Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'DLOV | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 72,468,458 | ' |
Entity Registrant Name | 'DALECO RESOURCES CORP | ' | ' |
Entity Central Index Key | '0000746967 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $7,900,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Current Assets: | ' | ' |
Cash | $140,607 | $190,738 |
Accounts receivable, net of allowance for doubtful accounts of $25,000 at September 30, 2013 and 2012 | 257,761 | 242,182 |
Inventory | 40,500 | ' |
Prepaid consulting fees | 30,559 | 151,237 |
Other current assets | 26,461 | 8,615 |
Total Current Assets | 495,888 | 592,772 |
Other Assets: | ' | ' |
Prepaid mineral royalties- long-term | 0 | 509,254 |
Restricted cash deposits - operations | 109,681 | 109,609 |
Restricted cash deposits - equity issuances | 693,808 | 0 |
Total Other Assets | 810,109 | 623,419 |
Property, Plant and Equipment: | ' | ' |
Mineral properties, at cost | 9,877,128 | 9,877,128 |
Accumulated depreciation, depletion and amortization | -95,000 | -95,000 |
Net mineral properties | 9,782,128 | 9,782,128 |
Oil and gas properties, at cost | 4,471,590 | 4,471,590 |
Accumulated depreciation, depletion and amortization | -4,144,939 | -4,096,939 |
Net oil and gas properties | 326,651 | 374,651 |
Office equipment, furniture and fixtures, at cost | 61,502 | 61,502 |
Accumulated depreciation | -61,502 | -61,502 |
Net office equipment, furniture and fixtures | 0 | 0 |
Total Net Property, Plant and Equipment | 10,108,779 | 10,156,779 |
TOTAL ASSETS | 11,414,776 | 11,372,970 |
Current Liabilities: | ' | ' |
Accounts payable | 1,317,771 | 1,312,526 |
Revenue payable to oil and gas royalty and other working interest owners | 969,649 | 917,144 |
Federal and state income taxes payable | 192,427 | 192,427 |
Accrued interest expense | 1,151,911 | 1,099,441 |
Accrued compensation expense | 691,800 | 690,798 |
Accrued expense reimbursements | 0 | 19,051 |
7.25% convertible debentures, net of unamortized discount of $2,044 and $4,515 at September 30, 2013 and 2012, respectively | 42,956 | 40,485 |
Total Current Liabilities | 5,459,700 | 5,381,664 |
Long-term Liabilities: | ' | ' |
Convertible note payable, net of unamortized discount of $22,908 at September 30, 2012 | 0 | 239,717 |
Convertible accrued interest on convertible note payable | 0 | 5,359 |
Accrued bonus expense | 457,944 | 1,373,831 |
Series B 8% cumulative convertible preferred stock dividends accrued | 1,826,239 | 1,826,239 |
Future abandonment costs | 10,000 | 10,000 |
TOTAL LIABILITIES | 7,753,883 | 8,836,810 |
Commitments and Contingencies (see Note 8) | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Preferred stock value | ' | ' |
Common Stock - 150,000,000 and 100,000,000 shares authorized, respectively - par value $0.01 per share (issued and outstanding: 72,468,458 and 49,441,058 shares,respectively (see Note 9) | 724,685 | 494,411 |
Additional Paid-in Capital | 47,980,786 | 45,989,639 |
Warrants (issued and outstanding) to purchase 22,744,000 and 3,100,000 shares of Common Stock, respectively | 1,357,002 | 429,181 |
Accumulated deficit | -46,402,930 | -44,378,421 |
TOTAL SHAREHOLDERS’ EQUITY | 3,660,893 | 2,536,160 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 11,414,776 | 11,372,970 |
Patent Rights | ' | ' |
Other Assets: | ' | ' |
Intangible Assets | 6,620 | 0 |
Accumulated Amortization | 0 | 0 |
Net Intangible Assets | 6,620 | 0 |
Patents license rights | ' | ' |
Other Assets: | ' | ' |
Intangible Assets | 40,907 | 40,907 |
Accumulated Amortization | -40,907 | -36,351 |
Net Intangible Assets | 0 | 4,556 |
EV and T | ' | ' |
Current Liabilities: | ' | ' |
Convertible notes payable, current | 567,213 | 567,213 |
CAMI | ' | ' |
Current Liabilities: | ' | ' |
Convertible notes payable, current | 435,943 | 455,943 |
Related Parties | ' | ' |
Current Liabilities: | ' | ' |
Convertible notes payable, current | 60,000 | 85,256 |
Premium Finance | ' | ' |
Current Liabilities: | ' | ' |
Convertible notes payable, current | 11,519 | 1,380 |
Other Notes Payable | ' | ' |
Current Liabilities: | ' | ' |
Convertible notes payable, current | 18,511 | 0 |
Series A Preferred Stock | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Preferred stock value | 0 | 0 |
Series B 8% Cumulative Convertible Preferred Stock | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Preferred stock value | $1,350 | $1,350 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Allowance for doubtful accounts | $25,000 | $25,000 |
7.25% Convertible debentures, unamortized discount | 2,044 | 4,515 |
Convertible note payable, unamortized discount | ' | 22,908 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, par value | $0.01 | ' |
Preferred stock outstanding | 20,000,000 | ' |
Common stock, shares authorized | 150,000,000 | 100,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, Shares, Issued | 72,468,458 | 49,441,058 |
Common stock, outstanding | 72,468,458 | 49,441,058 |
Warrants issued to purchase common stock shares | 22,744,000 | 3,100,000 |
Warrants outstanding to purchase common stock shares | 22,744,000 | 3,100,000 |
Series A Preferred Stock | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Series B 8% Cumulative Convertible Preferred Stock | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock issued | 135,000 | 135,000 |
Preferred stock outstanding | 135,000 | 135,000 |
Preferred stock, liquidation preference | 1,350,000 | 1,350,000 |
Preferred stock, arrearages in cumulative dividends | $2,042,239 | $1,934,239 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | |||
Revenues: | ' | ' | ||
Oil and gas sales | $404,225 | $373,443 | ||
Well management revenue | 262,813 | 287,446 | ||
Royalty receipts | 4,799 | 3,532 | ||
Mineral sales | 7,652 | 5,626 | ||
Total Operating Revenues | 679,489 | 670,047 | ||
Expenses: | ' | ' | ||
Lease operating expenses - oil and gas | 237,661 | 182,027 | ||
Production and severance taxes - oil and gas | 22,022 | 20,878 | ||
Operating and other expenses - minerals | 30,083 | 19,121 | ||
Impairment of prepaid mineral royalties | 539,237 | 0 | ||
Depreciation, depletion and amortization | 52,556 | 313,612 | ||
General and administrative expenses | 1,672,371 | 1,318,177 | ||
Total Expenses | 2,553,930 | 1,853,815 | ||
Loss From Operations | -1,874,441 | -1,183,768 | ||
Other Income (Expense): | ' | ' | ||
Gain on sale of oil and gas properties | 0 | 898,335 | ||
Interest and dividend income | 232 | 20,114 | ||
Impairment of securities available for future sale | 0 | -5,699 | ||
Gain on debt forgiveness | 112,330 | 43,655 | ||
Interest expense | -262,630 | -313,371 | ||
Total Other Income (Expense), Net | -150,068 | 411,009 | ||
Impairment of interest receivable on subscriptions receivable | 0 | -207,025 | ||
Provision for doubtful account - proceeds receivable from prior sale of oil and gas properties | 0 | -25,000 | ||
Loss before income taxes | -2,024,509 | -772,759 | ||
Taxes based on income | 0 | [1] | 0 | [1] |
Net loss | -2,024,509 | -772,759 | ||
Preferred stock dividends, arrearage accumulated (see Note 9) | -108,000 | -112,000 | ||
Net loss applicable to common shareholders | ($2,132,509) | ($884,759) | ||
Basic and fully diluted net loss per share | ($0.04) | ($0.02) | ||
Weighted-average number of shares of common stock outstanding | 60,135,389 | 49,187,396 | ||
[1] | The Company presently has approximately $24 million of loss carryforwards for Federal income tax purposes. Based on these loss carryforwards, no income tax benefits are recognized for this segment. |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Series B Cumulative Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Warrants to Purchase Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Subscriptions Receivable | Private Placement | Private Placement | Private Placement | Private Placement | Consulting Services Agreement | Consulting Services Agreement | Consulting Services Agreement | |
Common Stock | Additional Paid-In Capital | Warrants to Purchase Common Stock | Common Stock | Additional Paid-In Capital | ||||||||||||
Balance at Sep. 30, 2011 | $3,022,248 | $1,450 | [1] | $489,889 | $46,289,089 | $429,181 | ($43,605,662) | ($5,699) | ($576,000) | ' | ' | ' | ' | ' | ' | ' |
Balance (in shares) at Sep. 30, 2011 | ' | 145,000 | [1] | 48,988,914 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock in payment of debt and interest (in shares) | ' | ' | 298,290 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of common stock in payment of debt and interest | 104,264 | ' | 2,983 | 101,281 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Conversion of Series B preferred stock into common stock (in shares) | ' | -10,000 | [1] | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of Series B preferred stock into common stock | 0 | -100 | [1] | 800 | -700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Common Stock in fulfillment of Series B preferred stock dividend obligation (in shares) | ' | ' | 73,854 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of Common Stock in fulfillment of Series B preferred stock dividend obligation | 79,382 | ' | 739 | 78,643 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Impairment of subscriptions receivable | 0 | ' | ' | -576,000 | ' | ' | ' | 576,000 | ' | ' | ' | ' | ' | ' | ' | |
Other comprehensive loss | 5,699 | ' | ' | ' | ' | ' | 5,699 | ' | ' | ' | ' | ' | ' | ' | ' | |
FEI/DTE Stock Purchase Agreement: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock-based compensation expense | 97,326 | ' | ' | 97,326 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss | -772,759 | ' | ' | ' | ' | -772,759 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Balance at Sep. 30, 2012 | 2,536,160 | 1,350 | [1] | 494,411 | 45,989,639 | 429,181 | -44,378,421 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Balance (in shares) at Sep. 30, 2012 | ' | 135,000 | [1] | 49,441,058 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FEI/DTE Stock Purchase Agreement: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of common stock and warrants to purchase 18 million shares of common stock (in shares) | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | 4,110,000 | ' | ' | ' | ' | ' | |
Issuance of common stock and warrants to purchase 18 million shares of common stock | 1,500,000 | ' | 150,000 | 543,162 | 806,838 | ' | ' | ' | 411,000 | 41,100 | 248,917 | 120,983 | ' | ' | ' | |
Costs of issuance | -44,466 | ' | ' | -44,466 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of Common Stock in payment of interest | 5,500 | ' | 500 | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of Common Stock in payment of interest (in shares) | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of Common Stock to investor relations firm | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,000 | 6,000 | 60,000 | |
Issuance of Common Stock to investor relations firm (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | |
Issuance of Common Stock in in connection with repayment of convertible note payable | 84,660 | ' | 4,980 | 79,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of Common Stock in in connection with repayment of convertible note payable (in shares) | ' | ' | 498,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of Common Stock in payment of compensation | 100,000 | ' | 6,000 | 94,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of Common Stock in payment of compensation (in Shares) | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of Common Stock Settlement with Benediktson (in shares) | ' | ' | 2,169,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Issuance of Common Stock Settlement with Benediktson | 878,439 | ' | 21,694 | 856,745 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock-based compensation expense | 148,109 | ' | ' | 148,109 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss | -2,024,509 | ' | ' | ' | ' | -2,024,509 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Balance at Sep. 30, 2013 | $3,660,893 | $1,350 | [1] | $724,685 | $47,980,786 | $1,357,002 | ($46,402,930) | $0 | $0 | ' | ' | ' | ' | ' | ' | ' |
Balance (in shares) at Sep. 30, 2013 | ' | 135,000 | [1] | 72,468,458 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | No shares of Series A preferred stock were outstanding at September 30, 2011 and no shares were issued or outstanding during 2012 and 2013. |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Sep. 30, 2013 | |
Stock Purchase Agreement | ' |
Issuance of common stock and warrants to purchase of common stock | 18,000,000 |
Private Placement | ' |
Issuance of common stock and warrants to purchase of common stock | 1,644,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash Flows From Operating Activities: | ' | ' |
Net loss | ($2,024,509) | ($772,759) |
Adjustments to reconcile net loss to net cash used in operations: | ' | ' |
Depreciation, depletion and amortization | 52,556 | 313,612 |
Impairment of prepaid mineral royalties | 539,237 | 0 |
Amortization of prepaid consulting services agreements | 186,678 | 366,575 |
Gain on debt forgiveness | -112,330 | -43,655 |
Provision for doubtful account - proceeds receivable from prior sale of oil and gas properties | 0 | 25,000 |
Impairment of securities available for future sale | 0 | 5,699 |
Impairment of interest receivable on subscriptions receivable | 0 | 207,025 |
Stock-based compensation expense | 148,109 | 97,326 |
Gain on sale of oil and gas properties | 0 | -898,335 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | 53,027 | 296,807 |
Inventory | -40,500 | 0 |
Other current assets | -17,846 | -1,190 |
Prepaid mineral royalties | -29,983 | -29,986 |
Restricted cash deposits - operations | -72 | -1,131 |
Accounts payable | 5,245 | -204,234 |
Revenue payable | 52,505 | -93,188 |
Accrued interest expense | 69,139 | 176,276 |
Other accrued expenses | -13,964 | -6,555 |
Net cash used in operating activities | -1,126,060 | -531,108 |
Cash Flows From Investing Activities: | ' | ' |
Acquisition of proved developed producing oil and gas properties | 0 | -47,078 |
Additions of patents costs | -6,620 | 0 |
Cash restricted pursuant to equity issuance agreement | -693,808 | 0 |
Proceeds from sale of oil and gas properties | 0 | 898,335 |
Net cash provided by (used in) investing activities | -700,428 | 851,257 |
Cash Flows From Financing Activities: | ' | ' |
Payments on notes and debt | -141,915 | -197,980 |
Proceeds from borrowings | 51,738 | 19,652 |
Proceeds from equity issuances, net of cash issuance costs and expenses of $44,466 | 1,866,534 | 0 |
Net cash provided by (used in) financing activities | 1,776,357 | -178,328 |
Net change in cash | -50,131 | 141,821 |
Cash at beginning of year | 190,738 | 48,917 |
Cash at end of year | 140,607 | 190,738 |
Supplemental Information: | ' | ' |
Income taxes paid | 0 | 0 |
Interest paid | 158,948 | 55,126 |
Supplemental Disclosure of Non-cash Transactions: | ' | ' |
Conversion of Series B 8% cumulative preferred stock into common stock | 0 | 100,000 |
Issuance of Common Stock | 84,660 | 70,000 |
Impairment of subscriptions receivable | 0 | -576,000 |
Issuance of common stock for consulting fees | 66,000 | 0 |
Amir Settlement Agreement | ' | ' |
Supplemental Disclosure of Non-cash Transactions: | ' | ' |
Issuance of Common Stock | 878,439 | 0 |
Settlement of accounts receivable | 37,448 | 0 |
CAMI | ' | ' |
Supplemental Disclosure of Non-cash Transactions: | ' | ' |
Issuance of Common Stock in Payment of Principal and Interest on CAMI Notes Payable due a Related Party | 5,500 | 34,264 |
7.25% Convertible Debentures | ' | ' |
Adjustments to reconcile net loss to net cash used in operations: | ' | ' |
Amortization of Discount | 2,471 | 2,477 |
Series B 8% Cumulative Preferred Stock | ' | ' |
Supplemental Disclosure of Non-cash Transactions: | ' | ' |
Issuance of Common Stock | 0 | 88,319 |
Note Payable | ' | ' |
Adjustments to reconcile net loss to net cash used in operations: | ' | ' |
Amortization of Discount | 4,177 | 29,128 |
Supplemental Disclosure of Non-cash Transactions: | ' | ' |
Issuance of Common Stock | $100,000 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Payments for stock issuance costs and restricted cash | $44,466 |
CONTINUED_OPERATIONS
CONTINUED OPERATIONS | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Continued Operations [Abstract] | ' | |||||||
CONTINUED OPERATIONS | ' | |||||||
1 | CONTINUED OPERATIONS | |||||||
The financial statements have been prepared on the basis of a going concern, which contemplates that Daleco Resources Corporation and its subsidiaries (the “Company”) will be able to realize assets and discharge liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should the Company be required to liquidate its assets. At September 30, 2013, the Company’s current assets total $495,888. For the fiscal years ended September 30, 2013 (“2013”) and 2012 (“2012”), the Company incurred net losses applicable to common shareholders of $2,132,509 and $884,759, respectively. The ability of the Company to meet its current liabilities of $5,459,700 and its total liabilities of $7,753,883 and to continue as a going concern is dependent upon the availability of future funding, achieving profitability within its mineral segment and ongoing profitability within its oil and gas operations. If the Company is unable to continue as a going concern, there is uncertainty relative to full recoverability of its assets. The financial statements do not reflect any adjustments relating to these uncertainties. | ||||||||
FEI/DTE Stock Purchase Agreement | ||||||||
On March 25, 2013, the Company finalized a Stock Purchase Agreement (“SPA”) with Far East Investments, LLC, a California limited liability company (“FEI”) and DTE Investment Ltd., a British Virgin Island company (“DTE”) (hereinafter FEI and DTE are sometimes collectively referred to as the “Investors” and individually as an “Investor”). The Investors paid the Company $1.5 million for 15 million shares of the Company’s common stock, par value $.01 (“Common Stock”) and the Company issued warrants for the purchase of up to 18 million shares of Common Stock to FEI and DTE (“FEI/DTE Warrants”). The FEI/DTE Warrants have a term of five (5) years (“Term”) and may be exercised at a price of $0.20 per share (“Exercise Price”). In the third through fifth years of the Term, the Exercise Price may be satisfied by exchanging Common Stock at the current market price. The FEI/DTE Warrants may be exercised in whole or in part at any time during the Term. | ||||||||
Under the SPA for so long as the Investors retain 51% or more of the Common Stock issued under the SPA (7,650,000 shares), the Investors are entitled to request that the Registrant nominate for election, by the shareholders of the Registrant at the Registrant’s annual meeting of shareholders, two persons suitable to serve as directors of the Registrant. | ||||||||
A provision of the Agreement requires that the Company shall not make any public announcement or statement concerning the Agreement other than that which the Company is required to disclose on Form 8-K and other required filings with the Securities and Exchange Commission. Consistent with its obligations under the securities laws, the Company is required to seek confidential treatment of the information set forth in the Annex and Exhibits to the SPA. | ||||||||
In connection with the SPA the Company entered into an Exclusive Sales Agency and Marketing Agreement with FEI (“FEI Marketing Agreement”). The FEI Marketing Agreement grants to FEI the right to act as the Company’s exclusive marketing and sales agent for natural resources products produced, mined and/or sold by the Company, excluding the Company’s ZeoSure products (see Note 4), in Asia excluding the nation of India. As of September 30, 2013, the Company and FEI are actively seeking to aggregate certain petroleum products and coal supplies owned by others for export to identified buyers in Asia. The completion of these identified transactions is contingent on the finalization of financial and supply arrangements. | ||||||||
As a condition precedent to entering into the FEI/DTE Stock Purchase Agreement, the Company was required to enter into (i) forbearance agreements with certain of its major creditors and debtors (“Certain Creditors”) (“Forbearance Agreements”), (ii) the Second Amendment to Employment Agreement with Mr. Blackstone, Vice President and Chief Accounting Officer (“Blackstone Agreement”) and (iii) the First Amendment to Employment Agreement with Mr. Novinskie, President and Chief Financial Officer (“Novinskie Agreement”). The Forbearance Agreements provide for the Certain Creditors to agree to forbear from making a demand on the Company for payment of their debt for a period of two years from the date of the SPA. The Certain Creditors, Blackstone and/or Novinskie are entitled to receive accelerated payment of their debt should the Company, among other things, (i) have net income, (ii) sell equity securities, (iii) sell assets in excess of stated amounts and/or (iv) if the Company permits an Event of Default (as defined in the respective agreements) (“Accelerated Payments”). See notes 6, 7 and 11 of the notes to Consolidated Financial Statements for discussions regarding the Forbearance Agreements, the Blackstone Agreement and the Novinskie Agreements. At September 30, 2013, the Company is not required to make Accelerated Payments to the Certain Creditors, Blackstone or Novinskie. | ||||||||
The SPA contains provisions that restrict the use of the $1.5 million received by the Company as follows: | ||||||||
Initial | Restricted cash at | |||||||
Restriction | September 30, | |||||||
per the SPA | 2013 | |||||||
Forbearance Agreements, Novinskie Agreement and Blackstone Agreement | $ | 350,000 | $ | 15,000 | ||||
Marketing Agreement payments to FEI | 120,000 | 60,000 | ||||||
Other marketing and sales activities | 360,000 | 283,730 | ||||||
Transaction closing costs and related | 80,000 | 3,383 | ||||||
Oil and gas properties activities | 75,000 | 23,000 | ||||||
Mineral properties activities | 50,000 | 35,000 | ||||||
Future general and administrative expenses | 345,000 | 225,650 | ||||||
Other costs and expenses | 120,000 | 48,045 | ||||||
Total | $ | 1,500,000 | $ | 693,808 | ||||
2013 Private Placement | ||||||||
Commencing in January 2013, the Company offered a private placement under the provisions of Regulation D promulgated under the Securities Act of 1933, as amended (the “2013 Private Placement”). The 2013 Private Placement consists of up to five hundred thousand dollars ($500,000) for the issuance of up to 5 million shares of Common Stock at $0.10 per share and warrants to purchase up to 2 million shares of Common Stock at an exercise price of $0.50 per share. The warrants expire on January 16, 2018. The Company will utilize the proceeds of this private placement for general working capital purposes. At September 30, 2013, the Company had received cash totaling $411,000 for the sale of 4,110,000 shares of Common Stock and warrants to purchase 1,644,000 shares of Common Stock. | ||||||||
Certain Debt and Other Obligations | ||||||||
As of September 30, 2013, the Company and certain of its subsidiaries were in default of various obligations and certain debt obligations classified as current liabilities in the accompanying balance sheet as set forth in the following table: | ||||||||
Such defaulted obligations at September 30, 2013 include the following: | ||||||||
Amounts included in accounts payable: | ||||||||
Consulting services and interest due a licensor | $ | 19,009 | ||||||
EV&T – fees, expenses and accrued interest (subject to forbearance agreement) | 213,040 | |||||||
CAMI notes payable and accrued interest: | ||||||||
Subject to forbearance agreements | 830,534 | |||||||
Not subject to forbearance agreements | 32,171 | |||||||
EV&T note and interest (subject to forbearance agreement) | 1,202,318 | |||||||
Note payable to related party and interest thereon (subject to forbearance agreement) | 69,587 | |||||||
7.25% Convertible Debentures and interest due a related party (subject to forbearance | 46,689 | |||||||
agreement) | ||||||||
Note payable to former related party and interest thereon (subject to forbearance agreement) | 19,949 | |||||||
Amounts included in accrued compensation expense: | ||||||||
Subject to forbearance agreements | 597,009 | |||||||
Not subject to forbearance agreements | 94,791 | |||||||
Total | $ | 3,125,097 | ||||||
See Note 9 of the Notes to Consolidated Financial Statements regarding the cumulative dividends in arrears of $2,042,239 at September 30, 2013, applicable to the Series B 8% Cumulative Convertible Preferred Stock. | ||||||||
Liquidity | ||||||||
To obtain capital in the past, the Company’s capital obtainment methods have included selling its interest in certain oil and gas properties, and borrowing funds from and issuing Common Stock to related and unrelated parties, as well as utilizing joint venture structures. If the Company is not successful in increasing its operating cash flows and the preceding financing methods are not available, the Company may not be able to sustain its operations and may need to seek alternative actions to preserve shareholder value. | ||||||||
Liquidity is a measure of a Company’s ability to access cash. The Company has historically addressed its long-term liquidity requirements through the issuance of equity securities and borrowings or debt financing for certain activities. | ||||||||
At present, the Company does not have in place a credit facility or other line of credit upon which it may draw. As operating activities increase, the Company will evaluate the need for such a credit facility. For desired acquisitions or project enhancements, the Company must seek project specific financing. None of the Company’s properties are encumbered. See Note 4 regarding ZeoSure LLC. | ||||||||
The prices the Company receives for its oil and gas and the level of production have a significant impact on the Company’s cash flows. The Company is unable to predict, with any degree of certainty the prices the Company will receive for its future oil and gas production and the success of the Company’s exploration, exploitation and production activities. Increases in the sales of the Company’s minerals, which to date have not been mined in substantial commercial quantities, will also affect cash flow. | ||||||||
In an effort to address the liquidity shortfall, the Company sold certain of its oil and gas properties in 2012, is selling certain of its oil and gas properties in fiscal 2014 (see Note 15) and is evaluating the sale of certain additional oil and gas properties. It may take months and possibly longer to sell these properties at a suitable price. The market is affected by many factors, such as general economic conditions, availability of financing, interest rates and other factors, including supply and demand that are beyond our control. We cannot predict whether we will be able to sell a property for the price or on terms acceptable to us or whether any price or other terms offered by a prospective purchaser would be acceptable to us. We cannot predict the length of time needed to find a willing purchaser and to close the sale of any property. | ||||||||
The Company has used and shall use the proceeds from the transaction with FEI and DTE in an effort to establish additional profitable revenue generating activities. The Company is implementing its plan and creating sales, marketing, and distribution programs. The Company has employed a Vice President of Sales and intends to use internal and external resources to focus on mineral sales. In anticipation of increased sales, the Company’s plans include handling, storage and transportation modifications for the mineral properties. Also, the Company plans to continue its workover operations and other activities in certain of its Texas and West Virginia oil and gas properties to enhance its existing revenue stream and profitability. | ||||||||
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
BASIS OF PRESENTATION | ' | |||||||
2 | BASIS OF PRESENTATION | |||||||
Description of Business | ||||||||
Daleco Resources Corporation (“DRC”) is a Nevada corporation (organized in Nevada during 2002). DRC’s Articles provide for, among other things, authorized capital stock of 150 million shares of common stock and 20 million shares of preferred stock. During June 2013, DRC’s authorized shares of common stock were increased to 150 million shares from 100 million shares. DRC and its consolidated subsidiaries are referred to as the “Company”. The Company's segments consist of two separate categories: oil and natural gas and non-metallic minerals. DRC is a holding company whose subsidiaries are engaged in: (i) the exploration, development and production of oil and gas; (ii) the exploration for naturally occurring minerals; (iii) the marketing and sales of such minerals; and (iv) the marketing and sales of products utilizing such minerals. DRC’s wholly-owned subsidiaries include Westlands Resources Corporation (“WRC”), Deven Resources, Inc. (“DRI”), DRI Operating Company, Inc. (“DRIOP”), Tri-Coastal Energy, Inc. (“TCEI”), Clean Age Minerals, Inc. (“CAMI”), CA Properties, Inc. (“CAPI”), International Aggregation and Trading Company, LLC (IATC”), Sustainable Forest Industries, Inc. (“SFI”) and The Natural Resources Exchange, Inc. (“NREX”). | ||||||||
IATC, TCEI, SFI and NREX are inactive. | ||||||||
All of the Company’s oil and gas properties are located onshore within the continental United States of America. The Company, through its wholly-owned subsidiaries, WRC, DRIOP and DRI, owns and operates oil and gas properties located in Pennsylvania, Texas and West Virginia. The Company owns overriding royalty interests in (i) two wells in Pennsylvania and (ii) one well in Texas. The Company does not own working interests in the two wells located in Pennsylvania that it operates. | ||||||||
The Company does not refine any crude oil or market, at retail, any oil or petroleum products. The Company does not own any drilling rigs. All of its drilling activities are performed by independent drilling contractors. | ||||||||
DRI is the managing general partner of Deerlick Royalty Partners I, a Pennsylvania general partnership, which owns overriding royalty interests in seventy wells in the Deerlick Coalbed Methane Field located in Tuscaloosa County, Alabama. DRI is also the sole shareholder of DRIOP which operates wells and has oil and gas interests in West Virginia and Pennsylvania. | ||||||||
As of September 30, 2013, the Company owned working interests in 28 wells in Texas and West Virginia. Throughout 2013, the Company has experienced an average increase of 3% in the unit of production weighted average sales price it received for its oil and natural gas products as compared to 2012. | ||||||||
CAMI, through its wholly-owned subsidiary, CAPI (collectively “CAM”), owns a fee title interest, leasehold interest and Federal Placer and Lode mining claims containing non-metallic and other minerals in Texas, New Mexico and Utah. CAM is presently engaged in the exploration for such minerals. CAM intends to mine the minerals through the use of contract miners and arrangements with its joint venture partner. | ||||||||
The Company is primarily engaged in oil and gas operations and non-metallic minerals activities. | ||||||||
We follow accounting standards set by the Financial Accounting Standard Board, commonly referred to as “FASB”. The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our consolidated financial position, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification, sometimes referred to as the “Codification” or “ASC”. From time to time, the FASB may issue an Accounting Standards Update (“ASU”) which may impact the consolidated financial statements and disclosures therein (see “Recent Accounting Pronouncements”). | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | ||||||||
Significant estimates made in preparing these consolidated financial statements include, among other things, estimates of the proved oil and natural gas reserve volumes used in calculating depletion, depreciation and amortization expense (“DD&A”); the estimated future cash flows and fair value of properties used in determining the need for any impairment write-down; volumes and prices for revenues accrued; estimates of the fair value of equity-based compensation awards; deferred tax valuation and the timing and amount of future abandonment costs used in calculating asset retirement obligations. Future changes in the assumptions used could have a significant impact on reported results in future periods. The significant estimates are based on current assumptions that may be materially affected by changes to future economic conditions such as the market prices received for sales of volumes of oil and natural gas, interest rates and our ability to generate future income. | ||||||||
Basis of Consolidation | ||||||||
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and include the accounts of DRC and its wholly-owned subsidiaries. The Company’s investments in oil and gas leases are accounted for using proportionate consolidation whereby the Company’s pro rata share of each of the assets, liabilities, revenues and expenses of the investments are aggregated with those of the Company in its consolidated financial statements. The Company’s investments in minerals are accounted for using purchase accounting methods. | ||||||||
Certain reclassifications have been made to prior period consolidated financial statements to conform to the current presentation. | ||||||||
Cash and Restricted Cash Deposits | ||||||||
Cash totals $140,607 and $190,738 at September 30, 2013 and 2012, respectively. | ||||||||
Restricted cash deposits - operations totaling $109,681 and $109,609 at September 30, 2013 and 2012, respectively, are classified as other assets in the accompanying balance sheets as they support financial assurance requirements for the Company’s operations of its mineral properties and its oil and gas properties in certain states as follows: | ||||||||
2013 | 2012 | |||||||
Texas and West Virginia oil and gas operations bonding requirements | $ | 60,012 | $ | 60,010 | ||||
New Mexico minerals operations bonding requirements | $ | 49,669 | $ | 49,599 | ||||
Restricted cash deposits – equity issuances total $693,808 as of September 30, 2013 as discussed in Note 1. | ||||||||
Accounts Receivable | ||||||||
Our trade accounts receivable, which are primarily from oil and natural gas sales and joint interest billings, are recorded at the invoiced amount and include production receivables. The production receivables are valued at the invoiced amounts and do not bear interest. Accounts receivable also include joint interest billing receivables which represent billings to the non-operators associated with the drilling and operation of wells and are based on those owners’ working interests in the wells. We have assessed the financial strength of our customers and joint owners and determined that an allowance of $25,000 for estimated uncollectible amounts was necessary at September 30, 2013 and 2012. | ||||||||
Subscriptions Receivable and Interest Receivable | ||||||||
As of September 30, 2013, management of the Company believes that the collection of the principal balance of and interest due pursuant to a certain note receivable is in doubt (see Note 11). As of September 30, 2012, the Company changed to the recovery method in accounting for the notes receivable and interest thereon. Accordingly, the principal and interest will be recorded when, and if, collected. This change to the recovery method resulted in the recognition of $207,025 as an impairment of the interest receivable at September 30, 2012. The principal balance of the notes receivable ($576,000) was previously reflected as subscriptions receivable. Additional paid-in capital was reduced by $576,000 as of September 30, 2012, to reflect the impairment of the notes receivable. | ||||||||
