10. LOANS FROM OFFICER AND INVESTOR	12 Months Ended
Sep. 30, 2014
Notes to Financial Statements
10. LOANS FROM OFFICER AND INVESTOR	10. LOANS FROM OFFICER AND INVESTOR The Company’s President, and a director, Maximilian de Clara, loaned the Company $1,104,057 under a note payable. The loan from Mr. de Clara bears interest at 15% per year and is secured by a lien on substantially all of the Company’s assets. The Company does not have the right to prepay the note without Mr. de Clara’s consent. The note was initially payable at the end of March 2009, but was extended. At the time of the first extension, and in accordance with the loan agreement, the Company issued Mr. de Clara warrants to purchase 164,824 shares of the Company’s common stock at a price of $4.00 per share. The warrants are exercisable at any time prior to December 24, 2014. In June 2009, the note with Mr. de Clara was extended for the second time to July 6, 2014. At Mr. de Clara’s option, the note may be converted into shares of the Company’s common stock. The number of shares which will be issued upon any conversion will be determined by dividing the amount to be converted by $4.00. As further consideration for the second extension, Mr. de Clara received warrants to purchase 184,930 shares of the Company’s common stock at a price of $5.00 per share at any time prior to January 6, 2015. On May 13, 2011, to recognize Mr. de Clara’s willingness to agree to subordinate his note to the convertible preferred shares and convertible debt, the Company extended the maturity date of the note to July 6, 2015, however Mr. de Clara may demand payment upon giving the Company 10 days of notice. In August 2014, the loan and warrants were transferred to the de Clara Trust, of which the Company’s CEO, Geert Kersten, is the Trustee and a beneficiary. Mr. de Clara will continue to receive the interest payments. During the years ended September 30, 2014, 2013 and 2012, the Company paid $179,409, $151,808 and $165,608, respectively, in interest expense to Mr. de Clara.

10. LOANS FROM OFFICER AND INVESTOR

12 Months Ended

Sep. 30, 2014

10. LOANS FROM OFFICER AND INVESTOR

The Company’s President, and a director, Maximilian de Clara, loaned the Company $1,104,057 under a note payable. The loan from Mr. de Clara bears interest at 15% per year and is secured by a lien on substantially all of the Company’s assets. The Company does not have the right to prepay the note without Mr. de Clara’s consent. The note was initially payable at the end of March 2009, but was extended. At the time of the first extension, and in accordance with the loan agreement, the Company issued Mr. de Clara warrants to purchase 164,824 shares of the Company’s common stock at a price of $4.00 per share. The warrants are exercisable at any time prior to December 24, 2014. In June 2009, the note with Mr. de Clara was extended for the second time to July 6, 2014. At Mr. de Clara’s option, the note may be converted into shares of the Company’s common stock. The number of shares which will be issued upon any conversion will be determined by dividing the amount to be converted by $4.00. As further consideration for the second extension, Mr. de Clara received warrants to purchase 184,930 shares of the Company’s common stock at a price of $5.00 per share at any time prior to January 6, 2015. On May 13, 2011, to recognize Mr. de Clara’s willingness to agree to subordinate his note to the convertible preferred shares and convertible debt, the Company extended the maturity date of the note to July 6, 2015, however Mr. de Clara may demand payment upon giving the Company 10 days of notice. In August 2014, the loan and warrants were transferred to the de Clara Trust, of which the Company’s CEO, Geert Kersten, is the Trustee and a beneficiary. Mr. de Clara will continue to receive the interest payments.

During the years ended September 30, 2014, 2013 and 2012, the Company paid $179,409, $151,808 and $165,608, respectively, in interest expense to Mr. de Clara.