Shareholders' Equity and Related Party Transactions

12 Months Ended

Sep. 30, 2011

Shareholders' Equity and Related Party Transaction [Abstract]

Shareholders' Equity and Related Party Transaction

6. Shareholders’ Equity and Related Party Transactions

Throughout fiscal 2011, the Company raised funds through private placements to its board members and one outside buyer. The outside buyer purchased 41,667 shares of our common stock for $25,000. The outside buyer also received a warrant to purchase up to 41,667 additional shares at $1.25 per share. This warrant may be exercised at the outside buyer’s discretion through September 27, 2014.

The board members’ purchases are summarized below:

Name			Shares	Amount
	Howard L. Farkas, Chairman of the Board		447,397	$275,000
	Robert T. Stanley, Board Member		155,484	100,000
	William J. Volz, President and Board Member		247,571	175,000
		Total	850,452	$550,000

These shares have not been registered with the SEC. However, the Company’s president, chairman of the board, and additional board member received demand registration rights, subject to certain limitations, and unlimited piggyback registration rights, with respect to the shares. The Company is only obligated to use its best efforts to obtain an effective registration statement.

Mr. Volz has also loaned the Company $174,000 through September 30, 2011. These notes payable are non-interest bearing and due on demand.