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10-K
2016-09-30
false
NuZee, Inc.
0001527613
nuze
--09-30
30687451
0
Smaller Reporting Company
Yes
No
No
2016
FY
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>1. Organization</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>NuZee, Inc. (the "Company", "we", "our") was incorporated on November 9, 2011 in Nevada. The Company is a start-up organization which markets and distributes consumer products primarily in the beverage segment. Additionally, while the Company primarily intends to purchase its proprietary products and resell, the Company may also engage in contract manufacturing where the Company purchases raw materials and retains a contract converter to process the raw materials into finished products for resale.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The summary of significant accounting policies presented below is designed to assist in understanding the Company's financial statements. Such financial statements and accompanying notes are the representations of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America ("GAAP") in all material respects, and have been consistently applied in preparing the accompanying financial statements.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Earnings per Share</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Basic earnings per common share equal net earnings or loss divided by the weighted average of shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. The Company incurred a net loss for periods ended September 30, 2016 and 2015, respectively and therefore, basic and diluted earnings per share for those periods are the same because all potential common equivalent shares would be antidilutive. As at September 30, 2016, 1,182,369 shares associated with convertible note payable of $603,008 was considered to be anti-dilutive.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Going Concern and Capital Resources</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital. The Company has generated limited revenues from its principal operations, and there is no assurance of future revenues. During the fiscal year ended September 30, 2016, the Company began researching and investigating the viability of a new product platform for functional beverages.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>As of September 30, 2016 the Company had cash (operating capital) of $40,613 and had $600,000 convertible notes as well as a $145,000 short-term loan. The Company has not attained profitable operations since inception.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which contemplates continuation of the Company as a going concern. The Company has had recurring losses, an accumulated deficit, is dependent on the shareholder to provide additional funding for operating expenses and has limited revenues. These items raise substantial doubts about the Company's ability to continue as a going concern. <font style='background:white'> </font>The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company's continued existence is dependent upon management's ability to develop profitable operations, continued contributions from the Company's executive officers to finance its operations and the ability to obtain additional funding sources to explore potential strategic relationships and to provide capital and other resources for the further development and marketing of the Company's products and business.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Use of Estimates</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Fair Value of Financial Instruments</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company's financial instruments include cash, account receivable, accounts payable, accrued liabilities and short-term debt. The estimated fair value of these instruments approximates its carrying amount due to the short maturity of these instruments.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Cash and Cash Equivalents</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company considers all highly-liquid investments with original maturities of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of September 30, 2016 and 2015, respectively.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Accounts Receivable</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition. Bad debts expense or write offs of receivables are determined on the basis of loss experience, known and inherent risks in the receivable portfolio and current economic conditions. There have $0 bad debt allowance during the period reported on.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Major Customers</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During the years ended September 30, 2016 and 2015, revenue was primarily from two major customers. Besides those revenues, there were $51,384 account receivable owed by customer A as of September 30<sup>th</sup>, 2016.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="1" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%;border:solid windowtext 1.0pt'> <tr align="left"> <td width="38%" valign="bottom" style='width:38.68%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer Name</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016 Sales</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>% of Total Revenue</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015 Sales</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>% of Total Revenue</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer A</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>259,104</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>57</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer B</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>91,712</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>21</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>50,466</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>44</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer C</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>70,462</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>15</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer D</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>500</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.1</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>42,900</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>37</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Revenue Recognition</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company recognizes revenue only when all of the following criteria have been met:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;background:white'>·           Persuasive evidence of an arrangement exists;</p> <p style='margin-right:0in;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;background:white'>·           Delivery has occurred or services have been rendered;</p> <p style='margin-right:0in;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;background:white'>·           The fee for the arrangement is fixed or determinable; and</p> <p style='margin-right:0in;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;background:white'>·           Collectability is reasonably assured.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i>Persuasive Evidence of an Arrangement</i>—the Company documents all terms of an arrangement in a written contract signed by partial customer prior to recognizing revenue. For those customers do not have signed contracts with us, we did business with them based on purchase orders received, which include online orders</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i>Delivery Has Occurred or Services Have Been Performed</i>—The Company performs delivers of all products to customers and recognize revenue upon shipment.