NOTES PAYABLE

3 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

5. NOTES PAYABLE

The Company had the following convertible notes payable at December 31, 2012 and September 30, 2012.

	December 31,		September  30,
	2012		2012
Convertible notes payable with interest at 12%	$	5,000	$	5,000
8% One year senior secured convertible promissory note due September 9, 2012		100,000		100,000
9% Unsecured promissory note due on demand		250,000		-
10% Two year senior secured convertible promissory note due February 7, 2014		11,268		85,757
	$	366,268	$	190,757

	December 31,		September 30,
	2012		2012
Current	$	355,000	$	105,000
Long term		11,268		85,757
Total	$	366,268	$	190,757

On October 12, 2012, we executed an agreement for a 9% unsecured promisory note in the amount of $250,000 which is due on demand by the lenders.

The recorded discount on the convertible notes payable is being amortized to interest expense over the life of the note or seven months for the discount associated with Series B Warrants and is summarized as follows as of December 31, 2012.

			Debt Discount
Due Date	Face Value		Initial Value		Amortization			Discount		Carrying Value
February 7, 2014	$	3,169,359	$	854,735	$	(2,306,892	)	$	7,732	$	11,268
September 9, 2012		100,000		73,476		(26,534	)		-		100,000
	$	3,269,359	$	928,211	$	(2,333,426	)	$	7,732	$	111,268