Stockholders' Deficit

6 Months Ended

Mar. 31, 2014

Notes to Financial Statements

6. Stockholders' Deficit

Stock options - On the Company’s annual report Form 10-KSB for the fiscal year ended September 30, 2008, the Company had 2,790,200 options outstanding with a weighted average exercise price of $0.13 and an aggregate weighted average remaining term of 4.48 years. Of these options, 2,450,200 shares were exercisable. These options had no intrinsic value on the date of issuance and on December 31 and September 30, 2013. There have been no options granted or exercised since September 30, 2008 and all outstanding options expired prior to September 30, 2013.

Warrants – On the Company’s annual report Form 10-KSB for the fiscal year ended September 30, 2008, the Company had warrants outstanding to purchase 10,297,671 shares of our common stock. The outstanding warrants range in exercise prices from $0.49 to $0.54 and had a weighted average remaining life of 2.57 years. There have been no warrants granted or exercised since September 30, 2008 and all outstanding warrants expired prior to September 30, 2013.

All compensation expense related to the above options and warrants have been previously recognized.