Stockholders' Equity

6 Months Ended

Mar. 31, 2013

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 10 – Stockholders’ Equity

Common Stock

The Company has 600,000,000 authorized shares of common stock, par value $0.001 per share. As of March 31, 2013, the Company had 451,246,460 shares issued and outstanding. As of September 30, 2012, the Company had 387,968,434 shares of common stock issued and outstanding.

During the six months ended March 31, 2013, the Company issued 7,314,379 shares of common stock for services to officers, directors and consultants (valued at $215,078) based on closing market prices. The Company also issued 40,220,361 shares of common stock for conversion of debt in the amount of $712,837 (including interest).

Employee Stock Options and Warrants

Stock Options

A summary of the Company’s activity for employee stock options and warrants:

	Number of Options			Weighted  Average  Exercise Price		Aggregate Intrinsic Value		Weighted  Average  Remaining  Contractual Life
Outstanding at October 1, 2012		43,716,316		$	0.12	$	-		3.01
Granted		500,000			0.15		-		4.75
Expired		(3,933,526	)		0.21		-		-
Forfeited		(500,000	)		0.15		-		-
Exercised		-			-		-		-
Outstanding at March 31, 2013		39,782,790			0.11		-		1.98
Exercisable at March 31, 2013		39,779,665		$	0.11	$	-		1.98

Outstanding and exercisable as of March 31, 2013:

	Exercise Price	Options Outstanding		Contractual Life		Weighted Average Remaining Options Exercisable		Weighted Average Remaining Contractual Life
$	0.06		7,415,000		2.44		7,411,875		2.44
$	0.07		2,000,000		2.75		2,000,000		2.75
$	0.09		2,000,000		2.75		2,000,000		2.75
$	0.10		8,416,850		1.51		8,416,850		1.51
$	0.12		8,450,940		1.03		8,450,940		1.03
$	0.14		500,000		3.17		500,000		3.17
$	0.15		11,000,000		2.16		11,000,000		2.16
			39,782,790		1.98		39,779,665		1.98

During the six months ended March 31, 2013, the Company granted a total of 500,000 options and warrants to certain officers and employees. The options and warrants vested immediately upon grant and have a term of five years. The weighted average grant-date fair value of these options and warrants was $14,671.  The fair value of these options and warrants was estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

● risk free rate of return of 0.72%;

● volatility of 171%

● dividend yield of 0%; and

● expected term of 5 years.

Stock Warrants

A summary of the Company’s warrant activity with non-employees:

	Number of Warrants			Weighted  Average  Exercise Price		Aggregate Intrinsic Value
Outstanding at October 1, 2012		114,460,085		$	0.12	$	75,000
Granted		625,000			-		-
Expired		(4,223,182	)		0.18		-
Forfeited		-			-		-
Exercised		-			-		-
Outstanding as of March 31, 2013		110,011,903		$	0.11	$	75,000
Exercisable as of March 31, 2013		110,011,903		$	0.11	$	75,000

Warrants outstanding and exercisable as of March 31, 2013:

						Weighted
						Average
						Remaining		Weighted Average
	Exercise	Warrants		Warrants		Contractual		Exercise Price
	Price	Outstanding		Exercisable		Life		Outstanding		Exercisable
$	0.06		11,262,500		11,262,500		3.17	$	0.06	$	0.06
$	0.07		22,833,333		22,833,333		1.04	$	0.07	$	0.07
$	0.08		25,425,000		25,425,000		4.12	$	0.08	$	0.08
$	0.10		6,726,578		6,726,578		2	$	0.10	$	0.10
$	0.12		6,226,000		6,226,000		.69	$	0.12	$	0.12
$	0.14		5,000,000		5,000,000		2.56	$	0.14	$	0.14
$	0.15		2,107,667		2,107,667		1.58	$	0.15	$	0.15
$	0.17		24,230,825		24,230,825		2.61	$	0.17	$	0.17
$	0.25		3,700,000		3,700,000		.82	$	0.25	$	0.25
$	0.30		2,500,000		2,500,000		.33	$	0.30	$	0.30
			110,011,903		110,011,903

Warrants expiring within twelve months of March 31, 2013 total 28,531,856.