Document And Entity Information (USD $)	6 Months Ended
Document And Entity Information (USD $)	Mar. 31, 2012	May 04, 2012	May 31, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	Parametric Sound Corp
Document Type	10-Q
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		6,388,295
Entity Public Float			$ 6,790,000
Amendment Flag	false
Entity Central Index Key	0001493761
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Mar. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

Condensed Balance Sheets (USD $)	Mar. 31, 2012	Sep. 30, 2011
Current assets:
Cash	$ 7,181,744	$ 491,764
Inventories, net	460,862	273,268
Prepaid expenses and other current assets	105,085	64,971
Total current assets	7,747,691	830,003
Equipment and tooling, net	120,689	145,252
Intangible assets, net	1,340,411	148,540
Total assets	9,208,791	1,123,795
Current liabilities:
Accounts payable	357,461	164,190
Accrued liabilities	65,375	14,750
Deferred officer compensation		224,400
Due to related parties	375,000
Total current liabilities	797,836	403,340
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value, authorized 1,000,000 shares, none issued and outstanding
Common stock, $0.001 par value, authorized 50,000,000 shares, 6,223,761 and 3,903,762 shares issued and outstanding, respectively	6,224	3,904
Additional paid-in capital	12,067,454	2,886,960
Accumulated deficit	(3,662,723)	(2,170,409)
Total stockholders' equity	8,410,955	720,455
Total liabilities and stockholders' equity	$ 9,208,791	$ 1,123,795

Condensed Balance Sheets (Parentheticals) (USD $)	Mar. 31, 2012	Sep. 30, 2011
Preferred stock par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock shares authorized	1,000,000	1,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	50,000,000	50,000,000
Common stock shares issued	6,223,761	3,903,762
Common stock shares outstanding	6,223,761	3,903,762

Number of shares of common stock outstanding. Common stock represent the ownership interest in a corporation.

+ References+ Details

- Definition

Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share.

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Condensed Statements of Operations (USD $)	3 Months Ended		6 Months Ended
Condensed Statements of Operations (USD $)	Mar. 31, 2012	Mar. 31, 2011	Mar. 31, 2012	Mar. 31, 2011
Revenues:
Product sales	$ 55,824		$ 119,239
Other revenue	3,870		5,236
Total revenues	59,694		124,475
Cost of revenues	27,151		52,067
Gross profit	32,543		72,408
Operating expenses:
Selling, general and administrative	725,639	147,991	1,064,598	277,335
Research and development	267,503	152,381	498,208	278,778
Total operating expenses	993,142	300,372	1,562,806	556,113
Loss from operations	(960,599)	(300,372)	(1,490,398)	(556,113)
Other income (expense):
Interest and note discount amortization		(75,580)		(145,856)
Other	(698)	639	(1,916)	716
	(698)	(74,941)	(1,916)	(145,140)
Net loss	$ (961,297)	$ (375,313)	$ (1,492,314)	$ (701,253)
Net loss per basic and diluted common share (1) (in Dollars per share)	$ (0.22)	$ (0.12)	$ (0.36)	$ (0.22)
Weighted average common shares used to compute net loss per basic and diluted common share (1) (in Shares)	4,385,981	3,225,657	4,147,881	3,142,531

Condensed Statements of Cash Flows (USD $)	6 Months Ended
Condensed Statements of Cash Flows (USD $)	Mar. 31, 2012	Mar. 31, 2011
Cash Flows From Operating Activities:
Net loss	$ (1,492,314)	$ (701,253)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	74,827	23,195
Debt discount and deferred financing cost amortization		117,933
Warranty provision	5,053
Non-cash inventory reserve reduction	(8,201)
Share-based compensation	559,851	90,315
Impairment of patents		28,616
Changes in assets and liabilities:
Prepaid expenses and other current assets	(40,114)	(24,549)
Inventories	(179,393)	(5,952)
Accounts payable	193,271	(94,364)
Accrued liabilities	50,501	2,923
Deferred officer compensation	(84,400)	112,200
Due to related parties	125,000
Warranty settlements	(4,929)
Net cash used in operating activities	(800,848)	(450,936)
Cash Flows From Investing Activities:
Capital expenditures for equipment and tooling	(9,042)	(16,436)
Patent costs paid	(8,093)	(7,124)
Net cash used in investing activities	(17,135)	(23,560)
Cash Flows From Financing Activities:
Proceeds from sale of common stock and warrants	8,500,000	1,000,000
Offering costs paid	(1,153,287)	(43,554)
Proceeds from exercise of stock options	161,250
Net cash provided by financing activities	7,507,963	956,446
Net increase in cash and cash equivalents	6,689,980	481,950
Cash and cash equivalents, beginning of period	491,764	439,385
Cash and cash equivalents, end of period	7,181,744	921,335
Supplemental Disclosure of Non-Cash Investing and Financing Information:
Technology purchased from related party for common stock and obligation to pay $250,000	1,225,000
Stock options issues as payment for tooling obligation		20,000
Deferred officer compensation paid in common shares	140,000
Issuance of warrants to underwriter	$ 563,420

