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RELATED PARTY TRANSACTIONS
6 Months Ended
Mar. 31, 2012
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 $298,000 and $288,000 at March 31, 2012 and October 1, 2011, respectively. Such amounts are payable on demand and bear interest at the minimum statutory rate (0.19% at March 31, 2012 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 recorded 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 26-weeks ended March 31, 2012.