Inventory | ||||||||
At September 30, 2013, we have $40,500 of inventory relating to our minerals activities. During September 2013, the company produced saleable minerals from its zeolite mineral deposit in Texas and shipped the material to a processing and fulfillment facility in Pennsylvania. Such inventory is recorded at the lower of average cost or market. Sales of the processed and unprocessed product to identified customers commenced in October 2013. We had no inventory at September 30, 2012, relating to our minerals activities. | ||||||||
We have no inventory at September 30, 2013 or 2012 relating to our oil and gas activities. | ||||||||
Prepaid Consulting Services Agreements Fees | ||||||||
Consulting Services Agreement | ||||||||
The Company issued 2,400,000 shares in connection with the Consulting Services Agreement with the Musser Group during 2011 which has been extended to February 2014. The shares of common stock issued to individuals associated with the Musser Group were valued at $360,000, the market price at time of issuance ($0.15 per share). Also, the Company issued to individuals associated with the Musser Group warrants for the purchase of 2,500,000 shares of Common Stock at an exercise price of $0.15 per share. The warrants may not be exercised unless and until the average bid and asking closing price of the Company’s Common Stock exceeds $1.00 per share for a period of thirty consecutive trading days. The warrants are exercisable through February 24, 2016. The fair value of the warrants was determined to be $375,153 using the Black-Scholes valuation model and the following assumptions: a contractual term of 5 years, risk free interest rate of 2.16%, dividend yields of 0%, and volatility of 163%. The Company filed a registration statement under the Securities Act of 1933 on Form S-8 for the shares of Common Stock issued to individuals associated with the Musser Group. The total fair value of the shares of Common Stock and the warrants issued individuals associated with to the Musser Group amounted to $735,153 and such amount was recorded as prepaid consulting fees. | ||||||||
Investor Relations Firm Consulting Agreement | ||||||||
In March 2013, the Company engaged an investor relations firm (“IR Firm”) to assist management in such activities for one year. The Company issued 600,000 shares (valued at $0.11 per share) of Common Stock to the IR Firm and such contract requires monthly payments of cash of $5,000 during the term of the agreement. The Company is amortizing the prepaid consulting fees of $66,000, the value of the shares, over the term of the contract with the IR Firm and unamortized consulting fees total $30,559 at September 30, 2013. | ||||||||
The prepaid consulting fees are being amortized over the lives (initial terms) of the respective agreements. At September 30, 2013 and 2012, prepaid consulting services agreement fees totaled $30,559 and $151,237, respectively, and was classified as a current asset. Amortization of $186,678 and $366,575, respectively, is included in general and administrative expenses during 2013 and 2012. | ||||||||
Intangible Assets | ||||||||
The Company follows FASB issued authoritative guidance for recording intangible assets, including prepaid mineral royalties, which discontinues the amortization of identifiable intangible assets that have indefinite lives. In accordance with FASB issued authoritative guidance, these identifiable intangible assets that have indefinite lives are tested for impairment on an annual basis, or whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. Should we determine that such carrying amounts are greater than the estimated future benefit of the expected production from the mineral properties, we consider the asset to be impaired. The impairment to be recognized is measured by the amount that the carrying amount of an asset group exceeds the fair value of such asset group. | ||||||||
Prepaid Mineral Royalties | ||||||||
The Company receives a credit in the nature of prepaid mineral royalties for advance royalties paid on the Texas zeolite lease located in Presidio County, Texas. At September 30, 2013 and 2012, recoupable mineral royalties were $539,237 and $509,254, respectively. At September 30, 2012, such amount of prepaid mineral royalties is classified as an Other Asset in the accompanying Consolidated Balance Sheets. No portion was classified as a current asset as the Company’s agreements concerning sales of such mineral do not have any minimum supply requirements (as discussed in Note 8). As part of our annual impairment test as of September 30, 2013, and in connection with the Company entering the production phase of its Texas Zeolite minerals in the fourth quarter of fiscal 2013, we assessed the estimated future benefit of the royalty advances paid. This assessment was based on the expected production from the mineral properties. Although we are optimistic about the future cash flow of our mineral properties, the future results from our sales efforts and market growth cannot be assured. Based upon this information, we have determined that we are uncertain when we will be able to realize the prepaid mineral royalties at September 30, 2013, and that these assets may not be recoverable through future operations; therefore, we recognized an impairment expense of $539,237 in 2013. | ||||||||
Patent Rights and Patent License Rights | ||||||||
At September 30, 2013, the intangible assets consisted of patent rights of $6,620. The patent rights will be amortized over the life of such patents commencing in fiscal 2014. | ||||||||
The patent license rights were amortized over the initial term of the agreement. Such initial term expired in 2013. See Note 5. | ||||||||
Mineral Properties and Reserves | ||||||||
The Company has not produced large-scale quantities of any of its mineral deposits. During September 2013, the company produced saleable minerals from its zeolite mineral deposit in Texas (“Texas Zeolite”). The Company is in the production phase of its Texas Zeolite as saleable minerals have been extracted (produced) from such mineral deposit. By definition, the Company is in the Development Stage in respect to its Texas Zeolite and is in the Exploration Stage in respect to its Sierra Kaolin mineral holdings in New Mexico (“Sierra Kaolin”) and its zeolite mineral holdings in Utah (“Utah Zeolite”). As such, no proved reserves are estimated. At September 30, 2013 and 2012, net mineral properties were $9,782,128. The Company previously amortized its mineral properties at a nominal amortization rate as the Company has not produced commercial quantities of any of its mineral deposits. Once the Company produces commercial quantities of any of its mineral deposits, we will use the unit-of-production method in calculating cost depletion. | ||||||||
We recorded the acquisition of Clean Age Minerals, Inc., and associated minerals rights on September 19, 2000, at cost as based on the stated value of the Series B Preferred Stock issued which was less than the appraised value of the entity acquired. | ||||||||
Oil and Natural Gas Property - Depreciation, Depletion and Amortization (“DD&A”) | ||||||||
We account for natural gas and oil exploration and production activities under the successful efforts method of accounting. Proved developed natural gas and oil property acquisition costs are capitalized when incurred. Unproved properties with individually significant acquisition costs are assessed periodically on a property-by- property basis, and any impairment in value is recognized. If the unproved properties are determined to be productive, the appropriate related costs are transferred to proved natural gas and oil properties. Natural gas and oil exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. The costs of drilling exploratory wells are capitalized pending determination of whether they have discovered proved commercial reserves. If proved commercial reserves are not discovered, such drilling costs are expensed. Costs to develop proved reserves, including the costs of all development well and related equipment used in the production of natural gas and oil, are capitalized. | ||||||||
DD&A is calculated using the unit-of-production method on estimated proved oil and gas reserves at the field, lease, unit or well level. In arriving at rates under the unit-of-production method, the quantities of recoverable oil and natural gas are established based on estimates made by our independent engineers. We periodically review estimated proved reserve estimates and make changes as needed to DD&A expenses to account for new wells drilled, acquisitions, divestitures and other events which may have caused significant changes in our estimated proved developed producing reserves. The costs of unproved properties are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned, the cost of the property is added to costs subject to depletion calculations. Non-producing properties consist of undeveloped leasehold costs and costs associated with the purchase of certain proved undeveloped reserves. Undeveloped leasehold cost is allocated to the associated producing properties as the undeveloped acreage is developed. Individually significant non-producing properties are periodically assessed for impairment of value. Service properties, equipment and other assets are depreciated using the straight-line method over their estimated useful lives of three to 30 years. | ||||||||
When circumstances indicate that an asset may be impaired, we compare expected undiscounted future cash flows at a producing field to the unamortized capitalized cost of the asset. If the future undiscounted cash flows, based on our estimate of future natural gas and oil prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value. Fair value is calculated by discounting the future cash flows at an appropriate risk-adjusted discount rate. When evaluating our unproved oil and gas properties, we utilize active market prices for similar acreage to use as a comparison tool against the carrying value of our properties. If the active market prices for similar acreage do not support our carrying values we then utilize estimates of future value that will be created from the future development of these properties. If future estimated fair value of these properties is lower than the capitalized cost, the capitalized cost is reduced to the estimated future fair value. | ||||||||
Expenditures for repairs and maintenance to sustain production from the existing producing reservoirs are charged to expense as incurred. Expenditures to recomplete a current well in a different unproved reservoir are capitalized pending determination that economic reserves have been added. If the recompletion is not successful, the expenditures are charged to expense. | ||||||||
Significant tangible equipment added or replaced that extends the useful or productive life of the property is capitalized. Expenditures to construct facilities or increase the productive capacity from existing reservoirs are capitalized. | ||||||||
Upon the sale or retirement of a proved natural gas or oil property, or an entire interest in unproved leaseholds, the cost and related accumulated DD&A are removed from the property accounts and the resulting gain or loss is recognized. For sales of a partial interest in unproved leaseholds for cash or cash equivalents, sales proceeds are first applied as a reduction of the original cost of the entire interest in the property and any remaining proceeds are recognized as a gain. | ||||||||
Natural Gas and Oil Reserve Quantities | ||||||||
Our estimate of proved reserves is based on the quantities of oil and natural gas that engineering and geological analyses demonstrate, with reasonable certainty, to be recoverable from established reservoirs in the future under current operating and economic parameters. For the years ended September 30, 2013 and 2012, Hall Energy, Inc. (“HEI”) prepared a consolidated reserve and economic evaluation of our proved oil and gas reserves. The preparation of our proved reserve estimates are completed in accordance with our internal control procedures, which include the verification of input data used by HEI, as well as management review and approval. Reserves and their relation to estimated future net cash flows impact our depletion and impairment calculations. As a result, adjustments to depletion and impairment are made concurrently with changes to reserve estimates. Estimates of our crude oil and natural gas reserves, and the projected cash flows derived from these reserve estimates, are prepared by HEI in accordance with guidelines established by the SEC, including the rule revisions designed to modernize the oil and gas company reserves reporting requirements and which we adopted effective September 30, 2010. The independent reserve engineer estimates reserves annually on September 30. This annual estimate results in a new DD&A rate, which we use for the preceding fourth quarter after adjusting for fourth quarter production. | ||||||||
Office Equipment, Furniture and Fixtures | ||||||||
Office Equipment, Furniture and Fixtures are recorded at cost and depreciated using the straight-line method over a period of three to seven years. | ||||||||
Impairment of Long-Lived Assets | ||||||||
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets exceeds the fair value of the assets. At September 30, 2013 and 2012, we assessed the recovery of our long-lived assets, including our minerals properties and we determined that the carrying amount of each of the asset groups of mineral properties did not exceed the estimated future net cash flows expected to be generated by each respective asset group. | ||||||||
Long-Lived Assets to be Disposed Of | ||||||||
Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The oil and gas leasehold rights subject to a purchase and sale agreement dated October 6, 2013 (see Note 15), have no carrying amount in the accompanying Consolidated Balance Sheets as of September 30, 2013 and 2012. | ||||||||
Environmental Remediation | ||||||||
The Company's policy is to accrue environmental and cleanup related costs of a noncapital nature when it is both probable that a liability has been incurred and when the amount can be reasonably estimated. The Company accrues for certain environmental remediation related activities for which commitments or cleanup plans have been developed or for which costs or minimum costs can be reasonably estimated. It is reasonably possible that, due to uncertainties associated with defining the nature and extent of contamination, application of laws and regulations by regulatory authorities and changes in remediation technology, the ultimate cost of remediation could materially change in the future. Any liability established would not necessarily be the minimum or maximum liability, but based upon the Company's experience and the advice of its outside consultants; it would most accurately reflect the Company's liability based on the information currently available. As a general rule, the Company accrues remediation costs for continuing operations on a discounted basis and does not accrue for normal operating and maintenance costs for site monitoring and compliance requirements. It has not been necessary for the Company to record any environmental remediation costs for 2013 and 2012. | ||||||||
Capital Leases | ||||||||
As of September 30, 2013, we had no capital leases. As a lessee, we determine if a lease is a capital lease if it meets one of four of the following criteria: | ||||||||
• | The ownership of the leased property transfers to us by the end of the lease term, or shortly thereafter, in exchange for the payment of a nominal fee. | |||||||
• | The lease contains a bargain purchase option. | |||||||
• | The lease term is equal to 75% or more of the estimated economic life of the leased property. | |||||||
• | The present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executor costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90% of the excess of the fair value of the leased property to the lessor at the lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. | |||||||
Asset Retirement Obligation | ||||||||
The Company may have an obligation to retire property, plant, and equipment at the end of their useful fives. The Company performs periodic reviews for any changes in facts and circumstances that might enable it to determine a reasonable estimate of any asset retirement obligation (“ARO”). When an ARO is necessary, the Company estimates the fair value, establishes a liability, and increases the carrying value of the assets by a corresponding amount. | ||||||||
An ARO associated with the retirement of a tangible long-lived asset is required to be recognized as a liability in the period in which it is incurred and becomes determinable. Under this method, when liabilities for dismantlement and abandonment costs, excluding salvage values, are initially recorded, the carrying amount of the related assets (mineral, oil and natural gas properties) is increased. The fair value of the ARO asset and liability is measured using expected future cash outflows discounted at the credit-adjusted risk-free interest rate. Accretion of the liability is recognized each period using the interest method of allocation, and the capitalized cost is depleted over the useful life of the related asset. The estimated residual salvage values are taken into account in determining amortization and depreciation rates. | ||||||||
Generally, the salvage value of the Company’s producing wells or mining deposits is expected to exceed the cost of site restoration and abandonment. To date, mining and exploration activities of the Company's mineral deposits have been conducted by contract mining companies. As mining activity increases, the Company may accrue site restoration costs as appropriate. | ||||||||
As of September 30, 2013 and 2012, the Company has accrued future abandonment costs of $10,000 of costs associated with the potential abandonment and restoration of a mining deposit that was abandoned prior to fiscal 2010. | ||||||||
Fair Value Measurements | ||||||||
The Company’s only financial instruments are cash, short-term trade receivables, payables and debt. The carrying amounts reported in the accompanying consolidated financial statements for cash, short-term trade receivables, payables and debt approximate fair values because of the immediate nature of short-term maturities of these financial instruments. The Company has no long-term or short-term bank debt outstanding at September 30, 2013. | ||||||||
Revenue Recognition | ||||||||
Oil and Gas Sales | ||||||||
Oil and natural gas revenue is recognized when the oil or natural gas is delivered to or collected by the respective purchaser, a sales agreement exists, collection for amounts billed is reasonably assured and the sales price is fixed or determinable. Title to the produced quantities transfers to the purchaser at the time the purchaser collects or receives the products. In the case of oil sales, title is transferred to the purchaser when the oil leaves the stock tanks and enters the purchaser’s trucks. In the case of gas production, title is transferred when the gas passes through the meter of the purchaser. It is the measurement of the purchaser that determines the amount of oil or gas purchased (although there are provisions for challenging these measurements if the Company believes the measurements are incorrect). Prices for such production are defined in sales contracts and may be based on certain publicly available indices. The purchasers of such production have historically made payment for oil and natural gas purchases within 30-60 days of the end of each production month. The Company periodically reviews the difference between the date of production and the date the Company collects payment for such production to ensure that receivables from those purchasers are collectible. The point of sale for the oil and natural gas production is at its applicable measurement facility; generally, the Company does not incur transportation costs related to our sales of oil and natural gas production. The Company does not currently participate in any gas-balancing arrangements. The Company does not recognize revenue for oil production held in stock tanks before delivery to the purchaser. | ||||||||
To the extent actual quantities and values of oil and natural gas are unavailable for a given reporting period because of timing or information not received from third parties, the expected sales volumes and price for those properties are estimated and recorded as Accounts Receivable in the accompanying consolidated financial statements. | ||||||||
Well Management Revenue | ||||||||
The amounts which may be charged by the Company for well management are set forth in the joint operating agreements governing the wells operated by the Company. Such well management fees consist of monthly operating charges as well as fees related to certain maintenance and capital improvements charged by the Company as operator of the applicable properties. Revenue is recognized when such fees are earned pursuant to the terms of such underlying agreements and collection for amounts billed is reasonably assured. | ||||||||
Mineral Sales | ||||||||
Mineral sales revenue is recognized when the mineral is delivered to or collected by the respective purchaser, a sales agreement exists, collection for amounts billed is reasonably assured and the sales price is fixed or determinable. Title to the product transfers to the purchaser at the time the purchaser collects or receives the products. | ||||||||
Income Taxes | ||||||||
We provide for income taxes using the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We evaluate our tax positions in a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination. The second step is a measurement process whereby a tax position that meets the more-likely-than-not threshold is calculated to determine the amount of benefit to recognize in the consolidated financial statements. See Note 10. | ||||||||
Stock-based Compensation | ||||||||
We account for all stock-based compensation (options) in accordance with FASB ASC 718. Under ASC 718, the fair value of stock options and compensation costs are measured as of the grant date. Under ASC 718, stock-based awards granted prior to its adoption will be expensed over the remaining portion of their vesting period. We amortize stock-based compensation expense on a straight-line basis over the requisite vesting period, which generally ranges from one to five years. | ||||||||
ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Stock-based compensation expense has been recorded for 2013 and 2012 such that expense was recorded only for those stock-based awards that are expected to vest. Options granted to non-employees are recognized in these consolidated financial statements as compensation expense (See Note 9) using the Black-Scholes option-pricing model. | ||||||||
Comprehensive Loss | ||||||||
Summary of items of comprehensive loss for fiscal 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
Net loss (comprehensive loss) | $ | -2,024,509 | $ | -772,579 | ||||
During March 2012, management of the Company concluded that the securities available for future sale were permanently impaired and accordingly $5,699 was recognized as impairment of securities available for future sale in the accompanying consolidated statement of operations and is reflected in net loss for 2012. See Note 5. | ||||||||
Net Income (Loss) Per Share | ||||||||
Net income (loss) per share is computed in accordance with FASB ASC Topic 260, "Earnings per Share". Basic net income (loss) per share is calculated by dividing the net income (loss) available to common stockholders by the weighted average number of shares outstanding during the year. Diluted earnings per share reflect the potential dilution of securities that could share in earnings of an entity. In a loss year, dilutive common equivalent shares are excluded from the loss per share calculation as the effect would be antidilutive. | ||||||||
At September 30, 2013 and 2012, options and warrants to purchase 26,144,000 and 5,250,000 shares of common stock, respectively, were outstanding. Such shares were not included in the computation of diluted earnings per share because such shares subject to options and warrants would have an antidilutive effect on net loss per share. The 321,429 shares of Common Stock issuable upon the conversion of the 7.25% Convertible Debentures (see Note 6) at September 30, 2013 and 2012 have not been included in the computation of diluted earnings per share because such shares would have an anti-dilutive effect on net loss per share. The 1,071,937 shares of Common Stock issuable upon the conversion of the Convertible Note Payable as of September 30, 2012 (see Note 6) have not been included in the computation of diluted earnings per share because such shares would have an anti-dilutive effect on net loss per share and because the price at which such shares are convertible was in excess of the market price of the Common Stock at September 30, 2012. The 1,080,000 shares of Common Stock issuable upon the conversion of the Series B 8% Cumulative Convertible Preferred Stock as of September 30, 2013 and 2012 (see Note 9), have not been included in the computation of diluted earnings per share because the price ($1.25) at which such shares are convertible was in excess of the market price of the Common Stock at such date. No other adjustments were made for purposes of per share calculations. | ||||||||
Concentrations of Credit Risk | ||||||||
At times during the fiscal years ended September 30, 2013 and 2012, the cash balance exceeded the Federal Deposit Insurance Corporation’s limit of $250,000. There were no losses incurred due to such concentrations. | ||||||||
During the fiscal years ended September 30, 2013 and 2012, the Company did not use derivative instruments to hedge exposure to changes in commodity prices. | ||||||||
The Company also depends on a relatively small number of purchasers for a substantial portion of our revenue. At September 30, 2013, accounts receivable includes approximately $225,399 of joint interest billings and production receivables due primarily from four customers – ETC Texas Pipeline, Ltd., GulfMark Energy, Inc., Sheridan Production Company LLC and Volunteer Energy Services, Inc. | ||||||||
Recent Accounting Pronouncements | ||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The ASU’s main provision: An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and early adoption is permitted. Entities are permitted to provide the new disclosures retrospectively for all comparative periods. The Company is currently assessing the impact that the adoption may have on its consolidated financial statements. | ||||||||
In January 2013, the FASB issued ASU 2013-01, Balance Sheet (topic 210), Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities The ASU’s main provision: The amendments clarify that the scope of Update 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Entities are required to provide the new disclosures retrospectively for all comparative periods. The Company is currently assessing the impact that the adoption may have on its consolidated financial statements. | ||||||||
OIL_AND_GAS_PROPERTIES
OIL AND GAS PROPERTIES | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Oil and Gas Property [Abstract] | ' | |||||||
OIL AND GAS PROPERTIES | ' | |||||||
3 | OIL AND GAS PROPERTIES | |||||||
Oil and Gas Properties at September 30: | ||||||||
2013 | 2012 | |||||||
Proved oil and gas properties | $ | 4,471,590 | $ | 4,471,590 | ||||
Support equipment and facilities | - | - | ||||||
Uncompleted wells, equipment and facilities | - | - | ||||||
4,471,590 | 4,471,590 | |||||||
Accumulated depletion, depreciation and amortization | -4,144,939 | -4,096,939 | ||||||
Net Oil and Gas Properties | $ | 326,651 | $ | 374,651 | ||||
During 2013, the Company did not incur any property acquisition, exploration or development costs. During 2012, the Company (1) incurred $47,078 of acquisition costs of proved developed producing properties and (2) did not incur any exploration or development costs. The Company did not have any capitalized exploratory well costs at the beginning of 2012. All of the Company’s oil and gas activities are on-shore in the United States. | ||||||||
See Notes 13, 14 and 15 for more information regarding the Company’s oil and gas properties. | ||||||||
Results of Operations for Oil and Gas Producing Activities for Fiscal 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Revenues: | ||||||||
Oil and gas sales | $ | 404,225 | $ | 373,443 | ||||
Well management revenue | 262,813 | 287,446 | ||||||
Royalty receipts | 4,799 | 3,532 | ||||||
Total revenues | 671,837 | 664,421 | ||||||
Expenses and other: | ||||||||
Lease operating expenses | 237,661 | 182,027 | ||||||
Production and severance taxes | 22,022 | 20,878 | ||||||
Depreciation, depletion, amortization and valuation provisions | 48,000 | 60,000 | ||||||
Total Expenses | 307,683 | 262,905 | ||||||
Revenues in excess of expenses | 364,154 | 401,516 | ||||||
Provision for doubtful account - proceeds receivable from prior sale of oil and gas | - | -25,000 | ||||||
properties | ||||||||
Gain on sale of oil and gas properties | - | 898,335 | ||||||
Results of operations before income tax expenses | 364,154 | 1,274,851 | ||||||
Income tax expenses (1) | - | - | ||||||
Results of operations from oil and gas producing activities (excluding corporate | $ | 364,154 | $ | 1,274,851 | ||||
overhead and interest costs) | ||||||||
(1) The Company presently has approximately $24 million of loss carryforwards for Federal income tax purposes. Based on these loss carryforwards, no income tax expense is recognized for this segment. | ||||||||
In September 2013, WRC received an enforcement action from the Texas Railroad Commission (“RRC”). Due to the enforcement action, the renewal of WRC’s operator's permit was suspended until such action is resolved. Certain of WRC’s operated wells continue to pump and oil is stored oil in production tanks. Certain of WRC’s operated wells are not producing as the respective production tanks have reached their capacity limitations. WRC is not permitted to sell oil until its operator’s permit is renewed. As such, the Company's consolidated revenues for the first quarter of 2014 will be significantly lower than the first quarter of 2013. Depending on the timing of the resolution of the renewal of such permit, the Company's consolidated revenues for the second quarter of 2014 may also be higher or lower than the second quarter of 2013. Management of the company anticipates the renewal of the operator’s permit to be completed during the second quarter of 2014; however there can be no assurances as to when the renewal of WRC’s operator’s permit will be approved by the RRC and when the sales of oil from WRC’s operated properties will resume. | ||||||||
Sale of Oil and Gas Property Leasehold Deep Rights | ||||||||
On January 20, 2012, the Company entered into a purchase and sale agreement (the “PSA”) pursuant to which the Company agreed to sell certain oil and natural gas leasehold deep rights in Pennsylvania for cash of $898,335, subject to adjustment as to any title defect that is not cured within the timeframe permitted by the PSA. The sale closed on March 28, 2012. The Company received $898,335 at the closing and recognized gain in the amount of proceeds received. The oil and natural gas leasehold deep rights that were sold were undeveloped, and as such not income-producing to the Company. There is no material relationship between the purchaser of the assets and the registrant or any of its affiliates, or any director or officer of the registrant, or any associate of any such director or officer. A provision of the Agreement requires that the Company shall not make any public announcement or statement concerning the Agreement other than that which the Company is required to disclose on Form 8-K and other filings with the Securities and Exchange Commission. Also see Note 15 for asset purchase and sale agreement entered into subsequent to September 30, 2013. | ||||||||
Customers | ||||||||
The Company’s customers who purchased in excess of five percent (5%) of the Company’s oil and gas during 2013 and 2012 are as follows: | ||||||||
Percentage | ||||||||
Name of Purchaser | 2013 | 2012 | ||||||
ETC Texas Pipeline, Ltd. | 24 | % | 27 | % | ||||
GulfMark Energy, Inc. | 53 | % | 45 | % | ||||
Sheridan Production Company LLC | 13 | % | 16 | % | ||||
Volunteer Energy Services, Inc. | 7 | % | 10 | % | ||||
Provision for Doubtful Accounts - Proceeds Receivable from Prior Sale of Oil and Gas Properties | ||||||||
As of September 30, 2013, management of the Company believes that the collection of a portion of a $50,000 receivable relating to the sale of certain oil and gas properties during 2008 is in doubt. The Company recognized a provision for doubtful accounts of $25,000 during 2012. | ||||||||
MINERAL_PROPERTIES_AND_RESULTS
MINERAL PROPERTIES AND RESULTS OF OPERATIONS | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Mineral Industries Disclosures [Abstract] | ' | |||||||
MINERAL PROPERTIES AND RESULTS OF OPERATIONS | ' | |||||||
4 | MINERAL PROPERTIES AND RESULTS OF OPERATIONS | |||||||
Clean Age Minerals, Inc. | ||||||||
DRC acquired CAMI in September 2000. CAMI, through its wholly-owned subsidiary, CA Properties, Inc., a Nevada corporation, owns or has under long-term lease: (a) approximately 5,200 acres in Marfa, Presidio County, Texas, containing high grade zeolite; (b) twenty-five mining claims located in Sierra County, New Mexico, covering approximately 2,720 acres of kaolin; and (c) eleven zeolite mining claims covering approximately 220 acres located in Beaver County, Utah. The Company has not produced large-scale quantities of any of its mineral deposits. During 2013 and 2012, the Company continued extraction of minor quantities of its zeolite for use in testing and field trial applications of ReNuGen™ and for testing in air purification and soil decontamination. During September 2013, the company produced saleable minerals from its Texas Zeolite. The Company is in the production phase of its Texas Zeolite as saleable minerals have been extracted (produced) from such mineral deposit. By definition, the Company is in the Development Stage in respect to its Texas Zeolite and is in the Exploration Stage in respect to its Sierra Kaolin and Utah Zeolite. The Company’s ability to develop these mineral deposits is dependent on its success in bringing in strategic partners with experience or a demand for specific minerals and raising capital through third parties. | ||||||||
At September 30, 2013, we have $40,500 of inventory relating to our minerals activities. Such inventory is recorded at the lower of average cost or market. Sales of the processed and unprocessed product to identified customers commenced in October 2013. We had no inventory at September 30, 2012, relating to our minerals activities. | ||||||||
Minerals Properties and Equipment | ||||||||
At September 30: | 2013 | 2012 | ||||||
Undeveloped lease costs | $ | 9,877,128 | $ | 9,877,128 | ||||
Mine development costs | - | - | ||||||
9,877,128 | 9,877,128 | |||||||
Accumulated, depreciation, depletion and amortization (see Note 2) | -95,000 | -95,000 | ||||||
Net Mineral Properties | $ | 9,782,128 | $ | 9,782,128 | ||||
Results of Operations for Minerals Properties Activities for Fiscal 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Mineral Sales | $ | 7,652 | $ | 5,626 | ||||
