RELATED PARTY TRANSACTIONS

3 Months Ended

Dec. 31, 2011

Related Party Transactions Exculding Stock Option Receivable [Text Block]

8. RELATED PARTY TRANSACTIONS

Receivables due from the former President, excluding stock option receivables, totaled $37,000 at October 1, 2011. Such amount was forgiven during the quarter ended December 31, 2011 in connection with his resignation. Other employee loans totaled approximately $271,000 and $288,000 at December 31, 2011 and October 1, 2011, respectively. Such amounts are payable on demand and bear interest at the minimum statutory rate (0.19% at December 31, 2011 and 0.16% at October 1, 2011).

The Company’s President and Chief Operating Officer resigned effective January 1, 2012. In connection therewith, the Company forgave loans due totaling $66,000 and has accrued additional compensation in the amount of $475,400 in accordance with his separation agreement and release. Such amounts are included in General and Administrative Expenses in the Consolidated Condensed Statement of Operations for the 13-weeks ended December 31, 2011.