Quarterly report pursuant to Section 13 or 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)
 9 Months Ended
Jun. 30, 2012
Sep. 30, 2011
Annual dividend yield 0.00%  
Risk-free interest rate,Minimum 0.09%  
Risk-free interest rate, Maximum 0.41%  
Expected volatility, Minimum 56.40%  
Expected volatility,Maximum 128.80%  
Liabilities    
Warrant liability $ 4,503,400 $ 2,193,900
Conversion option liability 2,049,600 2,607,300
Total 13,190,200  
Minimum [Member]
    
Expected life (years) 0 years 3 months  
Maximum [Member]
    
Expected life (years) 3 years 6 months  
Secured Convertible Senior Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 3,023,900 [1],[2] 2,868,200
Secured Convertible Bridge and Subordinated Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 3,583,300 1,394,800
Unsecured Convertible Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 30,000 [3] 0
Fair Value, Inputs, Level 1 [Member]
    
Liabilities    
Warrant liability 0  
Conversion option liability 0  
Total 0  
Fair Value, Inputs, Level 1 [Member] | Secured Convertible Senior Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 0  
Fair Value, Inputs, Level 1 [Member] | Secured Convertible Bridge and Subordinated Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 0  
Fair Value, Inputs, Level 1 [Member] | Unsecured Convertible Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 0  
Fair Value, Inputs, Level 2 [Member]
    
Liabilities    
Warrant liability 4,503,400  
Conversion option liability 2,049,600  
Total 14,166,900  
Fair Value, Inputs, Level 2 [Member] | Secured Convertible Senior Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 3,023,900  
Fair Value, Inputs, Level 2 [Member] | Secured Convertible Bridge and Subordinated Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 4,500,000  
Fair Value, Inputs, Level 2 [Member] | Unsecured Convertible Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 90,000  
Fair Value, Inputs, Level 3 [Member]
    
Liabilities    
Warrant liability 0  
Conversion option liability 0  
Total 0  
Fair Value, Inputs, Level 3 [Member] | Secured Convertible Senior Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 0  
Fair Value, Inputs, Level 3 [Member] | Secured Convertible Bridge and Subordinated Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties 0  
Fair Value, Inputs, Level 3 [Member] | Unsecured Convertible Notes Payable [Member]
    
