Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Sep. 30, 2012
Accounting Policies [Abstract]  
Schedule For Assumptions Made In Determination Of Fair Values For Warrant Liability and Debt Conversion Option Liability [Table Text Block]

The Company used Level 2 inputs for its valuation methodology for the warrant liability and conversion option liability as their fair values were determined by using the Black-Scholes option pricing model using the following assumptions:

 

      September 30, 2012  
Annual dividend yield     -  
Expected life (years)     0.25-3.5  
Risk-free interest rate     0.06%-0.31 %
Expected volatility     13%-117 %

 

    Carrying Value     Fair Value Measurements at  
    As of     September 30, 2012  
    September 30,     Using Fair Value Hierarchy  
    2012     Level 1     Level 2     Level 3  
Liabilities                                
Warrant liability   $ 520,700     $ -     $ 520,700     $ -  
Senior convertible promissory notes     3,023,900       -       3,023,900       -  
Subordinated convertible promissory notes     4,083,300       -       4,500,000       -  
Unsecured convertible promissory notes     52,500       -       90,000       -  
Unperfected senior convertible promissory notes     27,900       -       398,100       -  
Conversion option liability     -       -       -       -  
Total   $ 7,708,300     $ -     $ 8,532,700     $ -