FAIR VALUE

12 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE

NOTE L - FAIR VALUE

The carrying value of cash, accounts receivable, accounts payable and accrued expenses approximate estimated fair values because of their short maturities.

The carrying value of the warrant liability is determined using the Binomial Lattice model option pricing model as described in Note B. Certain assumptions used in the calculation of the warrants liability represent level-3 unobservable inputs. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of September 30, 2014.

The following table summarizes the activity of Level 3 inputs measured on a recurring basis:

Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)

Fair Value Measurements of Derivative Warrant Liability Using Significant Unobservable Inputs (Level 3)
	Year Ended September 30,
	2014				2013
Balance at October 1,		$	2,643,449			$	—
Issuance of Series A and B Warrants			—				2,461,856
Adjustment resulting from change in value recognized in earnings (a)			908,005				7,508,146
Reclassification to equity upon exercise			(2,455,042	)			(7,326,553	)
Balance at September 30,		$	1,096,412			$	2,643,449

(a) Adjustment resulting from change in fair value is the amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to liabilities held at the reporting date and realized gains or losses at the date of exercise. The gain or loss is recorded in change in fair value of warrant liability in the accompanying consolidated statements of operations.