Note 1 - Description of Business and Basis of Accounting/Presentation

6 Months Ended

Mar. 31, 2012

Basis of Presentation and Significant Accounting Policies [Text Block]

Note 1 - Description of Business and Basis of Accounting/Presentation

Parametric Sound Corporation (“Parametric Sound” or the “Company”) is a technology company focused on delivering novel audio solutions. The Company’s HyperSound™ System or “HSS®” technology pioneered the practical application of parametric acoustic technology for generating audible sound along a directional ultrasonic column. The Company’s products are compatible with standard media players and beam sound to target a specific listening area without the ambient noise of traditional speakers. The creation of sound using the Company’s technology also creates a unique sound image distinct from traditional audio systems.

The Company was incorporated in Nevada on June 2, 2010 as a new, wholly owned subsidiary of LRAD Corporation in order to effect the separation and spin-off of the HSS business. On September 27, 2010, the 100% spin-off was completed and the Company became a stand-alone, independent, publicly traded company. The Company is located in Poway, California. Principal markets for the Company’s products are North America, Europe and Asia.

In March 2012, the Company completed a secondary public offering of 1,888,888 shares of its common stock at $4.50 per share (after the 1-for-5 reverse stock split described below) for gross proceeds of $8.5 million. The net proceeds of the public offering after deducting underwriting discounts and commissions and offering expenses was $7.35 million. The Company is targeting its technology for new uses in consumer markets including computers, video gaming, televisions, home audio and mobile devices.

Basis of Accounting

The accompanying unaudited interim financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying financial statements contain all adjustments necessary in order make the financial statements not misleading. The condensed balance sheet as of September 30, 2011 was derived from the Company’s most recent audited financial statements. The financial statements herein should be read in conjunction with the Company’s audited financial statements and notes thereto for the fiscal year ended September 30, 2011, included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2011. Operating results for the three and six months ended March 31, 2012 may not necessarily be indicative of results to be expected for any other interim period or for the full year.

Reverse Stock Split

On March 21, 2012, the Company effected a 1-for-5 reverse split of its common stock, which was authorized by its Board of Directors following stockholder approval at its Annual Meeting held in February 2012. The objective in effecting the reverse split was to enable the Company to obtain listing of its common stock on the NASDAQ Capital Market and complete the secondary public offering of its common shares. As a result of the reverse stock split, each five shares of common stock that were issued and outstanding or held in treasury on March 21, 2012 were automatically combined into one share. The reverse stock split reduced the number of issued and outstanding shares of common stock as of March 21, 2012 from approximately 21.5 million shares to approximately 4.3 million shares. Fractional shares were rounded up to the nearest whole number. The reverse stock split affected all of the holders of common stock uniformly. Shares of common stock underlying outstanding options and warrants were proportionately reduced and the exercise price of outstanding options and warrants was proportionately increased in accordance with the terms of the agreements governing such securities. All common stock share and per share information in the accompanying financial statements and notes hereto have been adjusted to reflect retrospective application of the reverse stock split, except for par value per share and the number of authorized shares, which were not affected by the reverse stock split.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates and assumptions include, but are not limited to, assessing the following: valuation of inventory, impairment of intangible assets, the grant date fair value of stock options and warrants, share-based compensation expense, valuation of acquired intangible assets and valuation allowance related to deferred tax assets.

Financial Instruments

At March 31, 2012, there was no difference between the carrying values of the Company’s cash equivalents and fair market value. For certain financial instruments, including accounts payable, accrued expenses and due to related party, the carrying amounts approximate fair value due to their relatively short maturities.

The Company does not have any recurring fair value measurements for financial assets and liabilities.

Reclassifications

Where necessary, the prior year’s information has been reclassified to conform to the current period’s statement presentation.

