COMMON STOCK WARRANTS

v2.4.0.8

COMMON STOCK WARRANTS	3 Months Ended
	Dec. 31, 2013
Common Stock Warrants
COMMON STOCK WARRANTS	NOTE 5 – COMMON STOCK WARRANTS   For all warrants included within permanent equity, the Company has determined the estimated value of the warrants granted to non-employees in exchange for services and financing expenses using the Black-Scholes pricing model and the following assumptions: stock price at valuation, $0.63-$7.96; expected term of 3-5 years, exercise price of $1.50-$7.96, a risk free interest rate of 0.21-2.90 percent, a dividend yield of 0 percent and volatility of 114-276 percent.   On October 1, 2013, the Company issued a total of 100,000 warrants with a fair market value of $556,534 for services rendered to the Company.  The warrants vested immediately.   On October 31, 2013, the Company received a notice of exercise for 55,556 Series A Warrants with an exercise price of $3.60. Accordingly, the Company issued 55,556 common shares for proceeds of $200,002.   On December 30, 2013, the Company issued a total of 26,667 warrants with a fair market value of $111,339 for services rendered to the Company.  The warrants vested immediately.   As of December 31, 2013, the Company has recorded $700,393 in consulting expense related to the warrants that have vested to date including warrants granted in prior years.     Below is a table summarizing the warrants issued and outstanding as of December 31, 2013:                                     Date     Number     Exercise     Contractual     Expiration   Issued     Outstanding     Price     Life (Years)     Date   Balance 10/1/08       4,503,286       3.54       5     Various   03/20/09       1,666,667       1.50       5     03/31/14   06/03/09       3,722,224       0.54       5     06/03/14   09/30/09       50,000       1.20       5     06/30/14   Expired       —       —       —     —   Balance 9/30/09       9,942,177       2.06       —     —   10/09/09       29,333       1.50       5     10/29/14   11/09/09       6,000       1.50       5     11/09/14   12/04/09       43,333       1.80       2     12/04/11   12/15/09       (1,861,112 )     0.54       —     —   01/15/10       1,861,112       1.65       5     01/15/15   01/15/10       (1,861,112 )     0.54       —     —   04/09/10       3,333       1.65       5     4/9/2015   07/23/10       31,000       1.50       3     07/23/13   Expired       —       —       —     —   Balance 9/30/10       8,194,064       2.66       —     —   12/30/10       840,000       1.65       5     12/30/15   05/12/11       18,333       1.50       5     05/12/16   06/13/11       100,000       1.50       2     06/13/13   07/15/11       33,333       1.62       5     07/15/16   07/15/11       40,000       1.62       5     07/15/16   08/23/11       16,667       2.01       3     08/23/14   Expired       (363,523 )     3.57       —     —   Balance 9/30/11       8,878,874       2.50       —     —   12/16/11       305,559       1.95       5     12/16/16   12/21/12       1,042       1.95       5     12/21/12   03/03/12       116,667       1.95       5     03/03/17   04/10/12       (14,464 )     1.80       —     —   04/12/12       5,000       2.70       3     4/12/2015   05/18/12       116,667       2.85       3     5/18/2015   06/28/12       (1,766,334 )     1.65       —     —   06/28/12       1,059,803       3.60       5     06/28/17   07/11/12       16,667       2.85       3     07/11/15   07/17/12       (10,000 )     1.50       —     —   09/07/12       25,000       3.00       5     09/07/17   Expired       (206,843 )     2.37       —     —   Balance 9/30/12       8,527,638       2.80       —     —   10/24/2012       (66,667 )     1.50       —     —   3/7/2013       (6,996 )     3.57       —     —   3/11/2013       (1,679 )     3.57       —     —   3/21/2013       40,000       4.32       5     3/21/2018   3/21/2013       16,667       4.32       3     3/21/2018   3/22/2013       (3,704 )     1.65       —     —   3/27/2013       (840,000 )     1.65       —     —   4/18/2013       (1,406,320 )     3.57       —     —   6/7/2013       (6,519 )     1.65       —     —   6/14/2013       (1,000 )     1.50       —     —   7/2/2013       (50,000 )     1.50       —     —   9/20/2013       (13,889 )     1.95       —     —   Expired       (326,597 )     3.57       —     —   9/30/2013       5,860,934       2.77       —     —   10/1/2013       100,000       7.96       3     10/1/2016   10/31/2013       (55,556 )     3.60       —     —   12/30/2013       26,667       7.94       3     12/30/2016   Expired       —       —       —     —   12/31/2013       5,932,045       2.88       —     —       The outstanding warrants as of December 31, 2013 have an intrinsic value of approximately $29.6 million.