7. STOCK COMPENSATION (Tables)

12 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employees and non-employees stock compensation

The Company awarded employees and non-employees with stock compensation as follows:

	Fiscal Year Ended September 30,
	2014		2013		2012
Employees	$	3,958,637	$	2,636,905	$	2,266,316
Non-employees	$	771,946	$	454,855	$	581,996

Assumptions for Option Pricing

The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions.

	2014	2013	2012
Expected stock price volatility	72.81 – 86.87%	84.41-92.28%	87.72-94.93%
Risk-free interest rate	0.59 – 2.65%	0.75-2.73%	0.83-1.92%
Expected life of options	3.0 – 9.76 Years	4.85-9.77 Years	4.82-9.66 Years
Expected dividend yield	-	-	-

Stock Option Plans

Non-Qualified and Incentive Stock Option Plans

	Outstanding				Exercisable
			Weighted				Weighted
		Weighted	Ave	Aggregate		Weighted	Ave	Aggregate
	Number of	Average	Remaining Contractual	Intrinsic	Number of	Average	Remaining Contractual	Intrinsic
	Shares	Exercise Price	Term (Years)	Value	Shares	Exercise Price	Term (Years)	Value
Outstanding at October 1, 2013	5,188,141	$3.62	6.53	$133	2,422,997	$4.00	4.95	$133
Vested					1,094,803	$2.14
Granted (a)	1,723,240	$1.09
Exercised
Forfeited	6,316	$1.60
Expired	73,916	$4.29			73,916	$4.29
Cancelled
Outstanding at September 30, 2014	6,831,149	$2.98	6.55	$3,600	3,443,884	$3.40	5.49	$3,600

(a) During the year ending September 30, 2014, 80,000 stock options were granted to consultants.

Schedule of non-vested options

A summary of the status of the Company’s non-vested options for the year ended September 30, 2014 is presented below:

				Weighted Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at October 1, 2012		1,649,063		$	3.60
Vested		(729,087	)
Granted		1,859,387
Forfeited		(14,219	)
Unvested at October 1, 2013		2,765,144		$	2.79
Vested		(1,094,803	)
Granted		1,723,240
Forfeited		(6,316	)
Unvested at September 30, 2014		3,387,265		$	2.15