Loss Per Share

Basic loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s losses for the periods presented cause the inclusion of potential common stock instruments outstanding to be antidilutive. Stock options and warrants for a total of 1,374,888 and 1,010,000 shares of common stock were outstanding at March 31, 2012 and 2011, respectively. These securities are not included in the computation of diluted net loss per common share as their inclusion would be antidilutive.

Recent Accounting Pronouncements

The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable to the Company, it has not identified any standards that it believes merit further discussion. The Company believes that none of the new standards will have a significant impact on its financial statements.

Subsequent Events

Management has evaluated events subsequent to March 31, 2012 through the date that the accompanying interim condensed financial statements were filed with the Securities and Exchange Commission for transactions and other events which may require adjustment of and/or disclosure in such financial statements.

Note 2 - Inventories, net

6 Months Ended

Mar. 31, 2012

Inventory Disclosure [Text Block]

Note 2 - Inventories, net

Inventory is recorded at the lower of cost and net realizable value. The cost of substantially all of the Company’s inventory is determined by the weighted average cost method. Inventories consisted of the following:

	March 31, 2012			September 30, 2011
Finished goods	$	180,496		$	44,648
Work in process		7,389			23,960
Raw materials		384,140			324,025
		572,025			392,633
Reserve for obsolescence		(111,163	)		(119,365	)
	$	460,862		$	273,268

The Company relies on one supplier for film for its HSS products. The Company’s ability to manufacture its HSS products could be adversely affected if it were to lose its sole source supplier and was unable to find an alternative supplier.

The reserve for obsolescence was reduced by an $8,201 non-cash inventory reserve reduction in the six months ended March 31, 2012 through the use of previously reserved legacy HSS inventory in the production of HSS-3000 products and prototypes. The Company expects to continue to realize non-cash inventory reserve reductions through the use of such previously reserved parts.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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Note 3 - Equipment and Tooling, net

6 Months Ended

Mar. 31, 2012

Property, Plant and Equipment Disclosure [Text Block]

Note 3 - Equipment and Tooling, net

Equipment and tooling consisted of the following:

	March 31, 2012			September 30, 2011
Equipment	$	155,212		$	146,170
Tooling		124,299			124,299
		279,511			270,469
Accumulated deprcciation		(158,822	)		(125,217	)
	$	120,689		$	145,252

Depreciation expense was $33,605 and $2,731 for the six months ended March 31, 2012 and 2011, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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Note 4 - Intangible Assets, net

6 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

Note 4 - Intangible Assets, net

Intangible assets consist of the following:

	March 31, 2012			September 30, 2011
Purchased technology	$	1,225,000		$	-
Patents		180,269			166,128
Defensive patents		176,816			154,952
Licenses and trademarks		6,617			34,529
		1,588,702			355,609
Accumulated amortization		(248,291	)		(207,069	)
	$	1,340,411		$	148,540

Purchased technology consists of patent applications and intellectual property acquired from a related party (see Note 9).

Aggregate amortization expense for the Company’s intangible assets was $41,222 and $20,464 during the six months ended March 31, 2012 and 2011, respectively. In addition to amortization, the Company wrote off $28,616 of impaired patent costs during the six months ended March 31, 2011.

As of March 31, 2012 estimated intangible assets amortization expense for each of the next five fiscal years and thereafter are as follows:

Fiscal Years Ending September 30,	Estimated Amortization Expense
2012 (6 months remaining)	$	61,810
2013		113,401
2014		105,536
2015		98,573
2016		93,083
Thereafter		868,008

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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Note 5 - Deferred Compensation, Accrued and Other Related Party Liabilities

6 Months Ended

Mar. 31, 2012

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

Note 5 - Deferred Compensation, Accrued and Other Related Party Liabilities

Deferred Compensation

Effective October 1, 2010 the Company began accruing monthly compensation for the services of two of its executive officers in the aggregate amount of $17,500 per month plus an estimate for related employment taxes. In connection with the March 2012 secondary public offering, the Board of Directors approved the payment of accrued deferred compensation and related employment taxes estimated at $21,600. A total of $140,000 was paid through the issuance of 31,111 shares of common stock at $4.50 per share and the remaining deferred compensation balance of $175,000 plus the Company’s share of employment taxes was paid in cash.