Operating and other expenses | -30,083 | -19,121 | ||||||
Impairment of prepaid mineral royalties (see Note 2) | -539,237 | - | ||||||
Depreciation, depletion, amortization and valuation provisions | -4,556 | -253,612 | ||||||
-566,224 | -267,107 | |||||||
Income tax expenses (benefits) (1) | - | - | ||||||
Results of operations from mineral properties activities (excluding corporate | $ | -566,224 | $ | -267,107 | ||||
overhead and interest costs) | ||||||||
-1 | The Company presently has approximately $24 million of loss carryforwards for Federal income tax purposes. Based on these loss carryforwards, no income tax benefits are recognized for this segment. | |||||||
The Company sells one of its CA Series Products under a tradename, ReNuGen™, which is used in wastewater treatment facilities. Shipment totaled six and five tons for 2013 and 2012, respectively. | ||||||||
The Company sells another of its CA Series Products under a tradename, CiteClean™, which is used in remediation activities. The Company shipped one ton during 2013. | ||||||||
Depreciation, depletion, amortization and valuation provisions include amortization of patent rights and patent license rights (see Note 5) of $4,556 and $253,612 for 2013 and 2012, respectively. | ||||||||
The Company previously amortized its mineral properties at a nominal amortization rate as the Company has not produced commercial quantities of any of its mineral deposits. Once the Company produces commercial quantities of any of its mineral deposits, the Company will use the unit-of-production method in calculating cost depletion. | ||||||||
In fiscal 2005, the Company entered into the Sierra Kaolin Operating Agreement with TPA covering the Company’s kaolin claims in Sierra County, New Mexico. In fiscal 2007, the Company entered into a Revised and Restated Agreement with TPA governing operations of the Sierra Kaolin claims. Under these agreements, TPA assumed the duties to mine, test and market the Company’s Sierra Kaolin. In December 2009, the proposed Sierra Kaolin Open Pit Clay Mine project cleared the regulatory review process and the project’s definitive USDA Forest Service Plan of Operations was approved. This will facilitate the project moving to the next phases, including site preparation for extraction operations and the continued evaluation of potential product specific marketing arrangements with certain third parties. | ||||||||
During fiscal 2010, the Company entered into an agreement to sell zeolite to be used in certain agricultural applications including but not limited to feed supplements and soil additives in a ten state area in the south-central part of the US. On August 10, 2012, the Company gave notice to the purchaser to terminate the agreement in October 2012 pursuant to the notice provision provided in the agreement. The Company is seeking alternatives for the sale of its zeolite to be used in agricultural applications. There were no shipments during fiscal 2013 and 2012. | ||||||||
On July 3, 2012, CAMI entered into an operating agreement for ZeoSure LLC (“ZLLC”) as one of ZLLC’s two managing members. ZLLC was formed for the purpose of developing human consumption products including but not limited to detoxification and digestive supplements and human consumable products utilizing CAPI’S Clinoptilolite zeolite mineral focusing on markets throughout the world with a primary emphasis on markets in the United States and Asia. CAMI and SafeHatch LLC, an entity controlled by an individual affiliated with the Musser Group, are the managing members and each owns 47.5% of ZLLC. The remaining 5% of ZLLC is owned by the Musser Group. The members of ZLLC intend to seek initial capital of $1 million from third parties and enter into product marketing and distribution agreements with participants active within the dietary supplements market in the next few months. The operating agreement has not been ratified by the Audit Committee of the Board of Directors of the Company. Other than seeking initial capital, ZLLC had no activity through September 30, 2013. | ||||||||
PATENT_AND_TECHNOLOGY
PATENT AND TECHNOLOGY | 12 Months Ended | |
Sep. 30, 2013 | ||
Patent And Technology [Abstract] | ' | |
PATENT AND TECHNOLOGY | ' | |
5 | PATENT AND TECHNOLOGY | |
Patent Rights | ||
As part of the acquisition of Clean Age Minerals, Inc., the Company also acquired U.S. Patent No. 5,387,738. This patent, owned by Clean Age Minerals, Inc. (previously owned by Matrix-Loc, Inc., which was acquired by Clean Age Minerals, Inc., as a result of Matrix-Loc’s merger with Clean Age Minerals, Inc., as of March 18, 2002), deals with a reagent and process for the remediation of water and contaminated soils. The patent expired February 7, 2012, and was fully amortized as of September 30, 2013 and 2012. | ||
During 2013, the Company filed several provisional patents relating to the use of their CA Series products in certain systems and processes. Specifically, the provisional patents relate to a system and method for applying a zeolitic material useful for converting a contaminated waste material that is environmentally unacceptable to a relatively harmless substance which is environmentally acceptable. Additional applications include utilizing similar zeolite-based products in acid mine drainage, animal feed, agriculture, aquaculture, and other industrial processes. The costs of filing the patents has been capitalized as of September 30, 2013, and will be amortized commencing in fiscal 2014. | ||
Trademarks | ||
The Company has a trademark for the Company’s “ReNuGen™”, a product used to enhance the efficacy of conventional waste water treatment plants. During 2013, the Company applied for a trademark for its two additional engineered, zeolite-based products, Cite-Clean™ and ZoilTech™, Cite-Clean™is an all-natural mineral based non-hazardous absorbent. The Cite-Clean™ product has been tested and proven effective in various industrial, commercial and do-it-yourself residential settings for the absorption and retention of fluids. ZoilTech™ is a natural mineral based environmentally friendly soil treatment. The ZoilTech™ product has been tested and shown to be effective in enhancing moisture retention, balancing nutrient levels and controlling odors in commercial and residential applications. | ||
Patents License Rights – Wastewater Treatment Method Patents | ||
In February 2010, the Company entered into a License Agreement (initial term of three years) concerning two US method patents for the treatment of wastewaters. Such patents utilize the Company’s zeolite. The license applies to the US and covers the use of the technology in water, wastewater and waste treatment in animal feed operations, agriculture, and aquaculture. In addition, the license applies to the treatment of sanitary wastewater on Federal facilities, military bases and lands administered by the US Bureau of Indian Affairs. The Company issued 140,000 shares of its Common Stock in consideration for the License Agreement. The Company recorded $40,907 as Patents License Rights based on an average price of $0.29 per share. The License Agreement was renewed in 2013. During 2013 and 2012, the Company paid the $12,000 annual payment and such is included in operating and other expenses in the accompanying consolidated statements of operations. At September 30, 2013, the Company owes the licensor for consulting fees pursuant to the License Agreement and interest totaling $19,009. Such amount is included in accounts payable in the accompanying balance sheet. | ||
I-Squared and I-Top Technology | ||
Pursuant to an agreement effective December 1, 2004, the Company agreed to sell its I-Squared and I-Top technology to PSNet Communications. In January 2005, Ostara Corporation (“Ostara”) acquired PSNet. Ostara changed its name to (1) Rheologics Technologies, Inc. in 2005, (2) to KKS Venture Management, Inc. in July 2007, and (3) Codima, Inc. (“CDMA”) in 2008. As of September 30, 2011, the 3,167 shares (reflective of a reverse stock split) of CDMA common stock held by the Company were carried at $1. During March 2012, management of the Company concluded that the securities available for future sale were permanently impaired and accordingly $5,699 was recognized as impairment of securities available for future sale in the accompanying 2012 consolidated statement of operations. | ||
NOTES_PAYABLE
NOTES PAYABLE | 12 Months Ended | |
Sep. 30, 2013 | ||
Notes Payable [Abstract] | ' | |
NOTES PAYABLE | ' | |
6 | NOTES PAYABLE | |
Notes Payable - Other | ||
Real Asset Management, LLC | ||
As a condition of the SPA, Real Asset Management, LLC (“RAM”) entered into a forbearance agreement with DRC in respect to all principal and interest owed and owing to RAM in respect to the $50,000 note payable from WRC to RAM (“RAM Note”). The Company paid principal of $6,745 and interest of $7,255 on the RAM Note as required by the forbearance agreement. RAM has agreed to forbear from making a demand on the Company for payments of the note principal and interest for a period of two (2) years from the date of the SPA. RAM is entitled to receive Accelerated Payments as defined below. During 2013 and 2012, the Company recognized interest expense of $3,264 and $3,799, respectively. At September 30, 2013 and 2012, WRC owes RAM $19,949 and $30,684, respectively, for principal and interest and interest thereon. David A. Grady, a former Director is affiliated with RAM. At the Company’s Annual Meeting of Shareholders in June 2013 Mr. Grady was not re-elected to serve as a Director. | ||
Jacobs Trust | ||
On January 12, 2011, the Revocable Trust Created by Ian B. Jacobs under Agreement dated November 25, 1999(“RTCIBJ”), an unrelated entity, loaned the Company $60,000. The note required monthly payments of principal and interest (5.5%) totaling $2,645. In January 2012, the Company entered into an amended and restated note with a maturity date of March 12, 2012. The Company paid the principal balance and interest due on the note in full during March 2012. In connection with this loan, the Company issued warrants for the purchase of 500,000 shares of Common Stock at a purchase price of $0.15 per share. The warrants expire on December 31, 2015. In recording the transaction, the Company allocated the value of the proceeds to the note and the warrants based on their relative fair values. The fair value of the warrants was determined using the Black-Scholes valuation model using the following assumptions: a contractual term of 5 years, risk free interest rate of 1.99%, dividend yields of 0%, and volatility of 163%. The allocated value of the warrants was $33,337 and such amount was recorded as a discount on the note. The Company recognized contractual interest expense of $1,020 during 2012. The discount was amortized over the life of the note and $7,397 is included in interest expense during 2012. | ||
Premium Finance Agreements | ||
During November 2011, the Company entered into a premium finance note payable for $19,652 (interest rate of 12.4%) to finance certain insurance premiums. The Company was required to make monthly payments of principal and interest of $1,899. The balance of the Note at September 30, 2012 was $1,380. The note matured on October 1, 2012. | ||
During November 2012, the Company entered into a premium finance note payable for $17,808 (interest rate of 8.75%) to finance a portion of certain insurance premiums. The Company was required to make monthly payments of principal and interest of $2,052. The note had a maturity date of August 1, 2013, and the note was fully paid prior to September 30, 2013. | ||
During April 2013, The Company entered into a premium finance note payable for $34,985 (interest rate of 7.4%) to finance a portion of certain Directors’ and Officers’ insurance premiums. The note has a maturity date of December 21, 2013, and requires monthly payments of principal and interest of $3,887. As of September 30, 2013 the balance on the note was $11,519. | ||
CAMI Notes | ||
Pursuant to Paragraph 5.1 of the Agreement and Plan of Merger between Clean Age Minerals, Inc. (“CAMI”) and Strategic Minerals, Inc. (“SMI”), and the Company dated September 19, 2000, obligations of CAMI to certain officers, directors and third parties were to have been satisfied by SMI or the Company within one (1) year of the merger. The indebtedness totaled $514,881 (including the Martin Debt and the Haessler Debt as defined below) and was evidenced by notes dated September 19, 2000 (“CAMI Notes”). The CAMI Notes were due and payable on or before September 18, 2001, and provide for interest at the rate of 8% per annum and repayment of such notes and interest thereon is guaranteed by Daleco Resources Corporation (“DRC”). | ||
During April 2012, the Company paid $50,000 in cash and issued 158,290 shares of Common Stock in full satisfaction of a note due the Estate of Eric Haessler, an affiliate of Carl A. Haessler, a Director at that time. The note had a principal balance of $58,938 and accrued and unpaid interest related to such note totaled $60,044 at the time of repayment. The Company valued the stock at $25,327 based on the closing price of $0.16 per share. The total consideration payment (cash and common stock) of $75,327 was $43,655 less than the $118,982 of principal and interest owed by the Company. Accordingly, the Company recognized a gain on debt forgiveness of $43,655. | ||
As of September 30, 2012, the total amount payable on these notes is $941,450 representing principal of $455,943 and accrued but unpaid interest and accrued late fee of $485,507. | ||
Carl Haessler. As of September 30, 2012, the amounts owed to Mr. Haessler, a Director at that date, consisted of principal of $83,478 and accrued but unpaid interest of $80,359 for a total of $163,837 (“Haessler Debt”). As a condition of the $1,500,000 capital stock purchase by FEI and DTE in March 2013 pursuant to that certain Stock Purchase Agreement dated March 25, 2013 (“SPA”), Mr. Haessler entered into a forbearance agreement with DRC providing for no payment to him on the Haessler Debt and his agreement to forbear from making a demand on DRC for payment of the remaining Haessler Debt for a period of two (2) years from the date of the SPA. Mr. Haessler is entitled to receive accelerated payment of his debt should the Company, among other things, (i) have net income, (ii) sell equity securities, (iii) sell assets in excess of stated amounts and/or (iv) if the Company permits an Event of Default (as defined in the respective agreements) (“Accelerated Payments”). At September 30, 2013, the Haessler Debt totals $170,515. At the Company’s Annual Meeting of Shareholders in June 2013, Mr. Haessler was not re-elected to serve as a Director. During each of 2013 and 2012, the Company recognized interest expense of $6,678. | ||
Alice Haessler. As of September 30, 2012 the debt owed to Alice Haessler amounted to $20,000 in principal and accrued but unpaid interest of $19,253 for a total of $39,253. Under the terms of the agreement dated March 25, 2013, with Alice Haessler, Mrs. Haessler received $20,000 in cash and 50,000 shares of Common Stock in full settlement of the obligation owed to Alice Haessler. The Company valued the stock at $5,500 based on the closing price of $0.11 per share. The Company recognized $16,528 as gain on debt forgiveness as a result of such settlement. Carl Haessler is the conservator for Alice Haessler. At the Company’s Annual Meeting of Shareholders in June 2013, Mr. Haessler was not re-elected to serve as a Director. | ||
Herbert L. Lucas. As of September 30, 2012, the amounts owed to Mr. Lucas consisted of $153,530 in principal and accrued but unpaid interest totaled $147,793 for a total of $301,323 (“Lucas Debt”). As a condition of the $1,500,000 capital stock purchase by FEI and DTE in March 2013 pursuant to the SPA, Mr. Lucas entered into a forbearance agreement with DRC providing for payment to Mr. Lucas of $30,100 (interest) of the Lucas Debt and his agreement to forbear from making a demand on the Company for payment of the remaining Lucas Debt for a period of two (2) years from the date of the SPA. Mr. Lucas is entitled to receive Accelerated Payments. At September 30, 2013, the Lucas Debt totals $283,505. | ||
Robert Martin. As of September 30, 2012, the amounts owed to Mr. Martin, a Director and President of CAMI, included a CAMI Note with a principal balance of $134,811 and accrued but unpaid interest of $129,773. As of September 30, 2012, the Company also owed Mr. Martin $245,835 in salary and $19,051 in unpaid reimbursable business expenses. These amounts contain no accrued interest. As of September 30, 2012, the Company was indebted to Mr. Martin in the aggregate amount of $529,470 (“Martin Debt”). As a condition of the $1,500,000 capital stock purchase by FEI and DTE in March 2013 pursuant to the SPA, Mr. Martin entered into a forbearance agreement with DRC providing for payment to Mr. Martin of $53,500 (reimbursable expenses of $19,051 and interest of $34,449) of the Martin Debt and his agreement to forbear from making a demand on the Company for payment of the remaining Martin Debt for a period of two (2) years from the date of the SPA. Mr. Martin is entitled to receive Accelerated Payments. At September 30, 2013, the Martin Debt totals $486,755. During each of 2013 and 2012, the Company recognized interest expense of $10,785. | ||
Robert A. Nolind. As of September 30, 2012, the amounts owed to Mr. Nolind consisted of principal of $49,124 and accrued and unpaid interest of $47,288 for a total of $96,412 (“Nolind Debt”). As a condition of the $1,500,000 capital stock purchase by FEI and DTE in March 2013 pursuant to the SPA, Mr. Nolind entered into a forbearance agreement with DRC providing for payment to Mr. Nolind of $9,600 (interest) of the Nolind Debt and his agreement to forbear from making a demand on the Company for payment of the remaining Nolan Debt for a period of two (2) years from the date of the SPA. Mr. Nolind is entitled to receive Accelerated Payments. At September 30, 2013, the Nolind Debt totals $90,742. | ||
As of September 30, 2013, the Company was in default in the payment of principal and interest thereon of $32,171 in respect to the balance of the CAMI notes payable which are not subject to forbearance agreements. | ||
At September 30, 2013, the outstanding balance of the CAMI Notes Payable aggregated $435,943 and accrued but unpaid interest and accrued late fee of $426,762. | ||
EV&T Note and Fees and Expenses | ||
On September 30, 2005, but effective as of September 1, 2005, DRC entered into a Settlement Agreement with and issued a note (‘EV&T Note”) to its counsel, Ehmann, Van Denbergh & Trainor, P.C. (“EV&T”) (see Note 7) to resolve and deal with the Company’s outstanding legal fees. As of September 1, 2005, the Company owed EV&T $825,355 for services performed, costs and expenses (“EV&T Debt”). Under the Settlement Agreement, the Company paid EV&T $25,355 and entered into a three (3) year note for the remainder of the Debt. The EV&T Note issued pursuant to the Settlement Agreement provides for the note to earn interest at the rate of five percent (5%) per annum on the outstanding balance from time to time. The EV&T Note is to be repaid in 35 monthly installments of $13,000, commencing on October 1, 2005, with the remainder due and payable on August 1, 2008, pursuant to the terms of the Settlement. In April 2007, the Company defaulted in respect to payments required by the Settlement Agreement. As a result of the default and EV&T’s demand for full payment, the interest rate increased from 5% to 12% and the full amount of the EV&T Note and unpaid interest became due and payable. | ||
As of September 30, 2012, the outstanding balance of the EV&T Note was $567,213 and accrued but unpaid interest totaled $499,765 through that date. | ||
Effective March 15, 2013, DRC and EV&T entered into a forbearance agreement in respect to amounts owed to EV&T for the EV&T Note, services performed and interest thereon. EV&T agreed with the Company that its outstanding fees and expenses and amounts due on the EV&T Note as of September 30, 2012 were $1,224,464 after payment of $114,000 at the time of entry into the forbearance agreement. DRC paid $114,000 to EV&T as required by the forbearance agreement. EV&T is entitled to receive Accelerated Payments as defined above. Should the outstanding balances due and owing EV&T not be paid in full within the two year term of the forbearance agreement, the original terms of the EV&T Note calling for payment of interest of 12% per annum on the outstanding debt will govern the Company’s obligations to EV&T. | ||
As of September 30, 2013, the outstanding principal and interest on the EV&T Note is $1,202,318. EV&T has not waived its claim in any respect but agreed to the terms and provisions of the Forbearance Agreement. | ||
Additionally, at September 30, 2013 and 2012, the Company owed EV&T $213,040 and $271,791, respectively, for current services performed and interest thereon and such amounts are included in trade accounts payable. | ||
First Citizens Bank | ||
During November 2008, the Company entered into a loan from First Citizens Bank for $75,000 with a maturity date of November 18, 2013. The interest rate was 3.72% at September 30, 2011. Consistent with the provisions of the Note, the Company made monthly payments of principal of $1,250 plus interest. At September 30, 2011, the balance of the Note was $30,454. The loan was secured by certain personal assets of Dov Amir, a former Director of the Company. During April 2012, the Board and Audit Committee approved and the Company paid the entirety of the principal and interest due First Citizens Bank. Certain assets of Amir (“Amir Assets”) were pledged as collateral for the Company’s note payable to First Citizens Bank. Thus, the Company has fulfilled its obligation of a provision of the Convertible Note Payable to Amir regarding the Amir Assets (see below). | ||
Convertible Note Payable and Amir Settlement Agreement | ||
On July 12, 2011, the Company entered into a Settlement Agreement with Dov Amir (“Amir”), a former director of the Company, whereby, among other provisions, (a) the Company issued 419,292 shares of Common Stock ($0.25 per share) in payment of a portion of amounts due to Amir on a note payable ($45,485) and Series A Preferred Stock Dividends ($59,338); (b) the option granted to Amir in December 2009 to purchase 500,000 shares of Common Stock became fully vested; (c) certain assets of Amir shall remain pledged as collateral for the Company’s note payable to First Citizens Bank; and (d) the Company entered into a note payable to Amir for the balance of all amounts due Amir ($391,154). The note matures on December 31, 2015 with interest at 4% per annum, compounded annually. The note does not require any interim principal and interest payments by the Company. Further, Amir was granted the right to convert any and all amounts due him under the note into shares of Common Stock at a conversion price of $0.25 per share. | ||
In connection with the issuance of the shares of Common Stock, the Company recognized $12,579 as interest expense in 2011. Such amount was determined based on the fair value of the Company’s Common Stock in comparison to the conversion price on the date of the issuance of the shares. As a result of the full vesting of the option granted to Amir in December 2009, the Company recognized $20,900 of stock-based compensation expense during 2011. As a result of granting the conversion rights relating to the note, the Company recognized $46,938 as a discount on the note resulting from the beneficial conversion feature and such discount is being amortized through the maturity date of the note. The discount was determined based on the fair value of the Company’s Common Stock in comparison to the conversion price on the date of the note. | ||
During April 2012, the Board and the Audit Committee approved and the Company paid $70,000 in cash and issued 140,000 shares of Common Stock to Amir in payment of interest due of $11,471 and a $128,529 reduction in the principal balance of the note. See the above discussion regarding the Company’s note payable to First Citizens Bank. The total consideration (cash and common stock) of $93,800 was $46,200 less than the $140,000 of total principal reduction and interest paid; however, the total consideration paid of $93,800 was $1,400 less than the $95,200 if-converted value of the principal and interest. The if-converted value was determined based on the conversion price of $0.25 per share per the terms of the note and valuing the 560,000 if-converted shares at $0.17 per share. The Company did not recognize any gain on extinguishment of such portion of the indebtedness due to the existence of the conversion privilege. | ||
On May 3, 2013, the Company paid cash of $70,000 and issued 498,000 shares of Common Stock in full satisfaction of all amounts due Amir pursuant to the note. The Company estimates the value of the cash and shares of Common Stock (at $0.17 per share) at $154,660. The balance due on the note, net of unamortized discount, was $250,462 on May 3, 2013. Accordingly, the Company recognized $95,802 as gain on debt forgiveness as a result of such full satisfaction of the note. | ||
The discount was being amortized over the life of the note and $4,177and $21,731 are included in interest expense during 2013 and 2012, respectively. Such amortization for 2012 includes $12,939 as a result of the repayment of a portion of the debt as discussed above. | ||
7.25% Convertible Debentures | ||
In June 2009, the Company commenced a private placement of up to $500,000 of 7.25% Convertible Debentures (the “Debentures”). The Debentures are convertible at a conversion price equal to the greater of either $0.14 per share or an amount equal to 80% of the average of the closing bid and ask prices of the Common Stock for the 5 trading days immediately preceding the conversion date. The Debentures are five (5) year instruments maturing on July 30, 2014, bearing interest at 7.25 % per annum on the balance outstanding from time to time. Interest commences to accrue immediately upon issuance of the Debentures and will be paid quarterly on each September 30, December 31, March 31 and June 30 for which the Debentures are outstanding. Payment of principal over a three-year period will commence on September 30 following the second anniversary of the closing date of the offering. The Company closed the offering period for the Debentures in January 2012. | ||
As of September 30, 2011, Debentures totaling $45,000 were outstanding. No Debentures were issued or converted during 2013 and 2012. | ||
During 2013 and 2012, the Company recognized contractual coupon interest of $3,263 and $3,271, respectively, and amortization of the discount of $2,471 and $2,477, respectively. Such amounts are included in interest expense. The effective interest rate for 2013 and 2012 was approximately 13%. | ||
A Director (Maxwell) owns all of the outstanding Debentures at September 30, 2013. The principal amount of the Debentures ($45,000) exceeds the if-converted value of the Debentures at September 30, 2013 by approximately $10,000. | ||
The Company has defaulted on its obligation to pay principal and interest on the Debentures and the Debentures are classified as a current liability in the accompanying consolidated balance sheets at September 30, 2013 and 2012. | ||
As a condition of the $1,500,000 capital stock purchase by FEI and DTE in March 2013 pursuant to the SPA, Mr. Maxwell entered into a Forbearance Agreement in respect to all principal and interest owed and owing to the Director in respect to the Debentures. The Company paid interest due on the Debentures of $9,487 to the Director as required by the forbearance agreement. Such Director has agreed to forbear from making a demand on the Company for payment of the Debentures for a period of two (2) years from the date of the SPA. Mr. Maxwell is entitled to receive Accelerated Payments as defined above. | ||
As of September 30, 2013 and 2012, accrued but unpaid interest totaled $1,689 and $7,913, respectively. | ||
Scheduled Maturities of Long-term Debt | ||
There is no debt outstanding which is classified as long-term debt at September 30, 2013. See Note 11 regarding the accrued bonus expense of $457,944 which is payable in August 2015. | ||
RELATED_PARTIES
RELATED PARTIES | 12 Months Ended | |
Sep. 30, 2013 | ||
Related Party Transactions [Abstract] | ' | |
RELATED PARTIES | ' | |
7 | RELATED PARTIES | |
Legal Services | ||
General Counsel | ||
On April 1, 2013, pursuant to the SPA, the Company entered into an agreement with a law firm for an attorney to perform corporate governance and securities law services for and representation of the Company for a flat fee of $5,000 per month. Such attorney became the Secretary of the Company in August 2013. | ||
Other Counsel | ||
The principal of EV&T is a shareholder of the Company. See EV&T Note and Fees and Expenses as discussed in Note 6. | ||
7.25% Convertible Debentures | ||
See Note 6 in respect to the 7.25% Convertible Debentures owned by a Director (Maxwell). | ||
Purchase of Common Stock and Warrant | ||
On June 15, 2013, Mr. Maxwell, a Director, purchased 1,250,000 shares of Common Stock and a warrant to purchase 400,000 shares of Common Stock for $125,000. Such purchase was made pursuant to the Company’s 2013 Private Placement (see Note 1). The warrant has an exercise price of $0.50 per share. The warrant expires on January 16, 2018. The Company determined the fair value of the warrant to be $36,795 using the Black-Scholes valuation model. | ||
Notes Payable - Related Parties | ||
Maxwell - As a condition of the $1,500,000 capital stock purchase by Far East Investments, LLC and DTE Investment, Ltd. in March 2013 pursuant to that certain Stock Purchase Agreement dated March 25, 2013 (“SPA”), Mr. Maxwell entered into a forbearance agreement with DRC in respect to all principal and interest owed and owing to the Director by DRC in respect to the $60,000 note payable to such Director (“Maxwell Note”) and DRC paid interest of $1,813 on the Maxwell Note to the Director in connection with the requirement contained in the forbearance agreement. Such Director has agreed to forbear from making a demand on DRC for payments of the Maxwell Note for a period of two (2) years from the date of the SPA. Mr. Maxwell is entitled to receive Accelerated Payments as defined in Note 6. At September 30, 2013 and 2012, DRC owes Mr. Maxwell $69,587 and $68,250, respectively, for principal and interest thereon. | ||
Grady – See Note 6 in respect to the note payable to Real Assets Management, LLC. | ||
CAMI Notes Payable | ||
See Note 6 in respect to Messrs. Haessler and Martin. | ||
Marketing Agreement | ||
In connection with the SPA, the Company entered into an Exclusive Sales Agency and Marketing Agreement with FEI (“Marketing Agreement”) with a term of 18 months. The Marketing Agreement grants to FEI the right to act as the Company’s exclusive marketing and sales agent for natural resources products produced, mined and/or sold by the Company, excluding the Company’s ZeoSure products (see Note 4), in Asia excluding the nation of India. From April 2013 to September 2013, in connection with the Marketing Agreement, the Company paid $60,000 to Far East Investments (USA) LLC, an affiliate of FEI. Through September 30, 2013, no sales transactions relating to the Marketing Agreement had occurred. | ||
Employment Agreements | ||
See Note 11 concerning current and former employment agreements. | ||
Certain Personal Loans | ||
During March 2012, the Audit, Compensation and Nominating and Governance Committees of the Board of Directors (“Board”) (collectively, “AC&N Committees”) became aware of personal loans entered into in September 2005 totaling in excess of $400,000 from Amir, a former director/officer of the Company, to four individuals. It is the understanding of the AC&N Committees (based on oral representations of Mr. Amir) that (i) the proceeds of such loans were used to fund the exercise in September 2005 of options (granted to such individuals in September 2000) to purchase shares of Common Stock (at $0.25 per share); (ii) two of such individuals are current employees of the Company (one of which is the President/CFO and a Director); (iii) one of such individuals is a former employee of the Company; (iv) one of such individuals, a shareholder, is serving as counsel (EV&T) to the Company (see Note 6); (v) the sole collateral for each of the loans is the Common Stock acquired by each individual upon the exercise of each option; and (vi) there is no agreement between Amir and such individuals regarding their voting rights related to the Common Stock owned by such individuals and Amir. | ||
Other Haessler Activity | ||
During May 2012, Carl Haessler, a then-Director, elected to convert 10,000 shares of Series B 8% Cumulative Convertible Preferred Stock into 80,000 shares of Common Stock at the conversion rate of $1.25 per share of Common Stock. Also, Mr. Haessler accepted 73,854 shares of Common Stock as satisfaction for any and all dividends due him ($92,318 of which $88,319 were accrued) in respect to his direct holdings of 30,000 shares of Series B 8% Cumulative Convertible Preferred Stock through the date of the conversion of 10,000 of such shares. | ||
Notes Receivable from Former Executive Officers | ||
In August 2005, the Company entered into employment contracts with Stephan V. Benediktson as Chief Executive Officer of the Company and Nathan Trynin as Executive Vice President. In August 2007, Messrs. Benediktson and Trynin resigned from their respective positions with the Company. Each of Mr. Benediktson and Mr. Trynin were given the right to acquire common stock of the Company at the average of the bid and ask closing price for the five trading days prior to the effective dates of their contracts. Each party exercised that right. Mr. Benediktson and Mr. Trynin entered into notes with the Company totaling $576,000 to cover the majority of such purchase of the common stock offered by their employment agreements. See Note 11. | ||
Directors | ||
On May 1, 2013, the Board appointed Li Chi Kong, owner/officer of DTE, and Grant Lin, owner/officer of FEI, to the Board of Directors to fill Board member vacancies. At the Company’s Annual Meeting of Shareholders in June 2013 (the “2013 Annual Meeting”), Messrs. Kong, Lin, Martin, Maxwell, Novinskie and Parrish were elected to serve as Directors until the Company’s 2014 Annual Meeting of Shareholders. At the 2013 Annual Meeting, Messrs. Grady and Haessler were not re-elected to serve as Directors. | ||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
8 | COMMITMENTS AND CONTINGENCIES | |
See Note 2 - Investor Relations Firm Consulting Agreement. | ||
See Note 7 – Marketing Agreement. | ||
See Note 12 – Litigation. | ||
On April 1, 2013, pursuant to the SPA, the Company entered into an agreement with a law firm for an individual to perform corporate governance and securities law services for and representation of the Company for a flat fee of $5,000 per month. | ||
CAPI is the lessee under a 5,200 acre lease containing zeolite located in Texas. The lease terms call for royalty payments of $3.00 per ton of zeolite removed from the property with a minimum royalty of $30,000 per year which is due annually through November 2014. The Company can extend the lease for eight successive periods of ten years each. CAPI has the option to terminate the annual royalty payments by paying a lump sum of $400,000. During each of 2013 and 2012, the Company paid the minimum royalty of $30,000. | ||
