XML 67 R27.htm IDEA: XBRL DOCUMENT

Fair Value Measurements & Derivative Instruments (Tables)

3 Months Ended

Dec. 31, 2012

Fair Value Measurements for Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes fair value measurements at December 31, 2012 and September 30, 2012 for assets and liabilities measured at fair value on a recurring basis:

December 31, 2012:


	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	2,931,032	$	—	$	—	$	2,931,032
Marketable securities	$	56,008	$	—	$	—	$	56,008
Derivative assets	$	—	$	—	$	—	$	—
Derivative liabilities	$	—	$	—	$	1,490,584	$	1,490,584
Contingent consideration	$	—	$	—	$	173,621	$	173,621

September 30, 2012:


	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	3,377,288	$	—	$	—	$	3,377,288
Marketable securities	$	106,500	$	—	$	—	$	106,500
Derivative assets	$	—	$	—	$	250,250	$	250,250
Derivative liabilities	$	—	$	—	$	647,213	$	647,213
Contingent consideration	$	—	$	—	$	173,621	$	173,621

Assumptions Used in Valuing Derivative Assets

The assumptions used in valuing the derivative asset were as follows:


	December 31, 2012	September 30, 2012
Risk free interest rate	NA	0.23%
Expected life	0 Years	1.3 Years
Dividend yield	none	none
Volatility	72%	72%

Reconciliation of Derivative Asset

The following is a reconciliation of the derivative asset:


Value at September 30, 2011		161,125
Receipt of instruments		—
Increase in value		89,125
Net settlements		—

Value at September 30, 2012		250,250
Receipt of instruments		—
Change in value		(250,250	)
Net settlements		—

Value at December 31, 2012	$	—

Change in Fair Value of Contingent Consideration Obligations

There were no changes in contingent consideration fair value.


Value at September 30, 2011	$	—
Purchase price contingent consideration		173,621
Contingent consideration payments		—
Change in fair value of contingent consideration		—

Value at September 30, 2012	$	173,621
Purchase price contingent consideration		—
Contingent consideration payments		—
Change in fair value of contingent consideration		—

Value at December 31, 2012	$	173,621

Warrants [Member]

Assumptions Used in Valuing Derivative Liability

The assumptions used in valuing the derivative liabilities were as follows:


2010 Warrants	December 31, 2012	September 30, 2012
Risk free interest rate	0.36%	0.31%
Expected life	3.0 Years	3.2 Years
Dividend yield	none	none
Volatility	69%	100%

2012 Warrants	December 31, 2012	September 30, 2012
Risk free interest rate	0.72%	N/A
Expected life	5.0 Years	N/A
Dividend yield	none	N/A
Volatility	69%	N/A

Reconciliation of Derivative Liability

The following is a reconciliation of the derivative liability related to these warrants:


Value at September 30, 2011	$	907,233
Issuance of instruments		—
Change in value		(281,038	)
Net settlements		—

Value at September 30, 2011	$	626,195
Issuance of instruments		1,137,896
Change in value		(274,451	)
Net settlements		—

Value at December 31, 2012	$	1,489,640

Exchange rights [Member]

Assumptions Used in Valuing Derivative Liability

The assumptions used in valuing the derivative liability were as follows:


	December 31, 2012	September 30, 2012
Risk free interest rate	0.72%	0.62%
Expected life	5.0 Years	5.3 Years
Dividend yield	none	none
Volatility	69%	100%

Reconciliation of Derivative Liability

The following is a reconciliation of the derivative liability related to these exchange rights:


Value at September 30, 2010	$	—
Issuance of instruments		100,650
Change in value		(69,758	)

Value at September 30, 2011	$	30,892
Issuance of instruments		—
Change in value		(20,520	)
Net settlements		—

Value at September 30, 2012	$	10,372
Issuance of instruments		—
Change in value		(9,428	)
Net settlements		—

Value at September 30, 2012	$	944

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details