FAIR VALUE

3 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE

NOTE J - 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 option pricing model as described in Note A. Certain assumptions used in the calculation of the warrant liability represent level-3 unobservable inputs. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of December 31, 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)	Three Month Periods Ended December 31,
	2014			2013
Balance at October 1, 2014 and 2013	$	1,096,412		$	2,643,449
Issuance of Series A and B Warrants		—			—
Adjustment resulting from change in fair value (a)		2,994,540			2,634,758
Removal of warrant upon repurchase		(4,090,952	)
Reclassification to equity upon exercise		—			(2,455,042	)
Balance at December 31,	$	—		$	2,823,165

(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 warrant 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 condensed consolidated statements of operations.