CAPI owns 17 placer mining claims on 2,720 acres and 8 Lode claims covering 160 acres, all located in New Mexico, encompassing its Sierra Kaolin deposit. The Federal mining claims are burdened by a royalty interest of 7% of net proceeds derived from mining operations. TPA paid $20,160 to the Bureau of Land Management (“BLM”) during each of 2013 and 2012 to maintain CAPI’s Federal mineral claims. Such payment by TPA was in accordance with the provisions of the Restated Development and Operating Agreement with the Company. | ||
CAPI owns 11 placer mining claims (Three Creek) covering approximately 220 acres of zeolite located in Utah. During each of 2013 and 2012, the Company paid $6,160 to the Bureau of Land Management to maintain its federal mining claims. | ||
In February 2010, the Company entered into a License Agreement concerning two US method patents for the treatment of wastewaters. During 2013 and 2012, the Company paid the $12,000 annual payment. | ||
As discussed in Note 1, as of September 30, 2013, the Company and certain of its subsidiaries were in default of various obligations and certain debt obligations classified as current liabilities in the accompanying balance sheet. The Company has not accrued a provision for any costs or expenses for which it might be liable pursuant any provision which might be included in the agreements underlying such defaulted obligations in the event a party to such agreement commences an action to collect amounts due such party. Certain of the obligations on which the Company has defaulted are addressed by forbearance agreements and amendments to employment contracts (see Notes 6 and 11). | ||
Lease Commitments | ||
At September 30, 2013, the Company leases one office location and certain office equipment. The terms of all of the leases are for less than one year. Rent expense has been recorded in general and administrative expenses as $85,377 and $78,083 for 2013 and 2012, respectively. | ||
The Company leases, on a monthly basis, a compressor used in oil and gas operations. Rent expense has been recorded in lease operating expenses $9,888 during each of 2013 and 2012. Such rent expense represents the Company’s portion attributable to its working interest in the natural gas well serviced by the compressor. | ||
Future Abandonment Costs and Asset Retirement Obligations | ||
See Note 2. | ||
Mineral Supply Requirements | ||
The Company sells one of its CA Series Products under the tradename ReNuGen™ which is used in wastewater treatment facilities pursuant to an oral agreement with the purchaser. Shipments totaled 5 tons for each of 2013 and 2012. | ||
On July 3, 2012, CAMI entered into an operating agreement for ZLLC as discussed in Note 4 to develop products utilizing CAPI’S Clinoptilolite zeolite mineral. Other than seeking initial capital, ZLLC had no activity through September 30, 2013, and has no material supply commitments. | ||
At September 30, 2013, the Company has no agreements that contain minimum material supply requirements. | ||
Purchase Commitments | ||
At September 30, 2013, the Company had no purchase commitments. | ||
Potential Accelerated Payments of Debt and Other Obligations | ||
See Note 1. | ||
CAPITAL_STOCK
CAPITAL STOCK | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||
CAPITAL STOCK | ' | |||||||||||||
9 | CAPITAL STOCK | |||||||||||||
At the Company’s Annual Meeting of Shareholders in June 2013, the shareholders approved, among other things, the following: | ||||||||||||||
· | An increase in the authorized shares of Common Stock from 100 million shares to 150 million shares, and | |||||||||||||
· | An increase in the number of shares of Common Stock reserved for issuance pursuant to the Independent Directors Non-qualified Stock Option Plan of the Company form 800,000 shares to 1.6 million shares and to extend the period during which grants may be made. | |||||||||||||
The Articles of Incorporation of the Company provide for authorized capital stock of 150,000,000 shares of common stock, par value $0.01 per share, and 20,000,000 shares of preferred stock, par value $0.01 per share. No Series A Preferred shares are outstanding at September 30, 2013 and no such shares were issued or outstanding during 2013 and 2012. The 8% Cumulative Convertible Preferred Stock with a stated value of $10 per share (“Series B Preferred Stock”) was issued in the acquisition of Clean Age Minerals, Inc. in September 2000. The Series B Preferred Stock can be converted to common stock at 85% of the average closing price of the 5 days before the date of conversion with a minimum amount of $1.25 per share. Thus, at September 30, 2013, the 135,000 shares of Series B Preferred Stock were convertible into 1,080,000 shares of Common Stock. | ||||||||||||||
Further, the shares of Series B Preferred Stock (i) earn dividends at the rate of 8% per annum computed on the basis of a 365 day year, and (ii) have priority in liquidation to the extent of the stated value of $10.00 per share plus any unpaid dividends over any other preferred stock, common stock or any other stock issued after September 19, 2000. At September 30, 2013, the liquidation preference totals $3,392,239 (stated value of $1,350,000 plus arrearages in cumulative dividends of $2,042,239). | ||||||||||||||
During 2013 and 2012, there were no dividend payments (cash or otherwise) in respect to the Common Stock. | ||||||||||||||
Series A Preferred Stock | ||||||||||||||
No shares of Series A Preferred Stock were issued during 2013 and 2012. No shares were outstanding at September 30, 2013, 2012 and 2011. During fiscal 2011, the Company paid $59,338 of dividends on the Company's Series A Preferred Stock by issuing 237,352 shares of Common Stock (see Note 6). | ||||||||||||||
Series B Cumulative Convertible Preferred Stock | ||||||||||||||
No shares of Series B Preferred Stock, par value of $0.01 per share, were issued during 2013 and 2012. | ||||||||||||||
During 2012, 10,000 shares of Series B Preferred Stock were converted into 80,000 shares of Common Stock as discussed in Note 7. During 2013 and 2012, there were no cash dividend payments in respect to the Series B Cumulative Convertible Preferred Stock. | ||||||||||||||
The only dividends paid prior to fiscal 2012 on the Company's Series B Preferred Stock were in shares of Common Stock at the time of conversion of the respective shares of such Preferred Stock into Common Stock. | ||||||||||||||
At September 30, 2011, dividends payable on Series B Preferred shares totaled $1,914,558. As of October 1, 2011, the beginning of fiscal 2012, the Company no longer accrues dividends on the Series B Preferred shares due to the very low probability that the holders of the Series B Preferred shares at September 30, 2011, will elect to convert such shares into shares of Common Stock. Also, the Company is not required to pay dividends by issuing shares of its Common Stock. The Company intends to pay dividends on the Series B Preferred shares when its financial condition makes any such payment appropriate. Accordingly, Preferred Stock Dividends Payable in respect to the Series B Preferred Stock of $1,826,239 at September 30, 2013 and 2012, have been classified as a long-term liability. | ||||||||||||||
During the third quarter of 2012, Carl Haessler, a Director, accepted 73,854 shares of Common Stock as satisfaction for any and all dividends due him ($92,318 of which $88,319 were accrued) in respect to his direct holdings of 30,000 shares of Series B 8% Cumulative Convertible Preferred Stock through the date of the conversion of 10,000 of such shares. | ||||||||||||||
At September 30, 2013 and 2012, the arrearages in cumulative dividends on the Series B Preferred Stock totals $2,042,239 and $1,934,239, respectively, of which $1,826,239 was accrued at each respective date. | ||||||||||||||
Subscriptions Receivable | ||||||||||||||
At September 30, 2011, the notes receivable totaling $576,000 from Messrs. Benediktson and Trynin, as discussed in Note 11, are classified as Subscriptions Receivable. As of September 30, 2012, management of the Company believed that the collection of the principal balance of and interest due pursuant to such notes receivable is in doubt. As of September 30, 2012, the Company changed to the recovery method in accounting for the notes receivable and interest thereon and the principal and interest will be recorded when, and if, collected. Subscriptions receivable and additional paid-in capital were each reduced $576,000 as of September 30, 2012, to reflect the impairment of the notes receivable. | ||||||||||||||
During 2013, the Company entered into a settlement agreement with Mr. Benediktson as discussed in Note 11; thus, at September 30, 2013, the note receivable from Mr. Trynin of $256,000 and accrued interest of $100,331 remain outstanding. As of September 30, 2013, management of the Company believes that the collection of the principal balance of and interest due pursuant to such note receivable is in doubt and are fully impaired and not included in the accompanying consolidated balance sheets. | ||||||||||||||
Shares Issued and Outstanding: | ||||||||||||||
Number of | ||||||||||||||
Number of | Series B | |||||||||||||
Common | Preferred | |||||||||||||
Shares | Shares | |||||||||||||
Outstanding at September 30, 2011(1) | 48,988,914 | 145,000 | ||||||||||||
Estate of Eric Haessler (see Note 6) | 158,290 | - | ||||||||||||
Dov Amir (see Note 6) | 140,000 | - | ||||||||||||
Carl A. Haessler (see Note 7): | ||||||||||||||
Conversion 10,000 shares of Series B 8% Cumulative Convertible Preferred Stock | 80,000 | -10,000 | ||||||||||||
Payment in satisfaction of Series B dividend obligation | 73,854 | - | ||||||||||||
Outstanding at September 30, 2012 (1) | 49,441,058 | 135,000 | ||||||||||||
2013 Private Placement (see Note 1) | 4,110,000 | - | ||||||||||||
FEI/DTE Stock Purchase Agreement (see Note 1) | 15,000,000 | - | ||||||||||||
In payment of interest (see Note 6) | 50,000 | - | ||||||||||||
Consulting services agreement (see Note 2) | 600,000 | - | ||||||||||||
Repayment of convertible note (see Note 6) | 498,000 | - | ||||||||||||
Payment of compensation (see Note 11)(2) | 600,000 | - | ||||||||||||
Settlement with Benediktson (see Note 11) | 2,169,400 | - | ||||||||||||
Outstanding at September 30, 2013 (1) (2) | 72,468,458 | 135,000 | ||||||||||||
-1 | The number of common shares outstanding at September 30, 2011, 2012 and 2013 includes 1,800,000, 1,800,000 and 800,000 shares, respectively, which are pledged as collateral for certain notes due the Company by certain former executive officers (see Note 11). | |||||||||||||
-2 | The number of common shares outstanding at September 30, 2013 includes 600,000 which are issuable to Mr. Parrish (see Note 11). | |||||||||||||
Options and Warrants Outstanding | ||||||||||||||
The Company has granted the following options and warrants to purchase common stock: | ||||||||||||||
Number of Shares | Weighted | |||||||||||||
pursuant to | Average | |||||||||||||
Options | Price | |||||||||||||
and Warrants | per Share | |||||||||||||
Outstanding at September 30, 2011 | 5,650,000 | $ | 0.2 | |||||||||||
Employee and director stock options: | ||||||||||||||
Granted | - | |||||||||||||
Expired (1) (2) | -400,000 | $ | 0.48 | |||||||||||
Outstanding at September 30, 2012 | 5,250,000 | $ | 0.18 | |||||||||||
Employee and director stock options: | ||||||||||||||
Granted (3) (4) (5) | 1,450,000 | $ | 0.13 | |||||||||||
Expired (3) | -200,000 | $ | 0.06 | |||||||||||
Stockholder warrants: | ||||||||||||||
Issued (6) (7) | 19,644,000 | $ | 0.23 | |||||||||||
Expired | - | |||||||||||||
Outstanding at September 30, 2013 | 26,144,000 | $ | 0.21 | |||||||||||
-1 | During fiscal 2007, the Company granted an option for the purchase of 200,000 shares of Common Stock to Richard W. Blackstone, an officer of the Company. The option was exercisable through October 2011, at an exercise price of $0.67 per share. The option expired unexercised during fiscal 2012. | |||||||||||||
-2 | During fiscal 2007, David A Grady, was granted an option to purchase 200,000 shares of stock at an exercise price of $0.28 per share under the Company’s Non-qualified Independent Director Stock Option Plan. The option expired unexercised during fiscal 2012. | |||||||||||||
-3 | In December 2012, David A. Grady was granted an option to purchase 200,000 shares of stock at an exercise price of $0.06 per share under the Company’s Non-qualified Independent Director Stock Option Plan. The fair value of the option was determined to be $11,656 using the Black-Scholes valuation model. At the Company’s Annual Meeting of Shareholders in June 2013, Mr. Grady was not re-elected to serve as a Director; accordingly, the option expired unexercised in accordance with its terms. | |||||||||||||
-4 | Effective March 25, 2013, the Company granted an option for the purchase of 1.2 million shares of Common Stock to Michael Parrish, Chief Executive Officer of the Company, at an exercise price of $0.14 per share. The option is exercisable through May 21, 2015 and vests 50% on each of May 21, 2013 and 2014. The fair value of the option was determined to be $119,737 using the Black-Scholes valuation model. | |||||||||||||
-5 | Effective May 8, 2013, the Company granted an option for the purchase of 50,000 shares of common stock to Joseph Sverapa, Vice President of Sales, at an exercise price of $0.20 per share. The option is exercisable through May 2018. The option vests 50% in May 2014 and 25% in each of May 2015 and 2016. The fair value of the option was determined to be $8,878 using the Black-Scholes valuation model. | |||||||||||||
-6 | On March 25, 2013, in connection with the FEI/DTE Stock Purchase Agreement, the Company issued warrants for the purchase of up to 18 million shares of Common Stock. The FEI/DTE Warrants have a term of five (5) years and may be exercised at a price of $0.20 per share. In the third through fifth years of such term, the exercise price may be satisfied by exchanging Common Stock at the current market price. The FEI/DTE Warrants may be exercised in whole or in part at any time during such term. The fair value of the warrants was determined to be $806,838 using the Black-Scholes valuation model. | |||||||||||||
-7 | In connection with the 2013 Private Placement through September 30, 2013, the Company has issued warrants for the purchase of 1,644,000 million shares of Common Stock at an exercise price of $0.50 per share. The warrants expire on January 16, 2018. The fair value of the warrants was determined to be $120,983 using the Black-Scholes valuation model. | |||||||||||||
Stock-Based Compensation | ||||||||||||||
In March 2004, the shareholders of the Company approved the Non-qualified Independent Director Stock Option Plan pursuant to which 800,000 shares of Common Stock are authorized for grants for options. In June 2013, the shareholders of the Company approved an increase in the number of shares of Common Stock reserved for issuance pursuant to the Independent Directors Non-qualified Stock Option Plan of the Company from 800,000 shares to 1.6 million shares and to extend the period during which grants may be made. Each Director eligible for an award under the plan receives an option to purchase 200,000 shares of Common Stock at an exercise price equal to the average of the bid and asked closing prices for the Company’s Common Stock for the five trading days immediately preceding the date of the award. These option rights vest over a three-year period (but only while the recipient is a Director) - 100,000 shares on the first anniversary date and 50,000 shares on each of the second and third anniversary dates. The options expire five (5) years after issuance. In 2011, Charles T. Maxwell was awarded an option to purchase 200,000 shares of Common Stock at an exercise price of $0.22 per share. In 2007, David A. Grady was elected to the Board of Directors and was awarded an option to purchase 200,000 shares of Common Stock at an exercise price of $0.28 per share (such option expired unexercised in 2012). In 2010, Lord John Gilbert was awarded an option to purchase 200,000 shares of Common Stock at an exercise price of $0.21 per share. As of September 30, 2013, two options to purchase a total of 400,000 shares of Common Stock have been awarded to Directors and remain unexercised at that date. | ||||||||||||||
No options to purchase shares of Common Stock were granted during 2012. Options to purchase 1,450,000 shares of Common Stock were granted during 2013. Options to purchase 400,000 and 200,000 shares of Common Stock expired during 2012 and 2013, respectively. Options to purchase 2,700,000 shares of Common Stock outstanding as of September 30, 2013, are held by officers, directors and employees of the Company (“Insiders”). The exercise prices for the options held by Insiders at September 30, 2013, range from $0.14 per share to $0.22 per share (average exercise price of $0.18 per share). | ||||||||||||||
In accordance with ASC 718, the Company recorded stock-based compensation expense for 2013 and 2012 of $148,109 and $97,326, respectively, relating to stock options granted to Insiders. Such expense is included in general and administrative expenses. No tax benefit has been recognized. Compensation costs are based on the fair value at the grant date. The fair value of the options has been estimated by using the Black-Scholes option-pricing model with the following assumptions: risk free interest rates between 0.24% and 2.43%: expected life of two to five years; and expected volatility between 37% and 236%. | ||||||||||||||
At September 30, 2012, there were 2,150,000 shares of Common Stock underlying options unexercised (weighted-average exercise price of $0.22 per share) of which 650,000 shares underlying options were not vested (weighted-average exercise price of $0.22 per share; weighted-average grant-date fair value of $0.21 per share). | ||||||||||||||
The following table summarizes information about options to purchase Common Stock outstanding as of September 30, 2013: | ||||||||||||||
Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||
Shares | Average | Average | Shares | Average | ||||||||||
Exercise | Underlying | Exercise | Remaining | Underlying | Exercise | |||||||||
Price per | Options | Price per | Life | Options | Price per | |||||||||
Share | Unexercised | Share | (Years) | Exercisable | Share | |||||||||
$0.14-$0.22 | 3,400,000 | $ | 0.19 | 1.73 | 2,512,500 | $ | 0.2 | |||||||
No options to purchase shares of Common Stock were granted during fiscal 2012. Options to purchase 1,450,000 of Common Stock were granted during fiscal 2013 (weighted-average exercise price of $0.13 per share; weighted-average grant-date fair value of $0.10 per share). At September 30, 2013, there were 887,500 shares of Common Stock underlying options that were not vested and the weighted-average grant-date fair value of such options was $0.12 per share. | ||||||||||||||
At September 30, 2013, there was $73,555 of total unrecognized compensation cost related to non-vested share-based compensation awards. The cost is expected to be recognized over a weighted-average period of 1.1 years. The total fair value of shares vested during the years ended September 30, 2013 and 2012 was $148,109 and $97,326, respectively. | ||||||||||||||
Warrants | ||||||||||||||
At September 30, 2013 and 2012, warrants for the purchase of 22,744,000 and 3,100,000 shares of common stock, respectively, are outstanding; the average exercise price of such warrants was $$0.22 and $0.15 per share, respectively. | ||||||||||||||
Financing Sources | ||||||||||||||
On January 12, 2011, the Revocable Trust Created by Ian B. Jacobs under Agreement dated November 25, 1999, loaned $60,000 to the Company pursuant to a promissory note of same date. The Company issued warrants for the purchase of 500,000 shares of Common Stock at an exercise price of $0.15 per share. The warrants expire on December 31, 2015. The fair value of the warrants was determined to be $33,337 using the Black-Scholes valuation model. | ||||||||||||||
Consulting Services Agreement | ||||||||||||||
On February 25, 2011, the Company entered into a Consulting Services Agreement with the Musser Group (see Note 1) to perform consulting services for the Company through February 2013. In addition to certain registered securities, the Company issued to individuals associated with the Musser Group warrants for the purchase of 2,500,000 shares of Common Stock at an exercise price of $0.15 per share. The warrants may not be exercised unless and until the average bid and asking closing price of the Company’s Common Stock exceeds $1.00 per share for a period of thirty consecutive trading days. The warrants are exercisable through February 24, 2016. The fair value of the warrants was determined to be $375,153 using the Black-Scholes valuation model. | ||||||||||||||
Engineering Consultant | ||||||||||||||
On April 26, 2011, the Company granted a warrant for the purchase of 100,000 shares of Common Stock to an engineering consultant to the Company. The warrant is exercisable through April 25, 2016, at an exercise price of $0.22 per share. The fair value of the warrant was determined to be $20,691 using the Black-Scholes valuation model. | ||||||||||||||
FEI/DTE Stock Purchase Agreement | ||||||||||||||
On March 25, 2013, in connection with the FEI/DTE Stock Purchase Agreement, the Company issued warrants for the purchase of 18 million shares of Common Stock. The FEI/DTE Warrants have a term of five (5) years and may be exercised at a price of $0.20 per share. In the third through fifth years of such term, the exercise price may be satisfied by exchanging Common Stock at the current market price. The FEI/DTE Warrants may be exercised in whole or in part at any time during such term. The fair value of the warrants was determined to be $806,838 using the Black-Scholes valuation model. | ||||||||||||||
2013 Private Placement | ||||||||||||||
In connection with the 2013 Private Placement through September 30, 2013, the Company has issued warrants for the purchase of 1,644,000 million shares of Common Stock at an exercise price of $0.50 per share. The warrants expire on January 16, 2018. The fair value of the warrants was determined to be $120,983 using the Black-Scholes valuation model. | ||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
INCOME TAXES | ' | |||||||
10 | INCOME TAXES | |||||||
At September 30, 2013 and 2012, the Company has current federal and state taxes payable of $192,427 and no deferred tax asset or liability. The income tax liabilities arose primarily from alternative minimum tax for fiscal 2004. The Company has accrued and unpaid interest of $77,331 and $92,531 at September 30, 2013 and 2012, respectively, for interest related to the federal and state income taxes. Interest expense related to tax liabilities of $15,600 and $13,050 for 2013 and 2012, respectively, is included in interest expense in the accompanying consolidated statements of operations. | ||||||||
During February 2012, the Company entered into an installment agreement with the Department of Treasury – Internal Revenue Service (“IRS”) in respect to income taxes and interest thereon relating to alternative minimum tax for fiscal 2004. The agreement requires monthly payments of not less than $2,150 commencing in February 2012 and continuing for 72 months or until the balance ($153,514 as of February 1, 2012) has been paid in full. The IRS has filed a notice of Federal tax lien. The Company will request audit reconsideration and continue to submit information to the IRS which supports the Company’s position that it was not subject to alternative minimum tax related to fiscal 2004. | ||||||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes”. ASC 740 requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. The Company has available at September 30, 2013, operating loss carryforwards of approximately $24 million, which may be applied against future taxable income and will expire in various years through 2028. The amount of and ultimate realization of the benefits from the operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined at this time. Because of the uncertainty surrounding the realization of the loss carryforwards, the Company has established a valuation allowance equal to the tax effect of the loss carryforwards; therefore, no net deferred tax asset has been recognized. No potential benefit of these losses has been recognized in the financial statements. The company may be subject to IRC code section 382 which could limit the amount of the net operating loss and tax credit carryovers that can be used in future years. | ||||||||
The Company files income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2010. | ||||||||
The income tax effects of timing differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at September 30, 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
Net operating loss carryforwards | $ | 8,373,451 | $ | 7,650,904 | ||||
Basis differences in property and equipment | -2,854,183 | -2,854,183 | ||||||
Impairment of prepaid mineral royalties | 188,733 | - | ||||||
State income taxes | 37,233 | 37,233 | ||||||
Bonus expense | 160,280 | 480,841 | ||||||
Interest Expense | 403,469 | 384,804 | ||||||
Salary expense | 242,130 | 336,572 | ||||||
6,551,113 | 6,036,171 | |||||||
Less valuation allowance | -6,551,113 | -6,036,171 | ||||||
Deferred tax expense (benefit) | $ | - | $ | - | ||||
Below is a reconciliation of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax loss for 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Income tax benefit computed at the statutory Federal income tax rate | -35 | % | -35 | % | ||||
Decrease (increase) due to permanent differences | -16 | % | -68 | % | ||||
Use of net operating loss carryforward | - | % | 18 | % | ||||
Change in valuation allowance | 51 | % | 85 | % | ||||
Effective income tax rate | 0 | % | 0 | % | ||||
Included in the table below are the components of income tax expense for 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Current income tax expense (benefit) | $ | - | $ | - | ||||
Deferred income tax expense (benefit) | -514,942 | 505,556 | ||||||
Valuation allowance | 514,942 | -505,556 | ||||||
Total income tax expense (benefit) | $ | - | $ | - | ||||
EMPLOYMENT_CONTRACTS_AND_COMMI
EMPLOYMENT CONTRACTS AND COMMITMENTS | 12 Months Ended | |
Sep. 30, 2013 | ||
Employment Contracts And Commitments [Abstract] | ' | |
EMPLOYMENT CONTRACTS AND COMMITMENTS | ' | |
11 | EMPLOYMENT CONTRACTS AND COMMITMENTS | |
Benediktson and Trynin | ||
In August 2005, the Company entered into employment contracts with Stephan V. Benediktson as Chief Executive Officer of the Company and Nathan Trynin as Executive Vice President. The employment contracts contain bonus provisions tied to the performance of the Company's stock. Mr. Benediktson and Mr. Trynin were given the right to acquire 1 million and 800,000 shares, respectively, of common stock of the Company at $0.37 per share - the average of the bid and ask closing price for the five trading days prior to the effective dates of their contracts. Each party exercised that right in September 2005. Mr. Benediktson and Mr. Trynin paid $90,000 in cash and entered into notes with the Company totaling $576,000 to cover their purchase of the stock offered by their employment agreements. The notes earn interest at the prime rate of interest charged from time to time by the PNC Bank, Philadelphia, Pennsylvania. The notes, as amended in fiscal 2010 (the “Amended Notes Receivable”), mature in August 2015. The Company holds respective shares of its common stock as collateral for the notes. The notes have recourse only to the collateral and the stock will not be released and until their notes are satisfied in full in accordance with their terms. Interest due pursuant to these notes totaled $207,025 at September 30, 2012. As of September 30, 2012, management of the Company believed that the collection of the principal balance of and interest due pursuant to such notes receivable is in doubt. As of September 30, 2012, the Company changed to the recovery method in accounting for the notes receivable and interest thereon, and the principal and interest will be recorded when, and if, collected. This change to the recovery method resulted in the recognition of $207,025 as an impairment of the interest receivable at September 30, 2012. The principal balance of the notes receivable ($576,000) was previously reflected as subscriptions receivable. Subscriptions receivable and additional paid-in capital were each reduced $576,000 as of September 30, 2012, to reflect the impairment of the notes receivable. During 2013, the Company entered into a settlement agreement with Mr. Benediktson as discussed below; thus, at September 30, 2013, the note receivable from Mr. Trynin of $256,000 and accrued interest of $100,331 remain outstanding. As of September 30, 2013, management of the Company believes that the collection of the principal balance of and interest due pursuant to such note receivable is in doubt and are fully impaired and not included in the accompanying consolidated balance sheets. | ||
In accordance with the provisions of Paragraph 12 of Mr. Benediktson’s and Mr. Trynin’s employment agreements, each was entitled to receive a bonus based on the increase, if any, of the value of the Company’s shares over the prior year. The bonus is computed using the formula set forth in Paragraph 12 (b) in their respective employment agreements. In August 2007, Messrs. Benediktson and Trynin resigned from their respective positions with the Company. On August 8, 2007 the Board of Directors approved bonuses aggregating $1,373,831. The Amended Notes Receivable included a provision by which such bonuses are payable in August 2015. As per the terms of the respective agreement, the Company is not obligated to pay interest on the unpaid bonus amounts. Mr. Trynin died in November 2011. | ||
On August 28, 2013, the Company entered into a Securities Exchange and Settlement Agreement (the “SESA”) with Mr. Benediktson. Pursuant to the SESA, the parties have agreed to settle all obligations between them. The Company (i) issued 2,169,400 shares of the Company’s common stock and (ii) released from escrow the 1 million shares of the Company’s common stock which were collateral for a note receivable from Mr. Benediktson. Such settlement resulted in reductions of $915,887 of accrued bonus expense due to Mr. Benediktson, $37,448 of accounts receivable due from Mr. Benediktson and the principal balance of and interest due pursuant to a certain note receivable from Mr. Benediktson ($444,559). The principal balance and interest thereon was impaired as discussed above. Accordingly, the Company did not recognize any gain or loss as a result of the settlement of all obligations between the parties. | ||
A provision of the Agreement requires that the Company shall not make any public announcement or statement concerning the Agreement other than that which the Company is required to disclose on Form 8-K and other filings with the Securities and Exchange Commission. | ||
At September 30, 2013, the Company owes $457,944 to the estate of Mr. Trynin for his respective portion of the bonuses granted in August 2007 as discussed above which is payable in August 2015. | ||
Blackstone | ||
At September 30, 2013 and 2012, the Company owed Richard W. Blackstone, an officer of the Company, $133,453 and $187,403, respectively for services provided to the Company and such amounts are included in accounts payable in the accompanying consolidated balance sheets. These amounts contain no accrued interest. In October 2006, the Company entered into an Employment Agreement with Mr. Blackstone. Mr. Blackstone currently serves as Vice President, Chief Accounting Officer and Assistant Secretary. Under the terms of the Agreement, in addition to his base salary, Mr. Blackstone was granted an option to purchase 200,000 shares of Common Stock at an exercise price ($0.67 per share) equal to the then market price of the Company’s Common Stock. The option expired unexercised in October 2011. The employment agreement was amended in September 2009. Mr. Blackstone’s Employment Contract has been extended until October 2014 in accordance with its terms. The Company has defaulted on its obligation to pay such amounts to Mr. Blackstone. As part of the forbearance requirements of the SPA and a condition precedent thereto, the Company entered into the Second Amendment to Employment Agreement with Mr. Blackstone (“Blackstone Agreement”). The Blackstone Agreement provides for (1) the payments due Mr. Blackstone for services for the months of December 2012, January and February 2013; (2) a lump sum payment of $40,000 towards the outstanding balance owed Mr. Blackstone under his Employment Agreement; and (3) a provision of the pay down of the remaining balance through monthly payments over two years. Mr. Blackstone is entitled to receive Accelerated Payments as defined in Note 6. | ||
Martin | ||
See Note 6 regarding the forbearance agreement with Mr. Martin, a Director and President of CAMI. As of September 30, 2013, the Company owed Mr. Martin $245,835 for salary related to a prior employment agreement. As of September 30, 2013, the Company has paid the reimbursable expenses of $19,051. | ||
Novinskie | ||
Under the terms of Mr. Novinskie’s employment agreement, Mr. Novinskie, currently the President, Chief Financial Officer and a Director of the Company, was to have received a cash bonus of $25,000 as of September 30, 2002. This bonus was not paid. As of September 30, 2012, the Company owed Mr. Novinskie $362,292 in salary and $25,000 in bonuses. As of September 30, 2013, the Company owed Mr. Novinskie $319,792 in salary and $25,000 in bonuses. These amounts contain no accrued interest. | ||
As part of the forbearance requirements of the SPA and as a condition precedent thereto, the Company entered into the First Amendment to Employment Agreement with Mr. Novinskie (“Novinskie Agreement”). The Novinskie Agreement provides for a lump sum payment of $42,500 towards the outstanding balance owed Mr. Novinskie under his Employment Agreement and Mr. Novinskie agrees to forbear from making a demand on the Company for payment of the remaining balance due him for a period of two years from the date of the SPA. Mr. Novinskie is entitled to receive Accelerated Payments as defined in Note 6. The Company included $20,000 in compensation expense in 2013 as an estimate of the gross-up for taxes related to the aforementioned lump sum payment. | ||
Parrish | ||
On August 23, 2012, the Company, entered into an agreement with Michael D. Parrish to become the Chief Executive Officer and a director of the Board of Directors of the Company. The initial term of Mr. Parrish’s employment (effective May 18, 2012) expired on November 20, 2012 per its terms. The agreement’s performance targets include the obtainment of at least $1 million of capital from a third party and cash-on-hand on an unrestricted basis in an amount of at least $650,000 by November 1, 2012. The agreement provides for base salary of $100,000 for the six months of the initial term and escalations thereof upon the attainment of certain performance targets as well as renewal provisions. Mr. Parrish was granted an option for the purchase of 1.2 million shares of Common Stock at $0.14 per share contingent upon the attainment of certain performance benchmarks. Such option vests 50% on each of the first and second anniversary dates of the effective date of his employment agreement and expires on the third anniversary date. Further, should certain performance benchmarks be met during the initial year of the agreement, Mr. Parrish shall be awarded 600,000 shares of Common Stock over a six month period issuable on the last day of each such month and the shares shall be valued based on the closing price of the Common Stock on the day before such issuance. During 2012, the Company did not recognize any stock-based compensation expense related to the agreement as the contingencies specified in the agreement had not been met. | ||
