Note Payable	12 Months Ended
Sep. 30, 2013
Debt Disclosure [Abstract]
Note Payable	8. NOTE PAYABLE On January 20, 2012, the Company entered into a Line of Credit Agreement with Quarry Bay Capital LLC for advances of up to $1,000,000 that are payable on demand, bearing simple interest of 6% per annum, and are convertible into common stock of the Company at $.25 for every dollar of debt outstanding. All previous advances from a third party were converted to a note payable under this line of credit agreement. Per ASC 470-50-40-10b, as this amendment added a substantive conversion feature, we have determined debt extinguishment accounting rules apply. However, as there was no difference between the reacquisition price and the net carrying amount of the old debt, no gain or loss was recorded. On July 20, 2012 the Company completed an additional Line of Credit agreement with Quarry Bay Capital LLC for advances up to $1,000,000 payable on demand, bearing interest of 6% per annum and a provision allowing the lender to convert the debt into common shares of the Company, at $.25 per share. In addition, the lender shall be granted cashless warrants to buy the same number of shares as those converted, on the January 20, 2012 agreement and this agreement, at an exercise price of $0.25 per share. Per ASC 470-50-40-10a, we have determined that the fair value of the embedded conversion option has increased by more than 10% due to the addition of warrants to the agreement. Therefore, debt extinguishment account rules apply. Accordingly, the new debt instrument was initially recorded at fair value; however, as there was no difference between the reacquisition price and the net carrying amount of the old debt, no gain or loss was recorded. Additionally, the Company recorded a discount on debt in the amount of $90,116, which was fully amortized to interest expense on July 20, 2012 (due to these being demand notes). On August 16, 2012, the Company entered into an amendment agreement, which reduced the conversion price on all debt issued under the first two line of credit agreements (and all subsequent debt) to $0.10 per share, and also reduced the exercise price of all warrants to be issued, to $0.15 per share. Per ASC 470-50-40-10a, we have determined that the fair value of the embedded conversion option has increased by more than 10% due to the decrease in conversion and exercise prices. Therefore, debt extinguishment account rules apply. Accordingly, the new debt instrument was initially recorded at fair value; however, as there was no difference between the reacquisition price and the net carrying amount of the old debt, no gain or loss was recorded. Additionally, the Company recorded a discount on debt in the amount of $2,557, which was fully amortized to interest expense on August 16, 2012 (due to these being demand notes). On October 19, 2012, the Company entered into an amendment agreement, which reduced the conversion price on all debt issued under the first two line of credit agreements (and all subsequent debt) to $0.05 per share, and also reduced the exercise price of all warrants to be issued, to $0.10 per share. Per ASC 470-50-40-10a, we have determined that the fair value of the embedded conversion option has increased by more than 10% due to the decrease in conversion and exercise prices. Therefore, debt extinguishment accounting rules apply. Accordingly, the new debt instrument was initially recorded at fair value; however, as there was no difference between the reacquisition price and the net carrying amount of the old debt, no gain or loss was recorded. Additionally, the Company recorded a discount on debt in the amount of $370,360, which was fully amortized to interest expense on October 19, 2012 (due to these being demand notes). During the years ended September 30, 2013 and 2012, the Company received cash advances from a third party under these line of credit agreements in the amount of $221,000 and $859,227, respectively. As of September 30, 2013, the total amount due under these line of credit agreements was $1,613,162, with accrued interest of $212,336. On November 22, 2012, the Company received a conversion request from Quarry Bay to convert $1,000,000 of debt into 20,000,000 shares of common stock. The request for conversion was rescinded March 15, 2013. On May 24, 2013, this line of credit agreement was further amended to cancel all warrants outstanding and increase the interest rate from 6% to 12%. Additionally, the Company issued 10,000,000 shares of stock to this third party, valued at $.02 per share, which was the trading value of the Company’s common stock on that date.

Note Payable

12 Months Ended

Sep. 30, 2013

8. NOTE PAYABLE

On January 20, 2012, the Company entered into a Line of Credit Agreement with Quarry Bay Capital LLC for advances of up to $1,000,000 that are payable on demand, bearing simple interest of 6% per annum, and are convertible into common stock of the Company at $.25 for every dollar of debt outstanding. All previous advances from a third party were converted to a note payable under this line of credit agreement. Per ASC 470-50-40-10b, as this amendment added a substantive conversion feature, we have determined debt extinguishment accounting rules apply. However, as there was no difference between the reacquisition price and the net carrying amount of the old debt, no gain or loss was recorded.

On July 20, 2012 the Company completed an additional Line of Credit agreement with Quarry Bay Capital LLC for advances up to $1,000,000 payable on demand, bearing interest of 6% per annum and a provision allowing the lender to convert the debt into common shares of the Company, at $.25 per share. In addition, the lender shall be granted cashless warrants to buy the same number of shares as those converted, on the January 20, 2012 agreement and this agreement, at an exercise price of $0.25 per share. Per ASC 470-50-40-10a, we have determined that the fair value of the embedded conversion option has increased by more than 10% due to the addition of warrants to the agreement. Therefore, debt extinguishment account rules apply. Accordingly, the new debt instrument was initially recorded at fair value; however, as there was no difference between the reacquisition price and the net carrying amount of the old debt, no gain or loss was recorded. Additionally, the Company recorded a discount on debt in the amount of $90,116, which was fully amortized to interest expense on July 20, 2012 (due to these being demand notes).

On August 16, 2012, the Company entered into an amendment agreement, which reduced the conversion price on all debt issued under the first two line of credit agreements (and all subsequent debt) to $0.10 per share, and also reduced the exercise price of all warrants to be issued, to $0.15 per share. Per ASC 470-50-40-10a, we have determined that the fair value of the embedded conversion option has increased by more than 10% due to the decrease in conversion and exercise prices. Therefore, debt extinguishment account rules apply. Accordingly, the new debt instrument was initially recorded at fair value; however, as there was no difference between the reacquisition price and the net carrying amount of the old debt, no gain or loss was recorded. Additionally, the Company recorded a discount on debt in the amount of $2,557, which was fully amortized to interest expense on August 16, 2012 (due to these being demand notes).

On October 19, 2012, the Company entered into an amendment agreement, which reduced the conversion price on all debt issued under the first two line of credit agreements (and all subsequent debt) to $0.05 per share, and also reduced the exercise price of all warrants to be issued, to $0.10 per share. Per ASC 470-50-40-10a, we have determined that the fair value of the embedded conversion option has increased by more than 10% due to the decrease in conversion and exercise prices. Therefore, debt extinguishment accounting rules apply.

Accordingly, the new debt instrument was initially recorded at fair value; however, as there was no difference between the reacquisition price and the net carrying amount of the old debt, no gain or loss was recorded. Additionally, the Company recorded a discount on debt in the amount of $370,360, which was fully amortized to interest expense on October 19, 2012 (due to these being demand notes).

During the years ended September 30, 2013 and 2012, the Company received cash advances from a third party under these line of credit agreements in the amount of $221,000 and $859,227, respectively. As of September 30, 2013, the total amount due under these line of credit agreements was $1,613,162, with accrued interest of $212,336.

On November 22, 2012, the Company received a conversion request from Quarry Bay to convert $1,000,000 of debt into 20,000,000 shares of common stock. The request for conversion was rescinded March 15, 2013.

On May 24, 2013, this line of credit agreement was further amended to cancel all warrants outstanding and increase the interest rate from 6% to 12%. Additionally, the Company issued 10,000,000 shares of stock to this third party, valued at $.02 per share, which was the trading value of the Company’s common stock on that date.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Gamzio Mobile, Inc. 10-K