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i>Collectability Is Reasonably Assured</i>—The Company determines that collectability is reasonably assured prior to recognizing revenue. Collectability is assessed on a customer by customer basis based on criteria outlined by management. New customers are subject to a credit review process, which evaluates the customer's financial position and ultimately its ability to pay. The Company does not enter into arrangements unless collectability is reasonably assured at the outset. Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined during the arrangement that collectability is not reasonably assured, revenue is recognized on a cash basis.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i>Return and Exchange Policy</i></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i> </i></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company provides a 30-day money-back guarantee if a buyer is not satisfied with a product. All of the products are thoroughly inspected and securely packaged before they are shipped to ensure buyers receive the best possible product. If for any reason buyers are unsatisfied with the products, they can return them and the Company will exchange or refund the purchase minus any shipping charges. For the wholesale customers, return policies are various based on their specific requirements with customers.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>As of September 30<sup>th</sup> 2016, the Company does not have any return products. Revenue recognized is net of any estimated returns, if applicable.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Cost Recognition</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Cost of products sold is primarily comprised of direct materials consumed in the manufacturing of primary coffee blender products. Cost of products sold also includes directly related labors' salaries.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Selling, General and Administrative Expense</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Selling, general and administrative expense (SG&A) is primarily comprised of marketing expenses, research and development costs, administrative and other indirect overhead costs, depreciation expense and other miscellaneous operating items. Due to researching and investigating the viability of a new product platform for functional beverages, company incurred large advertising expenses. Personnel expenses, occupying a majority portion of SG&A, were $308,631 and $363,788 for the years ended September 30, 2016 and 2015, respectively. Company covers shipping fees for wholesalers and distributors and the shipping and handling expenses are recorded under operating expenses.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company expenses advertising costs when incurred. Advertising expense for the years ended September 30, 2016 and 2015 is as follows:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Advertising</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>33,030</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>34,530</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="420" style='border:none'></td> <td width="5" style='border:none'></td> <td width="8" style='border:none'></td> <td width="71" style='border:none'></td> <td width="5" style='border:none'></td> <td width="5" style='border:none'></td> <td width="8" style='border:none'></td> <td width="71" style='border:none'></td> <td width="5" style='border:none'></td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Research and Development</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Research and development expenses are expensed in the statements of operations as incurred in accordance with FASB ASC 730, Research and Development. Research and development expenses include salaries, related employee expenses, research expenses, manufacturing expenses and consulting fees. </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Cash Flow Presentation</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Statement of Cash Flows is prepared using the indirect method, which reconciles net loss to cash flow from operating activities. The reconciliation adjustments include the removal of timing differences between the occurrence of operating receipts and payments and their recognition in net loss. The adjustments also remove cash flows arising from investing and financing activities, which are presented separately from operating activities.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Inventory</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Inventory, consisting principally of raw materials held for production and sale is stated at the lower of cost or market or net realizable value, using the weighted average cost method. Both finished goods and work in process using the weighted average cost method. The Company reviews inventory levels at least quarterly and records a valuation allowance when appropriate. At September 30, 2016 and 2015 the Company concluded the carrying value of the inventory of $206,356 and $201,764 respectively, the amount reflected on the balance sheet is net of this adjustment.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Raw Material</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>124,035</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>69,836</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Work in Process</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>14,366</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Finished goods</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>67,955</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>131,928</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Inventories</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>206,356</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>201,764</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Property, Plant and Equipment</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Equipment is stated at cost, net of depreciation. The Company depreciates equipment on a straight line basis. Office equipment is depreciated over a 3 year life, furniture over a 7 year life, and other equipment over a 7 year life. Property and equipment is recorded at cost less accumulated depreciation. Depreciation and amortization is calculated using the straight- line method over the expected useful life of the asset, after the asset is placed in service. Depreciation expense for the years ended September 30, 2016 and 2015 was $41,921 and $22,147 respectively. Accumulated depreciation amounts was $59,088 and $20,032 for the year ended September 30, 2015 and 2016. Repair and maintenance costs are expensed as incurred. Expenditures associated with upgrades and enhancements that improve, add functionality, or otherwise extend the life of property and equipment that exceed $1,000 are capitalized. Below is fixed assets as of September 30<sup>th</sup>, 2016 and 2015:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Furniture and Fixture</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>31,514</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>30,736</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Machinery and Equipment</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>169,864</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>171,743</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Vehicles </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,657</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,657</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Samples</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company distributes samples of its products as a component of its marketing program. Costs for samples are expensed at the time the samples are shipped and recorded under operating expenses.