COMMON STOCK	12 Months Ended
	Sep. 30, 2011
COMMON STOCK
COMMON STOCK	12. COMMON STOCK   STOCK OPTIONS In November 2002,  the Company  enacted a stock option plan (the "2002 Plan") to provide additional incentives to selected employees,  directors and consultants. Two million shares were  authorized for grant.  The purchase price of the common stock  subject to each  Incentive  Stock  Option shall not be less than the fair market  value  or in the  case of a grant  of an  incentive  stock  option  to a principal  shareholder,  not less  than  110% of the fair  market  value of such common  stock at the time each option is granted.  The 2002 Plan  terminates  in November 2012. The options are fully-vested when granted and are exercisable for a period of ten years  from the date of grant and are  subject  to  cancellation upon  termination  of  employment.  The Company has granted  options to purchase 1,010,000  shares and 300,000  shares with  exercise  prices of $0.50 and $0.25, respectively.  The market price at the date of grant was $0.12. At September 30, 2011 and 2010, 450,000 stock options are available for grant.   On January 6, 2005,  the Company  enacted the 2005 Stock  Option/Stock  Issuance Plan  (the  "2005  Plan").  The 2005 Plan  provides  for the  issuance  of up to 10,000,000  shares of common stock to our  directors,  officers,  employees  and consultants  in the form of stock options and shares of common  stock.  The 2005 Plan has two  separate  components:  the  option  grant  program  and the  stock issuance program.   Grants under the option grant program may be structured as  installment  options which become exercisable for vested shares over the optionee's period of service or as immediately  exercisable options for unvested shares which will be subject to repurchase by the Company,  at the option exercise price paid per share, upon the  optionee's  termination  of service prior to vesting in those  shares.  All option grants must have an exercise  price not less than 100% of the fair market value of the option shares on the grant date.   The stock issuance  program allows eligible persons to purchase shares of common stock at fair market  value or at a discount of up to 15% of fair market  value. The  shares  may be  fully  vested  when  issued  or may vest  over  time as the recipient provides services or as specified performance objectives are attained. In addition, shares of common stock may be issued as bonus awards in recognition of services rendered, without any cash outlay required of the recipient.   Upon stock option exercise, the Company issues new shares of common stock.   The  following  table  summarizes  stock option  activity  under the above stock option plans:                                                                                    Remaining                                           Number of     Weighted-Average      Contractual Term                                            Shares       Exercise Price           (in years)                                            ------       --------------           ---------- Outstanding at September 30, 2009         1,996,000          $0.19                   3.0   Granted                                        --   Exercised                                      --   Cancelled                                 (20,000)                                         ----------- Outstanding at September 30, 2010         1,976,000          $0.20                   2.0   Granted                                        --   Exercised                                      --   Cancelled                                      --                                         ----------- Outstanding at September 30, 2011         1,976,000          $0.20                   1.0                                         ===========   The fair value of stock  options  awarded  were  estimated  at the date of grant using the  Black-Scholes  option-pricing  model.  The  expected  option term was estimated based upon the contractual  term of the underlying  stock option.  The expected  volatility of the Company's  stock price was based upon the historical daily changes in the price of the Company's common stock. The risk-free interest rate was based upon the current yield on U.S. Treasury  securities having a term similar to the expected option term. Dividend yield is estimated at zero because the Company does not  anticipate  paying  dividends in the  foreseeable  future. There were no options issued during the years ended  September 30, 2011 and 2010 that required valuation.                                          Outstanding                                      Exercisable                     ----------------------------------------------     -------------------------------------------                                    Weighted      Weighted Average                   Weighted     Weighted Average                                     Average          Remaining                       Average         Remaining                     Number of       Exercise      Contractual Life     Number of     Exercise     Contractual Life Exercise Prices       shares         Price           (in years)          shares       Price          (in years) ---------------       ------         -----           ----------          ------       -----          ----------     $0.50             450,000        $0.50               1.1             450,000      $0.50             1.1     $0.11           1,526,000        $0.11               1.0           1,526,000      $0.11             1.0   At September 30, 2011,  all stock options are vested,  and there is no remaining unrecognized compensation expense. The intrinsic value of options is zero as all options had an exercise  price above the closing price of the stock at September 30, 2011.   Stock based  compensation  expense was $35,744 and  $163,744 for the years ended September  30,  2011 and 2010,  respectively,  which is  included in general and administrative expenses in the accompanying statements of operations.   WARRANTS TO PURCHASE COMMON STOCK The following  tables  summarize the issuances of warrants to purchase shares of the Company's common stock:                                                       Number of                                                      Shares                                                     --------- Outstanding at September 30, 2009                     784,000   Granted                                                  --   Exercised                                                --   Cancelled                                          (784,000)                                                     --------- Outstanding at September 30, 2010                          --   Granted                                                  --   Exercised                                                --   Cancelled                                                --                                                     --------- Outstanding at September 30, 2011                          --                                                     =========