Annual report pursuant to section 13 and 15(d)

Note 10. Warrants

v2.4.0.8
Note 10. Warrants
 12 Months Ended
Sep. 30, 2013
Warrants and Rights Note Disclosure [Abstract]  
Note 10. Warrants

As discussed in Note 8, the Company issued several Notes and converted them into shares of common stock, resulting in the issuance of warrants. The following table summarizes information about the Company’s warrants at September 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 September 30, 2013     955,502     $ 1.90       4.39       1,471,998  
Exerciseable at September 30, 2013     955,502     $ 1.90       4.39       1,471,998  

 

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%