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CONVERTIBLE DEBT
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12 Months Ended |
|---|---|
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Sep. 30, 2011
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| Notes to Financial Statements | |
| CONVERTIBLE DEBT |
NOTE 6 CONVERTIBLE DEBT
During the year ended September 30, 2009, the Company issued an 11% convertible note in the amount of $500,000, due June 20, 2011. Under the terms of the note, the Company paid $180,000 on December 15, 2009, and quarterly payments of $25,000 commencing on March 30, 2010, each of which were applied first towards the satisfaction of accrued interest and then towards the satisfaction of principal. All unpaid principal and accrued interest on the notes was convertible into shares of the Companys common stock at the election of the purchasers at any time at the conversion price of $0.40 per share.
On June 23, 2010 the holder of the note converted $10,000 of principal into 25,000 shares of common stock at $0.40 per share. The balance of the convertible note as of September 30, 2010 was $51,115. On December 29, 2010, the Company repaid the convertible note in full including all accrued interest. Accordingly, the security interest issued in connection with the note was released. |