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Long-Lived Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>In accordance with Financial Accounting Standards Board (" FASB " ) Accounting Standards Codification ( " ASC " ) 360, Property, Plant and Equipment, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicated that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and a current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Income Taxes</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>In accordance with ASC 740 - Income Taxes, the provision for income taxes is computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company also follows the guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of September 30, 2016 and 2015.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Concentration of Credit Risk</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company places its cash with high quality banking institutions. From time to time, the Company may or may not maintain cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Related parties</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Stock-based Compensation</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>We account for share-based awards issued to employees in accordance with Accounting Standards Codification (ASC) 718, "Compensation-Stock Compensation". Accordingly, employee share-based payment compensation is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period , which is normally the vesting period. Share-based compensation to directors is treated in the same manner as share-based compensation to employees, regardless of whether the directors are also employees. We account for share-based compensation to persons other than employees in accordance with FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. We estimate the fair value of share-based payments using the Black Scholes option-pricing model for common stock options and warrants and the closing price of our common stock for common share issuances.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>3. COMMON STOCK </b> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During November and December 2014, the Company resold 720,000 shares of treasury stock at $0.30 per share, for an aggregate purchase price of $216,000.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> During the fiscal year ended 2015, the Company cancelled 1,540,000 shares of common stock.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During the year ended 2015, the company issued 10,000 shares of common stock at $0.60 per share, for compensation and an aggregate price of $6,000.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During the fiscal year ended 2015, the Company sold 1,035,232 shares of common stock at $0.70 per share, for an aggregate purchase price of $737,861.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During 2016 fiscal year, the Company received $801,001 proceeds from the sale of 1,025,000 shares of common stocks.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During July 2016, the Company sold 195,156 shares of our treasury stock, par value $0.03838, at $0.64 per share, for an aggregate purchase price of $124,899.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During August 2016, the Company sold 20,000 shares of our treasury stock, par value $0.03838, at $0.64 per share, for an aggregate purchase price of $12,800.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During April 2016, Michael Billing exercised 5,000 stock options with a purchase price of $1,500 at $0.30 per share. </p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>4. STOCK OPTIONS AND WARRANTS</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Our stock-based compensation arrangements include grants of stock options awards under the 2013 Stock Incentive Plan (the "Plan").</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During February 2015, the Company committed to issue 45,000 options to employee and 100,000 options to consultants for services the next time the board approves for issuance. During September 2015, the Company committed to issue 22,500 options to an employee as compensation for services the next time the board approves for issuance. The board has not yet approved the issuances.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The following table summarizes common stock warrants issued and outstanding:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Stock Warrants </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Exercise price </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr style='height:11.25pt'> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr style='height:11.25pt'> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Outstanding at September 30, 2014 </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>100,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.60</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Granted </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercised </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Forfeited </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>100,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.60</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expired</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Outstanding at September 30, 2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The company recognized warrant expenses of $20,527 for the year ended September 30, 2015. During the year ended September 30, 2015, the Company cancelled all warrants. Thus, there are no excisable warrants outstanding at year ended September 30, 2015. Unamortized warrant expense as of September 30, 2015 for all warrants outstanding is $0.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During February 2016, the Company issued 275,500 options to directors, employees and consultants. Among those shares, 125,500 shares were issued to employees and 150,000 shares were issued to non-employees, which are consultants. The right to exercise these options shall vest and become exercisable from February 23, 2016 to February 1, 2017. The vesting date varies for each option agreements The options have exercise prices ranging from $0.30-$0.80 per share and will expire ten years from the grant date, unless terminated earlier as provided by the option agreements.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During April 2016, the Company agreed to extend an employee's previously issued stock options of 22,500 until April 29, 2016. In April 2016, this employee exercised 5,000 shares of their stock options at $0.30 per share. The remaining shares of their stock options expired by the end of April 2016.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During July 2016, the Company issued 320,000 options to an employee. The right to exercise these options shall vest and become exercisable on December 31, 2021. The exercise price is $0.88 per share and will expire ten years from the grant date, unless terminated earlier as provided by the option agreements.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The company recognized stock option expenses of $18,969 for the year ended September 30, 2015. Those stock option expenses in 2015 was vested of granted stock option in 2014.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model using the assumptions noted as follows: expected volatility was based on a representative peer group of small public companies in their industry segment as the Company has a limited stock history. The expected term of options granted was determined using the simplified method under SAB 107 and represents the mid-point between the vesting term and the contractual term. . The risk-free rate is calculated using the U.S. Treasury yield curve, and is based on the expected term of the option. The Company has estimated there will be no forfeitures.