In November 2012, the Employment Contract with Mr. Parrish was renewed. Such contract was orally amended in December 2012 which resulted in a change in his annual base salary. Effective March 25, 2013, the Company granted (i) 600,000 shares of common stock and (ii) and an option for the purchase of 1.2 million shares of common stock to Mr. Parrish (see Note 9). Pursuant to Section 6.1 of the 2013 SPA, Mr. Parrish’s employment was extended through December 31, 2013. Mr. Parrish and the Compensation Committee of the Board of the Company are in discussions regarding the contract. | ||
As of September 30, 2013, the 600,000 shares of Common Stock granted to Mr. Parrish in March 2013 have not been issued. Such shares are treated as issued and outstanding in the accompanying consolidated financial statements and the Company has recorded $147,000 as compensation expense related to the grant of such shares. Such compensation expense includes $47,000 as an estimate of the gross-up for taxes related to such grant. | ||
Sverapa | ||
On April 22, 2013, the Company entered into an employment agreement with Joseph Sverapa (“Sverapa”) as the Company’s Vice President of Sales. The agreement provides for (1) a base salary; (2) a cash incentive of 25% of gross profits on sales due to Sverapa’s activities; (3) an equity incentive arrangement; and (4) an initial grant of an option to purchase 50,000 shares of Common Stock. The equity incentive arrangement provides that Sverapa shall receive options to purchase 50,000 shares of Common Stock for each $1 million of gross profits from sales resulting from Sverapa’s activities. Sverapa shall receive options for the purchase of not more than 200,000 shares of Common Stock in respect to this equity incentive arrangement. Any such option will be exercisable for five years after the date of its grant and will vest 50% on the first anniversary of the date of such grant and 25% each on the second and third anniversary of the date of such grant. In connection with the employment agreement, the Company granted to Sverapa an option for the purchase of 50,000 shares of Common Stock at $0.20 per share. This option is exercisable through April 2018 and vests 50% on the first anniversary of the agreement and 25% each on the second and third anniversary date of the agreement. | ||
Other | ||
In addition to the accrued salary expense discussed above, the Company is indebted to certain former officers of the Company for unpaid salaries totaling $47,791 and $57,671 at September 30, 2013 and 2012, respectively. | ||
During fiscal 2013, the Company instituted a 401(k) savings plan which did not provide, during 2013, for any contribution by the Company. | ||
LITIGATION
LITIGATION | 12 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
LITIGATION | ' | |
12 | LITIGATION | |
During October 2009, a working interest owner commenced an action against a subsidiary of the Company (“WRC”) in the District Court of Burleson County, Texas, for an accounting of expense and revenues for six wells. WRC, through its Texas counsel, had filed a general denial of the claim. In November 2009, WRC provided the plaintiff with a complete accounting for all wells in question. The plaintiff sought additional discovery and WRC has provided additional information. During July 2012, WRC and certain owners of overriding royalty and working interests in oil and gas wells operated by WRC agreed to the general terms of a settlement agreement. Pursuant to the settlement agreement (effective September 1, 2012), WRC paid $120,000 in cash for (i) settlement of all amounts due from WRC to such certain owners and (ii) the acquisition of the working interest ownership position of the respective entities. The parties entered into mutual releases and the litigation was terminated with prejudice. | ||
During September 2010, a complaint was filed against WRC in the District Court of Burleson County, Texas, seeking judgment in respect to $92,921 owed to a vendor of WRC. In November 2010, the vendor agreed to dismiss its complaint against WRC after a settlement agreement was reached whereby WRC made an initial payment of $30,000 in cash and delivered 357,677 shares of the Company’s Common Stock (consideration to the vendor of $42,921). The Company did not retire the remaining obligation by March 1, 2011, as required by the settlement agreement. The remaining obligation of $20,000 was satisfied by the Company during fiscal 2012. | ||
In July 2012, certain owners of royalty interests in certain oil and gas wells operated by WRC commenced an action against WRC in the District Court of Burleson County, Texas, for, among other things, an accounting of expense and revenues for certain wells. The plaintiff also alleged that WRC failed to fully develop the lease. The lease is held by production by inclusion in a production unit for certain wells and is fully developed. WRC, through its Texas counsel, has filed a general denial of the claim. | ||
In August 2012, a surface owner in certain property on which a natural gas gathering system right-of-way is owned by a subsidiary of the Company (“DRIOP”) commenced an action against DRIOP in the Circuit Court of Randolph County, West Virginia, alleging interference with access by such surface owner to and from certain property. DRIOP, through its West Virginia counsel, has filed a general denial of the claim. | ||
In October 2012, certain owners of royalty interests in certain oil and gas wells operated by WRC commenced an action against a subsidiary of the Company (“WRC”) in the District Court of Burleson County, Texas, for, among other things, an accounting of expense and revenues for certain wells. The plaintiff also alleged that WRC failed to fully develop the lease. The lease is held by production by inclusion in a production unit for certain wells and is fully developed. WRC, through its Texas counsel, has filed a general denial of the claim. | ||
OIL_AND_NATURAL_GAS_RESERVE_QU
OIL AND NATURAL GAS RESERVE QUANTITIES | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ' | |||||||||
OIL AND NATURAL GAS RESERVE QUANTITIES | ' | |||||||||
13 | OIL AND NATURAL GAS RESERVE QUANTITIES (UNAUDITED) | |||||||||
All of the Company’s oil and gas activities are conducted in the continental United States of America. Proved reserves are the estimated quantities which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operation conditions. Proved developed reserves are the quantities expected to be recovered through existing wells with existing equipment and operating methods. These reserve estimates were prepared by independent engineers and are based on current technology and economic conditions. The Company considers such estimates to be reasonable; however, due to inherent uncertainties and the limited nature of reservoir data, estimates of underground reserves are imprecise and subject to change over time as additional information becomes available. | ||||||||||
In September 2013, WRC received an enforcement action from the Texas Railroad Commission (“RRC”). Due to the enforcement action, the renewal of WRC’s operator's permit was suspended until such action is resolved. Certain of WRC’s operated wells continue to pump and oil is stored oil in production tanks. Certain of WRC’s operated wells are not producing as the respective production tanks have reached their capacity limitations. WRC is not permitted to sell oil until its operator’s permit is renewed. As such, the Company's consolidated revenues for the first quarter of 2014 will be significantly lower than the first quarter of 2013. Depending on the timing of the resolution of the renewal of such permit, the Company's consolidated revenues for the second quarter of 2014 may also be higher or lower than the second quarter of 2013. Management of the company anticipates the renewal of the operator’s permit to be completed during the second quarter of 2014; however there can be no assurances as to when the renewal of WRC’s operator’s permit will be approved by the RRC and when the sales of oil from WRC’s operated properties will resume. During the first quarter of 2014, WRC’s operated properties in Texas produced 362 net barrels of oil but WRC had no oil sales from such properties. During the first quarter of 2013, WRC’s operated properties in Texas produced 493 net barrels of oil, WRC sold 574 net barrels of oil from such properties and WRC recognized oil revenue of $53,094 from such properties. | ||||||||||
Hall Energy, Inc. (“Hall”), an independent petroleum engineering firm, evaluated all of the Company’s proved reserves on a consolidated basis as of September 30, 2013 and 2012. A copy of the summary reserve report is included as Exhibit 99.2 to this Annual Report on Form 10-K. The technical person responsible for preparing our proved reserves estimates meets the requirements with regards to qualifications, independence, objectivity and confidentiality set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers. Hall does not own an interest in any of our properties and is not employed by us on a contingent basis. | ||||||||||
The President of the Company works closely with Hall to ensure the integrity, accuracy and timeliness of the data used to calculate the Company’s proved reserves. The President meets with Hall to discuss the assumptions and methods used in the estimation process. The Company provides historical information to Hall for the properties such as ownership, oil and gas production, well test data, commodity prices and operating and development costs. The preparation of the proved reserve estimates are completed in accordance with our internal control procedures which include verification of input data used by Hall, as well as extensive management review and approval. | ||||||||||
All of the reserve estimates are reviewed and approved by the President of the Company. The President of the Company holds a Bachelor of Science degree in Petroleum Engineering from the Pennsylvania State University in Petroleum and Natural Gas Engineering with more than 37 years of experience in preparing reserve reports under the guidelines of the SEC with both major and independent oil and gas entities. | ||||||||||
The Company has identified fifteen (15) potential development and redevelopment opportunities associated with its existing leasehold acreage in Texas. The economic viability and development timing of these opportunities has been evaluated in terms of the prevailing market conditions as part of the annual reserve estimates. The development timing is impacted by producing wells as certain acreage is not available to be included in a developmental unit until production from certain currently producing wells becomes uneconomic. Such reserves remain classified as to probable reserves as no progress was made during 2013 and 2012 to convert such reserves to proved developed reserves. The Company believes that the potential for the development of such locations will occur within the next few years as a result of renewed interest in the area of its properties. The prevailing oil price and the development of properties in “resource plays” in the area of the Company’s acreage are major factors contributing to such interest. At September 30, 2013 and 2012, the Company has assigned probable and possible reserves to the fifteen (15) potential developmental locations. | ||||||||||
The following table shows the changes in the Company's proved oil and gas reserves for the year: | ||||||||||
2013 | 2012 | |||||||||
Crude Oil and | Natural | Crude Oil and | Natural | |||||||
Condensate | Gas | Condensate | Gas | |||||||
(Barrels) | (MCF) | (Barrels) | (MCF) | |||||||
Proved Developed and Undeveloped Reserves: | ||||||||||
Balance Beginning of Year | 26,736 | 434,381 | 34,149 | 342,862 | ||||||
Acquisition of Reserves | - | - | 5,166 | 26,802 | ||||||
Disposition of Reserves | - | - | - | - | ||||||
Revision of Previous Estimates | -2,203 | -103,212 | -10,467 | 99,121 | ||||||
Production for Year | -2,575 | -34,180 | -2,112 | -34,404 | ||||||
Balance - End of Year | 21,958 | 296,989 | 26,736 | 434,381 | ||||||
At End of Year: | ||||||||||
Proved Developed Reserves | 21,958 | 296,989 | 26,736 | 434,381 | ||||||
Proved Undeveloped Reserves | - | - | - | - | ||||||
STANDARDIZED_MEASURE_OF_DISCON
STANDARDIZED MEASURE OF DISCONTINUED FUTURE NET CASH FLOWS FROM ESTIMATED PRODUCTION OF PROVED OIL AND GAS RESERVES | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Standardized Measure Of Discounted Future Net Cash Flows From Estimated Production Of Proved Oil and Gas Reserves [Abstract] | ' | |||||||
STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS FROM ESTIMATED PRODUCTION OF PROVED OIL AND GAS RESERVES | ' | |||||||
14 | Standardized Measure of Discounted Future Net Cash Flows from Estimated Production OF Proved Oil and Gas Reserves (unaudited) | |||||||
The standardized measure of discounted future net cash flows from estimated production of proved oil and gas reserves after income taxes is presented in accordance with the provisions of FASB ASC Topic 932, "Extractive Industries – Oil and Gas" (“ASC 932”). In computing this data, assumptions other than those mandated by ASC 932 could produce substantially different results. The Company cautions against viewing this information as a forecast of future economic conditions or revenues. The standardized measure of discounted future net cash flows is determined by using estimated quantities of proved reserves and taking into account the future periods in which they have been projected to be developed and produced. Estimated future production is priced at the average price received for 2013 and 2012 for the amounts at September 30, 2013 and 2012, respectively. The resulting estimated future cash inflows are reduced by estimated future costs to develop and produce the proved reserves. The future pretax net cash flows are then reduced further by deducting future income tax expenses as applicable. The resultant net cash flows are reduced to present value amounts by applying the ASC 932 mandated 10% discount factor. | ||||||||
Standardized Measure of Discounted Future Net Cash Inflows as of September 30, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Future cash inflows | $ | 3,416,397 | $ | 4,369,426 | ||||
Future production costs | -1,479,190 | -1,690,387 | ||||||
Future development costs | -17,888 | -9,590 | ||||||
Future income tax expense* | - | - | ||||||
Subtotal | 1,919,319 | 2,669,449 | ||||||
Discount factor at 10% | -558,317 | -877,137 | ||||||
Standardized Measure of Future Net Cash Flows | $ | 1,361,002 | $ | 1,792,312 | ||||
* The Company presently has approximately $24 million of loss carry-forwards for Federal income tax purposes. Based on these loss carry-forwards no future taxes payable have been included in the determination of future new cash inflows. Future corporate office general and administrative expenses have not been deducted in determining future net cash flows. | ||||||||
Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows | ||||||||
2013 | 2012 | |||||||
Balance - Beginning of Year | $ | 1,792,312 | $ | 2,206,666 | ||||
Increase (decrease) in future net cash flows: | ||||||||
Sales for the year net of related production costs | -149,341 | -174,070 | ||||||
Acquisition of reserves in place | - | 47,078 | ||||||
Changes in estimated future development costs | -6,246 | 9,915 | ||||||
Changes in sales and transfer prices net of production costs | -454,954 | -618,181 | ||||||
related to future production | ||||||||
Change due to revision in quantity estimates and other | - | 97,237 | ||||||
Disposition of reserves in place | - | - | ||||||
Extensions and discoveries net of related costs | - | - | ||||||
Accretion of discount | 179,231 | 220,667 | ||||||
Balance - End of Year | $ | 1,361,002 | $ | 1,792,312 | ||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events [Abstract] | ' | |
SUBSEQUENT EVENTS | ' | |
15 | SUBSEQUENT EVENTS | |
Litigation | ||
At the request of the plaintiffs, the parties have agreed to a continuance to March 2014 regarding the litigation involving DRIOP (see Note 12). | ||
Premium Finance Agreement | ||
During November 2013, the Company entered into a Commercial Premium Finance Agreement for $21,821 to finance certain insurance premiums. The maturity date of the agreement is September 1, 2014, and the interest rate is 7.95%. Consistent with the provisions of the agreement, the Company is required to make monthly payments of principal and interest of $2,262. | ||
Grants of Options to Purchase Common Stock | ||
On November 21, 2013, three Directors (Carter, Porfido and Sobieski) of the Company were each granted an option to purchase 200,000 shares of stock at an exercise price of $0.14 per share under the Company’s Non-qualified Independent Director Stock Option Plan. The options are exercisable through November 2018. The options vest 50% in November 2014 and 25% in each of November 2015 and 2016. The fair value of the options was determined to be $52,449 using the Black-Scholes valuation model. On February 10, 2014, Mr. Porfido resigned from the Board and, accordingly, the option granted to him expired effective with his resignation. | ||
Asset Purchase and Sale Agreement – Certain Oil and Gas Assets | ||
On October 6, 2013 but effective as of September 30, 2013, the Company entered into an Asset Purchase and Sale Agreement (“APA”) pursuant to which the Company agreed to sell its interest in certain oil and natural gas leasehold deep rights for certain properties located in Burleson County, Texas (“Properties”), for cash, subject to adjustment as to any title defect that is not cured within the timeframe permitted by such agreement. On November 5, 2013, the closing date was delayed from November 6, 2013, to December 6, 2013, in accordance with the APA to allow the Company to address title issues raised by the buyer on November 1, 2013. A First Amendment to the APA was entered into on December 5, 2013, extending the “Delayed Closing Date” until December 17, 2013. On December 17, 2013, the parties closed on the sale of 280 net acres attributable to the Company’s interest in the Properties covered by this portion of the transaction. The Company received $448,038 at the closing and will recognize gain in the amount of proceeds received. The oil and natural gas leasehold deep rights that were sold were undeveloped, and as such not income-producing to the Company. On December 16, 2013, a Second Amendment to the APA was entered into by the Company and the Buyer to extend the Delayed Closing Date to January 16, 2014 as to certain Properties to allow the parties to continue to address the Buyer’s concerns about certain issues with the remaining Properties that did not close on December 17, 2013. | ||
Purchase of Mineral Extraction & Crushing Equipment | ||
On December 16, 2013, the Company entered into an agreement for the purchase of extraction and crushing equipment of its contract operator of the property for $300,000. On January 16, 2014, the Company borrowed $250,000 from Standard Energy Company (“SECO”), an unrelated party, to fund the major portion of the purchase price and closed on the purchase of such equipment. The promissory note (interest at 7%) requires monthly payments of principal and interest totaling $7,719 through December 15, 2016. The note matures on January 15, 2016 and the final payment of principal and interest totals $96,847. The purchased equipment is collateral for the loan. As additional consideration in connection with the borrowing, the Company (i) issued warrants, exercisable through January 15, 2017, for the purchase of 300,000 shares of Common Stock at an exercise price of $0.15 per share and (ii) extended the expiration date to December 31, 2016, of previously issued warrants for the purchase of 500,000 shares of Common Stock at an exercise price of $0.15 per share (see Note 6 - Jacobs Trust; the trustee of RTCIBJ is an affiliate of SECO). The fair values of the warrants and the extension of the previously issued warrants was determined to be $58,924 using the Black-Scholes valuation model. The effective interest rate of the loan is 24%. | ||
Management Evaluation - Management performed an evaluation of Company activity through the date the audited consolidated financial statements were prepared for issuance, and concluded that there are no other significant subsequent events requiring disclosure. | ||
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Description of Business | ' | |||||||
Description of Business | ||||||||
Daleco Resources Corporation (“DRC”) is a Nevada corporation (organized in Nevada during 2002). DRC’s Articles provide for, among other things, authorized capital stock of 150 million shares of common stock and 20 million shares of preferred stock. During June 2013, DRC’s authorized shares of common stock were increased to 150 million shares from 100 million shares. DRC and its consolidated subsidiaries are referred to as the “Company”. The Company's segments consist of two separate categories: oil and natural gas and non-metallic minerals. DRC is a holding company whose subsidiaries are engaged in: (i) the exploration, development and production of oil and gas; (ii) the exploration for naturally occurring minerals; (iii) the marketing and sales of such minerals; and (iv) the marketing and sales of products utilizing such minerals. DRC’s wholly-owned subsidiaries include Westlands Resources Corporation (“WRC”), Deven Resources, Inc. (“DRI”), DRI Operating Company, Inc. (“DRIOP”), Tri-Coastal Energy, Inc. (“TCEI”), Clean Age Minerals, Inc. (“CAMI”), CA Properties, Inc. (“CAPI”), International Aggregation and Trading Company, LLC (IATC”), Sustainable Forest Industries, Inc. (“SFI”) and The Natural Resources Exchange, Inc. (“NREX”). | ||||||||
IATC, TCEI, SFI and NREX are inactive. | ||||||||
All of the Company’s oil and gas properties are located onshore within the continental United States of America. The Company, through its wholly-owned subsidiaries, WRC, DRIOP and DRI, owns and operates oil and gas properties located in Pennsylvania, Texas and West Virginia. The Company owns overriding royalty interests in (i) two wells in Pennsylvania and (ii) one well in Texas. The Company does not own working interests in the two wells located in Pennsylvania that it operates. | ||||||||
The Company does not refine any crude oil or market, at retail, any oil or petroleum products. The Company does not own any drilling rigs. All of its drilling activities are performed by independent drilling contractors. | ||||||||
DRI is the managing general partner of Deerlick Royalty Partners I, a Pennsylvania general partnership, which owns overriding royalty interests in seventy wells in the Deerlick Coalbed Methane Field located in Tuscaloosa County, Alabama. DRI is also the sole shareholder of DRIOP which operates wells and has oil and gas interests in West Virginia and Pennsylvania. | ||||||||
As of September 30, 2013, the Company owned working interests in 28 wells in Texas and West Virginia. Throughout 2013, the Company has experienced an average increase of 3% in the unit of production weighted average sales price it received for its oil and natural gas products as compared to 2012. | ||||||||
CAMI, through its wholly-owned subsidiary, CAPI (collectively “CAM”), owns a fee title interest, leasehold interest and Federal Placer and Lode mining claims containing non-metallic and other minerals in Texas, New Mexico and Utah. CAM is presently engaged in the exploration for such minerals. CAM intends to mine the minerals through the use of contract miners and arrangements with its joint venture partner. | ||||||||
The Company is primarily engaged in oil and gas operations and non-metallic minerals activities. | ||||||||
We follow accounting standards set by the Financial Accounting Standard Board, commonly referred to as “FASB”. The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our consolidated financial position, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification, sometimes referred to as the “Codification” or “ASC”. From time to time, the FASB may issue an Accounting Standards Update (“ASU”) which may impact the consolidated financial statements and disclosures therein (see “Recent Accounting Pronouncements”). | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | ||||||||
Significant estimates made in preparing these consolidated financial statements include, among other things, estimates of the proved oil and natural gas reserve volumes used in calculating depletion, depreciation and amortization expense (“DD&A”); the estimated future cash flows and fair value of properties used in determining the need for any impairment write-down; volumes and prices for revenues accrued; estimates of the fair value of equity-based compensation awards; deferred tax valuation and the timing and amount of future abandonment costs used in calculating asset retirement obligations. Future changes in the assumptions used could have a significant impact on reported results in future periods. The significant estimates are based on current assumptions that may be materially affected by changes to future economic conditions such as the market prices received for sales of volumes of oil and natural gas, interest rates and our ability to generate future income. | ||||||||
Basis of Consolidation | ' | |||||||
Basis of Consolidation | ||||||||
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and include the accounts of DRC and its wholly-owned subsidiaries. The Company’s investments in oil and gas leases are accounted for using proportionate consolidation whereby the Company’s pro rata share of each of the assets, liabilities, revenues and expenses of the investments are aggregated with those of the Company in its consolidated financial statements. The Company’s investments in minerals are accounted for using purchase accounting methods. | ||||||||
Certain reclassifications have been made to prior period consolidated financial statements to conform to the current presentation. | ||||||||
Cash and Cash Equivalents; Restricted Cash Deposits | ' | |||||||
Cash and Restricted Cash Deposits | ||||||||
Cash totals $140,607 and $190,738 at September 30, 2013 and 2012, respectively. | ||||||||
Restricted cash deposits - operations totaling $109,681 and $109,609 at September 30, 2013 and 2012, respectively, are classified as other assets in the accompanying balance sheets as they support financial assurance requirements for the Company’s operations of its mineral properties and its oil and gas properties in certain states as follows: | ||||||||
2013 | 2012 | |||||||
Texas and West Virginia oil and gas operations bonding requirements | $ | 60,012 | $ | 60,010 | ||||
New Mexico minerals operations bonding requirements | $ | 49,669 | $ | 49,599 | ||||
Restricted cash deposits – equity issuances total $693,808 as of September 30, 2013 as discussed in Note 1. | ||||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ||||||||
Our trade accounts receivable, which are primarily from oil and natural gas sales and joint interest billings, are recorded at the invoiced amount and include production receivables. The production receivables are valued at the invoiced amounts and do not bear interest. Accounts receivable also include joint interest billing receivables which represent billings to the non-operators associated with the drilling and operation of wells and are based on those owners’ working interests in the wells. We have assessed the financial strength of our customers and joint owners and determined that an allowance of $25,000 for estimated uncollectible amounts was necessary at September 30, 2013 and 2012. | ||||||||
Subscriptions Receivable and Interest Receivable | ' | |||||||
Subscriptions Receivable and Interest Receivable | ||||||||
As of September 30, 2013, management of the Company believes that the collection of the principal balance of and interest due pursuant to a certain note receivable is in doubt (see Note 11). As of September 30, 2012, the Company changed to the recovery method in accounting for the notes receivable and interest thereon. Accordingly, the principal and interest will be recorded when, and if, collected. This change to the recovery method resulted in the recognition of $207,025 as an impairment of the interest receivable at September 30, 2012. The principal balance of the notes receivable ($576,000) was previously reflected as subscriptions receivable. Additional paid-in capital was reduced by $576,000 as of September 30, 2012, to reflect the impairment of the notes receivable. | ||||||||
Inventory | ' | |||||||
Inventory | ||||||||
At September 30, 2013, we have $40,500 of inventory relating to our minerals activities. During September 2013, the company produced saleable minerals from its zeolite mineral deposit in Texas and shipped the material to a processing and fulfillment facility in Pennsylvania. Such inventory is recorded at the lower of average cost or market. Sales of the processed and unprocessed product to identified customers commenced in October 2013. We had no inventory at September 30, 2012, relating to our minerals activities. | ||||||||
We have no inventory at September 30, 2013 or 2012 relating to our oil and gas activities. | ||||||||
Prepaid Consulting Services Agreements Fees | ' | |||||||
Prepaid Consulting Services Agreements Fees | ||||||||
Consulting Services Agreement | ||||||||
The Company issued 2,400,000 shares in connection with the Consulting Services Agreement with the Musser Group during 2011 which has been extended to February 2014. The shares of common stock issued to individuals associated with the Musser Group were valued at $360,000, the market price at time of issuance ($0.15 per share). Also, the Company issued to individuals associated with the Musser Group warrants for the purchase of 2,500,000 shares of Common Stock at an exercise price of $0.15 per share. The warrants may not be exercised unless and until the average bid and asking closing price of the Company’s Common Stock exceeds $1.00 per share for a period of thirty consecutive trading days. The warrants are exercisable through February 24, 2016. The fair value of the warrants was determined to be $375,153 using the Black-Scholes valuation model and the following assumptions: a contractual term of 5 years, risk free interest rate of 2.16%, dividend yields of 0%, and volatility of 163%. The Company filed a registration statement under the Securities Act of 1933 on Form S-8 for the shares of Common Stock issued to individuals associated with the Musser Group. The total fair value of the shares of Common Stock and the warrants issued individuals associated with to the Musser Group amounted to $735,153 and such amount was recorded as prepaid consulting fees. | ||||||||
Investor Relations Firm Consulting Agreement | ||||||||
In March 2013, the Company engaged an investor relations firm (“IR Firm”) to assist management in such activities for one year. The Company issued 600,000 shares (valued at $0.11 per share) of Common Stock to the IR Firm and such contract requires monthly payments of cash of $5,000 during the term of the agreement. The Company is amortizing the prepaid consulting fees of $66,000, the value of the shares, over the term of the contract with the IR Firm and unamortized consulting fees total $30,559 at September 30, 2013. | ||||||||
The prepaid consulting fees are being amortized over the lives (initial terms) of the respective agreements. At September 30, 2013 and 2012, prepaid consulting services agreement fees totaled $30,559 and $151,237, respectively, and was classified as a current asset. Amortization of $186,678 and $366,575, respectively, is included in general and administrative expenses during 2013 and 2012. | ||||||||
Intangible Assets | ' | |||||||
Intangible Assets | ||||||||
The Company follows FASB issued authoritative guidance for recording intangible assets, including prepaid mineral royalties, which discontinues the amortization of identifiable intangible assets that have indefinite lives. In accordance with FASB issued authoritative guidance, these identifiable intangible assets that have indefinite lives are tested for impairment on an annual basis, or whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. Should we determine that such carrying amounts are greater than the estimated future benefit of the expected production from the mineral properties, we consider the asset to be impaired. The impairment to be recognized is measured by the amount that the carrying amount of an asset group exceeds the fair value of such asset group. | ||||||||
Prepaid Mineral Royalties | ' | |||||||
Prepaid Mineral Royalties | ||||||||
The Company receives a credit in the nature of prepaid mineral royalties for advance royalties paid on the Texas zeolite lease located in Presidio County, Texas. At September 30, 2013 and 2012, recoupable mineral royalties were $539,237 and $509,254, respectively. At September 30, 2012, such amount of prepaid mineral royalties is classified as an Other Asset in the accompanying Consolidated Balance Sheets. No portion was classified as a current asset as the Company’s agreements concerning sales of such mineral do not have any minimum supply requirements (as discussed in Note 8). As part of our annual impairment test as of September 30, 2013, and in connection with the Company entering the production phase of its Texas Zeolite minerals in the fourth quarter of fiscal 2013, we assessed the estimated future benefit of the royalty advances paid. This assessment was based on the expected production from the mineral properties. Although we are optimistic about the future cash flow of our mineral properties, the future results from our sales efforts and market growth cannot be assured. Based upon this information, we have determined that we are uncertain when we will be able to realize the prepaid mineral royalties at September 30, 2013, and that these assets may not be recoverable through future operations; therefore, we recognized an impairment expense of $539,237 in 2013. | ||||||||
Patent Rights and Patent License Rights | ' | |||||||
Patent Rights and Patent License Rights | ||||||||
At September 30, 2013, the intangible assets consisted of patent rights of $6,620. The patent rights will be amortized over the life of such patents commencing in fiscal 2014. | ||||||||
The patent license rights were amortized over the initial term of the agreement. Such initial term expired in 2013. See Note 5. | ||||||||
Mineral Properties and Reserves | ' | |||||||
Mineral Properties and Reserves | ||||||||
The Company has not produced large-scale quantities of any of its mineral deposits. During September 2013, the company produced saleable minerals from its zeolite mineral deposit in Texas (“Texas Zeolite”). The Company is in the production phase of its Texas Zeolite as saleable minerals have been extracted (produced) from such mineral deposit. By definition, the Company is in the Development Stage in respect to its Texas Zeolite and is in the Exploration Stage in respect to its Sierra Kaolin mineral holdings in New Mexico (“Sierra Kaolin”) and its zeolite mineral holdings in Utah (“Utah Zeolite”). As such, no proved reserves are estimated. At September 30, 2013 and 2012, net mineral properties were $9,782,128. The Company previously amortized its mineral properties at a nominal amortization rate as the Company has not produced commercial quantities of any of its mineral deposits. Once the Company produces commercial quantities of any of its mineral deposits, we will use the unit-of-production method in calculating cost depletion. | ||||||||
We recorded the acquisition of Clean Age Minerals, Inc., and associated minerals rights on September 19, 2000, at cost as based on the stated value of the Series B Preferred Stock issued which was less than the appraised value of the entity acquired. | ||||||||
