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Note 7. Warrants
 6 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
Note 7. Warrants

As discussed in Note 6, the Company issued several Notes and converted them resulting in the issuance of warrants.

 

  

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           
                     
Outstanding at March 31, 2013   955,502   $1.90    4.89    1,855,472 
                     
Exercisable at March 31, 2013   955,502   $1.90    4.89    1,855,472 

 

As discussed in Note 6, the Company issued several Notes and converted them resulting in the issuance of warrants. 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%