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Black-Scholes option pricing model was used with the following weighted average assumptions for options granted during the twelve months ended September 30, 2016:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><u>For employees</u></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Risk-free interest rate 1.11% - 1.43%</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expected option life 4.5 years</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expected volatility 80.2% - 83.6%%</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expected dividend yield 0.0%</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercise price $0.30 - $0.88</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><u>For non-employees</u></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Risk-free interest rate 1.74%</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expected option life 10 years</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expected volatility 104.7%</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expected dividend yield 0.0%</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercise price $0.30 - $0.60</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company is expensing these stock option awards on a straight-line basis over the requisite service period. The company recognized stock option expenses of $37,253 for the year ended September 30, 2016. Unamortized option expense as of September 30, 2016 for all options outstanding amounted to approximately $18,587. These costs are expected to be recognized over a weighted-average period of 3.7 years for the stock options awards. The company recognized stock option expenses of $18,969 for the year ended September 30, 2015, which relates to vesting of options that were granted in 2014. The total fair value of shares vested during the years ended September 30, 2016, and 2015, was $33,591 and $0, respectively.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The following table summarizes stock option activity as of September 30, 2016:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="84%" style='width:84.9%'> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Weighted</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Weighted</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Average</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b> </b></p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Average</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Remaining</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Aggregate</b></p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Number of</b></p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Shares</b></p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Exercise</b></p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Price</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Contractual Life (years)</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Intrinsic</b></p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Value</b></p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Outstanding at September 30, 2015</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,833,333</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.48</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Granted</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>618,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.67</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercised</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(5,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.30</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expired</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(40,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.30</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Forfeited</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(2,833,333</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.48</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Outstanding at September 30, 2016</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>573,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.70</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9.6</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="0%" valign="bottom" style='width:.86%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercisable at September 30, 2016</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>195,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.42</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9.6</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="0%" valign="bottom" style='width:.86%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>A summary of the status of the Company's nonvested shares as of September 30, 2016 is presented below:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><u>Nonvested options</u></b></p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Weighted</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Average</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Number of</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Grant-Date</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Nonvested Shares</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Fair Value</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Granted</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>618,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.23</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercised</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(5,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.40</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expired</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(40,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1.10</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Vested</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(195,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.34</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Nonvested shares at September 30, 2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>378,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>5. INCOME TAX</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>As of September 30, 2016 and, 2015, there were no differences between financial reporting and tax bases of assets and liabilities. The Company will have tax losses available to be applied against future years' income as result of the losses incurred. However, due to the losses incurred in the period and expected future operating results, management determined that it is more likely than not that the deferred tax asset resulting from the tax losses available for carry forward will not be realized through the reduction of future income tax payments. Accordingly a 100% valuation allowance has been recorded for deferred income tax assets. Net operating loss carry forward is $7,185,378 and $5,982,119 as of September 30, 2016 and 2015 and will begin expiring in 2032. The earliest tax year which remains subject to examination is 2012.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Deferred tax assets consisted of the following as of September 30, 2016 and 2015:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="1" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%;border:solid windowtext 1.0pt'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Net Operating Losses</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,514,882</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,095,842</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Valuation Allowance</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(2,514,882</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(2,095,842</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>6. Related Party Transactions</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During February 2015, the Company issued a secured convertible promissory note in the sum of $600,000 to Masateru Higashida, the Company's major shareholder. Interest was calculated at the annual rate of zero percent (0%) for the period until April 2016. During March 2016, the Company and Masateru Higashida decided to extend the repayment date to March 31, 2017 so that company has more funds for production and marketing to fulfill customers' requirements, which in the best interest of the Corporation and its shareholders. The annual rate of repayment is at an interest rate of one percent (1%) for the period until March 31, 2017. This promissory note will convert to 1,176,471 shares of NuZee, Inc common stock at $0.51 per share if Company is unable to pay back the note by then. During twelve months ended, the Company accrued interest of $3,008 relating to this related party note.