Oil and Natural Gas Property - Depreciation, Depletion and Amortization (bDD&Ab) | ' | |||||||
Oil and Natural Gas Property - Depreciation, Depletion and Amortization (“DD&A”) | ||||||||
We account for natural gas and oil exploration and production activities under the successful efforts method of accounting. Proved developed natural gas and oil property acquisition costs are capitalized when incurred. Unproved properties with individually significant acquisition costs are assessed periodically on a property-by- property basis, and any impairment in value is recognized. If the unproved properties are determined to be productive, the appropriate related costs are transferred to proved natural gas and oil properties. Natural gas and oil exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. The costs of drilling exploratory wells are capitalized pending determination of whether they have discovered proved commercial reserves. If proved commercial reserves are not discovered, such drilling costs are expensed. Costs to develop proved reserves, including the costs of all development well and related equipment used in the production of natural gas and oil, are capitalized. | ||||||||
DD&A is calculated using the unit-of-production method on estimated proved oil and gas reserves at the field, lease, unit or well level. In arriving at rates under the unit-of-production method, the quantities of recoverable oil and natural gas are established based on estimates made by our independent engineers. We periodically review estimated proved reserve estimates and make changes as needed to DD&A expenses to account for new wells drilled, acquisitions, divestitures and other events which may have caused significant changes in our estimated proved developed producing reserves. The costs of unproved properties are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned, the cost of the property is added to costs subject to depletion calculations. Non-producing properties consist of undeveloped leasehold costs and costs associated with the purchase of certain proved undeveloped reserves. Undeveloped leasehold cost is allocated to the associated producing properties as the undeveloped acreage is developed. Individually significant non-producing properties are periodically assessed for impairment of value. Service properties, equipment and other assets are depreciated using the straight-line method over their estimated useful lives of three to 30 years. | ||||||||
When circumstances indicate that an asset may be impaired, we compare expected undiscounted future cash flows at a producing field to the unamortized capitalized cost of the asset. If the future undiscounted cash flows, based on our estimate of future natural gas and oil prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value. Fair value is calculated by discounting the future cash flows at an appropriate risk-adjusted discount rate. When evaluating our unproved oil and gas properties, we utilize active market prices for similar acreage to use as a comparison tool against the carrying value of our properties. If the active market prices for similar acreage do not support our carrying values we then utilize estimates of future value that will be created from the future development of these properties. If future estimated fair value of these properties is lower than the capitalized cost, the capitalized cost is reduced to the estimated future fair value. | ||||||||
Expenditures for repairs and maintenance to sustain production from the existing producing reservoirs are charged to expense as incurred. Expenditures to recomplete a current well in a different unproved reservoir are capitalized pending determination that economic reserves have been added. If the recompletion is not successful, the expenditures are charged to expense. | ||||||||
Significant tangible equipment added or replaced that extends the useful or productive life of the property is capitalized. Expenditures to construct facilities or increase the productive capacity from existing reservoirs are capitalized. | ||||||||
Upon the sale or retirement of a proved natural gas or oil property, or an entire interest in unproved leaseholds, the cost and related accumulated DD&A are removed from the property accounts and the resulting gain or loss is recognized. For sales of a partial interest in unproved leaseholds for cash or cash equivalents, sales proceeds are first applied as a reduction of the original cost of the entire interest in the property and any remaining proceeds are recognized as a gain. | ||||||||
Natural Gas and Oil Reserve Quantities | ' | |||||||
Natural Gas and Oil Reserve Quantities | ||||||||
Our estimate of proved reserves is based on the quantities of oil and natural gas that engineering and geological analyses demonstrate, with reasonable certainty, to be recoverable from established reservoirs in the future under current operating and economic parameters. For the years ended September 30, 2013 and 2012, Hall Energy, Inc. (“HEI”) prepared a consolidated reserve and economic evaluation of our proved oil and gas reserves. The preparation of our proved reserve estimates are completed in accordance with our internal control procedures, which include the verification of input data used by HEI, as well as management review and approval. Reserves and their relation to estimated future net cash flows impact our depletion and impairment calculations. As a result, adjustments to depletion and impairment are made concurrently with changes to reserve estimates. Estimates of our crude oil and natural gas reserves, and the projected cash flows derived from these reserve estimates, are prepared by HEI in accordance with guidelines established by the SEC, including the rule revisions designed to modernize the oil and gas company reserves reporting requirements and which we adopted effective September 30, 2010. The independent reserve engineer estimates reserves annually on September 30. This annual estimate results in a new DD&A rate, which we use for the preceding fourth quarter after adjusting for fourth quarter production. | ||||||||
Office Equipment, Furniture and Fixtures | ' | |||||||
Office Equipment, Furniture and Fixtures | ||||||||
Office Equipment, Furniture and Fixtures are recorded at cost and depreciated using the straight-line method over a period of three to seven years. | ||||||||
Impairment of Long-Lived Assets | ' | |||||||
Impairment of Long-Lived Assets | ||||||||
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets exceeds the fair value of the assets. At September 30, 2013 and 2012, we assessed the recovery of our long-lived assets, including our minerals properties and we determined that the carrying amount of each of the asset groups of mineral properties did not exceed the estimated future net cash flows expected to be generated by each respective asset group. | ||||||||
Long-Lived Assets to be Disposed Of | ' | |||||||
Long-Lived Assets to be Disposed Of | ||||||||
Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The oil and gas leasehold rights subject to a purchase and sale agreement dated October 6,, 2013, have no carrying amount in the accompanying Balance Sheets as of September 30, 2013 and 2012. | ||||||||
Environmental Remediation | ' | |||||||
Environmental Remediation | ||||||||
The Company’s policy is to accrue environmental and cleanup related costs of a noncapital nature when it is both probable that a liability has been incurred and when the amount can be reasonably estimated. The Company accrues for certain environmental remediation related activities for which commitments or cleanup plans have been developed or for which costs or minimum costs can be reasonably estimated. It is reasonably possible that, due to uncertainties associated with defining the nature and extent of contamination, application of laws and regulations by regulatory authorities and changes in remediation technology, the ultimate cost of remediation could materially change in the future. Any liability established would not necessarily be the minimum or maximum liability, but based upon the Company’s experience and the advice of its outside consultants; it would most accurately reflect the Company’s liability based on the information currently available. As a general rule, the Company accrues remediation costs for continuing operations on a discounted basis and does not accrue for normal operating and maintenance costs for site monitoring and compliance requirements. It has not been necessary for the Company to record any environmental remediation costs for 2013 and 2012. | ||||||||
Capital Leases | ' | |||||||
Capital Leases | ||||||||
As of September 30, 2013, we had no capital leases. As a lessee, we determine if a lease is a capital lease if it meets one of four of the following criteria: | ||||||||
• | The ownership of the leased property transfers to us by the end of the lease term, or shortly thereafter, in exchange for the payment of a nominal fee. | |||||||
• | The lease contains a bargain purchase option. | |||||||
• | The lease term is equal to 75% or more of the estimated economic life of the leased property. | |||||||
• | The present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executor costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90% of the excess of the fair value of the leased property to the lessor at the lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. | |||||||
Asset Retirement Obligation | ' | |||||||
Asset Retirement Obligation | ||||||||
The Company may have an obligation to retire property, plant, and equipment at the end of their useful fives. The Company performs periodic reviews for any changes in facts and circumstances that might enable it to determine a reasonable estimate of any asset retirement obligation (“ARO”). When an ARO is necessary, the Company estimates the fair value, establishes a liability, and increases the carrying value of the assets by a corresponding amount. | ||||||||
An ARO associated with the retirement of a tangible long-lived asset is required to be recognized as a liability in the period in which it is incurred and becomes determinable. Under this method, when liabilities for dismantlement and abandonment costs, excluding salvage values, are initially recorded, the carrying amount of the related assets (mineral, oil and natural gas properties) is increased. The fair value of the ARO asset and liability is measured using expected future cash outflows discounted at the credit-adjusted risk-free interest rate. Accretion of the liability is recognized each period using the interest method of allocation, and the capitalized cost is depleted over the useful life of the related asset. The estimated residual salvage values are taken into account in determining amortization and depreciation rates. | ||||||||
Generally, the salvage value of the Company’s producing wells or mining deposits is expected to exceed the cost of site restoration and abandonment. To date, mining and exploration activities of the Company's mineral deposits have been conducted by contract mining companies. As mining activity increases, the Company may accrue site restoration costs as appropriate. | ||||||||
As of September 30, 2013 and 2012, the Company has accrued future abandonment costs of $10,000 of costs associated with the potential abandonment and restoration of a mining deposit that was abandoned prior to fiscal 2010. | ||||||||
Fair Value Measurements | ' | |||||||
Fair Value Measurements | ||||||||
The Company’s only financial instruments are cash, short-term trade receivables, payables and debt. The carrying amounts reported in the accompanying consolidated financial statements for cash, short-term trade receivables, payables and debt approximate fair values because of the immediate nature of short-term maturities of these financial instruments. The Company has no long-term or short-term bank debt outstanding at September 30, 2013. | ||||||||
Revenue Recognition | ' | |||||||
Revenue Recognition | ||||||||
Oil and Gas Sales | ||||||||
Oil and natural gas revenue is recognized when the oil or natural gas is delivered to or collected by the respective purchaser, a sales agreement exists, collection for amounts billed is reasonably assured and the sales price is fixed or determinable. Title to the produced quantities transfers to the purchaser at the time the purchaser collects or receives the products. In the case of oil sales, title is transferred to the purchaser when the oil leaves the stock tanks and enters the purchaser’s trucks. In the case of gas production, title is transferred when the gas passes through the meter of the purchaser. It is the measurement of the purchaser that determines the amount of oil or gas purchased (although there are provisions for challenging these measurements if the Company believes the measurements are incorrect). Prices for such production are defined in sales contracts and may be based on certain publicly available indices. The purchasers of such production have historically made payment for oil and natural gas purchases within 30-60 days of the end of each production month. The Company periodically reviews the difference between the date of production and the date the Company collects payment for such production to ensure that receivables from those purchasers are collectible. The point of sale for the oil and natural gas production is at its applicable measurement facility; generally, the Company does not incur transportation costs related to our sales of oil and natural gas production. The Company does not currently participate in any gas-balancing arrangements. The Company does not recognize revenue for oil production held in stock tanks before delivery to the purchaser. | ||||||||
To the extent actual quantities and values of oil and natural gas are unavailable for a given reporting period because of timing or information not received from third parties, the expected sales volumes and price for those properties are estimated and recorded as Accounts Receivable in the accompanying consolidated financial statements. | ||||||||
Well Management Revenue | ||||||||
The amounts which may be charged by the Company for well management are set forth in the joint operating agreements governing the wells operated by the Company. Such well management fees consist of monthly operating charges as well as fees related to certain maintenance and capital improvements charged by the Company as operator of the applicable properties. Revenue is recognized when such fees are earned pursuant to the terms of such underlying agreements and collection for amounts billed is reasonably assured. | ||||||||
Mineral Sales | ||||||||
Mineral sales revenue is recognized when the mineral is delivered to or collected by the respective purchaser, a sales agreement exists, collection for amounts billed is reasonably assured and the sales price is fixed or determinable. Title to the product transfers to the purchaser at the time the purchaser collects or receives the products. | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
We provide for income taxes using the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We evaluate our tax positions in a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination. The second step is a measurement process whereby a tax position that meets the more-likely-than-not threshold is calculated to determine the amount of benefit to recognize in the financial statements. See Note 10. | ||||||||
Stock-based Compensation | ' | |||||||
Stock-based Compensation | ||||||||
We account for all stock-based compensation (options) in accordance with FASB ASC 718. Under ASC 718, the fair value of stock options and compensation costs are measured as of the grant date. Under ASC 718, stock-based awards granted prior to its adoption will be expensed over the remaining portion of their vesting period. We amortize stock-based compensation expense on a straight-line basis over the requisite vesting period, which generally ranges from one to five years. | ||||||||
ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Stock-based compensation expense has been recorded net of estimated forfeitures for 2013 and 2012 such that expense was recorded only for those stock-based awards that are expected to vest. Options granted to non-employees are recognized in these financial statements as compensation expense (See Note 9) using the Black-Scholes option-pricing model. | ||||||||
Comprehensive Loss | ' | |||||||
Comprehensive Loss | ||||||||
Summary of items of comprehensive loss for fiscal 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
Net loss (comprehensive loss) | $ | -2,024,509 | $ | -772,579 | ||||
During March 2012, management of the Company concluded that the securities available for future sale were permanently impaired and accordingly $5,699 was recognized as impairment of securities available for future sale in the accompanying consolidated statement of operations and is reflected in net loss for 2012. See Note 5. | ||||||||
Net Income (Loss) Per Share | ' | |||||||
Net Income (Loss) Per Share | ||||||||
Net income (loss) per share is computed in accordance with FASB ASC Topic 260, "Earnings per Share". Basic net income (loss) per share is calculated by dividing the net income (loss) available to common stockholders by the weighted average number of shares outstanding during the year. Diluted earnings per share reflect the potential dilution of securities that could share in earnings of an entity. In a loss year, dilutive common equivalent shares are excluded from the loss per share calculation as the effect would be antidilutive. | ||||||||
At September 30, 2013 and 2012, options and warrants to purchase 26,144,000 and 5,250,000 shares of common stock, respectively, were outstanding. Such shares were not included in the computation of diluted earnings per share because such shares subject to options and warrants would have an antidilutive effect on net loss per share. The 321,429 shares of Common Stock issuable upon the conversion of the 7.25% Convertible Debentures at September 30, 2013 (see Note 6) have not been included in the computation of diluted earnings per share because such shares would have an anti-dilutive effect on net loss per share. The 1,071,937 shares of Common Stock issuable upon the conversion of the Convertible Note Payable as of September 30, 2012 (see Note 6) have not been included in the computation of diluted earnings per share because such shares would have an anti-dilutive effect on net loss per share and because the price at which such shares are convertible was in excess of the market price of the Common Stock at September 30, 2012.The 1,080,000 shares of Common Stock issuable upon the conversion of the Series B 8% Cumulative Convertible Preferred Stock as of September 30, 2012 (see Note 9), have not been included in the computation of diluted earnings per share because the price ($1.25) at which such shares are convertible was in excess of the market price of the Common Stock at such date. No other adjustments were made for purposes of per share calculations. | ||||||||
Concentrations of Credit Risk | ' | |||||||
Concentrations of Credit Risk | ||||||||
At times during the fiscal years ended September 30, 2013 and 2012, the cash balance exceeded the Federal Deposit Insurance Corporation’s limit of $250,000. There were no losses incurred due to such concentrations. | ||||||||
During the fiscal years ended September 30, 2013 and 2012, the Company did not use derivative instruments to hedge exposure to changes in commodity prices. | ||||||||
The Company also depends on a relatively small number of purchasers for a substantial portion of our revenue. At September 30, 2013, accounts receivable includes approximately $225,399 of joint interest billings and production receivables due primarily from four customers – ETC Texas Pipeline, Ltd., GulfMark Energy, Inc., Sheridan Production Company LLC and Volunteer Energy Services, Inc. | ||||||||
Recent Accounting Pronouncements | ' | |||||||
Recent Accounting Pronouncements | ||||||||
In January 2013, the FASB issued ASU 2013-01, Balance Sheet (topic 210) Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities guidance clarifying the scope of disclosures about offsetting assets and liabilities. The guidance limits the scope of balance sheet offsetting disclosures to derivative instruments, including bifurcated embedded derivatives, repurchase agreements and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement of similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Entities are required to provide the new disclosures retrospectively for all comparative periods. The Company is currently assessing the impact that the adoption may have on its financial statements. | ||||||||
CONTINUED_OPERATIONS_Tables
CONTINUED OPERATIONS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Continued Operations [Abstract] | ' | |||||||
Schedule of Restricted Cash and Cash Equivalents | ' | |||||||
The SPA contains provisions that restrict the use of the $1.5 million received by the Company as follows: | ||||||||
Initial | Restricted cash at | |||||||
Restriction | September 30, | |||||||
per the SPA | 2013 | |||||||
Forbearance Agreements, Novinskie Agreement and Blackstone Agreement | $ | 350,000 | $ | 15,000 | ||||
Marketing Agreement payments to FEI | 120,000 | 60,000 | ||||||
Other marketing and sales activities | 360,000 | 283,730 | ||||||
Transaction closing costs and related | 80,000 | 3,383 | ||||||
Oil and gas properties activities | 75,000 | 23,000 | ||||||
Mineral properties activities | 50,000 | 35,000 | ||||||
Future general and administrative expenses | 345,000 | 225,650 | ||||||
Other costs and expenses | 120,000 | 48,045 | ||||||
Total | $ | 1,500,000 | $ | 693,808 | ||||
Defaulted Obligations | ' | |||||||
Such defaulted obligations at September 30, 2013 include the following: | ||||||||
Amounts included in accounts payable: | ||||||||
Consulting services and interest due a licensor | $ | 19,009 | ||||||
EV&T – fees, expenses and accrued interest (subject to forbearance agreement) | 213,040 | |||||||
CAMI notes payable and accrued interest: | ||||||||
Subject to forbearance agreements | 830,534 | |||||||
Not subject to forbearance agreements | 32,171 | |||||||
EV&T note and interest (subject to forbearance agreement) | 1,202,318 | |||||||
Note payable to related party and interest thereon (subject to forbearance agreement) | 69,587 | |||||||
7.25% Convertible Debentures and interest due a related party (subject to forbearance | 46,689 | |||||||
agreement) | ||||||||
Note payable to former related party and interest thereon (subject to forbearance agreement) | 19,949 | |||||||
Amounts included in accrued compensation expense: | ||||||||
Subject to forbearance agreements | 597,009 | |||||||
Not subject to forbearance agreements | 94,791 | |||||||
Total | $ | 3,125,097 | ||||||
BASIS_OF_PRESENTATION_Tables
BASIS OF PRESENTATION (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Cash and Cash Equivalents; Restricted Cash Deposits | ' | |||||||
the Company’s operations of its mineral properties and its oil and gas properties in certain states as follows: | ||||||||
2013 | 2012 | |||||||
Texas and West Virginia oil and gas operations bonding requirements | $ | 60,012 | $ | 60,010 | ||||
New Mexico minerals operations bonding requirements | $ | 49,669 | $ | 49,599 | ||||
Summary of items of comprehensive loss | ' | |||||||
Summary of items of comprehensive loss for fiscal 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
Net loss (comprehensive loss) | $ | -2,024,509 | $ | -772,579 | ||||
OIL_AND_GAS_PROPERTIES_Tables
OIL AND GAS PROPERTIES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Oil and Gas Property [Abstract] | ' | |||||||
Oil and Gas Properties | ' | |||||||
Oil and Gas Properties at September 30: | ||||||||
2013 | 2012 | |||||||
Proved oil and gas properties | $ | 4,471,590 | $ | 4,471,590 | ||||
Support equipment and facilities | - | - | ||||||
Uncompleted wells, equipment and facilities | - | - | ||||||
4,471,590 | 4,471,590 | |||||||
Accumulated depletion, depreciation and amortization | -4,144,939 | -4,096,939 | ||||||
Net Oil and Gas Properties | $ | 326,651 | $ | 374,651 | ||||
Results of Operations for Oil and Gas Producing Activities | ' | |||||||
Results of Operations for Oil and Gas Producing Activities for Fiscal 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Revenues: | ||||||||
Oil and gas sales | $ | 404,225 | $ | 373,443 | ||||
Well management revenue | 262,813 | 287,446 | ||||||
Royalty receipts | 4,799 | 3,532 | ||||||
Total revenues | 671,837 | 664,421 | ||||||
Expenses and other: | ||||||||
Lease operating expenses | 237,661 | 182,027 | ||||||
Production and severance taxes | 22,022 | 20,878 | ||||||
Depreciation, depletion, amortization and valuation provisions | 48,000 | 60,000 | ||||||
Total Expenses | 307,683 | 262,905 | ||||||
Revenues in excess of expenses | 364,154 | 401,516 | ||||||
Provision for doubtful account - proceeds receivable from prior sale of oil and gas | - | -25,000 | ||||||
properties | ||||||||
Gain on sale of oil and gas properties | - | 898,335 | ||||||
Results of operations before income tax expenses | 364,154 | 1,274,851 | ||||||
Income tax expenses (1) | - | - | ||||||
Results of operations from oil and gas producing activities (excluding corporate | $ | 364,154 | $ | 1,274,851 | ||||
overhead and interest costs) | ||||||||
(1) The Company presently has approximately $24 million of loss carryforwards for Federal income tax purposes. Based on these loss carryforwards, no income tax expense is recognized for this segment. | ||||||||
Schedule of Gas and Oil Acreage | ' | |||||||
The Company’s customers who purchased in excess of five percent (5%) of the Company’s oil and gas during 2013 and 2012 are as follows: | ||||||||
Percentage | ||||||||
Name of Purchaser | 2013 | 2012 | ||||||
ETC Texas Pipeline, Ltd. | 24 | % | 27 | % | ||||
GulfMark Energy, Inc. | 53 | % | 45 | % | ||||
Sheridan Production Company LLC | 13 | % | 16 | % | ||||
Volunteer Energy Services, Inc. | 7 | % | 10 | % | ||||
MINERAL_PROPERTIES_AND_RESULTS1
MINERAL PROPERTIES AND RESULTS OF OPERATIONS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Mineral Industries Disclosures [Abstract] | ' | |||||||
Minerals Properties and Equipment | ' | |||||||
Minerals Properties and Equipment | ||||||||
At September 30: | 2013 | 2012 | ||||||
Undeveloped lease costs | $ | 9,877,128 | $ | 9,877,128 | ||||
Mine development costs | - | - | ||||||
9,877,128 | 9,877,128 | |||||||
Accumulated, depreciation, depletion and amortization (see Note 2) | -95,000 | -95,000 | ||||||
Net Mineral Properties | $ | 9,782,128 | $ | 9,782,128 | ||||
Results of Operations for Minerals Properties Activities | ' | |||||||
Results of Operations for Minerals Properties Activities for Fiscal 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Mineral Sales | $ | 7,652 | $ | 5,626 | ||||
Operating and other expenses | -30,083 | -19,121 | ||||||
Impairment of prepaid mineral royalties (see Note 2) | -539,237 | - | ||||||
Depreciation, depletion, amortization and valuation provisions | -4,556 | -253,612 | ||||||
-566,224 | -267,107 | |||||||
Income tax expenses (benefits) (1) | - | - | ||||||
Results of operations from mineral properties activities (excluding corporate | $ | -566,224 | $ | -267,107 | ||||
overhead and interest costs) | ||||||||
-1 | The Company presently has approximately $24 million of loss carryforwards for Federal income tax purposes. Based on these loss carryforwards, no income tax benefits are recognized for this segment. | |||||||
CAPITAL_STOCK_Tables
CAPITAL STOCK (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||
Schedule of Common Stock Reserved for Future Issuance | ' | |||||||||||||
Shares Issued and Outstanding: | ||||||||||||||
Number of | ||||||||||||||
Number of | Series B | |||||||||||||
Common | Preferred | |||||||||||||
Shares | Shares | |||||||||||||
Outstanding at September 30, 2011(1) | 48,988,914 | 145,000 | ||||||||||||
Estate of Eric Haessler (see Note 6) | 158,290 | - | ||||||||||||
Dov Amir (see Note 6) | 140,000 | - | ||||||||||||
Carl A. Haessler (see Note 7): | ||||||||||||||
Conversion 10,000 shares of Series B 8% Cumulative Convertible Preferred Stock | 80,000 | -10,000 | ||||||||||||
Payment in satisfaction of Series B dividend obligation | 73,854 | - | ||||||||||||
Outstanding at September 30, 2012 (1) | 49,441,058 | 135,000 | ||||||||||||
2013 Private Placement (see Note 1) | 4,110,000 | - | ||||||||||||
FEI/DTE Stock Purchase Agreement (see Note 1) | 15,000,000 | - | ||||||||||||
In payment of interest (see Note 6) | 50,000 | - | ||||||||||||
Consulting services agreement (see Note 2) | 600,000 | - | ||||||||||||
Repayment of convertible note (see Note 6) | 498,000 | - | ||||||||||||
Payment of compensation (see Note 11)(2) | 600,000 | - | ||||||||||||
Settlement with Benediktson (see Note 11) | 2,169,400 | - | ||||||||||||
Outstanding at September 30, 2013 (1) (2) | 72,468,458 | 135,000 | ||||||||||||
-1 | The number of common shares outstanding at September 30, 2011, 2012 and 2013 includes 1,800,000, 1,800,000 and 800,000 shares, respectively, which are pledged as collateral for certain notes due the Company by certain former executive officers (see Note 11). | |||||||||||||
-2 | The number of common shares outstanding at September 30, 2013 includes 600,000 which are issuable to Mr. Parrish (see Note 11). | |||||||||||||
Options and Warrants to Purchase Common Stock | ' | |||||||||||||
The Company has granted the following options and warrants to purchase common stock: | ||||||||||||||
Number of Shares | Weighted | |||||||||||||
pursuant to | Average | |||||||||||||
Options | Price | |||||||||||||
and Warrants | per Share | |||||||||||||
Outstanding at September 30, 2011 | 5,650,000 | $ | 0.2 | |||||||||||
Employee and director stock options: | ||||||||||||||
Granted | - | |||||||||||||
Expired (1) (2) | -400,000 | $ | 0.48 | |||||||||||
Outstanding at September 30, 2012 | 5,250,000 | $ | 0.18 | |||||||||||
Employee and director stock options: | ||||||||||||||
Granted (3) (4) (5) | 1,450,000 | $ | 0.13 | |||||||||||
Expired (3) | -200,000 | $ | 0.06 | |||||||||||
Stockholder warrants: | ||||||||||||||
Issued (6) (7) | 19,644,000 | $ | 0.23 | |||||||||||
Expired | - | |||||||||||||
Outstanding at September 30, 2013 | 26,144,000 | $ | 0.21 | |||||||||||
-1 | During fiscal 2007, the Company granted an option for the purchase of 200,000 shares of Common Stock to Richard W. Blackstone, an officer of the Company. The option was exercisable through October 2011, at an exercise price of $0.67 per share. The option expired unexercised during fiscal 2012. | |||||||||||||
-2 | During fiscal 2007, David A Grady, was granted an option to purchase 200,000 shares of stock at an exercise price of $0.28 per share under the Company’s Non-qualified Independent Director Stock Option Plan. The option expired unexercised during fiscal 2012. | |||||||||||||
-3 | In December 2012, David A. Grady was granted an option to purchase 200,000 shares of stock at an exercise price of $0.06 per share under the Company’s Non-qualified Independent Director Stock Option Plan. The fair value of the option was determined to be $11,656 using the Black-Scholes valuation model. At the Company’s Annual Meeting of Shareholders in June 2013, Mr. Grady was not re-elected to serve as a Director; accordingly, the option expired unexercised in accordance with its terms. | |||||||||||||
-4 | Effective March 25, 2013, the Company granted an option for the purchase of 1.2 million shares of Common Stock to Michael Parrish, Chief Executive Officer of the Company, at an exercise price of $0.14 per share. The option is exercisable through May 21, 2015 and vests 50% on each of May 21, 2013 and 2014. The fair value of the option was determined to be $119,737 using the Black-Scholes valuation model. | |||||||||||||
-5 | Effective May 8, 2013, the Company granted an option for the purchase of 50,000 shares of common stock to Joseph Sverapa, Vice President of Sales, at an exercise price of $0.20 per share. The option is exercisable through May 2018. The option vests 50% in May 2014 and 25% in each of May 2015 and 2016. The fair value of the option was determined to be $8,878 using the Black-Scholes valuation model. | |||||||||||||
-6 | On March 25, 2013, in connection with the FEI/DTE Stock Purchase Agreement, the Company issued warrants for the purchase of up to 18 million shares of Common Stock. The FEI/DTE Warrants have a term of five (5) years and may be exercised at a price of $0.20 per share. In the third through fifth years of such term, the exercise price may be satisfied by exchanging Common Stock at the current market price. The FEI/DTE Warrants may be exercised in whole or in part at any time during such term. The fair value of the warrants was determined to be $806,838 using the Black-Scholes valuation model. | |||||||||||||
-7 | In connection with the 2013 Private Placement through September 30, 2013, the Company has issued warrants for the purchase of 1,644,000 million shares of Common Stock at an exercise price of $0.50 per share. The warrants expire on January 16, 2018. The fair value of the warrants was determined to be $120,983 using the Black-Scholes valuation model. | |||||||||||||
Stock Options to Purchase Common Stock, Outstanding | ' | |||||||||||||
The following table summarizes information about options to purchase Common Stock outstanding as of September 30, 2013: | ||||||||||||||
Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||
Shares | Average | Average | Shares | Average | ||||||||||
Exercise | Underlying | Exercise | Remaining | Underlying | Exercise | |||||||||
Price per | Options | Price per | Life | Options | Price per | |||||||||
Share | Unexercised | Share | (Years) | Exercisable | Share | |||||||||
$0.14-$0.22 | 3,400,000 | $ | 0.19 | 1.73 | 2,512,500 | $ | 0.2 | |||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||
The income tax effects of timing differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at September 30, 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
Net operating loss carryforwards | $ | 8,373,451 | $ | 7,650,904 | ||||
Basis differences in property and equipment | -2,854,183 | -2,854,183 | ||||||
Impairment of prepaid mineral royalties | 188,733 | - | ||||||
State income taxes | 37,233 | 37,233 | ||||||
Bonus expense | 160,280 | 480,841 | ||||||
Interest Expense | 403,469 | 384,804 | ||||||
Salary expense | 242,130 | 336,572 | ||||||
6,551,113 | 6,036,171 | |||||||
Less valuation allowance | -6,551,113 | -6,036,171 | ||||||
Deferred tax expense (benefit) | $ | - | $ | - | ||||
Reconciliation of Reported Amount of Income Tax Expense Attributable to Continuing Operations to Income Tax Expense | ' | |||||||
Below is a reconciliation of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax loss for 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Income tax benefit computed at the statutory Federal income tax rate | -35 | % | -35 | % | ||||
Decrease (increase) due to permanent differences | -16 | % | -68 | % | ||||
Use of net operating loss carryforward | - | % | 18 | % | ||||
Change in valuation allowance | 51 | % | 85 | % | ||||
Effective income tax rate | 0 | % | 0 | % | ||||
Components of Income Tax Expense | ' | |||||||
Included in the table below are the components of income tax expense for 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Current income tax expense (benefit) | $ | - | $ | - | ||||
Deferred income tax expense (benefit) | -514,942 | 505,556 | ||||||
Valuation allowance | 514,942 | -505,556 | ||||||
Total income tax expense (benefit) | $ | - | $ | - | ||||
OIL_AND_NATURAL_GAS_RESERVE_QU1
