C. STOCKHOLDERS EQUITY (Tables)

6 Months Ended

Mar. 31, 2013

C. Stockholders Equity Tables

Stock options, stock bonuses and compensation granted by the Company

Below is a chart of the stock options, stock bonuses and compensation granted by the Company as of March 31, 2013. Each option represents the right to purchase one share of the Company’s common stock.

Name of Plan	Total Shares Reserved Under Plans		Shares Reserved for Outstanding Options		Shares Issued as Stock Bonus Compensation		Remaining Options/Shares Under Plans
Incentive Stock Option Plans		21,100,000		13,898,275		N/A		5,135,225
Non-Qualified Stock Option
Plans (1)		57,760,000		34,574,813		N/A		16,870,573
Stock Bonus Plans		15,940,000		N/A		8,519,747		7,415,739
Stock Compensation Plan		13,500,000		N/A		6,886,531		6,613,469

(1) The 2013 Non-Qualified Plan was adopted by the Company’s directors on December 18, 2012 and authorizes the issuance of up to 20,000,000 shares of the Company’s common stock to persons that exercise options granted pursuant to the Plan. As of the date of this Form 10-Q, the Company had granted 3,344,166 options under the 2013 Non-Qualified Plan. Any options granted pursuant to the 2013 Plan may not be exercised until shareholders approve the adoption of the Plan.

Schedule of employees and non-employees stock compensation

	Six months Ended March 31,
	2013		2012
Employees	$	1,523,349	$	1,261,060
Non-employees	$	208,355	$	243,708

	Three months Ended March 31,
	2013		2012
Employees	$	556,764	$	423,602
Non-employees	$	100,537	$	205,038

Derivative Liabilities, Warrants and Other Options

Below is a chart showing the derivative liabilities and the number of warrants outstanding at March 31, 2013:

Warrant	Issue Date	Shares Issuable upon Exercise of Warrant		Exercise Price		Expiration Date	Reference
Series N	8/18/08		5,187,709		0.30	8/18/14		1
Series A	6/24/09		1,303,472		0.50	12/24/14		1
C. Schleuning (Series A)	7/8/09		167,500		0.50	01/08/15		1
Series B	9/4/09		500,000		0.68	9/4/14		1
Series C	8/20/09 – 8/26/09		4,634,886		0.55	2/20/15		1
Series E	9/21/09		714,286		1.75	8/12/14		1
Series F	10/6/11		12,000,000		0.40	10/6/14		1
Series G	10/6/11		666,667		0.40	8/12/14		1
Series H	1/26/12		12,000,000		0.50	8/1/15		1
Series Q	6/21/12		12,000,000		0.50	12/22/15		1
Series R	12/6/12		26,250,000		0.40	12/6/16		1
Series L	4/18/07		250,000		0.75	4/17/14		2
Series L (repriced)	4/18/07		1,000,000		0.34	4/17/13		2
Series M (modified)	4/18/07		6,000,000		0.34	7/31/14		2
Series P	2/10/12		5,900,000		0.45	3/6/17		3
Private Investors	5/30/03- 6/30/09		8,609,375		0.47 – 1.25	5/30/13 - 7/18/14		4
Warrants held by Officer and Director	6/24/09- 7/6/09		3,497,539		0.40 – 0.50	12/24/14 – 1/6/15		5
Consultants	5/22/03 – 12/28/12		1,437,500		0.28 – 2.00	5/22/13 - 12/27/17		6

Tabular disclosure of derivative liabilities at fair value

See below for details of the balances of derivative instruments at March 31, 2013 and September 30, 2012.

	March 31, 2013		September 30,2012
Series A through E warrants	$	188,176	$	786,989
Series N warrants		259,385		830,034
Series F and G warrants		506,667		1,646,667
Series H warrants		600,000		1,800,000
Series Q warrants		720,000		1,920,000
Series R warrants		2,625,000		-
Total derivative liabilities	$	4,899,228	$	6,983,690