Accrued Liabilities

Accrued liabilities consists of the following:

	March 31, 2012		September 30, 2011
Payroll and related	$	63,526	$	8,183
Warranty reserve		1,658		1,534
Customer deposits and other		191		5,033
	$	65,375	$	14,750

Due to Related Parties

The Company is obligated to related party Syzygy Licensing, LLC (“Syzygy”) for $250,000 due on or before June 30, 2012 as partial consideration for assignment of patents and intellectual property (see Note 9). The Company was also obligated to pay its Executive Chairman $125,000 for services through completion of the March 2012 secondary public offering (see Note 9).

Note 6 - Share-Based Compensation

6 Months Ended

Mar. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 6 - Share-Based Compensation

On September 27, 2010 the Company adopted the 2010 Stock Option Plan (the “2010 Plan”). The 2010 Plan authorized the grant of options to purchase up to 600,000 shares of the Company’s common stock to directors, officers, employees and consultants. On December 29, 2011 the Company adopted, and shareholders subsequently approved, the 2012 Stock Option Plan (the “2012 Plan”) providing authority to grant options on 253,000 shares of common stock remaining available for issuance under the 2010 Plan and new authority for an additional 600,000 shares of common stock. The 2012 Plan replaced the 2010 Plan but awards previously granted under the 2010 Plan remain outstanding in accordance with their terms. Any outstanding option grants that expire or terminate, other than through exercise or share settlement, under the 2010 Plan will also become eligible for grant under the 2012 Plan.

The Company uses the Black-Scholes option pricing model to determine the estimated fair value of each option as of its grant date or any revaluation date, and the grant date fair value is recognized as non-cash based compensation expense over the expected vesting term of options. The inputs to the Black-Scholes option pricing model are subjective and generally require significant analysis and judgment to develop. The following table sets forth the significant weighted-average assumptions used in the Black-Scholes model and the calculation of stock-based compensation cost (annualized percentages):

	Six Months Ended March 31,
	2012	2011
Volatility	90%	100%
Risk-free interest rate	1.00%	1.13%
Forfeiture rate	0.00%	0.00%
Dividend yield	0.00%	0.00%
Expected life in years	4.67	4.75
Weighted average fair value of options granted	$3.00	$1.20

The Company’s stock commenced trading in October 2010 and management estimated its expected volatility for fiscal 2011 by reviewing the historical volatility of the common stock of a group of selected peer public companies that operate in similar industries and are similar in terms of stage of development or size and then projecting this information toward future expected results. Judgment was used in selecting these companies, as well as in evaluating the available historical volatility for these peer companies. In the current fiscal year the Company commenced using its historical volatility which did not vary significantly from prior estimates. The risk-free interest rate is based on rates published by the Federal Reserve Board. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. The Company has a small number of option grants and limited exercise history and accordingly has for all new option grants applied the simplified method prescribed by SEC Staff Accounting Bulletin 110, Share-Based Payment: Certain Assumptions Used in Valuation Methods - Expected Term, to estimate expected life (computed as vesting term plus contractual term divided by two). An estimated forfeiture rate was determined to be zero as the number of grantees is limited and all are currently expected to serve in their capacities during the vesting period. Forfeitures are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates or if the Company updates its estimated forfeiture rate. Such amounts, if any, will be recorded as a cumulative adjustment in the period in which the estimate is changed.

The Company recorded share-based compensation in its statements of operations for the relevant periods as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2012		2011		2012		2011
Selling, general and administrative	$	284,298	$	23,605	$	436,589	$	43,199
Research and development		79,251		27,735		123,262		47,116
	$	363,549	$	51,340	$	559,851	$	90,315

As of March 31, 2012 total estimated compensation cost relating to stock options granted but not yet vested was $1,538,500. This cost is expected to be recognized over the weighted average period of 1.5 years.

The following table summarizes stock option activity for the period:

	Number of Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value (2)
Outstanding October 1, 2011		347,000		$	1.80
Granted		731,000		$	3.54
Canceled/expired		(112,500	)	$	4.20
Exercised		(100,000	)	$	1.61
Outstanding March 31, 2012 (1)		865,500		$	3.05	$	1,267,925
Exercisable March 31, 2012		300,469		$	2.55	$	591,461

(1)

Options outstanding are exercisable at prices ranging from $1.50 to $6.00 and expire in 2015 to 2017.

(2)

Aggregate intrinsic value is based on the closing price of our common stock on March 31, 2012 of $4.50.

