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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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3 Months Ended |
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Dec. 31, 2011
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| Summary Of Significant Accounting Policies | |
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Reclassification of Financial Statement Accounts
Certain amounts in the December 31, 2010 financial statements have been reclassified to conform to the presentation in the December 31, 2011 financial statements.
Prepaid Expenses
Prepaid expenses consist of prepaid insurance contracts as well as deposits placed with various vendors that provide the Company with Research and Development services. The prepaid expenses are amortized over the contractual life of the insurance contract or as the deposits are applied by the vendor as services are provided.
Earnings (Loss) Per Share
Basic earnings (loss) per common share is computed by dividing losses attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the period.
Diluted earnings per Common Share is computed by dividing income (loss) attributable to Common Shareholders by the weighted-average number of Shares of Common Stock outstanding during the period increased to include the number of additional Shares of Common Stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding convertible Preferred Stock, stock options, and warrants. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s Common Stock can result in a greater dilutive effect from potentially dilutive securities.
As of December 31, 2011, 7,517,983 potentially dilutive warrants and options together with 5,583,336 potentially dilutive shares from convertible preferred stock were included in the computation of diluted earnings per share. As of September 30, 2011, all of the Company’s potentially dilutive securities (warrants, options, and convertible preferred stock) were excluded from the computation of diluted earnings per share as they were anti-dilutive. The total number of potentially dilutive shares that were excluded at September 30, 2011 was 15,754,301.
Recent Accounting Pronouncements
Management has considered all recent accounting pronouncements issued since the last audit of the Company’s financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.
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