Accrued compensation due executive officers and board of directors

12 Months Ended

Sep. 30, 2012

Compensation Related Costs, General [Text Block]

Note 8 – Accrued compensation due executive officers and board of directors

Due to working capital limitations, we have deferred payments of compensation to our Chief Executive Officer and former Chief Financial Officer, and to members of our Board of Directors, which are included in accrued compensation and related expenses in the accompanying consolidated balance sheets.

Accrued compensation due to executive officers and board of directors consisted of the following:

	September 30, 2012		September 30, 2011
Due to officers	$	86,973	$	387,000
Due to directors		20,541	$	269,000
Total	$	107,514	$	656,000

Of the balance of $141,397 and $771,473 in accrued compensation and related expenses in the consolidated balance sheets at September 30, 2012 and 2011, $33,883 and $115,000, respectively related to accrued paid time off and to accrued payroll taxes on deferred compensation.

During the year ended, September 30, 2012, we issued warrants for the purchase of 68,076,826 shares of our common stock to settle the accrued compensation due to our former chief executive officer and board of directors. The fair value of the warrants was calculated using the Black-Scholes-Merton model. The value of the warrants issued exceeded the amount due to our former chief executive officer and directors by $86,324 which is considered to be additional compensation and charged to general and administrative expense.