On April 3, 2012 the Board of Directors granted the Company’s Executive Chairman a new stock option on 175,000 shares of common stock vesting on future performance and modified vesting terms on 410,000 options previously granted in December 2011 (see Note 9). The Company also granted options on 16,000 shares of common stock, subject to future vesting, to employees.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

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+ Details

Note 7 - Stockholders' Equity

6 Months Ended

Mar. 31, 2012

Income Tax Disclosure [Text Block]

Note 7 - Stockholders’ Equity

Summary

The following table summarizes stockholders’ equity activity for the six months ended March 31, 2012:

	Common Stock				Additional Paid-In		Accumulated			Total Stockholders'
	Shares		Amount		Capital		Deficit			Equity
Balance at September 30, 2011		3,903,784	$	3,904	$	2,886,960	$	(2,170,409	)	$	720,455
Common shares issued upon exercise of stock options by officers and directors		100,000		100		161,150		-			161,250
Common shares issued for assignment of patents and intellectual property from related party (Note 9)		300,000		300		974,700		-			975,000
Issuance of common shares at $4.50 per share and underwriter warrants in secondary public offering, net of issuance costs of $1,716,707		1,888,888		1,889		7,344,824		-			7,346,713
Common shares issued to officers for deferred compensation		31,111		31		139,969		-			140,000
Share-based compensation expense		-		-		559,851		-			559,851
Net loss for the period		-		-		-		(1,492,314	)		(1,492,314	)
Balance at March 31, 2012		6,223,783	$	6,224	$	12,067,454	$	(3,662,723	)	$	8,410,955

Secondary Public Offering

In March 2012 the Company completed a secondary public offering of 1,888,888 shares of common stock, at a price of $4.50 per share, for gross proceeds of $8.5 million. The net proceeds of the offering after deducting underwriting discounts and commissions and offering expenses was $7.35 million. In connection with the offering, the Company granted the underwriter warrants to purchase 188,888 shares of common stock at an exercise price of $5.625 per share. These warrants expire on March 21, 2017. The estimated fair value of the warrants of $563,420, as determined using the Black-Scholes methodology (assuming estimated volatility of 91%, risk-free interest rate of 0.89%, expected dividend yield of 0.0%), was recorded as both an increase to additional paid in capital and as a non-cash issuance cost of the March 2012 financing transaction. (See Note 10.)

Stock Purchase Warrants

The following table summarizes information on warrant activity during the six months ended March 31, 2012:

	Number		Average Purchase Price Per Share
Shares purchasable under outstanding warrants at October 1, 2011		320,000	$	3.75
Stock purchase warrants issued		188,888	$	5.625
Stock purchase warrants exercised		-
Shares purchasable under outstanding warrants at March 31, 2012		508,888	$	4.45

The Company has outstanding share warrants as of March 31, 2012, as follows:

Description	Number of Common Shares		Exercise Price Per Share		Expiration Date
Stock Purchase Warrants (1)		320,000	$	3.75	February 22, 2016
Stock Purchase Warrants		188,888	$	5.625	March 21, 2017

(1)

Held by related parties.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Note 8 - Commitments and Contingencies

6 Months Ended

Mar. 31, 2012

Commitments and Contingencies Disclosure [Text Block]

Note 8 - Commitments and Contingencies

Facility Leases

Commencing June 1, 2011 the Company leased 3,498 square feet of improved office, assembly and warehouse space in Poway, California for a period of 25 months terminating June 30, 2013. The gross monthly base rent is $3,498 through May 31, 2012, thereafter increasing to $3,603 per month for the term of the lease, subject to certain future adjustments. The Company’s President and CEO, Mr. Norris, executed a personal guarantee of the lease without compensation.

Employment Agreement

The Company is committed pursuant to an employment agreement entered into in April 2012 with its Executive Chairman as described in Note 9.

- Definition

The entire disclosure for commitments and contingencies.

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+ Details

Note 9 - Related Party Transactions

6 Months Ended

Mar. 31, 2012

Note 9 - Related Party Transactions

On December 29, 2011 the Company entered into an Assignment Agreement (“Assignment”) with Syzygy whereupon the Company acquired all technology and intellectual property covered by the License and Royalty Agreement (“License”) dated September 27, 2010 previously executed by the parties. The Assignment terminated the License and all future royalty obligations. Pending patent applications comprising part of the intellectual property were assigned to the Company. Syzygy is owned by President, Elwood G. Norris (65%) and Chief Financial Officer, Treasurer and Secretary, James A. Barnes (35%).