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>If the outstanding principal and all accrued and unpaid interest on the debt hereof (the "Debt") is not repaid by the Company in full by the Repayment Date, the Debt or any portion thereof may be converted at the option of the Holder, upon written notice to the Company at any time after the Repayment Date, into that number of shares of the Company's Common Stock equal to the Debt or that portion thereof that the Holder elects to convert, divided by price per share of $0.51. This note shall by cancelled on the date of conversion of the entirety of the Debt. A beneficial conversion feature does not arise because the conversion price of a convertible instrument is above the per share fair value of the Company's stock. The conversion feature was evaluated as a derivative and there has no derivative during 2015 to 2016 fiscal year.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During March 2016, the Company borrowed the sum of $100,000 short-term loan (the "From East Loan") from From East Holdings ("From East" [aka NuZee Co., Ltd]) to be repaid on or before March 31st, 2017 at an interest rate of one percent (1%). During the twelve months ended, the Company accrued interest of 262. The Company paid back $55,000 of this short-term loan as of September 30th, 2016.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During August 2016, the Company borrowed the sum of $100,000 short-term loan from Masateru Higashida to be repaid on or before August 31st, 2017 at an interest rate of one percent (1%). During the twelve months ended, the Company accrued interest of $115. The Company paid back $16,000 as of November 3<sup>rd</sup>, 2016.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The $600,000 convertible promissory note payable and each of the $100,000 short-term loan are related party transactions since Masateru Higashida is the Company's major shareholder and he holds 100% ownership of From East Holdings [aka NuZee Co., Ltd]. Both Mr. Higashida and From East Holdings [aka NuZee Co., Ltd] are related parties with the Company.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>7. SUBSEQUENT EVENTS</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>-Acquisitions</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>On August 16, 2016, the "Company" entered into a Share Exchange Agreement with NuZee Japan ("NuZee JP") and its shareholders whereby the Company will exchange 1,148,734 shares of its common stock, par value $0.00001 per share, for seventy percent (70%) of the issued and outstanding common stock of NuZee JP. The remaining thirty percent (30%) of NuZee JP's issued and outstanding common stock is, and will be at the closing, owned by NuZee JP's current President and Chairman of its Board of Directors. The transaction has been closed on October 3<sup>rd</sup>, 2016.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company's President and Director is the sole owner of From East Holdings Co., Ltd. ("From East"), a shareholder of NuZee JP. From East owns 14,700 shares of NuZee JP common stock, or approximately 2.6% of NuZee JP's current issued and outstanding shares. At the Closing, From East will exchange all of its shares of NuZee JP for 42,492 shares of the Company's common stock, which is included in the shares discussed above.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>-Investment</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>On October, 2016, the "Company" invested $50,000 to Contlus, Inc, a Japan company which has main businesses related to produce, sale, import and export of coffee & coffee beans, tea& tea leaf , healthy foods and drinks. Besides that, company also plan to manage café or restaurant, sell packaging machines and provide consulting services. Internet will be utilized for products management, selling, designing as well as information management & communication. After the investment, the "Company" obtained 50% ownership of the company at that time.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>-Common Stock</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During October 2016, the Company sold 360,000 shares at a cost of $1 per share, for an aggregate purchase price of $360,000.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During November 2016, the Company sold 10,000 shares at a cost of $1 per share, for an aggregate purchase price of $10,000.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Earnings per Share</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Basic earnings per common share equal net earnings or loss divided by the weighted average of shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. The Company incurred a net loss for periods ended September 30, 2016 and 2015, respectively and therefore, basic and diluted earnings per share for those periods are the same because all potential common equivalent shares would be antidilutive. As at September 30, 2016, 1,182,369 shares associated with convertible note payable of $603,008 was considered to be anti-dilutive.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Going Concern and Capital Resources</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital. The Company has generated limited revenues from its principal operations, and there is no assurance of future revenues. During the fiscal year ended September 30, 2016, the Company began researching and investigating the viability of a new product platform for functional beverages.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>As of September 30, 2016 the Company had cash (operating capital) of $40,613 and had $600,000 convertible notes as well as a $145,000 short-term loan. The Company has not attained profitable operations since inception.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which contemplates continuation of the Company as a going concern. The Company has had recurring losses, an accumulated deficit, is dependent on the shareholder to provide additional funding for operating expenses and has limited revenues. These items raise substantial doubts about the Company's ability to continue as a going concern. <font style='background:white'> </font>The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company's continued existence is dependent upon management's ability to develop profitable operations, continued contributions from the Company's executive officers to finance its operations and the ability to obtain additional funding sources to explore potential strategic relationships and to provide capital and other resources for the further development and marketing of the Company's products and business.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Use of Estimates</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Fair Value of Financial Instruments</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company's financial instruments include cash, account receivable, accounts payable, accrued liabilities and short-term debt. The estimated fair value of these instruments approximates its carrying amount due to the short maturity of these instruments.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Cash and Cash Equivalents</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company considers all highly-liquid investments with original maturities of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of September 30, 2016 and 2015, respectively.