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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%