In consideration for the Assignment the Company issued 300,000 shares of common stock to Syzygy (valued at $975,000 based on the closing price of the Company’s stock of $3.25) and agreed to pay $250,000 by June 30, 2012. The Company valued the technology in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-30-30, Intangible - Goodwill and Other - General Intangibles Other than Goodwill - Initial Measurement, and ASC 805-50-30, Business Combinations – Related Issues – Initial Measurement, which require that intangible assets acquired through a transaction that is not a business combination shall be measured based on the cash consideration paid plus either the fair value of the non-cash consideration given or the fair value of the assets acquired, whichever is more clearly evident. As the Company has only recently begun selling products based on the acquired technology and intellectual property, management determined that the fair value of the common stock issued was more clearly evident, and accordingly, recorded the acquired intangible assets at the aggregate amount of $1,225,000. The Company incurred $3,194 of royalties for the three months ended December 31, 2011 prior to termination of the License and owed Syzygy an aggregate of $7,028 in royalties which were paid in April 2012.

On December 29, 2011 the Company appointed Kenneth F. Potashner as a director and engaged him as a consultant and advisor. Mr. Potashner was granted a five-year option on 10,000 shares of common stock with an exercise price of $3.25 per share vesting quarterly commencing December 31, 2011 for his role as a director of the Company. In connection with his consultancy agreement, he was granted a stock option on 410,000 shares of the Company’s common stock with an exercise price of $3.25 per share and vesting 10% at grant and the balance over eight quarters commencing March 31, 2012. On March 5, 2012 Mr. Potashner was appointed as the Company’s Executive Chairman and the Company agreed to pay him $125,000 for services through completion of the March 2012 secondary public offering and agreed in principal to terms of employment to commence upon completion of the public offering and the signing of a definitive employment agreement.

In April 2012 the Company paid the $125,000 for prior services and entered into a five-year employment agreement with Mr. Potashner to serve as Executive Chairman. Under the terms of the agreement the Company may be obligated to pay a severance payment of one year's base salary plus targeted bonus if the employee is terminated by the Company without cause. The Company also granted a stock option on 175,000 shares of common stock exercisable at $4.50 per share until April 3, 2017 vesting on performance targets established by the Board of Directors. The vesting of the previously granted option on 410,000 shares was modified with 195,000 shares being vested, 195,000 shares vesting equally over eight calendar quarters commencing March 31, 2012 and 20,000 shares on performance targets established by the Board of Directors.

See Notes 4, 5, 6, 7 and 10 for additional related party transactions and information.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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+ Details

Note 10 - Subsequent Events

6 Months Ended

Mar. 31, 2012

Subsequent Events [Text Block]

Note 10 - Subsequent Events

On May 3, 2012 the underwriter of the Company’s secondary public offering (see Note 7) exercised on its over-allotment option to purchase an additional 164,512 shares of the Company’s common stock at a price of $4.50 per share, for gross proceeds of $740,304. The net proceeds of the over-allotment after deducting underwriting discounts and commissions and estimated offering expenses are expected to be approximately $660,000. In connection with the over-allotment exercise the underwriter was issued a warrant (the “Warrant”) to purchase 16,451 shares of common stock. The Warrant is exercisable from September 17, 2012 to March 21, 2017 at an exercise price of $5.625 per share.

On May 1, 2012 the Company adopted a Cash Bonus Plan for the period April 1, 2012 to December 31, 2012, pursuant to which each executive officer and certain other officers, consultants and employees designated by the Board of Directors are eligible to receive a target bonus equal to a percentage of the executive officer’s or other individual’s annualized base compensation if applicable performance objectives are met. The performance objectives are based 25% upon the Company achieving minimum revenue performance targets during the performance period, 25% upon the Company achieving minimum licensing targets during the performance period, 25% based on the Company achieving during the performance period technology development targets established by the Board of Directors and 25% on the Company or its licensees or partners achieving new HSS technology product milestones established by the Board of Directors during the performance period. The performance objectives include both objective determinations and subjective determinations to be made by the Board of Directors. The maximum bonus percentage for each participant is 50% of his or her annual base compensation except for the Company’s Executive Chairman the maximum bonus percentage is 60% of his base compensation. All computations are adjusted to 75% to reflect the nine-month bonus period for the period April 1, 2012 to December 31, 2012 and payments of earned bonuses are deferred if certain cash generation targets are not met.

See Notes 6 and 9 for information on certain additional subsequent events.