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Accounts Receivable</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition. Bad debts expense or write offs of receivables are determined on the basis of loss experience, known and inherent risks in the receivable portfolio and current economic conditions. There have $0 bad debt allowance during the period reported on.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Major Customers</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>During the years ended September 30, 2016 and 2015, revenue was primarily from two major customers. Besides those revenues, there were $51,384 account receivable owed by customer A as of September 30<sup>th</sup>, 2016.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="1" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%;border:solid windowtext 1.0pt'> <tr align="left"> <td width="38%" valign="bottom" style='width:38.68%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer Name</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016 Sales</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>% of Total Revenue</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015 Sales</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>% of Total Revenue</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer A</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>259,104</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>57</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer B</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>91,712</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>21</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>50,466</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>44</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer C</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>70,462</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>15</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer D</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>500</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.1</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>42,900</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>37</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Revenue Recognition</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company recognizes revenue only when all of the following criteria have been met:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;background:white'>·           Persuasive evidence of an arrangement exists;</p> <p style='margin-right:0in;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;background:white'>·           Delivery has occurred or services have been rendered;</p> <p style='margin-right:0in;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;background:white'>·           The fee for the arrangement is fixed or determinable; and</p> <p style='margin-right:0in;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;background:white'>·           Collectability is reasonably assured.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i>Persuasive Evidence of an Arrangement</i>—the Company documents all terms of an arrangement in a written contract signed by partial customer prior to recognizing revenue. For those customers do not have signed contracts with us, we did business with them based on purchase orders received, which include online orders</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i>Delivery Has Occurred or Services Have Been Performed</i>—The Company performs delivers of all products to customers and recognize revenue upon shipment.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i>Collectability Is Reasonably Assured</i>—The Company determines that collectability is reasonably assured prior to recognizing revenue. Collectability is assessed on a customer by customer basis based on criteria outlined by management. New customers are subject to a credit review process, which evaluates the customer's financial position and ultimately its ability to pay. The Company does not enter into arrangements unless collectability is reasonably assured at the outset. Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined during the arrangement that collectability is not reasonably assured, revenue is recognized on a cash basis.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i>Return and Exchange Policy</i></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><i> </i></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company provides a 30-day money-back guarantee if a buyer is not satisfied with a product. All of the products are thoroughly inspected and securely packaged before they are shipped to ensure buyers receive the best possible product. If for any reason buyers are unsatisfied with the products, they can return them and the Company will exchange or refund the purchase minus any shipping charges. For the wholesale customers, return policies are various based on their specific requirements with customers.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>As of September 30<sup>th</sup> 2016, the Company does not have any return products. Revenue recognized is net of any estimated returns, if applicable.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Cost Recognition</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Cost of products sold is primarily comprised of direct materials consumed in the manufacturing of primary coffee blender products. Cost of products sold also includes directly related labors' salaries.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Selling, General and Administrative Expense</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Selling, general and administrative expense (SG&A) is primarily comprised of marketing expenses, research and development costs, administrative and other indirect overhead costs, depreciation expense and other miscellaneous operating items. Due to researching and investigating the viability of a new product platform for functional beverages, company incurred large advertising expenses. Personnel expenses, occupying a majority portion of SG&A, were $308,631 and $363,788 for the years ended September 30, 2016 and 2015, respectively. Company covers shipping fees for wholesalers and distributors and the shipping and handling expenses are recorded under operating expenses.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company expenses advertising costs when incurred. Advertising expense for the years ended September 30, 2016 and 2015 is as follows:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Advertising</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>33,030</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>34,530</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="420" style='border:none'></td> <td width="5" style='border:none'></td> <td width="8" style='border:none'></td> <td width="71" style='border:none'></td> <td width="5" style='border:none'></td> <td width="5" style='border:none'></td> <td width="8" style='border:none'></td> <td width="71" style='border:none'></td> <td width="5" style='border:none'></td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Research and Development</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Research and development expenses are expensed in the statements of operations as incurred in accordance with FASB ASC 730, Research and Development. Research and development expenses include salaries, related employee expenses, research expenses, manufacturing expenses and consulting fees. </p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Cash Flow Presentation</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Statement of Cash Flows is prepared using the indirect method, which reconciles net loss to cash flow from operating activities. The reconciliation adjustments include the removal of timing differences between the occurrence of operating receipts and payments and their recognition in net loss. The adjustments also remove cash flows arising from investing and financing activities, which are presented separately from operating activities.