Quarterly report pursuant to Section 13 or 15(d)

COMMON STOCK OPTIONS

v2.4.0.8
COMMON STOCK OPTIONS
 3 Months Ended
Dec. 31, 2013
Common Stock Options  
COMMON STOCK OPTIONS
NOTE 6 – COMMON STOCK OPTIONS
 
The Company has determined the estimated value of the options granted to employees and non-employees in exchange for services and financing expenses using the Black-Scholes pricing model and the following assumptions: stock price at valuation, $1.20-4.71; expected term of five years, exercise price of $1.50-4.74, a risk free interest rate of 0.68-2.60 percent, a dividend yield of 0 percent and volatility of 191-277 percent.
 
During the three month period ended December 31, 2013, the Company recognized $146,303 of expense related to vested options that were granted in prior years. Unamortized option expense as of December 31, 2013 for all options outstanding amounted to approximately $966,000.
 
 Below is a table summarizing the options issued and outstanding as of December 31, 2013:
                                   
Date
     Number    
Exercise
     Contractual     Expiration  
Issued
     Outstanding    
Price
     Life (Years)     Date  
Prior 10/1/2008
      
—
    
$
—
      
—
      
—
  
04/09/09
      
193,047
      
1.95
      
5
      
04/09/13
  
Balance 09/30/2009
      
193,047
      
1.95
      
—
      
—
  
04/12/10
      
333,334
      
1.50
      
5
      
04/12/15
  
Expired
      
(10,725
 )    
1.95
      
—
      
—
  
Balance 9/30/2010
      
515,656
      
1.66
      
—
      
—
  
Issued
      
—
      
—
      
—
      
—
  
Expired
      
—
      
—
      
—
      
—
  
Balance 9/30/2011
      
515,656
      
1.66
      
—
      
—
  
03/09/12
      
566,667
      
1.71
      
—
      
3/9/2017
  
Expired
      
—
      
—
      
—
      
—
  
Balance 9/30/2012
      
1,082,323
      
1.69
      
—
      
—
  
Exercised - 11/30/12
      
(53,624
 )    
1.78
      
—
      
—
  
Exercised - 03/27/13
      
(128,698
 )    
1.65
      
—
      
—
  
Issued - 04/30/13
      
116,667
      
4.74
      
5
      
4/30/2018
  
Issued - 05/17/13
      
116,667
      
4.68
      
5
      
5/17/2018
  
Expired
      
—
      
—
      
—
      
—
  
09/30/13
      
1,133,335
      
2.31
      
—
      
—
  
Issued
      
—
      
—
      
—
      
—
  
Expired
      
—
      
—
      
—
      
—
  
12/31/13
      
1,133,335
    
$
2.31
      
—
      
—
  
 
As of December 31, 2013, the outstanding options have an intrinsic value of approximately $6.3 million.