Liabilities    
Notes Payable, Related Parties $ 0  
[1] The October Notes: The October Purchase Agreement provides for the issuance and sale of October Notes, for cash or in exchange for outstanding convertible notes, in the aggregate principal amount of up to $3,000,000 plus an amount corresponding to accrued and unpaid interest on any exchanged notes, and warrants to purchase a number of shares corresponding to 50% of the number of shares issuable on conversion of the October Notes. The agreement provides for multiple closings, but mandates that no closings may occur after January 31, 2011. The October Purchase Agreement also provides that the Company and the holders of the October Notes will enter into a registration rights agreement covering the registration of the resale of the shares underlying the October Notes and the related warrants. The October Notes mature one year from the date of issuance (subject to earlier conversion or prepayment), earn interest equal to 9% per year with interest payable at maturity, and are convertible into shares of common stock of the Company at a conversion price of $9.00. The conversion price is subject to adjustment upon (i) the subdivision or combination of, or stock dividends paid on, the common stock; (ii) the issuance of cash dividends and distributions on the common stock; (iii) the distribution of other capital stock, indebtedness or other non-cash assets; and (iv) the completion of a financing at a price below the conversion price then in effect. The October Notes are furthermore convertible, at the option of the holder, into securities to be issued in subsequent financings at the lower of the then-applicable conversion price or price per share payable by purchasers of such securities. The October Notes can be declared due and payable upon an event of default, defined in the October Notes to occur, among other things, if the Company fails to pay principal and interest when due, in the case of voluntary or involuntary bankruptcy or if the Company fails to perform any covenant or agreement as required by the October Note. Our obligations under the terms of the October Notes are secured by a security interest in the tangible and intangible assets of the Company, pursuant to a Security Agreement, dated as of October 1, 2010, by and between the Company and John Pappajohn, as administrative agent for the holders of the October Notes. The agreement and corresponding security interest terminate if and when holders of a majority of the aggregate principal amount of October Notes issued have converted their October Notes into shares of common stock. The warrants related to the October Notes expire seven years from the date of issuance and are exercisable for shares of common stock of the Company at an exercise price of $9.00. Exercise price and number of shares issuable upon exercise are subject to adjustment (1) upon the subdivision or combination of, or stock dividends paid on, the common stock; (2) in case of any reclassification, capital reorganization or change in capital stock and (3) upon the completion of a financing at a price below the exercise price then in effect. Any provision of the October Notes or related warrants can be amended, waived or modified upon the written consent of the Company and holders of a majority of the aggregate principal amount of such notes outstanding. Any such consent will affect all October Notes or warrants, as the case may be, and will be binding on all holders thereof. The October Notes were subsequently amended as detailed in (16) below and in the paragraph following (19).
[2] Amendment of the October Notes and the January Notes: On October 11, 2011, we, with the consent of holders of a majority in aggregate principal amount outstanding (the "Majority Holders") of our outstanding January Notes, amended all of the January Notes to extend the maturity of such notes until October 1, 2012. Pursuant to the terms of the amendment, which was effective as of September 30, 2011, the January Notes would receive a second position security interest in the assets of the Company (including its intellectual property). The Majority Holders of the January Notes also consented to the terms of a new $2 million bridge financing (the "2011 Bridge Financing") and to granting the investors in such financing a second position security interest in the assets of the Company (including its intellectual property) that is pari passu with the second position security interest received by the holders of the January Notes. The amendment was also intended to add a mandatory conversion provision to the terms of the January Notes. Under that provision, the January Notes would be automatically converted upon the closing of a public offering by the Company of shares of its common stock and/or other securities with gross proceeds to the Company of at least $10 million (the "Qualified Offering"). If the public offering price were less than the conversion price then in effect, the conversion price would be adjusted to match the public offering price (the "Qualified Offering Price"). On October 12, 2011, the Company, with the consent of the Majority Holders of its October Notes, amended all of the October Notes to extend the maturity of such notes until October 1, 2012. The Majority Holders of the October Notes also consented to the terms of the Bridge Financing and to granting the investors in such financing as well as the holders of the Company's January Notes a second position security interest in the assets of the Company (including its intellectual property). The guaranties that had been issued in 2010 to certain October Note investors by SAIL were extended accordingly. The amendment, which was effective as of September 30, 2011, was also intended to add the same mandatory conversion and conversion price adjustment provisions to the terms of the October Notes as were added to the terms of the January Notes.Pursuant to the agreements amending the October Notes and January Notes (the "Amendment and Conversion Agreements"), the exercise price of the warrants that were issued in connection with the October Notes and the January Notes (the "Outstanding Warrants") would be adjusted to match the Qualified Offering Price, if such price were lower than the exercise price then in effect. The Company agreed to issue to each holder of the October Notes and January Notes, as consideration for the above, warrants to purchase a number of shares of common stock equal to 30% of the number of shares of common stock to be received by each holder upon conversion of their notes at the closing of the Qualified Offering (the "Consideration Warrants"). The Consideration Warrants would be issued after the Qualified Offering and would have the same terms as the Outstanding Warrants, as amended. As a result of the issuance of 2011 Bridge Notes (mentioned below) at a conversion price of $3.00 and the associated warrants to purchase common stock at an exercise price of $3.00, the ratchet provision in the October Notes and January Notes was triggered, with the result that the conversion price of such notes was lowered from $9.00 to $3.00, the exercise price of the associated warrants was lowered from $9.00 to $3.00 per share, and the number of shares underlying such notes and warrants was proportionately increased. The Amended and Restated Security Agreement, dated as of September 30, 2011, between the Company and Paul Buck, as administrative agent for the secured parties (the "Amended and Restated Security Agreement"), which replaces the existing security agreement from 2010, and the corresponding security interest terminate (1) with respect to the October Notes, if and when holders of a majority of the aggregate principal amount of October Notes issued have converted their notes into shares of common stock and, (2) with respect to the January Notes and the 2011 Bridge Notes (defined below), if and when holders of a majority of the aggregate principal amount of January Notes and 2011 Bridge Notes (on a combined basis) have converted their notes. The Company evaluated the Amendment and Conversion Agreements, effective September 30, 2011 and the October Purchase Agreement, effective September 30, 2010, under ASC 470-50-40 "Extinguishments of Debt" ("ASC 470"). ASC 470 requires modifications to debt instruments to be evaluated to assess whether the modifications are considered "substantial modifications". A substantial modification of terms shall be accounted for like an extinguishment. For extinguished debt, a difference between the re-acquisition price and the net carrying amount of the extinguished debt shall be recognized currently in income of the period of extinguishment as losses or gains. The Company noted the change in terms per the Amendment and Conversion Agreements and the October Purchase Agreement, met the criteria for substantial modification under ASC 470, and accordingly treated the modification as extinguishment of the original convertible notes, replaced by the new convertible notes under the modified terms. The Company recorded a loss on extinguishment of debt of $1,968,000 and $1,094,300 for the years ended September 30, 2011 and 2010, respectively.
[3] The Unsecured Bridge Note: the terms of this note are identical to the 2011 Bridge Note described above, except that this note is not secured. There was only one note of this type issued to the Zanett Opportunity Fund as described in (12) above