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Inventory</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Inventory, consisting principally of raw materials held for production and sale is stated at the lower of cost or market or net realizable value, using the weighted average cost method. Both finished goods and work in process using the weighted average cost method. The Company reviews inventory levels at least quarterly and records a valuation allowance when appropriate. At September 30, 2016 and 2015 the Company concluded the carrying value of the inventory of $206,356 and $201,764 respectively, the amount reflected on the balance sheet is net of this adjustment.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Raw Material</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>124,035</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>69,836</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Work in Process</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>14,366</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Finished goods</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>67,955</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>131,928</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Inventories</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>206,356</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>201,764</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Property, Plant and Equipment</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Equipment is stated at cost, net of depreciation. The Company depreciates equipment on a straight line basis. Office equipment is depreciated over a 3 year life, furniture over a 7 year life, and other equipment over a 7 year life. Property and equipment is recorded at cost less accumulated depreciation. Depreciation and amortization is calculated using the straight- line method over the expected useful life of the asset, after the asset is placed in service. Depreciation expense for the years ended September 30, 2016 and 2015 was $41,921 and $22,147 respectively. Accumulated depreciation amounts was $59,088 and $20,032 for the year ended September 30, 2015 and 2016. Repair and maintenance costs are expensed as incurred. Expenditures associated with upgrades and enhancements that improve, add functionality, or otherwise extend the life of property and equipment that exceed $1,000 are capitalized. Below is fixed assets as of September 30<sup>th</sup>, 2016 and 2015:</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Furniture and Fixture</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>31,514</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>30,736</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Machinery and Equipment</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>169,864</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>171,743</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Vehicles </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,657</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,657</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Samples</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company distributes samples of its products as a component of its marketing program. Costs for samples are expensed at the time the samples are shipped and recorded under operating expenses.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Long-Lived Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>In accordance with Financial Accounting Standards Board (" FASB " ) Accounting Standards Codification ( " ASC " ) 360, Property, Plant and Equipment, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicated that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and a current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. </p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Income Taxes</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>In accordance with ASC 740 - Income Taxes, the provision for income taxes is computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company also follows the guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of September 30, 2016 and 2015.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Concentration of Credit Risk</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company places its cash with high quality banking institutions. From time to time, the Company may or may not maintain cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Related parties</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><i>Stock-based Compensation</i></b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>We account for share-based awards issued to employees in accordance with Accounting Standards Codification (ASC) 718, "Compensation-Stock Compensation". Accordingly, employee share-based payment compensation is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period , which is normally the vesting period. Share-based compensation to directors is treated in the same manner as share-based compensation to employees, regardless of whether the directors are also employees. We account for share-based compensation to persons other than employees in accordance with FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. We estimate the fair value of share-based payments using the Black Scholes option-pricing model for common stock options and warrants and the closing price of our common stock for common share issuances.</p>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="1" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%;border:solid windowtext 1.0pt'> <tr align="left"> <td width="38%" valign="bottom" style='width:38.68%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer Name</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016 Sales</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>% of Total Revenue</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015 Sales</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>% of Total Revenue</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer A</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>259,104</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>57</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer B</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>91,712</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>21</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>50,466</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>44</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer C</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>70,462</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>15</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.68%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Customer D</p> </td> <td width="2%" valign="bottom" style='width:2.04%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>500</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.1</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>42,900</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>37</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>%</p> </td> </tr> </table> </div>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Advertising</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>33,030</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>34,530</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="420" style='border:none'></td> <td width="5" style='border:none'></td> <td width="8" style='border:none'></td> <td width="71" style='border:none'></td> <td width="5" style='border:none'></td> <td width="5" style='border:none'></td> <td width="8" style='border:none'></td> <td width="71" style='border:none'></td> <td width="5" style='border:none'></td> </tr> </table> </div>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30,</p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Raw Material</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>124,035</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>69,836</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Work