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STOCK OPTIONS AND WARRANTS
 3 Months Ended
Dec. 31, 2013
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
STOCK OPTIONS AND WARRANTS
NOTE F - STOCK OPTIONS AND WARRANTS
 
Warrants
 
The following table summarizes the changes in warrants outstanding and the related prices for the shares of Common Stock issued to non-employees of the Company.  These warrants were granted in lieu of cash compensation for services performed or financing expenses in connection with the sale of Common Stock.
 
             
Warrants
                    
             
Outstanding
    
Weighted
          
Exercisable
  
             
Remaining
    
Average
    
Weighted
    
Weighted
  
 
Exercise
    
Number
    
Contractual
    
Exercise
    
Average
    
Average
  
 
Prices
    
Outstanding
    
Life (Years)
    
Price
    
Exercisable
    
Exercise Price
  
$
0.0400
      
3,000,000
      
1.66
    
$
0.0400
      
3,000,000
    
$
0.0400
  
$
0.0441
      
510,784
      
3.54
    
$
0.0441
      
510,784
    
$
0.0441
  
$
0.0475
      
3,789,489
      
4.54
    
$
0.0475
      
3,789,489
    
$
0.0475
  
$
0.0553
      
226,081
      
4.02
    
$
0.0553
      
226,081
    
$
0.0553
  
$
0.0600
      
2,000,000
      
0.14
    
$
0.0600
      
2,000,000
    
$
0.0600
  
$
0.0710
      
1,000,000
      
1.07
    
$
0.0710
      
1,000,000
    
$
0.0710
  
$
0.0900
      
6,900,000
      
2.67
    
$
0.0900
      
6,900,000
    
$
0.0900
  
$
0.1790
      
100,000
      
1.85
    
$
0.1790
      
100,000
    
$
0.1790
  
$
0.2140
      
100,000
      
2.35
    
$
0.2140
      
100,000
    
$
0.2140
  
$
0.2431
      
22,411,764
      
4.55
    
$
0.2431
      
22,411,764
    
$
0.2431
  
$
0.5000
      
1,300,000
      
0.02
    
$
0.5000
      
1,300,000
    
$
0.5000
  
         
41,338,118
      
3.56
    
$
0.1762 
      
41,338,118
    
$
0.1762 
  
 
Transactions involving warrants are summarized as follows:
 
   
Number of
Shares
    
Weighted Average
Price Per Share
  
Balance at October 1, 2013
    
59,033,305
    
$
0.0196
  
Granted
    
—
      
—
  
Exercised
    
(17,695,187)
      
   (0.2431
)
Cancelled or expired
    
—
      
—
  
Balance,  December 31, 2013
    
41,338,118
    
$
0.1762
  
 
Transactions involving warrants are summarized as follows:
 
On December 16, 2013, Crede effected the cashless exercise of 10,695,187 Series A Warrants and 7,000,000 Series B Warrants, and the Company thereupon issued to Crede an aggregate of 18,823,073 shares of its Common Stock.
 
Employee Stock Options
 
In 2005, the Board of Directors and holders of a majority of the outstanding shares of Common Stock approved the 2005 Incentive Stock Plan,  In 2007, 2008 and 2012, the Board of Directors and holders of a majority of the outstanding shares of Common Stock approved various increases in the number of shares of Common Stock that can be issued as stock awards and stock options thereunder to an aggregate of 350,000,000 shares and the number of shares of Common Stock that can be covered by awards made to any participant in any calendar year to 50,000,000 shares.
 
The 2005 Incentive Stock Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to the Company’s success with an award of options to purchase shares of Common Stock.  As of December 31, 2013, a total of 12,675,000 shares have been issued and options to purchase 196,038,972 shares have been granted under the 2005 Incentive Stock Plan.
  
The following table summarizes the changes in options outstanding and the related prices for the shares of Common Stock issued to employees of the Company under the 2005 Incentive Stock Plan:
 
 
Options Outstanding
    
Options Exercisable
  
 
Exercise
Prices
    
Number
Outstanding
    
Weighted Average
Remaining
 Contractual
Life (Years)
    
