Quarterly report pursuant to sections 13 or 15(d)

Note 7. Warrants

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Note 7. Warrants
9 Months Ended
Jun. 30, 2013
Notes to Financial Statements  
Note 7. Warrants

Note 7: Warrants

 

As discussed in Note 6, the Company issued several Notes and converted them resulting in the issuance of warrants. The following table summarizes information about the Company’s warrants at June 30, 2013:

  

        Number of Units     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term (in years)     Intrinsic Value  
Outstanding at September 30, 2012       109,139     $ 2.85       4.95       253,202  
Granted       846,363       1.78                  
Exercised                              
Outstanding at June 30, 2013       955,502     $ 1.90       4.64       784,037  
Exerciseable at June 30, 2013       955,502     $ 1.90       4.64       784,037  
                                     

The warrants were valued using the Black-Scholes pricing model with the following assumptions:

 

Volatility    121%-127%
Risk-free interest rate    .74% -.89%
Expected term    5 years
Forfeiture rate   0%
Dividend yield rate   0%