STOCKHOLDERS' DEFICIT

12 Months Ended

Sep. 30, 2015

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' DEFICIT

NOTE 5 - STOCKHOLDERS’ DEFICIT

PREFERRED STOCK

The Company has authorized 1,000,000 shares of no par value preferred stock. As of September 30, 2015 and 2014, there are no preferred shares issued and outstanding.

COMMON STOCK

Of the 250,000,000 shares of no par value common stock authorized by the Company, 48,053,084 shares were issued and outstanding as of September 30, 2015 and 2014.

STOCK WARRANTS AND OPTIONS

On May 16, 2012, the Board of Directors authorized the issuance of an aggregate of 400,000 common stock purchase warrants to a sales agent, over a period of four years. The agent is entitled to receive 50,000 warrants every six months for an aggregate of 400,000 warrants. The warrants are exercisable at a price of $0.10 per share, become exercisable upon issuance, and expire two years after the date of issuance, the first 50,000 warrants tranche were issuable effective July 1, 2012 and, additional 50,000 tranches were issuable every six months thereafter. As of September 30, 2015 there are 200,000 warrants exercisable and 150,000 warrants have expired. The warrants were not included in the calculation of diluted net earnings per share in 2015 and 2014 since their inclusion would be anti-dilutive.

On February 25, 2014, the Company issued 500,000 common stock purchase options to Mr. Shrewsbury. Commencing April 1, 2014, the options became exercisable at a price of $.0924 per share, the fair market value of the Company’s shares of Common Stock on the date of authorized by the Board of Directors, February 21, 2014. The options expire on March 31, 2017. The options were not included in the calculation of diluted earnings per share for the year ended September 30, 2014 since their inclusion would be anti-dilutive.

The fair value of the equity based awards issued during the years ended September 30, 2015 and 2014 was estimated using the Black-Scholes option pricing model. Expected volatility was based on the Company’s historical volatility for its common stock and adjusted to reflect the thinly traded nature of the market for its securities. The risk-free rate was determined using the U. S. Treasury yield in effect at the issuance date based on the term of the equity award. The expected life was based on the contractual term of the award. The Company has never declared or paid cash dividends and has no plans to do so in the foreseeable future.

The following assumptions were utilized for awards issued during the years ended September 30, 2015 and 2014.

	September 30,	September 30,
	2015	2014
Expected life (in years)	2 to 3	2 to 3
Expected volatility	75%	75%
Risk-free interest rate	0.39% to 2%	0.39% to 2%
Expected dividend rate	0	0

Following is a summary of outstanding stock warrants and options at September 30, 2015 and 2014 and activity during the years then ended:

	Number of			Exercise		Weighted
	Shares			Price		Average Price
Warrants/Options at September 30, 2013		1,450,000		$	0.05-0.10	$	0.052
New Issue		600,000			0.092-0.10		0.095
Forfeited		(1,350,000	)		0.05-0.10		0.052
Warrants/Options at September 30, 2014		700,000		$	0.092-0.10	$	0.095
New Issue		100,000			0.10		0.10
Forfeited		(100,000	)		0.10		0.10
Warrants/Options at September 30, 2015		700,000		$	0.092-0.10	$	0.095

A summary of outstanding warrants and options at September 30, 2015, follows:

	Number				Remaining
	of		Exercise		Life
Expiration Date	Shares		Price		(Years)
January 1, 2016		50,000	$	0.10		0.25
July 1, 2016		50,000	$	0.10		0.75
January 1, 2017		50,000	$	0.10		1.25
March 31, 2017		500,000	$	0.0926		1.5
July 1, 2017		50,000	$	0.10		1.75