OIL AND NATURAL GAS RESERVE QUANTITIES (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ' | |||||||||
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | ' | |||||||||
The following table shows the changes in the Company's proved oil and gas reserves for the year: | ||||||||||
2013 | 2012 | |||||||||
Crude Oil and | Natural | Crude Oil and | Natural | |||||||
Condensate | Gas | Condensate | Gas | |||||||
(Barrels) | (MCF) | (Barrels) | (MCF) | |||||||
Proved Developed and Undeveloped Reserves: | ||||||||||
Balance Beginning of Year | 26,736 | 434,381 | 34,149 | 342,862 | ||||||
Acquisition of Reserves | - | - | 5,166 | 26,802 | ||||||
Disposition of Reserves | - | - | - | - | ||||||
Revision of Previous Estimates | -2,203 | -103,212 | -10,467 | 99,121 | ||||||
Production for Year | -2,575 | -34,180 | -2,112 | -34,404 | ||||||
Balance - End of Year | 21,958 | 296,989 | 26,736 | 434,381 | ||||||
At End of Year: | ||||||||||
Proved Developed Reserves | 21,958 | 296,989 | 26,736 | 434,381 | ||||||
Proved Undeveloped Reserves | - | - | - | - | ||||||
STANDARDIZED_MEASURE_OF_DISCOU
STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOW FROM ESTIMATED PRODUCTION OF PROVED OIL AND GAS RESERVES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Standardized Measure [Abstract] | ' | |||||||
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure | ' | |||||||
Standardized Measure of Discounted Future Net Cash Inflows as of September 30, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Future cash inflows | $ | 3,416,397 | $ | 4,369,426 | ||||
Future production costs | -1,479,190 | -1,690,387 | ||||||
Future development costs | -17,888 | -9,590 | ||||||
Future income tax expense* | - | - | ||||||
Subtotal | 1,919,319 | 2,669,449 | ||||||
Discount factor at 10% | -558,317 | -877,137 | ||||||
Standardized Measure of Future Net Cash Flows | $ | 1,361,002 | $ | 1,792,312 | ||||
* The Company presently has approximately $24 million of loss carry-forwards for Federal income tax purposes. Based on these loss carry-forwards no future taxes payable have been included in the determination of future new cash inflows. Future corporate office general and administrative expenses have not been deducted in determining future net cash flows. | ||||||||
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows | ' | |||||||
Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows | ||||||||
2013 | 2012 | |||||||
Balance - Beginning of Year | $ | 1,792,312 | $ | 2,206,666 | ||||
Increase (decrease) in future net cash flows: | ||||||||
Sales for the year net of related production costs | -149,341 | -174,070 | ||||||
Acquisition of reserves in place | - | 47,078 | ||||||
Changes in estimated future development costs | -6,246 | 9,915 | ||||||
Changes in sales and transfer prices net of production costs | -454,954 | -618,181 | ||||||
related to future production | ||||||||
Change due to revision in quantity estimates and other | - | 97,237 | ||||||
Disposition of reserves in place | - | - | ||||||
Extensions and discoveries net of related costs | - | - | ||||||
Accretion of discount | 179,231 | 220,667 | ||||||
Balance - End of Year | $ | 1,361,002 | $ | 1,792,312 | ||||
Continued_Operations_Additiona
Continued Operations - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||
Mar. 25, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Mar. 25, 2013 | Sep. 30, 2013 | |
Initial Restriction per the SPA | 2013 Private Placement | 2013 Private Placement | Far East Investments, LLC and DTE Investment Ltd | Series B 8% Cumulative Convertible Preferred Stock | ||||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | $495,888 | $592,772 | ' | ' | ' | ' | ' |
Current liabilities | ' | 5,459,700 | 5,381,664 | ' | ' | ' | ' | ' |
Total liabilities | ' | 7,753,883 | 8,836,810 | ' | ' | ' | ' | ' |
Cumulative dividends in arrears | ' | ' | ' | ' | ' | ' | ' | 2,042,239 |
Investor paid for common stock value | ' | ' | ' | ' | ' | ' | 1,500,000 | ' |
Investor paid for common stock shares | ' | ' | ' | ' | ' | ' | 15,000,000 | ' |
Common stock, par value | ' | $0.01 | $0.01 | ' | $0.10 | ' | $0.01 | ' |
Class of warrant or right, number of securities called by warrants or rights | ' | 1,644,000 | 5,250,000 | ' | 2,000,000 | 1,644,000 | 18,000,000 | ' |
Class of warrant or right term of warrants or rights | ' | ' | ' | ' | ' | ' | '5 years | ' |
Class of warrant or right, exercise price of warrants or rights | ' | ' | ' | ' | 0.5 | ' | 0.2 | ' |
Retained shares of common stock under stock purchase agreement description | 'Investors retain 51% or more of the Common Stock issued under the SPA (7,650,000 shares) | ' | ' | ' | ' | ' | ' | ' |
Restricted cash deposits - equity issuances | ' | 693,808 | 0 | 1,500,000 | ' | ' | ' | ' |
Warrants expiration date | ' | ' | ' | ' | 16-Jan-18 | ' | ' | ' |
Stock issued during period, value, other | ' | ' | ' | ' | 500,000 | ' | ' | ' |
Stock issued during period, shares, other | ' | ' | ' | ' | 5,000,000 | ' | ' | ' |
Cash received for sale of common stock | ' | ' | ' | ' | ' | 411,000 | ' | ' |
Sale of common stock shares | ' | ' | ' | ' | ' | 4,110,000 | ' | ' |
Net loss applicable to common shareholders | ' | $2,132,509 | $884,759 | ' | ' | ' | ' | ' |
SPA_Contains_Provisions_that_R
SPA Contains Provisions that Restrict Use (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | $693,808 | $0 |
Restricted cash | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 693,808 | ' |
Forbearance Agreements and Novinskie Agreement and Blackstone Agreement | Restricted cash | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 15,000 | ' |
Marketing Agreement payments to FEI | Restricted cash | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 60,000 | ' |
Other marketing and sales activities | Restricted cash | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 283,730 | ' |
Transaction closing costs and related | Restricted cash | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 3,383 | ' |
Oil and gas properties activities | Restricted cash | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 23,000 | ' |
Mineral properties activities | Restricted cash | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 35,000 | ' |
Future general and administrative expenses | Restricted cash | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 225,650 | ' |
Other costs and expenses | Restricted cash | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 48,045 | ' |
Initial Restriction per the SPA | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 1,500,000 | ' |
Initial Restriction per the SPA | Forbearance Agreements and Novinskie Agreement and Blackstone Agreement | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 350,000 | ' |
Initial Restriction per the SPA | Marketing Agreement payments to FEI | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 120,000 | ' |
Initial Restriction per the SPA | Other marketing and sales activities | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 360,000 | ' |
Initial Restriction per the SPA | Transaction closing costs and related | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 80,000 | ' |
Initial Restriction per the SPA | Oil and gas properties activities | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 75,000 | ' |
Initial Restriction per the SPA | Mineral properties activities | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 50,000 | ' |
Initial Restriction per the SPA | Future general and administrative expenses | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | 345,000 | ' |
Initial Restriction per the SPA | Other costs and expenses | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | $120,000 | ' |
Defaulted_Obligations_Detail
Defaulted Obligations (Detail) (USD $) | Sep. 30, 2013 |
Product Information [Line Items] | ' |
Defaulted obligations | $3,125,097 |
Consulting services and interest due a licensor | ' |
Product Information [Line Items] | ' |
Defaulted obligations | 19,009 |
Note payable to related party and interest thereon | ' |
Product Information [Line Items] | ' |
Defaulted obligations | 69,587 |
7.25% Convertible Debentures due a related party | ' |
Product Information [Line Items] | ' |
Defaulted obligations | 46,689 |
Note payable to former related party and interest thereon | ' |
Product Information [Line Items] | ' |
Defaulted obligations | 19,949 |
EV and T | Fees, expenses and accrued interest | ' |
Product Information [Line Items] | ' |
Defaulted obligations | 213,040 |
EV and T | Note and interest | ' |
Product Information [Line Items] | ' |
Defaulted obligations | 1,202,318 |
CAMI | Subject to forbearance agreements | ' |
Product Information [Line Items] | ' |
Defaulted obligations | 830,534 |
CAMI | Not subject to forbearance agreements | ' |
Product Information [Line Items] | ' |
Defaulted obligations | 32,171 |
Accrued Compensation Expense | Subject to forbearance agreements | ' |
Product Information [Line Items] | ' |
Defaulted obligations | 597,009 |
Accrued Compensation Expense | Not subject to forbearance agreements | ' |
Product Information [Line Items] | ' |
Defaulted obligations | $94,791 |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Etc Texas Pipeline, Ltd., Gulfmark Energy, Inc., Sheridan Production Company Llc and Volunteer Energy Services, Inc. | Series B 8% Cumulative Convertible Preferred Stock | 7.25% Convertible Debentures | Convertible Notes Payable | Maximum | Maximum | Minimum | Minimum | Patents | Musser Group | Additional Paid-in Capital | Musser Group Warrants | Investor Relations Firm Consulting Agreement | |||||
Licensing Agreements | |||||||||||||||||
Basis of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized capital stock of common stock | ' | 150,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | 100,000,000 | ' | ' | ' | ' | ' |
Authorized capital stock of preferred stock | ' | 20,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subscriptions Receivable | ' | $576,000 | ' | ($576,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $576,000 | ' | ' |
Common Stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | 600,000 |
Common stock, par value | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.11 |
Amortization of prepaid consulting fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,000 |
Monthly payment for services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 |
Unamortized consulting fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,559 |
Cash and equivalents | ' | 140,607 | 190,738 | 48,917 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash deposits | ' | 109,681 | 109,609 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for doubtful account - proceeds receivable from prior sale of oil andgas properties | ' | 0 | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares, issued for services | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, value, issued for services | ' | 360,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market price of share | ' | $0.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment warrants, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' |
Share price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' |
Fair value of warrants | ' | 375,153 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assumptions expected term | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assumptions, risk free interest rate | ' | 2.16% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assumptions, expected dividend rate | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assumptions, expected volatility rate | ' | 163.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of shares of common stock and warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 735,153 | ' | ' | ' |
Prepaid consulting services agreement fees | ' | 30,559 | 151,237 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of prepaid consulting services agreement fees | ' | 186,678 | 366,575 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,620 | ' | ' | ' | ' |
Prepaid mineral royalties - long-term | ' | 0 | 509,254 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net mineral properties | ' | 9,782,128 | 9,782,128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, estimated useful lives | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | 'three | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, depreciation methods | ' | '75% or more | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future abandonment costs | ' | 10,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of securities available for future sale | 5,699 | 0 | 5,699 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options and warrants outstanding | ' | 1,644,000 | 5,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive effect on net loss per share | ' | ' | ' | ' | ' | 1,080,000 | 321,429 | 1,071,937 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, convertible, conversion price | ' | ' | ' | ' | ' | $1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, credit risk, uninsured deposits | ' | '250,000 | '250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | 257,761 | 242,182 | ' | 225,399 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of increase in unit of production | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory, net, total | ' | 40,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of interest receivable on subscriptions receivable | ' | 0 | 207,025 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Equity Issuances | ' | 693,808 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of Intangible Assets, Finite-lived | ' | $539,237 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mineral_Properties_and_Oil_and
Mineral Properties and Oil and Properties Requirements (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Texas and West Virginia oil and gas operations bonding requirements | ' | ' |
Basis Of Presentation [Line Items] | ' | ' |
Payments to acquire oil and gas property | $60,012 | $60,010 |
New Mexico minerals operations bonding requirements | ' | ' |
Basis Of Presentation [Line Items] | ' | ' |
Payments to acquire oil and gas property | $49,669 | $49,599 |
Summary_of_Items_of_Comprehens
Summary of Items of Comprehensive Loss (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Basis Of Presentation [Line Items] | ' | ' |
Net loss (comprehensive loss) | ($2,024,509) | ($772,759) |
Oil_and_Gas_Properties_Additio
Oil and Gas Properties - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Mar. 28, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ' | ' | ' |
Gain on sale of Oil & Gas Property | $898,335 | $0 | $898,335 |
Acquisition costs of proved developed producing properties | ' | 0 | -47,078 |
Proceeds receivable from prior sale of oil and gas properties | ' | 50,000 | ' |
Provision for doubtful account | ' | 0 | 25,000 |
Operating Loss Carryforwards | ' | $24,000,000 | ' |
Oil_and_Gas_Properties_Detail
Oil and Gas Properties (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Oil And Gas Property [Line Items] | ' | ' |
Proved oil and gas properties | $4,471,590 | $4,471,590 |
Support equipment and facilities | 0 | 0 |
Uncompleted wells, equipment and facilities | 0 | 0 |
Oil and Gas Properties,Total | 4,471,590 | 4,471,590 |
Accumulated depletion, depreciation and amortization | -4,144,939 | -4,096,939 |
Net Oil and Gas Properties | $326,651 | $374,651 |
Results_of_Operations_for_Oil_
Results of Operations for Oil and Gas Producing Activities (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Mar. 28, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues: | ' | ' | ' |
Oil and gas sales | ' | $404,225 | $373,443 |
Well management revenue | ' | 262,813 | 287,446 |
Royalty receipts | ' | 4,799 | 3,532 |
Total revenues | ' | 671,837 | 664,421 |
Expenses and other: | ' | ' | ' |
Lease operating expenses | ' | 237,661 | 182,027 |
Production and severance taxes | ' | 22,022 | 20,878 |
Depreciation, depletion, amortization and valuation provisions | ' | 48,000 | 60,000 |
Total Expenses | ' | 307,683 | 262,905 |
Revenues in excess of expenses | ' | 364,154 | 401,516 |
Provision for doubtful account - proceeds receivable from prior sale of oil and gas properties | ' | 0 | -25,000 |
Gain on sale of oil and gas properties | 898,335 | 0 | 898,335 |
Results of operations before income tax expenses | ' | 364,154 | 1,274,851 |
Income tax expenses | ' | 0 | 0 |
Results of operations from oil and gas producing activities (excluding corporate overhead and interest costs) | ' | $364,154 | $1,274,851 |
Customer_Name_and_Percentage_f
Customer Name and Percentage for Purchased Excess Five Percentage (Detail) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
ETC Texas Pipeline, Ltd. | ' | ' |
Customer Name And Percentage For Purchased Excess Five Percentage [Line Items] | ' | ' |
Percentage for customer purchased excess of five percent | 24.00% | 27.00% |
GulfMark Energy, Inc. | ' | ' |
Customer Name And Percentage For Purchased Excess Five Percentage [Line Items] | ' | ' |
Percentage for customer purchased excess of five percent | 53.00% | 45.00% |
Sheridan Production Company LLC | ' | ' |
Customer Name And Percentage For Purchased Excess Five Percentage [Line Items] | ' | ' |
Percentage for customer purchased excess of five percent | 13.00% | 16.00% |
Volunteer Energy Services, Inc. | ' | ' |
Customer Name And Percentage For Purchased Excess Five Percentage [Line Items] | ' | ' |
Percentage for customer purchased excess of five percent | 7.00% | 10.00% |
Recovered_Sheet1
Mineral Properties And Results of Operations - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2000 | Sep. 30, 2000 | Sep. 30, 2000 | Jul. 03, 2012 | Jul. 03, 2012 | Jul. 03, 2012 | Jul. 03, 2012 | |
Marfa, Presidio County, Texa | Sierra County, New Mexico | Beaver County, Utah | Zeo Sure Llc | Zeo Sure Llc | Zeo Sure Llc | Zeo Sure Llc | |||
acre | acre | acre | Clean Age Minerals Inc | Safe Hatch Llc | Musser Group | ||||
Mineral Properties [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | 47.50% | 47.50% | 5.00% |
Initial Capital From Third Parties For Product Marketing and Distribution Agreements | ' | ' | ' | ' | ' | $1,000,000 | ' | ' | ' |
Number Of Acres Acquired | ' | ' | 5,200 | 2,720 | 220 | ' | ' | ' | ' |
Amortization of Patent and Patent License Rights | 4,556 | 253,612 | ' | ' | ' | ' | ' | ' | ' |
Inventory, Net, Total | 40,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | $24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Minerals_Properties_And_Equipm
Minerals Properties And Equipment (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Minerals Properties And Equipment [Line Items] | ' | ' |
Mineral Properties, at cost | $9,877,128 | $9,877,128 |
Accumulated, depreciation, depletion and amortization (see Note 2) | -95,000 | -95,000 |
Net mineral properties | 9,782,128 | 9,782,128 |
Undeveloped Lease Costs | ' | ' |
Minerals Properties And Equipment [Line Items] | ' | ' |
Mineral Properties, at cost | 9,877,128 | 9,877,128 |
Mine Development | ' | ' |
Minerals Properties And Equipment [Line Items] | ' | ' |
Mineral Properties, at cost | $0 | $0 |
Results_of_Operations_for_Mine
Results of Operations for Minerals Properties Activities (Detail) (USD $) | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | |||
Results Of Operations For Minerals Properties Activities [Line Items] | ' | ' | ||
Mineral Sales | $7,652 | $5,626 | ||
Operating and other expenses | -30,083 | -19,121 | ||
Impairment of prepaid mineral royalties (see Note 2) | -539,237 | 0 | ||
Depreciation, depletion, amortization and valuation provisions | -4,556 | -253,612 | ||
Loss From Operations | -566,224 | -267,107 | ||
Income tax expenses (benefits) | 0 | [1] | 0 | [1] |
Results of operations from mineral properties activities (excluding corporate overhead and interest costs) | ($566,224) | ($267,107) | ||
[1] | The Company presently has approximately $24 million of loss carryforwards for Federal income tax purposes. Based on these loss carryforwards, no income tax benefits are recognized for this segment. |
Patent_and_Technology_Addition
Patent and Technology - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Feb. 28, 2010 | Feb. 28, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | |
License Agreement Terms | Patents License Rights | Patents License Rights | Patents License Rights | |||||
Patent And Technology [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Issued, Shares | ' | ' | ' | ' | 140,000 | ' | ' | ' |
Recorded Amount For Patents License Rights | ' | ' | ' | ' | ' | $40,907 | ' | ' |
Price Per Share For Patent License Rights | ' | ' | ' | ' | ' | $0.29 | ' | ' |
Stockholders equity reverse stock split | ' | ' | ' | 'the 3,167 shares (reflective of a reverse stock split) | ' | ' | ' | ' |
Common Stock Held by Subsidiary | ' | ' | ' | 1 | ' | ' | ' | ' |
Patent License Rights Interest Payable | ' | 19,009 | ' | ' | ' | ' | ' | ' |
Impairment of Securities Available for Future Sale | 5,699 | 0 | 5,699 | ' | ' | ' | ' | ' |
Payments for Fees | ' | ' | ' | ' | ' | ' | $12,000 | $12,000 |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jan. 31, 2012 | Jan. 12, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 01, 2005 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 15, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 19, 2000 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | 3-May-13 | Apr. 30, 2012 | Jul. 12, 2011 | Sep. 30, 2011 | Apr. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 | Nov. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2002 | Sep. 30, 2013 | Nov. 30, 2008 | Sep. 30, 2011 | Mar. 31, 2013 | |
Other Notes Payable | Other Notes Payable | Other Notes Payable | Other Notes Payable | Fees, expenses and accrued interest | EV and T | EV and T | EV and T | EV and T | EV and T | EV and T | CAMI | CAMI | CAMI | CAMI | CAMI | Robert Martin | Robert Martin | Alice Haessler | Carl Haessler | Carl Haessler | Herbert L Luca | Herbert L Luca | Robert A Nolind | Robert A Nolind | Amir Settlement Agreement | Amir Settlement Agreement | Amir Settlement Agreement | Amir Settlement Agreement | Premium Finance Note Payable | Premium Finance Note Payable | Premium Finance Note Payable | Premium Finance Note Payable | Premium Finance Note Payable | Premium Finance Note Payable | Seven Point Two Five Percent Convertible Debentures [Member] | Seven Point Two Five Percent Convertible Debentures [Member] | Seven Point Two Five Percent Convertible Debentures [Member] | Seven Point Two Five Percent Convertible Debentures [Member] | Seven Point Two Five Percent Convertible Debentures [Member] | Seven Point Two Five Percent Convertible Debentures [Member] | First Citizens Bank | First Citizens Bank | Fei and Dte [Member] | ||||
Fees, expenses and accrued interest | Fees, expenses and accrued interest | Director [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, face amount | ' | ' | ' | ' | $60,000 | $50,000 | ' | ' | ' | ' | ' | ' | ' | ' | $58,938 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34,985 | $17,808 | $19,652 | $21,821 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21-Dec-13 | 1-Aug-13 | 1-Oct-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | 7.00% | ' | ' | ' | 5.50% | ' | ' | ' | 5.00% | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | 7.40% | 8.75% | 12.40% | 7.95% | ' | ' | 7.25% | ' | ' | ' | ' | ' | ' | 3.72% | ' |
Principal and interest amount | ' | ' | ' | ' | 2,645 | 19,949 | ' | ' | 13,000 | ' | ' | ' | ' | ' | ' | 941,450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,887 | 2,052 | 1,899 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250 | ' |
Debt outstanding principal amount | ' | ' | ' | ' | ' | 6,745 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 455,943 | ' | 435,943 | ' | ' | 134,811 | 20,000 | ' | 83,478 | 153,530 | ' | 49,124 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, increase, accrued interest | ' | ' | ' | ' | ' | 7,255 | ' | ' | ' | 499,765 | ' | ' | ' | ' | ' | 438,904 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount on note | 2,044 | 4,515 | ' | 33,337 | ' | ' | ' | ' | ' | ' | 1,202,318 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,938 | ' | ' | ' | ' | ' | ' | ' | 2,471 | 2,477 | ' | ' | ' | ' | ' | ' |
Repayments of Notes Payable | ' | ' | ' | ' | ' | ' | 12,939 | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate, effective percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' | 13.00% | ' | ' | ' | ' |
Debt accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 426,762 | ' | ' | 129,773 | 19,253 | ' | 80,359 | 147,793 | ' | 47,288 | ' | ' | 11,471 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized discount included in interest expense | 4,177 | 21,731 | ' | 7,397 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,579 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | $0.25 | ' | ' | ' | ' | ' | ' | ' | $0.14 | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized contractual coupon interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,263 | 3,271 | ' | ' | ' | ' | ' | ' |
Payment of debt | 141,915 | 197,980 | ' | ' | ' | ' | ' | ' | 25,355 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,500 | ' | ' | ' | 30,100 | ' | 9,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt repayment period | ' | ' | ' | ' | ' | 'two (2) years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'two (2) years | ' | ' | ' | 'two (2) years | ' | 'two (2) years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal balance due on note | ' | ' | ' | ' | ' | ' | ' | ' | 825,355 | ' | ' | ' | ' | ' | 118,982 | ' | ' | ' | ' | 486,755 | ' | 39,253 | 170,515 | 163,837 | 301,323 | 283,505 | 96,412 | 90,742 | ' | 140,000 | 391,154 | ' | ' | ' | 19,652 | 2,262 | 11,519 | 1,380 | 500,000 | ' | ' | 45,000 | ' | 45,000 | 75,000 | 30,454 | ' |
Accrued salary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 245,835 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid reimbursable business expenses | 19,051 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,051 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 529,470 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital stock purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | 1,500,000 | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of principal and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,171 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued unpaid interest and late fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,044 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on debt forgiveness | 43,655 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,655 | ' | ' | ' | ' | ' | ' | 16,528 | ' | ' | ' | ' | ' | ' | 95,802 | 46,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 114,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares, issued for services | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 498,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of cash and common stock value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 155,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 183,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes payable, current | ' | ' | ' | ' | ' | ' | ' | ' | ' | 567,213 | 567,213 | ' | ' | ' | ' | 455,943 | 435,943 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,380 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, converted instrument, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 158,290 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,000 | 419,292 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, converted instrument, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,327 | ' | ' | ' | ' | ' | ' | 5,500 | ' | ' | ' | ' | ' | ' | ' | 95,200 | 45,485 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.16 | ' | ' | ' | ' | ' | ' | $0.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration paid on settlement of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,327 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares, other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Frequency of installment payment | ' | ' | ' | ' | ' | ' | ' | ' | '35 monthly installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Payable Current | 1,317,771 | 1,312,526 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 213,040 | 271,791 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant issued to purchase common stock | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock warrant exercise price | ' | ' | ' | $0.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant expiration date | ' | ' | ' | 31-Dec-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-15 | ' | ' | ' | ' | ' | ' | ' | 30-Jul-14 | ' | ' | ' | ' | ' | 18-Nov-13 | ' | ' |
Fair Value Assumptions, Expected Term | '5 years | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions, Risk Free Interest Rate | 2.16% | ' | ' | 1.99% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions, Expected Volatility Rate | 163.00% | ' | ' | 163.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,338 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument repayments reduction to principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,529 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount less than if converted value of principal and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument price per share valued less than conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 560,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument price per share valued less than conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Increase (Decrease) for Period, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Debt Instrument, Fee Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,487 | ' | ' | ' | ' | ' | ' | ' |
Term Of Debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' |
Fees and expenses outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,224,464 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees and expense reimbursements paid | ' | ' | ' | ' | ' | ' | ' | 114,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued bonus expense | 457,944 | 1,373,831 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 147,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense, Total | 262,630 | 313,371 | ' | 1,020 | ' | 3,264 | 3,799 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,785 | 10,785 | ' | 6,678 | 6,678 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,327 | ' | ' | ' | ' | ' | ' | 5,500 | ' | ' | ' | ' | ' | ' | ' | 95,200 | 45,485 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.16 | ' | ' | ' | ' | ' | ' | $0.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Reimbursable Business Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,051 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Paid, Total | 158,948 | 55,126 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,449 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount Of Principal Amount Plus Accrued Interest and Unpaid Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,689 | $7,913 | ' | ' | ' | ' | ' | ' |
Related_Parties_Additional_Inf
Related Parties - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||
Aug. 31, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2011 | Mar. 31, 2012 | Jun. 30, 2009 | Sep. 30, 2013 | Aug. 31, 2005 | 31-May-12 | 31-May-12 | 31-May-12 | Jun. 15, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Origination in 2005 | 7.25% Convertible Debentures | Far East Investments USA LLC | Former Executive Officers | Carl Haessler | Carl Haessler | Carl Haessler | Mr. Maxwell | Mr. Maxwell | Mr. Maxwell | Mr. Maxwell | |||||
Series B 8% Cumulative Convertible Preferred Stock | Haessler Debt | ||||||||||||||
Series B 8% Cumulative Convertible Preferred Stock | |||||||||||||||
Related Party [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to related parties | ' | ' | ' | ' | $400,000 | ' | ' | ' | ' | ' | ' | ' | ' | $69,587 | $68,250 |
Due from related parties | ' | ' | ' | ' | ' | ' | ' | 576,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase of common stock | ' | ' | ' | ' | $0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, value, new issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' |
Notes payable, related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' |
Debt repayment period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'two (2) years | ' | ' |
Payment of interest to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,813 | ' | ' |
Payments for (Proceeds from) investments, Total | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preferred stock convertible price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.25 | ' | ' | ' | ' |
Preferred stock shares outstanding | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | 30,000 | 10,000 | ' | ' | ' | ' |
Convertible Preferred Stock, Shares Issued Upon Conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' | ' |
Accrued dividend | ' | 88,319 | ' | ' | ' | ' | ' | ' | 88,319 | ' | ' | ' | ' | ' | ' |
Stock Dividends, Shares, Total | ' | 73,854 | ' | ' | ' | ' | ' | ' | 73,854 | ' | ' | ' | ' | ' | ' |
Dividends Payable | ' | 92,318 | ' | ' | ' | ' | ' | ' | 92,318 | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Services | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | 1,250,000 | ' | ' | ' |
Warrant Issued To Purchase Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' |
Stock Issued During Period, Value, Issued for Services | ' | ' | 360,000 | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | ' | ' | ' |
Class Of Warrant Or Right Expiration Date | ' | ' | ' | ' | ' | 30-Jul-14 | ' | ' | ' | ' | ' | 16-Jan-18 | ' | ' | ' |
Fair Value Of Warrants | ' | ' | 375,153 | ' | ' | ' | ' | ' | ' | ' | ' | 36,795 | ' | ' | ' |
Legal Fees | $5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Royalty Interest | ' | $7 | ' |
Cash Paid For Annual Maintains | ' | $12,000 | $12,000 |
Monthly Flat Fee | 5,000 | ' | ' |
17 Placer Mining Claims | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Area of Land | ' | 2,720 | ' |
Lode Claims | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Area of Land | ' | 160 | ' |
11 Placer Mining Claims | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Area of Land | ' | 220 | ' |
CA Properties Inc | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Area of Land | ' | 5,200 | ' |
Royalty Payment Per Ton | ' | $3 | ' |
Annual Royalty Expense | ' | 400,000 | ' |
Minimum Royalty Expense | ' | 30,000 | 30,000 |
Bureau Of Land Management | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Cash Paid For Federal Mineral Claims | ' | 20,160 | 20,160 |
Bureau Of Land Management | Federal Mininig Claims [Member] | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Cash Paid For Federal Mineral Claims | ' | 6,160 | 6,160 |
Operating Lease Expense | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Lease and rental expense | ' | 9,888 | 9,888 |
General and Administrative Expense | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Lease and rental expense | ' | $85,377 | $78,083 |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Jan. 31, 2013 | Feb. 25, 2011 | Apr. 26, 2011 | Jan. 12, 2011 | Mar. 25, 2013 | 31-May-12 | 8-May-13 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2004 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2007 | Dec. 31, 2012 | Sep. 30, 2007 | Sep. 30, 2007 | Mar. 25, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2000 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 25, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 25, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
