9. Warrants

12 Months Ended

Sep. 30, 2014

Warrants and Rights Note Disclosure [Abstract]

Warrants

As discussed in Note 7, the Company issued several Notes in prior periods and converted them resulting in the issuance of warrants. The following table summarizes information about the Company’s warrants at September 30, 2014:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Contractual		Intrinsic
	Units		Price		Term (in years)		Value
Outstanding at September 30, 2012		327,417	$	0.95		4.95	$	253,202
Granted		2,539,089		0.59
Exercised		–
Outstanding at September 30, 2013		2,866,506		0.63		4.39		1,471,998
Granted		–
Exercised		–
Outstanding at September 30, 2014		2,866,506		0.63		3.39		6,732,700
Exercisable at September 30, 2014		2,866,506		0.63		3.39		6,732,700

Most of the above warrants were issued in connection with conversion of convertible notes (See Note 7). When the debt is converted and warrants are issued, the Company determines the fair value of the warrants using the Black-Scholes model and takes a charge to interest expense at the date of issuance.