in Process</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>14,366</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Finished goods</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>67,955</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>131,928</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Inventories</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>206,356</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>201,764</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Furniture and Fixture</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>31,514</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>30,736</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Machinery and Equipment</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>169,864</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>171,743</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Vehicles </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,657</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,657</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Stock Warrants </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Exercise price </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr style='height:11.25pt'> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr style='height:11.25pt'> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Outstanding at September 30, 2014 </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>100,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.60</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Granted </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercised </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Forfeited </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>100,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.60</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expired</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Outstanding at September 30, 2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="84%" style='width:84.9%'> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Weighted</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Weighted</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Average</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b> </b></p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Average</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Remaining</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Aggregate</b></p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Number of</b></p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Shares</b></p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Exercise</b></p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Price</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Contractual Life (years)</b></p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Intrinsic</b></p> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Value</b></p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Outstanding at September 30, 2015</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,833,333</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.48</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Granted</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>618,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.67</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercised</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(5,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.30</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expired</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(40,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.30</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Forfeited</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(2,833,333</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.48</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Outstanding at September 30, 2016</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>573,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.70</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9.6</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="0%" valign="bottom" style='width:.86%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.86%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="39%" valign="top" style='width:39.84%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercisable at September 30, 2016</p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.86%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>195,000</p> </td> <td width="1%" valign="bottom" style='width:1.1%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.42</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9.6</p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="0%" valign="bottom" style='width:.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.5%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="11%" valign="bottom" style='width:11.9%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="0%" valign="bottom" style='width:.86%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b><u>Nonvested options</u></b></p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Weighted</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Average</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Number of</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Grant-Date</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Nonvested Shares</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="3" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Fair Value</b></p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td colspan="2" valign="bottom" style='border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Granted</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>618,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.23</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Exercised</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(5,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.40</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Expired</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(40,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1.10</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Vested</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(195,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0.34</p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Nonvested shares at September 30, 2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>378,000</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="1" cellspacing="0" cellpadding="0" width="85%" style='width:85.0%;border:solid windowtext 1.0pt'> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2016</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="2" valign="top" style='border:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>2015</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Net Operating Losses</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,514,882</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,095,842</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr align="left"> <td width="70%" valign="top" style='width:70.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Valuation Allowance</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(2,514,882</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(2,095,842</p> </td> <td width="1%" valign="bottom" style='width:1.0%;border:solid windowtext 1.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>)</p> </td> </tr> </table> </div>
124035
69836
14366
0
67955
131928
206356
201764
41921
22147
31514
30736
169864
171743
7185378
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iso4217:USD
shares
iso4217:USD
shares
Including interest of $377.
Including interest of $3,008.
1,800,844 shares held in treasury as of September 30, 2016.
2,016,000 shares held in treasury as of September 30, 2015.