2013 Private Placement | 2013 Private Placement | Consulting Services Agreement | Engineering Consultant | Financing Sources | FEI/DTE Stock Purchase Agreement | Carl Haessler | Joseph Sverapa | Trynin [Member] | Non Qualified Independent Director Stock Option Plan | Non Qualified Independent Director Stock Option Plan | Non Qualified Independent Director Stock Option Plan | Current Officers, Directors and employees | Charles T Maxwell | Richard W. Blackstone | David A Grady | David A Grady | David A Grady | Mr. Parrish | Mr. Parrish | Former Executive Officers | Former Executive Officers | Former Executive Officers | Lord John Gilbert | Minimum | Minimum | Maximum | Maximum | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B 8% Cummulative Convertible Preferred Stock | Series B 8% Cummulative Convertible Preferred Stock | Series B 8% Cummulative Convertible Preferred Stock | Series B 8% Cummulative Convertible Preferred Stock | Series B 8% Cummulative Convertible Preferred Stock | Series B 8% Cummulative Convertible Preferred Stock | FEI and DTE | Before Amendment | After Amendment | Musser Group | Stock Options | Common Stock | Warrant | Warrant | Warrant | |||||||
Non Qualified Independent Director Stock Option Plan | Non Qualified Independent Director Stock Option Plan | Non Qualified Independent Director Stock Option Plan | Carl Haessler | Carl Haessler | Carl Haessler | |||||||||||||||||||||||||||||||||||||||||||||||||
Haessler Debt | Haessler Debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercise price lower limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Preferred stock outstanding | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135,000 | 135,000 | ' | 135,000 | ' | 30,000 | 10,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Preferred stock, par value | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Preferred Stock, conversion price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.25 | ' | $1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Rate of exchange of preferred stock, percentage of average closing price of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Arrearages in cumulative dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,042,239 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Liquidation preference totals | ' | 3,392,239 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Series B Preferred Stock Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Further, the shares of Series B Preferred Stock (i) earn dividends at the rate of 8% per annum computed on the basis of a 365 day year, and (ii) have priority in liquidation to the extent of the stated value of $10.00 per share plus any unpaid dividends over any other preferred stock, common stock or any other stock issued after September 19, 2000. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock option exercise price lower limit | ' | $0.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock option exercise price upper limit | ' | $0.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock-based compensation expense | ' | 148,109 | 97,326 | 97,326 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share based compensation, risk free interest rate minimum | ' | 0.24% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share based compensation, risk free interest rate maximum | ' | 2.43% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Contractual term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share based compensation, expected volatility rate minimum | ' | 37.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share based compensation, expected volatility rate maximum | ' | 236.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options awarded for purchase | ' | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | 1,600,000 | 800,000 | ' | ' | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 1,200,000 | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options awarded exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.22 | ' | ' | ' | $0.28 | ' | ' | ' | ' | ' | $0.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unrecognized compensation cost related to non-vested share-based compensation awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,555 | ' | ' | ||
Unrecognized compensation cost recognition period | ' | '1 year 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exercise price of warrants | ' | ' | ' | ' | ' | 0.5 | 0.15 | 0.22 | 0.15 | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair value of warrants | ' | 375,153 | ' | ' | 120,983 | ' | 375,153 | 20,691 | 33,337 | 806,838 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options vested percentage year one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options vested percentage year two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options vested percentage year three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options granted during the period | ' | 1,450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | 1,450,000 | [1],[2],[3] | 0 | ' | |
Preferred Stock converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,080,000 | ' | ' | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share price | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ||
Weighted-average exercise price of options granted during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | ' | $0.13 | [1],[2],[3] | ' | ' | |
Term of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ||
Common Stock, shares authorized | ' | 150,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | ' | ' | ' | ' | 120,983 | ' | ' | ' | ' | ' | ' | 8,878 | ' | ' | ' | ' | ' | ' | ' | 11,656 | ' | ' | 119,737 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 806,838 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Common Stock, par value | ' | $0.01 | $0.01 | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Rate of dividend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Dividend paid on Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,338 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Shares of Common Stock issued as dividend on Preferred Stock | 73,854 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,854 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 237,352 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accrued dividend | 92,318 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92,318 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accrued but unpaid dividends | ' | 1,826,239 | 1,826,239 | 1,914,558 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Notes receivable classified as subscriptions receivable | ' | -576,000 | ' | 576,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum number of shares issuable per director | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Option rights vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of shares vest on first year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of shares vest on second year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of shares vest on third year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options to purchase shares of Common Stock have been awarded to Directors and remain unexercised at that date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options unexercised | ' | ' | 2,150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,144,000 | 5,250,000 | 5,650,000 | ||
Options unexercised weighted-average exercise price | ' | ' | $0.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options not vested | ' | ' | 650,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 887,500 | ' | ' | ||
Options not vested weighted-average exercise price | ' | $0.13 | $0.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options not vested weighted-average grant-date fair value | ' | $0.10 | $0.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total fair value of shares vested | ' | $97,326 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of securities called by warrants | ' | 1,644,000 | 5,250,000 | ' | 1,644,000 | 2,000,000 | 2,500,000 | 100,000 | 500,000 | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loan amount | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrant expiration date | ' | ' | ' | ' | 16-Jan-18 | ' | 24-Feb-16 | 25-Apr-16 | 31-Dec-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Option expired during the period | ' | 200,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -200,000 | -400,000 | [4],[5] | ' | |
Dividends, Preferred Stock, Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,042,239 | 1,934,239 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accrued dividend | 88,319 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,319 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options Outstanding, Weighted Average Exercise Price Per Share | ' | $0.19 | ' | ' | $0.50 | ' | ' | ' | ' | ' | ' | $0.20 | ' | ' | ' | ' | ' | ' | $0.67 | $0.06 | $0.28 | ' | $0.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | ' | ' | ' | ' | ' | $0.22 | $0.15 | ' | ||
Issued | ' | 22,744,000 | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,644,000 | [6],[7] | ' | ' | |
Impairment of subscriptions receivable | ' | 0 | 576,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Common stock, shares, outstanding | ' | 72,468,458 | 49,441,058 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | 800,000 | 1,800,000 | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Average exercise price | ' | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Notes Receivable, Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 256,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,331 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Dividends Payable Series B Preferred Stock Current and Noncurrent | ' | $1,826,239 | $1,826,239 | $1,914,558 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | In December 2012, David A. Grady was granted an option to purchase 200,000 shares of stock at an exercise price of $0.06 per share under the Companybs Non-qualified Independent Director Stock Option Plan. The fair value of the option was determined to be $11,656 using the Black-Scholes valuation model. At the Companybs Annual Meeting of Shareholders in June 2013, Mr. Grady was not re-elected to serve as a Director; accordingly, the option expired unexercised in accordance with its terms. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Effective March 25, 2013, the Company granted an option for the purchase of 1.2 million shares of Common Stock to Michael Parrish, Chief Executive Officer of the Company, at an exercise price of $0.14 per share. The option is exercisable through May 21, 2015 and vests 50% on each of May 21, 2013 and 2014. The fair value of the option was determined to be $119,737 using the Black-Scholes valuation model. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Effective May 8, 2013, the Company granted an option for the purchase of 50,000 shares of common stock to Joseph Sverapa, Vice President of Sales, at an exercise price of $0.20 per share. The option is exercisable through May 2018. The option vests 50% in May 2014 and 25% in each of May 2015 and 2016. The fair value of the option was determined to be $8,878 using the Black-Scholes valuation model. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | During fiscal 2007, the Company granted an option for the purchase of 200,000 shares of Common Stock to Richard W. Blackstone, an officer of the Company. The option was exercisable through October 2011, at an exercise price of $0.67 per share. The option expired unexercised during fiscal 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | During fiscal 2007, David A Grady, was granted an option to purchase 200,000 shares of stock at an exercise price of $0.28 per share under the Companybs Non-qualified Independent Director Stock Option Plan. The option expired unexercised during fiscal 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | On March 25, 2013, in connection with the FEI/DTE Stock Purchase Agreement, the Company issued warrants for the purchase of up to 18 million shares of Common Stock. The FEI/DTE Warrants have a term of five (5) years and may be exercised at a price of $0.20 per share. In the third through fifth years of such term, the exercise price may be satisfied by exchanging Common Stock at the current market price. The FEI/DTE Warrants may be exercised in whole or in part at any time during such term. The fair value of the warrants was determined to be $806,838 using the Black-Scholes valuation model. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | In connection with the 2013 Private Placement through September 30, 2013, the Company has issued warrants for the purchase of 1,644,000 million shares of Common Stock at an exercise price of $0.50 per share. The warrants expire on January 16, 2018. The fair value of the warrants was determined to be $120,983 using the Black-Scholes valuation model. |
Shares_of_Common_Stock_Detail
Shares of Common Stock (Detail) | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||||
Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 72,468,458 | [1],[2] | 49,441,058 | [1] | 48,988,914 | [1] |
Number of Series B Preferred Shares | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 135,000 | [1],[2] | 135,000 | [1] | 145,000 | [1] |
Eric R Haessler | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | ' | 158,290 | ' | |||
Eric R Haessler | Number of Series B Preferred Shares | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | ' | 0 | ' | |||
Dov Amir | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | ' | 140,000 | ' | |||
Dov Amir | Number of Series B Preferred Shares | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | ' | 0 | ' | |||
Carl Haessler | Series B 8% Cumulative Convertible Preferred Stock | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | ' | 80,000 | ' | |||
Carl Haessler | Series B 8% Cumulative Convertible Preferred Stock | Number of Series B Preferred Shares | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | ' | -10,000 | ' | |||
Carl Haessler | Series B Dividend Obligation | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | ' | 73,854 | ' | |||
Carl Haessler | Series B Dividend Obligation | Number of Series B Preferred Shares | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | ' | 0 | ' | |||
FEI/DTE Stock Purchase Agreement | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 15,000,000 | ' | ' | |||
In Payment of Interest | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 50,000 | ' | ' | |||
Consultant agreement with an investors relation firm | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 600,000 | ' | ' | |||
Repayment of Convertible Note | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 498,000 | ' | ' | |||
Payment of Compensation | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 600,000 | [2] | ' | ' | ||
Settlement with Benediktson | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 2,169,400 | ' | ' | |||
2013 Private Placement | Common Stock | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 4,110,000 | ' | ' | |||
2013 Private Placement | Number of Series B Preferred Shares | ' | ' | ' | |||
Stock option exercise price lower limit | ' | ' | ' | |||
Stock issued during period, shares, new issues | 0 | ' | ' | |||
[1] | The number of common shares outstanding at September 30, 2011, 2012 and 2013 includes 1,800,000, 1,800,000 and 800,000 shares, respectively, which are pledged as collateral for certain notes due the Company by certain former executive officers (see Note 11). | |||||
[2] | The number of common shares outstanding at September 30, 2013 includes 600,000 which are issuable to Mr. Parrish (see Note 11). |
Options_and_Warrants_to_Purcha
Options and Warrants to Purchase Common Stock (Detail) (USD $) | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | |||
Common Stock [Line Items] | ' | ' | ||
Options and warrants outstanding Beginning balance | 2,150,000 | ' | ||
Employee and director stock options: | ' | ' | ||
Granted, Options and warrants | 1,450,000 | ' | ||
Expired, Options and warrants | 200,000 | 400,000 | ||
Stockholder warrants: | ' | ' | ||
Issued, Options and warrants | 22,744,000 | 3,100,000 | ||
Options and warrants outstanding Ending balance | ' | 2,150,000 | ||
Warrant | ' | ' | ||
Common Stock [Line Items] | ' | ' | ||
Options and warrants outstanding Beginning balance | 5,250,000 | 5,650,000 | ||
Options and warrants outstanding weighted average exercise price, beginning balance | 0.18 | 0.2 | ||
Employee and director stock options: | ' | ' | ||
Granted, Options and warrants | 1,450,000 | [1],[2],[3] | 0 | |
Expired, Options and warrants | -200,000 | -400,000 | [4],[5] | |
Granted, Weighted Average Price per Share | 0.13 | [1],[2],[3] | ' | |
Expired, Weighted Average Price per Share | 0.06 | 0.48 | [4],[5] | |
Stockholder warrants: | ' | ' | ||
Issued, Options and warrants | 19,644,000 | [6],[7] | ' | |
Expired, Options and warrants | 0 | ' | ||
Issued, Weighted Average Price per Share | 0.23 | [6],[7] | ' | |
Options and warrants outstanding Ending balance | 26,144,000 | 5,250,000 | ||
Options and warrants outstanding weighted average exercise price Ending balance | 0.21 | 0.18 | ||
[1] | In December 2012, David A. Grady was granted an option to purchase 200,000 shares of stock at an exercise price of $0.06 per share under the Companybs Non-qualified Independent Director Stock Option Plan. The fair value of the option was determined to be $11,656 using the Black-Scholes valuation model. At the Companybs Annual Meeting of Shareholders in June 2013, Mr. Grady was not re-elected to serve as a Director; accordingly, the option expired unexercised in accordance with its terms. | |||
[2] | Effective March 25, 2013, the Company granted an option for the purchase of 1.2 million shares of Common Stock to Michael Parrish, Chief Executive Officer of the Company, at an exercise price of $0.14 per share. The option is exercisable through May 21, 2015 and vests 50% on each of May 21, 2013 and 2014. The fair value of the option was determined to be $119,737 using the Black-Scholes valuation model. | |||
[3] | Effective May 8, 2013, the Company granted an option for the purchase of 50,000 shares of common stock to Joseph Sverapa, Vice President of Sales, at an exercise price of $0.20 per share. The option is exercisable through May 2018. The option vests 50% in May 2014 and 25% in each of May 2015 and 2016. The fair value of the option was determined to be $8,878 using the Black-Scholes valuation model. | |||
[4] | During fiscal 2007, the Company granted an option for the purchase of 200,000 shares of Common Stock to Richard W. Blackstone, an officer of the Company. The option was exercisable through October 2011, at an exercise price of $0.67 per share. The option expired unexercised during fiscal 2012. | |||
[5] | During fiscal 2007, David A Grady, was granted an option to purchase 200,000 shares of stock at an exercise price of $0.28 per share under the Companybs Non-qualified Independent Director Stock Option Plan. The option expired unexercised during fiscal 2012. | |||
[6] | On March 25, 2013, in connection with the FEI/DTE Stock Purchase Agreement, the Company issued warrants for the purchase of up to 18 million shares of Common Stock. The FEI/DTE Warrants have a term of five (5) years and may be exercised at a price of $0.20 per share. In the third through fifth years of such term, the exercise price may be satisfied by exchanging Common Stock at the current market price. The FEI/DTE Warrants may be exercised in whole or in part at any time during such term. The fair value of the warrants was determined to be $806,838 using the Black-Scholes valuation model. | |||
[7] | In connection with the 2013 Private Placement through September 30, 2013, the Company has issued warrants for the purchase of 1,644,000 million shares of Common Stock at an exercise price of $0.50 per share. The warrants expire on January 16, 2018. The fair value of the warrants was determined to be $120,983 using the Black-Scholes valuation model. |
Stock_Options_to_Purchase_Comm
Stock Options to Purchase Common Stock, Outstanding (Detail) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price per Share, minimum | $0.14 |
Exercise Price per Share, maximum | $0.22 |
Options Outstanding, Number of Shares Underlying Options Unexercised | 3,400,000 |
Options Outstanding, Weighted Average Exercise Price Per Share | $0.19 |
Options Outstanding, Weighted Average Remaining Life (Years) | '1 year 8 months 23 days |
Options Exercisable, Number of Shares Underlying Options Exercisable | 2,512,500 |
Options Exercisable, Weighted Average Exercise Price Per Share | $0.20 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Feb. 29, 2012 | Feb. 29, 2012 | |
Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | |||
Minimum | ||||
Income Taxes [Line Items] | ' | ' | ' | ' |
Current federal and state taxes payable | $192,427 | $192,427 | ' | ' |
Accrued interest on federal and state income taxes | 77,331 | 92,531 | ' | ' |
Income taxes and interest payable monthly payments | ' | ' | ' | 2,150 |
Income taxes and interest payable payment period | ' | ' | '72 months | ' |
Income taxes and interest payable balance | ' | ' | 153,514 | ' |
Operating loss carry forwards | 24,000,000 | ' | ' | ' |
Operating loss carry forwards expire | '2028 | ' | ' | ' |
Income tax examination interest expense | $15,600 | $13,050 | ' | ' |
Significant_portions_of_deferr
Significant portions of deferred tax assets and deferred tax liabilities (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Components Of Deferred Tax Assets And Liabilities [Line Items] | ' | ' |
Net operating loss carryforwards | $8,373,451 | $7,650,904 |
Basis differences in property and equipment | -2,854,183 | -2,854,183 |
Impairment of prepaid mineral royalties | 188,733 | 0 |
State income taxes | 37,233 | 37,233 |
Bonus expense | 160,280 | 480,841 |
Interest Expense | 403,469 | 384,804 |
Salary expense | 242,130 | 336,572 |
Total | 6,551,113 | 6,036,171 |
Less valuation allowance | -6,551,113 | -6,036,171 |
Deferred tax expense (benefit) | $0 | $0 |
Reconciliation_of_Reported_Amo
Reconciliation of Reported Amount of Income Tax Expense Attributable to Continuing Operations to Income Tax Expense (Detail) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ' | ' |
Income tax benefit computed at the statutory Federal income tax rate | -35.00% | -35.00% |
Decrease (increase) due to permanent differences | -16.00% | -68.00% |
Use of net operating loss carryforward | 0.00% | 18.00% |
Change in valuation allowance | 51.00% | 85.00% |
Effective income tax rate | 0.00% | 0.00% |
Components_of_Income_Tax_Expen
Components of Income Tax Expense (Detail) (USD $) | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | |||
Investments, Owned, Federal Income Tax Note [Line Items] | ' | ' | ||
Current income tax expense (benefit) | $0 | $0 | ||
Deferred income tax expense (benefit) | -514,942 | 505,556 | ||
Valuation allowance | 514,942 | -505,556 | ||
Total income tax expense (benefit) | $0 | [1] | $0 | [1] |
[1] | The Company presently has approximately $24 million of loss carryforwards for Federal income tax purposes. Based on these loss carryforwards, no income tax benefits are recognized for this segment. |
Recovered_Sheet2
Employment Contracts and Commitments - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||
Aug. 31, 2005 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Aug. 08, 2007 | Mar. 25, 2013 | Sep. 30, 2013 | Aug. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2002 | Aug. 31, 2005 | Sep. 30, 2012 | Aug. 31, 2005 | Aug. 28, 2013 | Sep. 30, 2013 | Aug. 31, 2005 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2006 | Sep. 30, 2013 | Aug. 23, 2012 | Sep. 30, 2013 | Mar. 25, 2013 | Apr. 22, 2013 | 8-May-13 | |
Board of Directors | Common Stock | Notes Receivable | Securities Exchange and Settlement Agreement | Mr Novinskie | Mr Novinskie | Mr Novinskie | Mr. Benediktson and Mr. Trynin | Mr. Benediktson and Mr. Trynin | Mr. Benediktson | Mr. Benediktson | Mr. Trynin | Mr. Trynin | Richard W. Blackstone | Richard W. Blackstone | Richard W. Blackstone | Richard W. Blackstone | Michael D. Parrish | Robert Martin | Mr. Parrish | Joseph Sverapa | Joseph Sverapa | |||||
Securities Exchange and Settlement Agreement | Blackstone Agreement | |||||||||||||||||||||||||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options awarded for purchase | ' | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' |
Employee agreement total purchase of stock | ' | ($576,000) | ' | $576,000 | ' | ' | ' | ' | ' | ' | ' | $576,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturity date | ' | ' | ' | ' | ' | ' | 31-Aug-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207,025 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities, Noncurrent | ' | 457,944 | 1,373,831 | ' | 1,373,831 | ' | ' | ' | 42,500 | ' | ' | ' | ' | ' | ' | 457,944 | ' | 133,453 | 187,403 | ' | 40,000 | ' | 245,835 | ' | ' | ' |
Options awarded exercise price | ' | $0.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.67 | ' | ' | ' | ' | ' | $0.20 |
Minimum Capital required under performance contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' |
Minimum cash required under performance contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 650,000 | ' | ' | ' | ' |
Base salary agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' |
Option granted contingent upon the attainment of certain performance benchmarks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1.2 million shares | ' | ' | ' | ' |
Per share value of option granted contingent upon the attainment of certain performance benchmark | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.14 | ' | ' | ' | ' |
Shares issuable on achievement of performance benchmarks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' |
Compensation paid | ' | 47,791 | 57,671 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation arrangement with individual shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation arrangement with individual exercise price | $0.37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from stock plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of interest receivable on subscriptions receivable | ' | 0 | 207,025 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes, loans and financing receivable, gross, noncurrent | ' | ' | -576,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders equity note, subscriptions receivable | ' | ' | 576,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares, other | ' | ' | ' | ' | ' | ' | ' | 2,169,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares released from escrow | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in accrued liabilities, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 915,887 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes receivable, Related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -444,559 | 256,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in accounts receivable, Related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,448 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description on second amendment to employment agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Blackstone Agreement provides for (1) the payments due Mr. Blackstone for services for the months of December 2012, January and February 2013; (2) a lump sum payment of $40,000 towards the outstanding balance owed Mr. Blackstone under his Employment Agreement; and (3) a provision of the pay down of the remaining balance through monthly payments over two years | ' | ' | ' | ' | ' |
Unpaid reimbursable business expenses | ' | 19,051 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee-related Liabilities, Current | ' | ' | ' | ' | ' | ' | ' | ' | 319,792 | 362,292 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued bonuses current and noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | 25,000 | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for payment of remaining balance | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation arrangement by share-based payment award, options, Grants in period, Gross | ' | 1,450,000 | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' |
Allocated share-based compensation expense | ' | 147,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | ' | 47,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employment agreement terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'On April 22, 2013, the Company entered into an employment agreement with Joseph Sverapa (“Sverapa”) as the Company’s Vice President of Sales.The agreement provides for (1) a base salary; (2) a cash incentive of 25% of gross profits on sales due to Sverapa’s activities; (3) an equity incentive arrangement; and (4) an initial grant of an option to purchase 50,000 shares of Common Stock. The equity incentive arrangement provides that Sverapa shall receive options to purchase 50,000 shares of Common Stock for each $1 million of gross profits from sales resulting from Sverapa’s activities. Sverapa shall receive options for the purchase of not more than 200,000 shares of Common Stock in respect to this equity incentive arrangement. Any such option will be exercisable for five years after the date of its grant and will vest 50% on the first anniversary of the date of such grant and 25% each on the second and third anniversary of the date of such grant. In connection with the employment agreement, the Company granted to Sverapa an option for the purchase of 50,000 shares of Common Stock at $0.20 per share. This option is exercisable through April 2018 and vests 50% on the first anniversary of the agreement and 25% each on the second and third anniversary date of the agreement. | ' |
Notes Receivable, Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -444,559 | 256,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,331 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation_Additional_Informat
Litigation - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2012 | Nov. 30, 2010 | Sep. 30, 2010 | Oct. 31, 2009 | Sep. 30, 2012 | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Description of legal action against WRC | ' | ' | ' | 'During October 2009, a working interest owner commenced an action against a subsidiary of the Company (WRC) in the District Court of Burleson County, Texas, for an accounting of expense and revenues for six wells. | ' |
Judgment sought | ' | ' | $92,921 | ' | ' |
Settlement initial payment in cash | 120,000 | 30,000 | ' | ' | ' |
Settlement initial payment in share | ' | 357,677 | ' | ' | ' |
Consideration to vendor | ' | 42,921 | ' | ' | ' |
Other accounts payable | ' | ' | ' | ' | $20,000 |
Recovered_Sheet3
Oil and Natural Gas Reserve Quantities - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | |
TEXAS | TEXAS | TEXAS | ||
Boe | Subsidiaries | Subsidiaries | ||
Boe | Subsequent Event | |||
Boe | ||||
Reserve Quantities [Line Items] | ' | ' | ' | ' |
Revenue from sale of oil | $53,094 | ' | ' | ' |
Production, Barrels of Oil Equivalents | ' | ' | 493 | 362 |
Number of barrels sold | ' | 574 | ' | ' |
Changes_in_Companys_proved_oil
Changes in Company's proved oil and gas reserves (Detail) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
bbl | bbl | |
Crude Oil and Condensate (Barrels) | ' | ' |
Proved Developed And Undeveloped Oil And Gas Reserve Quantities [Line Items] | ' | ' |
Balance Beginning of Year | 26,736 | 34,149 |
Acquisition of Reserves | 0 | 5,166 |
Disposition of Reserves | 0 | 0 |
Revision of Previous Estimates | -2,203 | -10,467 |
Production for Year | -2,575 | -2,112 |
Balance - End of Year | 21,958 | 26,736 |
Proved Developed Reserves | 21,958 | 26,736 |
Proved Undeveloped Reserves | 0 | 0 |
Natural Gas (MCF) | ' | ' |
Proved Developed And Undeveloped Oil And Gas Reserve Quantities [Line Items] | ' | ' |
Balance Beginning of Year | 434,381 | 342,862 |
Acquisition of Reserves | 0 | 26,802 |
Disposition of Reserves | 0 | 0 |
Revision of Previous Estimates | -103,212 | 99,121 |
Production for Year | -34,180 | -34,404 |
Balance - End of Year | 296,989 | 434,381 |
Proved Developed Reserves | 296,989 | 434,381 |
Proved Undeveloped Reserves | 0 | 0 |
Recovered_Sheet4
Standardized Measure of Discounted Future Net Cash Flows from Estimated Production of Proved Oil and Gas Reserves - Additional information (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' |
Operating loss carry forwards | $24 |
Standardized_Measure_of_Discou1
Standardized Measure of Discounted Future Net Cash Inflows (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' |
Future cash inflows | $3,416,397 | $4,369,426 |
Future production costs | -1,479,190 | -1,690,387 |
Future development costs | -17,888 | -9,590 |
Future income tax expense* | 0 | 0 |
Subtotal | 1,919,319 | 2,669,449 |
Discount factor at 10% | -558,317 | -877,137 |
Standardized Measure of Future Net Cash Flows | $1,361,002 | $1,792,312 |
Summary_of_Changes_in_Standard
Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' |
Balance - Beginning of Year | $1,792,312 | $2,206,666 |
Increase (decrease) in future net cash flows: | ' | ' |
Sales for the year net of related production costs | -149,341 | -174,070 |
Acquisition of reserves in place | 0 | 47,078 |
Changes in estimated future development costs | -6,246 | 9,915 |
Changes in sales and transfer prices net of production costs related to future production | -454,954 | -618,181 |
Change due to revision in quantity estimates and other | 0 | 97,237 |
Disposition of reserves in place | 0 | 0 |
Extensions and discoveries net of related costs | 0 | 0 |
Accretion of discount | 179,231 | 220,667 |
Balance - End of Year | $1,361,002 | $1,792,312 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 13, 2013 | Nov. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2013 | Nov. 30, 2012 | Sep. 30, 2012 | Nov. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 16, 2013 | Nov. 21, 2013 | Jan. 16, 2014 | Nov. 13, 2013 | Nov. 13, 2013 | Nov. 13, 2013 | Sep. 30, 2013 | |
15-Jan-16 | 15-Jan-17 | 31-Dec-16 | Carter, Porfido and Sobieski | Premium Finance Agreement | Premium Finance Agreement | Premium Finance Agreement | Premium Finance Agreement | Premium Finance Agreement | Premium Finance Agreement | Promissory Note | Promissory Note | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||
15-Jan-16 | Nov-14 | Nov-15 | Nov-16 | Promissory Note | ||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Of Warrants | $375,153 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $58,924 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt interest rate stated percentage | 7.00% | ' | ' | ' | ' | 7.95% | ' | 7.40% | 8.75% | ' | 12.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, face amount | ' | ' | ' | ' | ' | 21,821 | ' | 34,985 | 17,808 | ' | 19,652 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross | ' | ' | ' | ' | ' | 2,262 | 11,519 | ' | ' | 1,380 | 19,652 | ' | 96,847 | ' | ' | ' | ' | ' | ' | 7,719 |
Number of shares approved under stock option plan | 2,700,000 | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options awarded exercise price | $0.19 | ' | ' | ' | $0.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognize gain amount of proceeds received | 448,038 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of option vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 25.00% | 25.00% | ' |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Of Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,449 | ' | ' | ' | ' | ' |
Payments To Acquire Mineral Extraction And Crushing Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unused Borrowing Capacity, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000 | ' | ' | ' | ' |
Warrant Issued To Purchase Common Stock | ' | ' | 300,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Warrant Exercise Price | ' | ' | $0.15 | $0.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Class Of Warrant Or Right Expiration Date | ' | 15-Jan-16 | 15-Jan-17 | 31-Dec-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |