015 | |
Derivatives liability | $ 2,483,991 | $ 79,347 |
Fair Value, Inputs, Level 3 | ||
Issuance of warrants recorded as derivative | 5,076,577 | |
Issuance of embedded derivatives related to notes payable | 2,643,569 | |
Loss (gain) on derivative liability resulting from changes in fair value | (5,561,817) | |
Derivatives liability | $ 2,158,329 |
15. Derivatives Liability (Deta
15. Derivatives Liability (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | |
Details | ||||
Derivatives liability | $ 2,483,991 | $ 2,483,991 | $ 79,347 | |
Gain on derivatives liability | $ 5,603,411 | $ 2,796,542 | $ 106,444 |
16. Preferred Stock (Details)
16. Preferred Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Preferred stock shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Dividends on preferred stock | $ 45,781 | $ 266,599 | $ 699,250 | $ 656,836 | ||
Issuance Of Series F Preferred Stock For Cash, Net | $ 3,580,771 | |||||
Related Costs Considered in Conversion of Series F Preferred Stock | 675,229 | |||||
Issuance Of Series F Preferred Stock For Debt Conversions | $ 574,592 | |||||
Series D Preferred Stock | ||||||
Convertible Preferred Stock Shares Designated | 1,000,000 | |||||
Represents the monetary amount of IncreaseDecreaseInDividendsPayable, during the indicated time period. | 6,183 | 6,183 | $ 18,617 | 18,549 | ||
Dividends on preferred stock | $ 11,000 | $ 6,115 | $ 12,434 | $ 18,617 | ||
Common Stock issued to settle accrued dividends | 189,538 | 22,470 | 226,651 | 58,424 | ||
Series E Preferred Stock | ||||||
Represents the monetary amount of IncreaseDecreaseInDividendsPayable, during the indicated time period. | $ 39,598 | $ 81,716 | $ 185,485 | $ 245,147 | ||
Redemption Price of Series E preferred stock | 477,829 | 477,829 | $ 477,829 | |||
Series F Preferred Stock | ||||||
Convertible Preferred Stock Shares Designated | 7,803 | |||||
Represents the monetary amount of IncreaseDecreaseInDividendsPayable, during the indicated time period. | $ 0 | $ 178,700 | $ 495,148 | $ 393,140 | ||
Issuance Of Series F Preferred Stock For Debt Conversions - Shares | 858 | |||||
Issuance Of Series F Preferred Stock For Cash, Net - Shares | 4,503 |
17. Common Stock (Details)
17. Common Stock (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2015 | |
Common stock shares authorized | 200,000,000 | 200,000,000 |
Stock Issued During Period, Shares, New Issues | 32,963,405 | |
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 17,549,447 | |
Stock Issuance 1 | ||
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 15,564,175 | |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ 1,445,851 | |
Stock Issuance 2 | ||
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 1,008,047 | |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ 39,063 | |
Stock Issuance 3 | ||
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 1,750,000 | |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ 227,500 | |
Stock Issuance 4 | ||
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 10,000,000 | |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ 1,600,000 | |
Stock Issuance 5 | ||
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 2,122,866 | |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ 201,058 | |
Stock Issuance 6 | ||
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 1,041,666 | |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ 121,250 | |
Stock Issuance 7 | ||
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 1,000,000 | |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ 70,000 | |
Stock Issuance 8 | ||
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 250,000 | |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ 31,250 | |
Stock Issuance 9 | ||
Share-based compensation arrangement by share-based payment award, Options, Grants in period | 226,651 | |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ 12,434 |
18. Common Stock Options and 69
18. Common Stock Options and Warrants (Details) | 9 Months Ended |
Jun. 30, 2016USD ($) | |
Details | |
Deemed dividends on redemption of preferred stock | $ 6,484,236 |
Aggregate Intrinsic Value | $ 0 |
Weighted average remaining term of the warrants | 5.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 621,681 |
18. Common Stock Options and 70
18. Common Stock Options and Warrants: Schedule of fair value assumptions (Details) | 9 Months Ended |
Jun. 30, 2015$ / shares | |
Minimum | |
Fair Value Assumptions, Exercise Price | $ 0.30 |
Fair Value Assumptions, Expected Term | 1 year |
Fair Value Assumptions, Expected Volatility Rate | 228.00% |
Fair Value Assumptions, Risk Free Interest Rate | 0.22% |
Maximum | |
Fair Value Assumptions, Exercise Price | $ 1 |
Fair Value Assumptions, Expected Term | 2 years |
Fair Value Assumptions, Expected Volatility Rate | 302.00% |
Fair Value Assumptions, Risk Free Interest Rate | 0.63% |
18. Common Stock Options and 71