Weighted Average
Exercise Price
    
Number
Exercisable
    
Weighted
Average
Exercise Price
  
$
0.0500
      
24,000,000
      
1.35
    
$
0.0500
      
24,000,000
    
$
0.0500
  
$
0.0585
      
50,000,000
      
4.54
    
$
0.0585
      
50,000,000
    
$
0.0585
  
$
0.0600
      
30,000,000
      
1.51
    
$
0.0600
      
30,000,000
    
$
0.0600
  
$
0.0650
      
634,825
      
2.93
    
$
0.06500
      
634,825
    
$
0.0650
  
$
0.0680
      
4,770,000
      
2.92
    
$
0.06800
      
4,770,000
    
$
0.0680
  
$
0.0700
      
2,850,000
      
1.42
    
$
0.0700
      
2,275,000
    
$
0.0700
  
$
0.0866
      
7,377,000
      
4.96
    
$
0.0866
      
2,000,000
     $
0.0866
  
$
0.0900
      
1,500,000
      
1.67
    
$
0.0900
      
1,500,000
    
$
0.0900
  
$
0.0970
      
56,777,780
      
4.96
    
$
0.097
      
3,777,780
     $
0.0970
  
$
0.1100
      
5,400,000
      
4.46
    
$
0.1100
      
5,400,000
    
$
0.1100
  
$
0.1160
      
250,000
      
4.98
    
$
0.1160
      
—
     $
—
  
$
0.1170
      
2,000,000
      
4.98
    
$
0.1170
      
—
     $
—
  
$
0.1360
      
2,126,000
      
4.99
    
$
0.1360
      
2,126,000
     $
0.1360
  
$
0.1799
      
2,099,367
      
3.92
    
$
0.1799
      
2,099,367
     $
0.1799
  
$
0.1930
      
100,000
      
4.50
    
$
0.1930
      
—
     $
—
  
$
0.2000
      
100,000
      
4.38
    
$
0.2000
      
—
     $
—
  
         
189,984,972
      
3.69 
    
$
0.0755
      
128,582,972
    
$
0.0652
  
 
Transactions involving stock options issued to employees are summarized as follows:
 
      Number of
Shares		     Weighted Average
Exercise
Price Per
Share		   Aggregate
Intrinsic
Value		  
Outstanding at October 1, 2013
    
121,454,192
   $ 
0.0630
        
Granted
    
68,530,780
    
0.0977
        
Exercised
    
—
    
—
        
Expired
    
—
    
—
        
Outstanding at December 31, 2013
    
189,984,972
   $ 
0.0755
        
Vested at December 31, 2013
    
128,582,972
         $
0.0574
  
Non-vested at December 31, 2013
    
61,402,000
         $
0.0257
  
 
Transactions involving stock options issued to employees are summarized as follows:
 
On October 14, 2013, the Company granted an aggregate of 7,377,000 options to purchase the Company’s Common Stock at an exercise price of $0.0886 per share for five years to employees. 5,377,000 of these options vest at 25% each anniversary for the next four years and 2,000,000 of these options vest immediately.
 
On October 17, 2013, the Company granted Dr. James A. Hayward, Chairman, CEO and President and Dr. Ming-Hwa Liang, Chief Technology Officer and Secretary of the Company options to purchase 50,000,000 and 3,000,000 shares of the Company’s Common Stock, respectively, at an exercise price of $0.0970 per share for five years with vesting at 25% each anniversary for the next four years.  Also on October 17, 2013, the Company issued an aggregate of 3,777,780 options to non-employee board of director members under the 2005 Incentive Stock Plan at an exercise price of $0.0970 per share for five years with immediate vesting.
 
On November 28, 2013, the Company issued 250,000 options to purchase the Company’s Common Stock at an exercise price of $0.1160 per share for five years to an employee with vesting at 25% each anniversary for the next four years.
 
On December 2, 2013, the Company granted 2,000,000 options to purchase the Company’s Common Stock at an exercise price of $0.1170 per share for five years to an employee with vesting at 25% each anniversary for the next four years.
 
On December 10, 2013, the Company issued an aggregate of 2,126,000 options to purchase the Company’s Common Stock at an exercise price of $0.1360 per share for five years to employees, with immediate vesting.
 
The fair value of options granted during the three months ended December 31, 2013 was determined using the Black Scholes Option Pricing Model with the following weighted average assumptions: stock price $0.0979, exercise price $0.1212, dividend yield $-0-, volatility of 111.80% and risk free rate of 0.96%.
 
The Company recorded $765,546 and $417,866 as stock compensation expense for the three month periods ended December 31, 2013  and 2012, respectively, for the vesting portion of all employee options outstanding.   As of December 31, 2013, unrecorded compensation cost related to non-vested awards was $4,084,655, which is expected to be recognized through 2017.