18. Common Stock Options and Warrants: Schedule of Share Based Payment Award Stock Options Valuation Assumptions, Level 3 (Details) - $ / shares | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Minimum | ||
Fair Value Assumptions, Exercise Price | $ 0.30 | |
Fair Value Assumptions, Expected Term | 1 year | |
Fair Value Assumptions, Expected Volatility Rate | 228.00% | |
Fair Value Assumptions, Risk Free Interest Rate | 0.22% | |
Minimum | Fair Value, Inputs, Level 3 | ||
Fair Value Assumptions, Exercise Price | $ 0.01 | |
Fair Value Assumptions, Expected Term | 29 days | |
Fair Value Assumptions, Expected Volatility Rate | 129.00% | |
Fair Value Assumptions, Risk Free Interest Rate | 0.20% | |
Fair Value Assumptions Common Stock Price | $ 0.01 | |
Maximum | ||
Fair Value Assumptions, Exercise Price | $ 1 | |
Fair Value Assumptions, Expected Term | 2 years | |
Fair Value Assumptions, Expected Volatility Rate | 302.00% | |
Fair Value Assumptions, Risk Free Interest Rate | 0.63% | |
Maximum | Fair Value, Inputs, Level 3 | ||
Fair Value Assumptions, Exercise Price | $ 0.25 | |
Fair Value Assumptions, Expected Term | 6 years 4 months 24 days | |
Fair Value Assumptions, Expected Volatility Rate | 140.00% | |
Fair Value Assumptions, Risk Free Interest Rate | 1.44% | |
Fair Value Assumptions Common Stock Price | $ 0.95 |
18. Common Stock Options and 72
18. Common Stock Options and Warrants: Schedule of Share-based Compensation, Activity (Details) | 9 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Details | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | shares | 9,497,551 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 0.97 |
Share-based compensation arrangement by share-based payment award, Options, Grants in period | shares | 17,549,447 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0.14 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | shares | (5,534,097) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price | $ / shares | $ 1.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | shares | (326,200) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares | $ 0.81 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | shares | 21,186,701 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares | $ 0.22 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 16,681,701 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.22 |
19. Segment Information_ Sche73
19. Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | |
Total Chronic illness monitoring revenues | $ 2,176,082 | $ 2,037,252 | $ 5,860,649 | $ 5,097,471 | |
Net loss | 3,349,914 | (3,063,546) | (7,741,421) | (6,815,935) | |
Interest expense, net | (813,517) | (164,692) | (1,935,486) | (788,682) | |
Total assets | 1,912,812 | 1,912,812 | $ 2,538,960 | ||
Corporate | |||||
Net loss | 2,855,979 | (2,839,603) | (8,570,588) | (6,755,947) | |
Interest expense, net | 813,517 | 164,692 | 1,935,486 | 788,682 | |
Total assets | 603,126 | 824,805 | 603,126 | 824,805 | |
Depreciation, Depletion and Amortization, Nonproduction | 12,670 | 13,283 | 39,353 | 43,471 | |
Property and equipment purchases | 5,004 | 10,267 | |||
Chronic Illness Monitoring | |||||
Total Chronic illness monitoring revenues | 1,858,926 | 2,037,252 | 4,972,196 | 5,097,471 | |
Net loss | 493,935 | (229,227) | 829,167 | 122,293 | |
Total assets | 1,309,686 | 3,136,315 | 1,309,686 | 3,136,315 | |
CareServices | |||||
Total Chronic illness monitoring revenues | 5,284 | 150,576 | |||
Net loss | 5,284 | (182,281) | |||
Depreciation, Depletion and Amortization, Nonproduction | 233,664 | ||||
Total | |||||
Total Chronic illness monitoring revenues | 1,858,926 | 2,042,536 | 4,972,196 | 5,248,047 | |
Net loss | 3,349,914 | (3,063,546) | (7,741,421) | (6,815,935) | |
Interest expense, net | 813,517 | 164,692 | 1,935,486 | 788,682 | |
Total assets | 1,912,812 | 3,961,120 | 1,912,812 | 3,961,120 | |
Depreciation, Depletion and Amortization, Nonproduction | $ 12,670 | $ 13,283 | 39,353 | 277,135 | |
Property and equipment purchases | $ 5,004 | $ 10,267 |
20. Related-party Transaction74
20. Related-party Transactions Not Otherwise Disclosed (Details) | 9 Months Ended |
Jun. 30, 2016USD ($) | |
Former Executive Chairman of the Board of Directors | |
Related Party Compensation, Hourly Rate | $ 250 |
Former Executive Chairman and Chief Executive Officer | |
Related Party Compensation, Hourly Rate | $ 250 |
21. Commitments and Contingen75
21. Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Details | ||
Operating Leases, Rent Expense, Net | $ 94,000 | $ 226,000 |
21. Commitments and Contingen76
21. Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Jun. 30, 2016USD ($) |
Details | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 31,951 |
Operating Leases, Future Minimum Payments, Due in Two Years | 130,036 |
Operating Leases, Future Minimum Payments, Due in Three Years | 111,340 |
Operating Leases, Future Minimum Payments Due | $ 273,327 |